Document:

<PAGE>

                                                                     Exhibit 4.4

                                                                  EXECUTION COPY

                                  SENIOR NOTE
                          PLEDGE AND ESCROW AGREEMENT

                                 by and among

                        AMERISOURCEBERGEN CORPORATION,
                        AMERISOURCE HEALTH CORPORATION,
                         BERGEN BRUNSWIG CORPORATION,

                    CHASE MANHATTAN BANK AND TRUST COMPANY,
                             NATIONAL ASSOCIATION,
                                  as Trustee,

                                      and

                    CHASE MANHATTAN BANK AND TRUST COMPANY,
                             NATIONAL ASSOCIATION,
                            as Special Escrow Agent

                          Dated as of August 14, 2001
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                                  SENIOR NOTE
                          PLEDGE AND ESCROW AGREEMENT

          THIS SENIOR NOTE PLEDGE AND ESCROW AGREEMENT (this "Agreement"), dated
                                                              ---------
as of August 14, 2001, is by and among AmerisourceBergen Corporation (the
"Company"), AmeriSource Health Corporation ("AmeriSource"), Bergen Brunswig
 -------                                     -----------
Corporation ("Bergen"), Chase Manhattan Bank and Trust Company, National
              ------
Association as trustee under the Indenture referred to below (the "Trustee"),
                                                                   -------
and Chase Manhattan Bank and Trust Company, National Association in its capacity
as special escrow agent (the "Special Escrow Agent").
                              --------------------

                                    RECITALS

          A.  The Notes.  Pursuant to that certain Indenture, dated as of August
              ---------
14, 2001, by and between the Company and the Trustee (as amended, supplemented,
restated or otherwise modified from time to time, the "Indenture"), the Company
                                                       ---------
will issue $500,000,000.00 in aggregate principal amount of 8 1/8% Senior Notes
due 2008 (the "Notes").  Simultaneously with the issuance of the Notes on August
               -----
14, 2001 (the "Deposit Time"):  (i) all of the net proceeds from the sale of the
               ------------
Notes and (ii) an additional amount of $20,894,038.07 in cash or Government
Securities (as defined herein) (the "Additional Escrow Amount" and,
                                     ------------------------
collectively, the "Escrow Funds") shall be deposited by the Company, AmeriSource
                   ------------
and Bergen, jointly and severally, into a segregated trust account with the
Special Escrow Agent at its office at San Francisco, California, Account No.
160594.1, in the name of Chase Manhattan Bank and Trust Company, National
Association, as Trustee, "Collateral Account of Chase Manhattan Bank and Trust
Company, National Association, as Trustee, for AmerisourceBergen Corporation
Senior Note Holders" (together with any sub-accounts established by the Trustee
or Special Escrow Agent in connection therewith, the "Special Escrow Account").
                                                      ----------------------
The Special Escrow Account and all balances and investments from time to time
therein shall be under the sole dominion and control of the Trustee.  Subject to
the terms and conditions hereinafter set forth, the funds on deposit from time
to time in the Special Escrow Account shall be invested as directed by the
Company or, in the absence of such directions, the Trustee.  Capitalized terms
used but not defined herein shall have the meanings assigned to them in the
Indenture.

          B.  Purpose.  The parties hereto desire to set forth their agreement
              -------
with regard to the administration of the Special Escrow Account, the creation of
a security interest in the Collateral (as defined herein) and the conditions
upon which funds will be released from the Special Escrow Account.

                                   AGREEMENT

          NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     1.   Security Interest.
          -----------------

               1.1  Pledge and Assignment.  The Company hereby irrevocably
                    ---------------------
pledges, assigns and sets over to the Trustee, and grants to the Trustee, for
the ratable benefit of the Holders of the Notes, a continuing security interest
in all of the Company's right, title and
<PAGE>

interest in and to all of the following (whether consisting of investment
securities, book-entry securities or other securities, security entitlements,
financial assets or other investment property, accounts, general intangibles,
instruments or documents, securities accounts, deposit accounts or other bank,
trust or cash collateral accounts, or other property, assets or rights) whether
now owned or existing or hereafter acquired or created (collectively, the
"Collateral"):
 ----------

          (a)  this Agreement and the escrow created hereunder;

          (b)  the Special Escrow Account;

          (c)  all funds, securities, security entitlements and investment
     property from time to time held in or credited to the Special Escrow
     Account, including, without limitation, the Escrow Funds and the Government
     Securities (as defined in Section 2.1) and all certificates and
     instruments, if any, from time to time, representing or evidencing the
     Special Escrow Account, the Escrow Funds or any of the foregoing, whether
     the same shall constitute certificated securities, uncertificated
     securities, investment property, financial assets, instruments, general
     intangibles or otherwise;

          (d)  all promissory notes, certificates of deposit, deposit accounts,
     checks, securities, security entitlements, investment property and
     instruments from time to time hereafter delivered to or otherwise possessed
     by the Trustee or the Special Escrow Agent in substitution for or in
     addition to any or all of the then existing Collateral;

          (e)  all interest, dividends, cash, instruments, securities and other
     property from time to time received, receivable or otherwise distributed in
     respect of or in exchange for any or all of the then existing Collateral;
     and

          (f)  all proceeds of the foregoing including, without limitation, all
     cash proceeds and all non-cash proceeds thereof

(all of the property described in the preceding clauses (c), (d) and (e) and all
proceeds thereof, collectively, the "Securities Collateral").
                                     ---------------------

          The Company shall have no right to remove or withdraw any Securities
Collateral from the Special Escrow Account without the prior written consent of
the Trustee.  If at any time the Special Escrow Agent shall receive any
entitlement order from the Trustee (including, without limitation, any order
directing the sale, transfer or redemption of any Securities Collateral), the
Special Escrow Agent shall comply with such entitlement order, without the need
for any consent by the Company or any other Person.

          The Trustee hereby appoints the Special Escrow Agent to act as the
Trustee's agent, on behalf of the Holders of the Notes, for purposes of
perfecting the foregoing pledge, assignment and security interest in the
Collateral, and the Special Escrow Agent hereby accepts such appointment.  For
so long as the foregoing pledge, assignment and security interest remains in
effect, the Special Escrow Agent hereby waives any right of setoff or banker's
lien that it, in its individual capacity or in its capacity as an agent for
Persons other than the Trustee and the Holders of the Notes, may have with
respect to any or all of the Collateral.

                                       2
<PAGE>

          1.2  Secured Obligations.  This Agreement secures the due and punctual
               -------------------
payment and performance of all obligations and indebtedness of the Company,
whether now or hereafter existing, under the Notes, the Indenture and this
Agreement, including, without limitation, interest accrued thereon after the
commencement of a bankruptcy, reorganization or similar proceeding involving the
Company to the extent permitted by applicable law (collectively, the "Secured
                                                                      -------
Obligations").
-----------

          1.3  Establishment of Special Escrow Account; Delivery of Collateral.
               ----------------------------------------------------------------

          (a)  Prior to the Deposit Time, the Special Escrow Agent shall
establish the Special Escrow Account at its office at San Francisco, California
as a "securities account" within the meaning of Article 8 of Uniform Commercial
      ------------------
Code (the "UCC") that is segregated from all other accounts of any kind. The
           ---
Special Escrow Agent will treat all property held by it in the Special Escrow
Account as "financial assets" under Section 8-501(a) (or successor section) of
            ----------------
the UCC.

          (b)  All certificates or instruments, if any, representing or
evidencing all or any portion of the Collateral shall be held by the Special
Escrow Agent on behalf of the Trustee pursuant hereto and shall be in suitable
form for transfer by delivery, or shall be accompanied by duly executed
instruments of transfer or assignments in blank, all in form and substance
reasonably satisfactory to the Trustee, and all in form and substance sufficient
to convey a valid security interest in such Collateral to the Trustee.

          (c)  The Special Escrow Agent shall take all steps necessary to ensure
that the Trustee is the holder or entitlement holder (as the case may be) of all
of the Collateral and that (i) either the Trustee for the ratable benefit of the
Holders of the Notes or, to the extent required by applicable law, the Special
Escrow Agent, for the benefit of the Trustee and the ratable benefit of the
Holders of the Notes, is the holder or entitlement holder of all Government
Securities and other uncertificated securities on the books of the applicable
Federal Reserve Bank or other applicable securities intermediary, and (ii) all
Securities Collateral is credited to the Special Escrow Account in the Trustee's
name on the Special Escrow Agent's books.

          (d)  Subject to the other terms and conditions of this Agreement, (i)
all Securities Collateral held by the Special Escrow Agent pursuant to this
Agreement shall be held in the Special Escrow Account which shall be subject to
the exclusive dominion and control of the Trustee for the benefit of the Trustee
and the ratable benefit of the Holders of the Notes, and (ii) the Special Escrow
Account and all Securities Collateral from time to time therein shall remain
segregated from all other funds or other property otherwise held by the Trustee
or the Special Escrow Agent, as applicable. All proceeds of the Escrow Funds and
other Securities Collateral, and all cash proceeds thereof, shall remain on
deposit in the Special Escrow Account until withdrawn in accordance with this
Agreement.

          1.4  Further Assurances.  Prior to, contemporaneously herewith, and
               ------------------
at any time and from time to time hereafter, the Company shall, at the Company's
expense, execute and deliver to the Trustee or its designee such other
instruments and documents, and take all further action as the Trustee deems
reasonably necessary or advisable or may reasonably request to confirm or
perfect the security interest of the Trustee granted or purported to be granted
hereby

                                       3
<PAGE>

or to enable the Trustee to exercise and enforce its rights and remedies
hereunder with respect to any Collateral, and the Company shall take all
necessary action to preserve and protect the security interest created hereby as
a first priority, perfected lien and encumbrance upon the Collateral.

          1.5  Maintaining the Special Escrow Account.  So long as this
               --------------------------------------
Agreement is in full force and effect:

          (a)  the Company shall establish and maintain the Special Escrow
     Account with the Special Escrow Agent in accordance with Section 1.3
     hereof, and the Special Escrow Account shall at all times remain under the
     exclusive dominion and control of the Trustee; and

          (b)  notwithstanding any term or condition to the contrary in any
     other agreement relating to the Special Escrow Account, except as otherwise
     provided by the provisions of Article 3 hereof, no amount (including,
     without limitation, any Escrow Funds or interest on or other proceeds of
     the Escrow Funds or on any investment property held in the Special Escrow
     Account) shall be paid or released to or for the account of, or withdrawn
     by or for the account of, the Company or any other Person other than the
     Trustee or its designee from the Special Escrow Account (other than
     customary brokerage or similar fees, discounts or commissions payable in
     connection with investments of funds pursuant to Section 2.1 hereof).

          1.6  Transfers and Other Liens.  The Company agrees that it will not
               -------------------------
(i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or
grant any option with respect to, any of the Collateral or (ii) create or permit
to exist any Lien upon or with respect to any of the Collateral, except for the
security interest under this Agreement.

          1.7  Attorneys-in-Fact.  The Company hereby irrevocably appoints each
               -----------------
of the Trustee and the Special Escrow Agent as the Company's attorney-in-fact,
coupled with an interest, with full authority in the place and stead of the
Company and in the name of the Company or otherwise, from time to time in the
Trustee's or the Special Escrow Agent's discretion to take any action and to
execute any instrument which the Trustee or the Special Escrow Agent may deem
necessary or advisable to accomplish the purposes of this Agreement, including,
without limitation, to receive, endorse and collect all instruments made payable
to the Company representing any interest payment, dividend or other distribution
in respect of the Collateral or any part thereof and to give full discharge for
the same, and the expenses of the Trustee and the Special Escrow Agent incurred
in connection therewith shall be payable by the Company.

          1.8  Trustee or Special Escrow Agent May Perform.  Without limiting
               -------------------------------------------
the authority granted under Section 1.7 hereof and except with respect to the
failure of the Company to deliver investment instructions, which shall be
governed by the second paragraph of Section 2.1 hereof, if the Company fails to
perform any agreement contained herein, the Trustee or the Special Escrow Agent
may, but shall not be obligated to, itself perform, or cause performance of,
such agreement, and the expenses of the Trustee or the Special Escrow Agent
incurred in connection therewith shall be payable by the Company and shall be
secured by the Collateral.

                                       4
<PAGE>

          1.9  Financing Statements.  In addition to, and not in limitation of,
               --------------------
any other provision of this Agreement, the Company hereby authorizes the Trustee
to file one or more UCC financing statements with or (to the fullest extent
permitted by applicable law) without the Company's signature, describing the
Collateral and naming the Company, as debtor, and the Trustee, as secured party,
for purposes of perfecting the Trustee's security interest in all or any portion
of the Collateral. In connection therewith: (a) the Company hereby represents
and warrants to the Trustee that (i) the Company is incorporated under the laws
of the State of Delaware, and (ii) the Company's chief executive office is
located at 1300 Morris Drive, Suite 100, Chesterbrook, Pennsylvania 19087-5594,
which is in Chester County in the Commonwealth of Pennsylvania, and (b) the
Company hereby covenants and agrees that it will not change its name, identity
or structure (within the meaning of Article 9 of any applicable enactment of the
UCC) or, at any time while the location of its chief executive office remains
relevant to perfection of the Trustee's security interest in any portion of the
Collateral, relocate its chief executive office unless it shall have: (A) given
the Trustee at least 5 business days' prior notice thereof and (B) prior to
effectiveness of such change, delivered to the Trustee all financing statements,
instruments and other documents reasonably requested by the Trustee in
connection with such change or relocation.

     2. Investment and Liquidation of Funds in Special Escrow Account.  Funds
        -------------------------------------------------------------
deposited in the Special Escrow Account shall be invested and reinvested by the
Special Escrow Agent on the following terms and conditions:

          2.1  Permitted Investments.  Prior to the earliest to occur of (i)
               ---------------------
an event described in Section 3.4(a) hereof, (ii) an event described in Section
3.4(b) hereof, or (iii) an Event of Default under the Indenture, the Company
hereby directs the Special Escrow Agent to invest all funds on deposit in the
Special Escrow Account in the name of the Trustee solely in direct obligations
of, or obligations guaranteed by, the United States of America, and the payment
for which the United States pledges its full faith and credit ("Government
                                                                ----------
Securities") maturing not later than twelve months after the date of acquisition
----------
and the Special Escrow Agent hereby agrees to make such investments in the name
of the Trustee.

          (a)  Notwithstanding the foregoing, if, on or prior to 12:00 noon (New
York City time) on the 85th day after the Deposit Time, the Trustee receives
from the chief financial officer of the Company a certificate substantially in
the form of Exhibit A hereto (a "Preliminary Release Certificate") that:
            ---------            -------------------------------

          (i) sets forth the date (the "Merger Closing Date") for the
                                        -------------------
          consummation of the merger (the "Merger") contemplated by the
                                           ------
          Agreement and Plan of Merger among AABB Corporation (now named
          AmerisourceBergen Corporation), AmeriSource, Bergen, A-Sub Acquisition
          Corp. and B-Sub Acquisition Corp., dated March 16, 2001 (the "Merger
                                                                        ------
          Agreement"), which shall not be earlier than two (2) Business Days
          ---------
          after the Special Escrow Agent's receipt of such Preliminary Release
          Certificate by 12:00 noon (New York City time);

          (ii) states that the Company reasonably believes that the Merger will
          be consummated on the specified Merger Closing Date;

                                       5
<PAGE>

          (iii) sets forth the date (the "Supplemental Indenture Execution
                                          --------------------------------
          Date") for the execution and delivery of the Notation of Guarantee (as
          ----
          hereinafter defined) and the Supplemental Indenture (as hereinafter
          defined)  by each of the guarantors (the "Guarantors") named in the
                                                    ----------
          Purchase Agreement dated August 9, 2001 among the Company,
          AmeriSource, Bergen, and the several Initial Purchasers named therein
          (the "Purchase Agreement");
                ------------------

          (iv) states that the Company reasonably believes that the Notation of
          Guarantee and the Supplemental Indenture will be executed and
          delivered by each of the Guarantors on the Supplemental Indenture
          Execution Date; and

          (v) directs the liquidation of all of the Government Securities in
          accordance with Section 3.1 hereof,

the Company may thereafter direct the Special Escrow Agent to invest the funds
from time to time in the Special Escrow Account solely in the Government
Securities maturing on or before 12:00 noon (New York City time) on the later to
occur of the Merger Closing Date or the Supplemental Indenture Execution Date
(such later date, the "Release Date"); provided, however, that if the Company
                       ------------    --------  -------
fails to give written investment instructions to the Special Escrow Agent by
12:00 noon (New York City time) on any Business Day prior to the Release Date on
which there is uninvested cash and/or maturing Government Securities in the
Special Escrow Account, the Trustee is hereby authorized to instruct the Special
Escrow Agent in writing to invest any such amounts in the Government Securities,
subject to the same maturity constraints as were imposed on the Company.  Any
failure by the Company or the Trustee to give such investment instructions to
the Special Escrow Agent shall not constitute a default or an event of default
hereunder or under the Indenture.

          2.2  Interest.  All interest earned on funds invested in Government
               --------
Securities shall be held in the Special Escrow Account and reinvested in
accordance with the terms hereof and will be subject to the security interest
granted hereunder to the Trustee.

          2.3  Limitation of Trustee's and Special Escrow Agent's Liability.
               ------------------------------------------------------------
In no event shall the Trustee or the Special Escrow Agent have any liability to
the Company or any other Person for investing the funds from time to time in the
Special Escrow Account in accordance with the provisions of this Article 2,
regardless of whether greater income or a higher yield could have been obtained
had the Special Escrow Agent invested such funds in different Government
Securities, or for any loss associated with the sale or liquidation of the
Government Securities in accordance with the terms of this Agreement.

                                       6
<PAGE>

     3. Disposition of Collateral Upon Certain Events.
        ---------------------------------------------

          3.1  Liquidation of Securities Collateral.  If, on or prior to 12:00
               ------------------------------------
noon (New York City time) on the 90th day after the Deposit Time, the chief
financial officer of the Company delivers to the Trustee a Preliminary Release
Certificate meeting the requirments of Section 2.1(c) hereof, the Trustee shall
direct the Special Escrow Agent in writing to liquidate all of the Securities
Collateral by not later than 12:00 noon (New York City time) on the second (2nd)
Business Day after the Trustee's receipt of such Preliminary Release Certificate
and to retain the liquidation proceeds thereof in the Special Escrow Account.

          3.2  Release of Funds on the Release Date.  On the Release Date, the
               ------------------------------------
chief financial officer of the Company shall deliver to the Trustee a
certificate substantially in the form of Exhibit B hereto (a "Final Release
                                         ---------            -------------
Certificate") stating that:
-----------

          (a)  all conditions precedent to the consummation of the Merger have
          been satisfied or waived;

          (b)  the Company has consummated the Merger on substantially the terms
          described in the offering circular, dated as of August 9, 2001
          relating to the offering of the Notes by the Company (the "Offering
                                                                     --------
          Circular");
          --------

          (c)  each of the Guarantors has executed a notation of guarantee, in
          the form attached to the Indenture (the "Notation of Guarantee"), and
                                                   ---------------------
          a supplemental indenture, in the form attached to the Indenture (the
          "Supplemental Indenture"), pursuant to which it has become a guarantor
          -----------------------
          of the Notes;

          (d)  each of the Guarantors has executed a copy of the Registration
          Rights Agreement (as defined in the Purchase Agreement) and delivered
          the same to the Initial Purchasers;

          (e)  one or more Opinions of Counsel have been delivered to the
          Trustee to the effect that the Notation of Guarantee and the
          Supplemental Indenture have been duly executed and delivered by each
          of the Guarantors on Schedule I hereto and constitute the valid and
          binding agreement of each of them, enforceable in accordance with its
          terms, all subject to customary and reasonable assumptions and in form
          and substance satisfactory to the Trustee,

and instructing the Trustee to direct the Special Escrow Agent to release the
Securities Collateral in accordance with this Section 3.2.  Upon receipt of the
foregoing and in good faith reliance thereon, the Trustee shall direct the
Special Escrow Agent to transfer the funds then on deposit in the Special Escrow
Account to the Company or its order in accordance with the terms of such Final
Release Certificate in immediately available funds.

          3.3  Termination of Security Interest.  Following receipt by the
               --------------------------------
Trustee of a Final Release Certificate in accordance with Section 3.2, the
Trustee shall execute and deliver to the Company and the Special Escrow Agent a
termination of security interest in the form of Exhibit C hereto effective at
                                                ---------
the time on the Release Date of transfer of the funds described in the Final
Release Certificate (the "Release Time"), and the Trustee and the Special Escrow
                          ------------

                                       7
<PAGE>

Agent shall take all further actions, if any, that are reasonably deemed
necessary by the Company to terminate the Trustee's security interest in the
Collateral as of the Release Time. At the Release Time, all funds transferred by
the Special Escrow Agent in accordance with the provisions of Section 3.2 hereof
shall automatically be deemed to be free and clear of the Trustee's security
interest provided herein.

          3.4  Special Mandatory Redemption.  If (a) the Trustee receives
               ----------------------------
written notice from the Company that the Merger Agreement has terminated or
expired without consummation of the Merger, or (b) the Trustee has not received
a Final Release Certificate meeting the requirements of Section 3.2 hereof on or
prior to the 90th day after the Deposit Time, the Trustee shall direct the
Special Escrow Agent to: (i) promptly liquidate all of the Securities Collateral
to obtain net cash proceeds by no later than 12:00 noon (New York City time) on
the date that is no less than five (5) Business Days and no more than twenty
(20) Business Days after the date specified in clause (a) or (b) above, as
applicable, and (ii) transfer such dollar amount to the Paying Agent to be used
to redeem the Notes in accordance with Section 3.08 of the Indenture, and the
Special Escrow Agent hereby agrees to liquidate such investments and to make
such funds transfer.

     4. Remedies upon Default.  If (a) any Event of Default shall have occurred
        ---------------------
and be continuing under Section 6.01 of the Indenture, (b) any other Event of
Default shall have occurred and be continuing that results in the acceleration
of the payment of principal, interest, premium, if any, and Liquidated Damages,
if any, pursuant to the terms of the Indenture or (c) any material breach or
violation of any representation, warranty or agreement contained in this
Agreement shall have occurred:

          (i)  The Trustee may, without notice to the Company except as required
     by applicable law and at any time or from time to time, direct the Special
     Escrow Agent to liquidate all Collateral and transfer all proceeds thereof
     to the Paying Agent to apply such funds in accordance with Section 6.02 of
     the Indenture.

          (ii) The Trustee (and/or the Special Escrow Agent on its behalf) may
     also, in addition to the other rights and remedies provided for herein,
     exercise in respect of the Collateral all the rights and remedies of a
     secured party upon default under the UCC in effect at that time in the
     State of New York (the "New York UCC") (whether or not the New York UCC
                             ------------
     applies to the affected Collateral), and may also, without notice except as
     specified below, sell the Collateral or any part thereof in one or more
     parcels at public or private sales, at any of the Trustee's or the Special
     Escrow Agent's offices or elsewhere, for cash, on credit or for future
     delivery, and upon such other terms as the Trustee may deem commercially
     reasonable. The Company agrees that, to the extent notice of sale shall be
     required by law, at least ten (10) days' notice to the Company of the time
     and place of any public sale or the time after which any private sale is to
     be made shall constitute reasonable notification. The Trustee and the
     Special Escrow Agent shall not be obligated to make any sale of Collateral
     regardless of notice of sale having been given. The Trustee and/or the
     Special Escrow Agent on its behalf may adjourn any public or private sale
     from time to time by announcement at the time and place fixed therefor, and
     such sale may, without further notice, be made at the time and place to
     which it was so adjourned.

                                       8
<PAGE>

               (iii)   Any cash held by the Special Escrow Agent as Collateral
          and all net cash proceeds received by the Trustee or the Special
          Escrow Agent in respect of any sale or liquidation of, collection
          from, or other realization upon all or any part of the Collateral may,
          in the discretion of the Trustee, be held by the Trustee or the
          Special Escrow Agent as collateral for, and then or at any time
          thereafter be applied (after payment of any costs and expenses
          incurred in connection with any sale, liquidation or disposition of or
          realization upon the Collateral and the payment of any amounts payable
          to the Trustee or the Special Escrow Agent) in whole or in part by the
          Trustee or the Special Escrow Agent for the ratable benefit of the
          Holders of the Notes against, all or any part of the Secured
          Obligations in such order as the Trustee shall elect. Any surplus of
          such cash or cash proceeds held by the Trustee or the Special Escrow
          Agent and remaining after payment in full of all the Secured
          Obligations and the costs and expenses incurred by and amounts payable
          to the Trustee or the Special Escrow Agent hereunder or under the
          Indenture shall be paid over to the Company.

          5.   Representations, Warranties and Agreements. The Company hereby
               ------------------------------------------
makes all representations and warranties, and agrees to all agreements,
applicable to the Company contained in the Indenture. The Company, AmeriSource
and Bergen severally further represent, warrant and agree that:

               5.1   The execution, delivery and performance by the Company,
AmeriSource and Bergen of this Agreement are within their respective corporate
powers, have been duly authorized by all necessary corporate action, and do not
contravene, or constitute a default under, any provision of applicable law or
regulation or of any agreement, judgment, injunction, order, decree or other
instrument binding upon the Company, AmeriSource or Bergen (except as would not,
individually or in the aggregate, have a Material Adverse Effect (as defined in
the Purchase Agreement)), or of the certificate of incorporation or bylaws of
the Company, AmeriSource or Bergen or result in the creation or imposition of
any Lien on any assets of the Company, AmeriSource or Bergen other than the Lien
contemplated hereby.

               5.2   Each of them has full power and authority to enter into
this Agreement and has the right to vote, pledge and grant a security interest
in the Collateral as provided by this Agreement.

               5.3   This Agreement has been duly executed and delivered by each
of them and constitutes a legal, valid and binding obligation of each of them,
enforceable against each of them in accordance with its terms.

               5.4   Upon the delivery to the Special Escrow Agent of the
Collateral and (as to certain proceeds therefrom) the filing of UCC financing
statements, the pledge of the Collateral pursuant to this Agreement creates a
valid and perfected first priority security interest in the Collateral, securing
the payment of the Secured Obligations for the benefit of the Trustee, the
Special Escrow Agent and the Holders, and enforceable as such against all
creditors of each of them and any persons purporting to purchase any of the
Collateral from each of them.

               5.5   No consent of any other person and no consent,
authorization, approval, or other action by, and no notice to or filing with,
any governmental authority or regulatory body is

                                       9
<PAGE>

required either (i) for the pledge by each of them of the Collateral pursuant to
this Agreement or for the execution, delivery or performance of this Agreement
by each of them or (ii) for the exercise by the Trustee or the Special Escrow
Agent of the remedies in respect of the Collateral pursuant to this Agreement
(except as may be required in connection with such disposition by laws affecting
the offering and sale of securities).

               5.6   No litigation, investigation or proceeding of or before any
arbitrator or governmental authority is pending or, to the best knowledge of
each of them, threatened by or against each of them or against any of its
properties or revenues with respect to this Agreement or any of the transactions
contemplated hereby.

               5.7   The pledge of the Collateral pursuant to this Agreement is
not prohibited by any applicable law or governmental regulation, release,
interpretation or opinion of the Board of Governors of the Federal Reserve
System or other regulatory agency (including, without limitation, Regulations T,
U and X of the Board of Governors of the Federal Reserve System).

               5.8   All information set forth herein relating to the Collateral
is accurate and complete in all material respects.

               5.9   Upon consummation of the Merger, the Company, AmeriSource
and Bergen will use their best efforts to (a) have each party that is to become
a Guarantor of the Notes pursuant to the terms of the Offering Circular execute
and deliver the Notation of Guarantee and the Supplemental Indenture and (b)
cause one or more opinions of counsel to be delivered to the Trustee to the
effect that the Notation of Guarantee and the Supplemental Indenture (1) have
been duly authorized by the Relevant Guarantors (as such term is defined in the
Purchase Agreement) and, executed and delivered by the Guarantors, (2) are
valid, binding and enforceable and (3) do not contravene, or constitute a
default under, (i) any provision of applicable law or regulation (other than a
contravention or default that is not likely to cause a material adverse effect
on the condition (final or other), business, properties or result of operations
of the Company and its subsidiaries, taken as a whole (a "Material Adverse
Effect")), (ii) any agreement set forth in an exhibit to the opinion (which
exhibit shall identify, based solely on a certificate of an officer of the
Company, all material agreements or instruments of the Guarantors (other than a
breach or violation that is not likely to cause a Material Adverse Effect) or
(iii) the certificate of incorporation or the Bylaws of each of the Guarantors,
all in form and substance satisfactory to the Trustee.

               5.10  Until the Merger has been consummated and the Collateral
has been released from the Special Escrow Account in accordance with this
Agreement, each of AmeriSource and Bergen and their respective subsidiaries will
comply with the covenants contained in the Indenture as if they were parties
thereto.

               5.11  AmeriSource and Bergen hereby disavow any interest in the
Collateral; provided, that notwithstanding the foregoing, AmeriSource and Bergen
            --------
agree that they will abide by the covenants contained in this Agreement; and
provided, further that notwithstanding the foregoing the parties hereto agree
--------  -------
that AmeriSource and Bergen in no way disavow any interest in the Company.

                                       10
<PAGE>

          6.   Indemnity. The Company, AmeriSource and Bergen, jointly and
               ---------
severally, shall indemnify and hold harmless the Trustee, the Special Escrow
Agent and their respective directors, officers, agents and employees, from and
against any and all claims, actions, obligations, liabilities and expenses,
including, without limitation, reasonable defense costs, reasonable
investigative fees and costs, reasonable legal fees and claims for damages
incurred in any action or proceeding between the parties hereto or in disputes
with third parties or otherwise, arising from or in connection with the
Trustee's and/or the Special Escrow Agent's acceptance of, or performance under,
this Agreement, except to the extent that such liability, expense or claim is
directly attributable to the gross negligence, willful misconduct or bad faith
of the Trustee or the Special Escrow Agent.

          7.   Termination. This Agreement shall terminate automatically upon
               -----------
the first to occur of (a) the release of all of the Collateral pursuant to
Section 3.2 or 3.4 hereof or (b) payment in full of the Secured Obligations. The
provisions of Sections 6 and 8 hereof shall survive any termination or discharge
or satisfaction of this Agreement as well as the resignation or removal of the
Trustee or the Special Escrow Agent.

          8.   Special Escrow Agent.
               --------------------

                  8.1      Limitation of the Special Escrow Agent's Liability;
                           --------------------------------------------------
Responsibilities of the Escrow Agent. Except as otherwise provided herein, the
------------------------------------
Special Escrow Agent's responsibility and liability under this Agreement shall
be limited as follows: (i) the Special Escrow Agent does not represent, warrant
or guaranty to the Trustee or the Holders of the Notes from time to time the
performance of the Company; (ii) the Special Escrow Agent shall have no
responsibility to the Company, the Holders of the Notes or the Trustee as a
consequence of the performance or non-performance by the Special Escrow Agent
hereunder, except for any bad faith, gross negligence or willful misconduct of
the Special Escrow Agent; (iii) the Company shall remain solely responsible for
all aspects of the Company's business and conduct; and (iv) the Special Escrow
Agent is not obligated to supervise, inspect or inform the Company or any third
party of any matter referred to above. In no event shall the Special Escrow
Agent be liable (x) for acting in accordance with or relying upon any
instruction, notice, demand, certificate or document from the Company or any
entity acting on behalf of the Company delivered in accordance with the terms
hereof, (y) for any consequential, punitive or special damages or (z) for an
amount in excess of the value of the Special Escrow Account valued as of the
date of deposit.

               No implied covenants or obligations shall be inferred from this
Agreement against the Special Escrow Agent, nor shall the Special Escrow Agent
be bound by the provisions of any agreement beyond the specific terms hereof.
Specifically and without limiting the foregoing, the Special Escrow Agent shall
in no event have any liability in connection with its investment, reinvestment
or liquidation, in good faith and in accordance with the terms hereof, of any
funds or Government Securities held by it hereunder, including without any
limitation any liability for any delay not resulting from bad faith, gross
negligence or willful misconduct in such investment, reinvestment or
liquidation, or any loss of principal or income incident to any such delay.

               The Special Escrow Agent shall be entitled to rely upon any
judicial or administrative order or judgment, upon any opinion of counsel or
upon any certification,

                                       11
<PAGE>

instruction, notice or other writing delivered to it by the Company or the
Trustee in compliance with the provisions of this Agreement without being
required to determine the authenticity or the correctness of any fact stated
there or the propriety or validity of service thereof. The Special Escrow Agent
may act or refrain from acting in reliance upon any instrument comporting with
the provisions of this Agreement or signature believed by it to be genuine and
may assume that any Person purporting to give notice or receipt or advice or
make any statement or execute any document in connection with the provisions
hereof has been duly authorized to do so.

          At any time the Special Escrow Agent may request in writing an
instruction in writing from the Company and may at its own option but in no case
is obliged to, include in such request the course of action it proposes to take
and the date on which it proposes to act, regarding any matter arising in
connection with its duties and obligations hereunder; provided, however, that
                                                      --------  -------
the Special Escrow Agent shall state in such request that it believes in good
faith that such proposed action is consistent with another identified provision
of this Agreement.  The Special Escrow Agent shall not be liable to the Company
for acting without the Company's consent in accordance with such a proposal on
or after the date specified therein if (i) the specified date is at least two
Business Days after the Company received the Special Escrow Agent's request for
instructions and its proposed course of action, and (ii) prior to so acting, the
Special Escrow Agent has not received written instruction requested from the
Company.

          At the expense of the Company, the Special Escrow Agent may act
pursuant to the advice of counsel chosen by it with respect to any matter
relating to this Agreement and (subject to clause (ii) of the preceding
paragraph) shall not be liable for any action taken or omitted in good faith and
without gross negligence or willful misconduct in accordance with such advice.

          The Special Escrow Agent shall not be called upon to advise any party
as to selling or retaining, or taking or refraining from taking any action with
respect to, any securities or other property deposited hereunder.

          In the event of any ambiguity in the provisions of this Agreement with
respect to any funds, securities or property deposited hereunder, the Special
Escrow Agent shall be entitled to refuse to comply with any and all claims,
demands or instructions with respect to such funds, securities or property, and
the Special Escrow Agent shall not be or become liable for its failure or
refusal to comply with conflicting claims, demands or instructions.  The Special
Escrow Agent shall be entitled to refuse to act until either any conflicting or
adverse claims or demands shall have been finally determined by a court of
competent jurisdiction or settled by agreement between the conflicting claimants
as evidenced by a writing reasonably satisfactory to the Special Escrow Agent or
the Special Escrow Agent shall have received security or an indemnity reasonably
satisfactory to the Special Escrow Agent sufficient to hold the Special Escrow
Agent harmless from and against any and all loss, liability or expense which the
Special Escrow Agent may incur by reason of its acting.  The Special Escrow
Agent may in addition elect in its sole opinion to commence an interpleader
action or seek other judicial relief or orders as the Special Escrow Agent may
deem necessary.  The costs and expenses (including reasonable attorney's fees
and expenses) incurred in connection with such proceedings shall be paid by, and
shall be deemed an obligation of, the Company.

                                       12
<PAGE>

                  No provision of this Agreement shall require the Special
Escrow Agent to expend its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder.

                  The Special Escrow Agent shall not incur any liability for not
performing any act or fulfilling any duty, obligation or responsibility
hereunder by reason of any occurrence beyond the control of the Special Escrow
Agent (including but not limited to any act or provision of any present or
future law or regulation or governmental authority, any act of God or war, or
the unavailability of the Federal Reserve Bank wire).

                  8.2      Substitution of the Special Escrow Agent. The Special
                           ----------------------------------------
Escrow Agent may resign by giving no less than twenty (20) Business Days prior
written notice to the Company and the Trustee. Such resignation shall take
effect upon the later to occur of (i) delivery of all funds and any Government
Securities maintained by the Special Escrow Agent hereunder and copies of all
books, records, plans and other documents in the Special Escrow Agent's
possession relating to such funds, any Government Securities or this Agreement
to a successor escrow agent mutually approved by the Company and the Trustee
(which approvals shall not be unreasonably withheld or delayed) and (ii) the
Company, the Trustee and such successor escrow agent entering into this
Agreement or any written successor agreement no less favorable to the interests
of the Holders of the Notes and the Trustee than this Agreement and the taking
of such other steps as may be necessary to give the successor escrow agent a
first priority security interest in the Special Escrow Account, and the Special
Escrow Agent shall thereupon be discharged of all obligations under this
Agreement and shall have no further duties, obligations or responsibilities in
connection herewith. If a successor escrow agent has not been appointed or has
not accepted such appointment within thirty (30) Business Days after notice of
resignation is given to the Company, the Special Escrow Agent may apply to a
court of competent jurisdiction for the appointment of a successor escrow agent.

                  8.3      Expenses. The Company, AmeriSource and Bergen,
                           --------
jointly and severally, will upon demand pay to the Special Escrow Agent the
amount of any and all reasonable expenses, including, without limitation, the
reasonable fees, expenses and disbursements of its counsel, experts and agents
retained by the Special Escrow Agent that the Special Escrow Agent may incur in
connection with (a) the review, negotiation and administration of this
Agreement, (b) the custody or preservation of, or the sale of, collection from,
or other realization upon, any of the Collateral, (c) the exercise or
enforcement of any of the rights of the Trustee and the Holders of the Notes
hereunder or (d) the failure by the Company, AmeriSource or Bergen to perform or
observe any of the provisions hereof.

          9.   Miscellaneous.
               -------------

                  9.1      Waiver. No waiver of any provision of this Agreement
                           ------
nor consent to any departure by any party therefrom shall in any event be
effective unless the same shall be in writing and signed by each of the non-
breaching parties and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

                  9.2      Invalidity. If, for any reason whatsoever, any one or
                           ----------
more of the provisions of this Agreement shall be held or deemed to be
inoperative, unenforceable or invalid

                                       13
<PAGE>

in a particular case or in all cases, such circumstances shall not have the
effect of rendering any of the other provisions of this Agreement inoperative,
unenforceable or invalid, and the inoperative, unenforceable or invalid
provision shall be construed as if it were written so as to effectuate, to the
maximum extent possible, the parties' intent.

                  9.3      Assignment. This Agreement shall inure to and be
                           ----------
binding upon the parties and their respective successors and permitted assigns;
provided, however, that the Company, AmeriSource and Bergen may not assign their
--------  -------
rights or obligations hereunder without the express prior written consent of the
Trustee.

                  9.4      Choice of Law. The existence, validity, construction,
                           --------------
operation and effect of any and all terms and provisions of this Agreement shall
be determined in accordance with and governed by the internal laws of the State
of New York including, without limitation the Uniform Commercial Code in effect
in the State of New York, without giving effect to the conflicts of law
principles of such State.

                  9.5      Entire Agreement; Amendments. This Agreement, the
                           ----------------------------
Notes and the Indenture contain the entire agreement among the parties with
respect to the subject matter hereof and supersede any and all prior agreements,
understandings and commitments with respect thereto, whether oral or written;
provided, however, that this Agreement is executed and accepted by the Trustee
--------  -------
and the Special Escrow Agent subject to all terms and conditions of its
acceptance of the trust under the Indenture, as fully as if said terms and
conditions were set forth at length herein. This Agreement may be amended only
by a writing signed by duly authorized representatives of all parties. The
Trustee and the Special Escrow Agent may execute an amendment to this Agreement
only if the requisite consent of the Holders of the Notes required by Article 9
of the Indenture has been obtained, unless no such consent is required by such
Section 9.01 of the Indenture.

                 9.6       Notices. All notices, requests, instructions, orders
                           -------
and other communications required or permitted to be given or made under this
Agreement to any party hereto shall be delivered in writing by hand delivery or
overnight delivery, or shall be delivered by facsimile or telephonically with
confirmation in writing not more than twenty-four hours following such facsimile
or telephonic notice. A notice given in accordance with the preceding sentence
shall be deemed to have been duly given upon the sending thereof, except for
notice to the Trustee or the Special Escrow Agent, which shall be deemed given
only when received. Notices should be addressed as follows:

                                       14
<PAGE>

          To the Company or AmeriSource:

               AmerisourceBergen Corporation or
               AmeriSource Health Corporation (as applicable)
               1300 Morris Drive, Suite 100
               Chesterbrook, Pennsylvania 19087-5594
               Attention:  Chief Financial Officer
               Facsimile number:  (610) 727-7000
               Telephone number: (610) 727-3600

          To Bergen:

               Bergen Brunswig Corporation
               400 Metropolitan Drive
               Orange, California  92668
               Attention:  Chief Financial Officer
               Facsimile number:  (714)978-7415
               Telephone number: (714)385-4000

          With copies to:

               Dechert
               4000 Bell Atlantic Tower
               1717 Arch Street
               Philadelphia, Pennsylvania 19103
               Attention:  John LaRocca, Esq.
               Facsimile number:  (215) 994-2222
               Telephone number: (215) 994-4000

          To the Trustee:

               Chase Manhattan Bank and Trust Company, National Association
               101 California Street, Suite 3800
               San Francisco, California  94111
               Attention: James Nagy
               Facsimile number:  (415) 954-2371
               Telephone number: (415) 954-2367

          To the Special Escrow Agent:

               Chase Manhattan Bank and Trust Company, National Association
               101 California Street, Suite 3800
               San Francisco, California  94111
               Attention: James Nagy
               Facsimile number:  (415) 954-2371
               Telephone number: (415) 954-2367

                                       15
<PAGE>

or at such other address, facsimile number or telephone number as the specified
entity most recently may have designated in writing in accordance with this
paragraph to the other parties.

                  9.7      Counterparts. This Agreement may be executed in one
                           ------------
or more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument. Delivery of an executed
counterpart of a signature page to this Agreement by facsimile shall be
effective as delivery of a manually executed counterpart of this Agreement.

                          [signature pages attached]

                                       16
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed and delivered
this Agreement as of the day first written above.

                              AMERISOURCEBERGEN CORPORATION

                              By:  /s/ WILLIAM D. SPRAGUE
                                 ----------------------------------------------
                                 Name: WILLIAM D. SPRAGUE
                                 Title:VICE PRESIDENT

                              AMERISOURCE HEALTH CORPORATION

                              By:  /s/ WILLIAM D. SPRAGUE
                                 ----------------------------------------------
                                 Name: WILLIAM D. SPRAGUE
                                 Title:VICE PRESIDENT GENERAL COUNSEL AND
                                       SECRETARY

                              BERGEN BRUNSWIG CORPORATION

                              By:  /s/ ROBERT E. MARTINI
                                 ----------------------------------------------
                                 Name: ROBERT E. MARTINI
                                 Title:CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE
                                       OFFICER

                              CHASE MANHATTAN BANK AND TRUST
                              COMPANY, NATIONAL ASSOCIATION,
                              as Trustee

                              By:  /s/ JAMES NAGY
                                 ----------------------------------------------
                                 Name: JAMES NAGY
                                 Title:ASSISTANT VICE PRESIDENT

                              CHASE MANHATTAN BANK AND TRUST
                              COMPANY, NATIONAL ASSOCIATION,
                              as Special Escrow Agent

                              By:  /s/ JAMES NAGY
                                 ----------------------------------------------
                                 Name: JAMES NAGY
                                 Title:ASSISTANT VICE PRESIDENT

                         Pledge and Escrow Agreement
<PAGE>

                                   EXHIBIT A

                   [Form of Preliminary Release Certificate]

                         AMERISOURCEBERGEN CORPORATION

                                                               Date: ___________

          The undersigned, Chief Financial Officer of AmerisourceBergen
Corporation, a Delaware corporation (the "Company"), hereby certifies to the
                                          -------
Trustee, pursuant to Section 3.1 of the Senior Note Pledge and Escrow Agreement
dated as of August 14, 2001 (the "Pledge and Escrow Agreement") by and among the
                                  ---------------------------
Company, a Delaware corporation, AmeriSource Health Corporation, a Delaware
corporation, Bergen Brunswig Corporation, a New Jersey corporation, Chase
Manhattan Bank and Trust Company, National Association, as trustee (the
"Trustee") under the Indenture dated as of August 14, 2001 (the "Indenture")
 -------                                                         ---------
between the Company and the Trustee, and Chase Manhattan Bank and Trust Company,
National Association, as special escrow agent (the "Special Escrow Agent"), that
                                                    --------------------
he is the Chief Financial Officer of the Company and that:

          1.  The consummation of the Merger has been scheduled to occur on
_____________, 2001 (the "Merger Closing Date").
                          -------------------

          2.  The Company believes that the Merger will be consummated on the
Merger Closing Date.

          3.  The execution and delivery of the Notation of Guarantee and the
Supplemental Indenture by each of the Guarantors have been scheduled to occur on
__________, 2001 (the "Supplemental Indenture Execution Date").
                       -------------------------------------

          4.  The Company believes that the Notation of Guarantee and the
Supplemental Indenture will be executed and delivered by each of the Guarantors
on the Supplemental Indenture Execution Date.

          Unless otherwise indicated, capitalized terms used herein without
definition shall have the meanings attributed to them in the Pledge and Escrow
Agreement.

          The Company hereby requests the Trustee to direct the Special Escrow
Agent to liquidate all of the Government Securities by no later than 12:00 noon
(New York City time) on _________________, 2001, and to retain the proceeds
thereof in the Special Escrow Account pending disbursement in accordance with a
Final Release Certificate.

                              By:__________________________________
                                 Name:
                                 Title:

                                      A-1
<PAGE>

                                   EXHIBIT B

                      [Form of Final Release Certificate]

                         AMERISOURCEBERGEN CORPORATION

                                                                Date: __________

          The undersigned, Chief Financial Officer of AmerisourceBergen
Corporation, a Delaware corporation (the "Company"), hereby certifies to the
                                          -------
Trustee, pursuant to Section 3.2 of the Senior Note Pledge and Escrow Agreement
dated as of August 14, 2001 (the "Pledge and Escrow Agreement") by and among the
                                  ---------------------------
Company, a Delaware corporation, AmeriSource Health Corporation, a Delaware
corporation and Bergen Brunswig Corporation, a New Jersey corporation, Chase
Manhattan Bank and Trust Company, National Association, as trustee (the
"Trustee") under the Indenture dated as of August 14, 2001 (the "Indenture")
 -------                                                         ---------
between the Company and the Trustee, and Chase Manhattan Bank and Trust Company,
National Association, as special escrow agent (the "Special Escrow Agent"), that
                                                    --------------------
he is the Chief Financial Officer of the Company and that:

          1.  All conditions precedent to the consummation of the Merger have
been satisfied or waived.

          2.  The Company has consummated the Merger on substantially the terms
described in the Offering Circular dated August 9, 2001.

          3.  Each subsidiary of the Company (after giving effect to the Merger)
that is to have become a guarantor of the Notes pursuant to the terms of the
Purchase Agreement and/or the Offering Circular has executed and delivered to
the Trustee a Notation of Guarantee and a Supplemental Indenture, in the form
attached as Exhibits E and F to the Indenture respectively, pursuant to which
each such subsidiary has become a Guarantor.  The Notation of Guarantee and the
Supplemental Indenture have become effective and remains in full force and
effect.

          4.  Each Subsidiary of the Company (after giving effect to the Merger)
that is to have become a guarantor of the Notes pursuant to the terms of the
Purchase Agreement and/or the Offering Circular has executed a copy of the
Registration Rights Agreement (as defined in the Purchase Agreement) and
delivered the same to the Purchasers (as defined in the Purchase Agreement).

          5.  One or more Opinions of Counsel (as defined in the Indenture) have
been delivered to the Trustee to the effect that the Notation of Guarantee and
the Supplemental Indenture have been duly executed and delivered by each of the
parties listed on Schedule I to the Pledge and Escrow Agreement and is a valid
and binding agreement of each of them, enforceable in accordance with its terms,
all subject to customary and reasonable assumptions and in form and substance
satisfactory to the Trustee.

                                      B-1
<PAGE>

          Unless otherwise indicated, capitalized terms used herein without
definition shall have the meanings attributed to them in the Pledge and Escrow
Agreement.

          The Company hereby requests the Trustee (a) to direct the Special
Escrow Agent to release the funds held by it in the Special Escrow Account and
transfer them as hereinafter provided, and (b) to terminate its pledge and
assignment of, and security interest in, the Collateral under the Pledge and
Escrow Agreement in accordance with Section 3.3 thereof.

          The funds on deposit in the Special Escrow Account should be sent by
wire transfer of immediately available funds to the following account[s]:
[insert bank name, account name, account number, ABA number, and name and phone
number of contact person].

                              By:_________________________________
                                 Name:
                                 Title:

                                      B-2
<PAGE>

                                   EXHIBIT C

                  [Form of Termination of Security Interest]

                     [To be Typed on Trustee's Letterhead]

                                                             Date: _______, 2001

VIA FACSIMILE AND FEDERAL EXPRESS
---------------------------------

AmerisourceBergen Corporation
1300 Morris Drive, Suite 100
Chesterbrook, Pennsylvania 19087-5594
Attention: Chief Financial Officer
Facsimilie number: (610) 727-7000
Telephone number:  (610) 727-3600

               and

Chase Manhattan Bank and Trust Company,
National Association
101 California Street, Suite 3800
San Francisco, California 94111
Attention: James Nagy
Facsimile number: (415) 954-2371
Telephone number: (415) 954-2367

               Re:  Termination of Security Interest
                    --------------------------------

Ladies and Gentlemen:

               Reference is hereby made to that certain Senior Note Pledge and
Escrow Agreement dated as of August 14, 2001 by and among AmerisourceBergen
Corporation (the "Company"), a Delaware corporation, AmeriSource Health
                  -------
Corporation, a Delaware corporation and Bergen Brunswig Corporation, a New
Jersey corporation, Chase Manhattan Bank and Trust Company, National
Association, as Trustee, and, Chase Manhattan Bank and Trust Company, National
Association, as Special Escrow Agent (as amended, supplemented or modified from
time to time in accordance with the terms thereof, the "Pledge and Escrow
                                                        -----------------
Agreement").
---------

               By its signature below, the Trustee hereby terminates and
releases its pledge and assignment of, and security interest in, all of the
Collateral under the Pledge and Escrow Agreement, the cash proceeds of which
have been delivered to the Company or its order on the date hereof.

                                      C-1
<PAGE>

                              Very truly yours,

                              Chase Manhattan Bank and Trust Company, National
                              Association, as Trustee

                              By:_____________________________________
                                 Name:
                                 Title:
<PAGE>

                                   SCHEDULE I

BBC Packaging Corporation

Bergen Brunswig Corporation

Bergen Brunswig Drug Company

Brownstone Pharmacy, Inc.

Capstone Pharmacy of Delaware, Inc.

Choice Medical, Inc.

Computran Systems, Inc.

Compuscript, Inc.

Dunnington Rx Services of Rhode Island, Inc.

Durr-Fillauer Medical, Inc.

Family Center Pharmacy, Inc.

Goot Nursing Home Pharmacy, Inc.

Green Barn, Inc.

Insta-Care Pharmacy Services Corporation

Integrated Commercialization Solutions, Inc.

Medidyne Corp.

Medical Initiatives, Inc.

Medi-Mail, Inc.

MedNet, MPC Corp.

Pharmacy Corporation of America, Inc.

Pharmacy Corporation of America-Massachusetts, Inc.

PharMerica, Inc.

PharMerica Drug Systems Inc.

Premier Pharmacy, Inc.

RightPak, Inc.
<PAGE>

Southwest Pharmacies, Inc.

Tmesys, Inc.

The Lash Group, Inc.

AmeriSource Corporation

AmeriSource Health Corporation

AmeriSource Health Services Corporation

AmeriSource Heritage Corporation

AmeriSource Sales Corporation

C.D. Smith Healthcare, Inc.

General Drug Company

Health Services Capital Corporation

James Brudnick Company, Inc.

Value Apothecaries, Inc.

Pharmacy Healthcare Solutions, Ltd.<PAGE>
                         EXECUTIVE EMPLOYMENT AGREEMENT

         THIS EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement") dated as of
October __, 2001 is between M.G.R., Inc., a Minnesota corporation, with a place
of business at 1230 Trapp Road, Eagan, Minnesota, 55121 (the "Company"), and
Jack E. Duffey, an individual residing at 7145 Park Avenue South, Richfield,
Minnesota, 55423 (the "Executive").

                                    RECITALS
                                    --------

         WHEREAS, the Company desires to employ Executive, and Executive desires
to be employed by the Company, upon the terms and conditions set forth in this
Agreement.

         NOW, THEREFORE, in consideration of the foregoing, the mutual and
dependent promises hereinafter set forth, and other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged the
parties, intending to be legally bound, do hereby agree as follows:

                                   ARTICLE 1

                               EMPLOYMENT AND TERM

         1.1 Employment/Duties. The Company hereby agrees to employ the
Executive and the Executive hereby accepts employment as President and Chief
Operating Officer of the Company under the terms and conditions set forth in
this Agreement. Executive shall report to the Chief Executive Officer of the
Company for the performance of his duties. Executive shall follow the
reasonable, nondiscriminatory directives of the Board of Directors of the
Company, and the policies and procedures adopted in connection therewith from
time-to-time. Executive shall have responsibility for such duties as are
customarily associated with the position of a President and Chief Operating
Officer of the Company and such other executive level duties and
responsibilities, consistent therewith and with the status of a senior level
executive of the Company, as may be assigned by the person to whom he reports as
provided herein. Executive acknowledges and agrees that the Company's
brother-sister affiliates Distribution Services, Inc. and Contract Air, Inc.
shall be operated by and through the management of the Company, including
Executive, without additional compensation therefor. During the Term (as defined
in Section 1.3 hereof), Executive shall devote substantially all of his working
time, attention and skill to the business affairs of the Company. Executive's
office will be in the Company's Eagan, Minnesota location or such other office
of the Company or an affiliate thereof as is mutually acceptable to the
Executive and the Company. Executive's refusal of a proposal of relocation
outside of the Minneapolis/St. Paul, Minnesota metropolitan area shall not be
construed under this Agreement or otherwise, under any circumstances whatsoever,
as (a) a voluntary resignation, (b) Executive's unwillingness or affirmative
action or omission to follow the reasonable directives of the Company or the
person to whom he reports hereunder or (c) as a basis of termination for
"Cause."

         1.2 Effective Date. Executive will commence work immediately on the
date hereof (the "Effective Date").

<PAGE>

         1.3 Term. This Agreement shall commence on the Effective Date and shall
continue until December 31, 2005 unless (a) extended pursuant to the terms
hereof of (b) earlier terminated as provided in Article 6. This Agreement may be
renewed for successive one (1) year terms upon the written consent of the
Company and Executive. The initial term through December 31, 2005 and any
renewal terms are collectively referred to as the "Term."

                                   ARTICLE 2

                                  COMPENSATION

         2.1 Base Salary. For each twelve (12) month period during the Term of
this Agreement, the Executive shall be paid an annual base salary of no less
than One Hundred Fifty Thousand Dollars ($150,000) in a manner consistent (but
not less often than monthly) with the usual pay practices of the Company. Base
salary shall be subject to minimum annual cost-of-living increases of five
percent (5%) per annum, subject to the approval of the Company's President and
Stonepath Logistics, Inc.

         2.2 Management Incentive Program; Bonus. The Executive shall be
entitled to participate in the Management Incentive Program which shall be
mutually agreed upon by Stonepath Group, Inc. and Shareholders' Agent (as
defined in that certain Stock Purchase Agreement dated August 30, 2001 by and
among, among others, the Company, Stonepath Group, Inc. and the Executive (the
"Stock Purchase Agreement")) and established by the Company no later than April
1, 2002. The Executive shall also be eligible to receive annual bonus
compensation at the discretion of the Company's Board of Directors in accordance
with the Company's executive bonus or incentive compensation plans that may be
in effect from time to time.

         2.3 Benefits. The Executive will, during the Term, be permitted to
participate in such pension, profit sharing, bonus (subject to the provisions of
Section 2.2), life insurance, hospitalization, major medical, and other employee
benefit plans of the Company that may be in effect from time to time, to the
extent Executive is eligible under the terms of those plans. The Company may
alter, modify, add to or delete its executive benefit plans as they apply to the
Company's senior executive officers at such times and in such manner as the
Company determines appropriate, without recourse by Executive so long as such
changes are applied in a substantially uniform manner to the Company's executive
officers.

         2.4 Vacation. Executive shall be entitled to receive annual vacation in
accordance with the Company's policies applicable to its senior executive
officers, which in any event shall not be less than three (3) weeks or such
greater number of weeks as may be provided to the Company's senior executives
with comparable length of service. The Executive shall also be entitled to the
paid holidays and other paid leave set forth in the Company's policies. Vacation
days during any calendar year that are not used by the Executive during such
calendar year may be used in any subsequent calendar year; provided, however,
that no more than six (6) weeks' paid vacation may be accrued or carried
forward.

                                       2
<PAGE>

         2.5 Business Expenses. The Company shall reimburse the Executive, in
accordance with its practice from time-to-time for executive officers of the
Company, for all reasonable and necessary expenses and other disbursements
incurred by the Executive for or on behalf of the Company in the performance of
his duties hereunder. The Executive shall provide such appropriate documentation
of expenses and disbursements as may from time to time be required by the
Company from its executive officers.

         2.6 Insurance. In addition to any life insurance provided by the
Company to the Executive, the Company may, at its discretion and at any time
after the Effective Date, apply for and procure, as owner and for its own
benefit, insurance on the life of the Executive, in such amounts and in such
form or forms as the Company may choose. Unless otherwise agreed, the Executive
shall have no interest whatsoever in any such policy or policies, but shall, at
the request of the Company, subject himself to such reasonable medical
examinations, supply such information and execute such documents as may be
reasonably required by the insurance company or companies to which it has
applied for such insurance. Upon termination of employment, Executive shall have
the right to take a full ownership and beneficial interest in such policies and
assume responsibility for all future payments thereunder, without compensation
to the Company for such benefit (except to the extent of any pre-paid premiums
thereunder) and the Company shall promptly, and in good faith, but subject to
any restrictions imposed by any insurer, cooperate with Executive in such
transfer of such policy or policies.

         2.7 Automobile. The Company shall lease or shall reimburse the
Executive for the cost of Executive's current automobile lease. After the
expiration of such lease, the Company shall lease or shall reimburse the
Executive for the cost of leasing a new automobile mutually acceptable to
Executive and the Company and all expenses related to the use thereof for the
Executive's use during the Term of this Agreement, including but not limited to,
insurance, maintenance, repairs, mobile telephone and gasoline. Reimbursable
lease costs will not exceed One Thousand Dollars ($1,000) per month or such
higher amount as may be generally provided from time to time to the Company's
senior executive officers.

                                   ARTICLE 3

                             PROPRIETARY INFORMATION

         3.1 Confidential and Proprietary Information. Executive acknowledges
that he is in a relationship of confidence and trust with the Company and will
come into possession of information that has been created, discovered,
developed, acquired or otherwise become known to the Company or its affiliates
(including, without limitation, information that is created, discovered,
developed, acquired or made known by Executive in the course of his employment
and information belonging to third parties) and in which the Company or its
affiliates has rights of indeterminable commercial value (all of the
aforementioned information is hereinafter collectively referred to as
"Proprietary Information"). By way of illustration, Proprietary Information
includes, but is not limited to, trade secrets, processes, formulas, data and
know-how, marketing plans, strategies, forecasts, customer lists, business
plans, financial information, and information collected from the customers of
the Company or its affiliates. Executive acknowledges that Proprietary
Information is in part set forth in the Company's manuals, memoranda,
specifications, accounting and sales records, and other documents and records of

                                       3
<PAGE>

the Company and its affiliates whether or not otherwise identified as
"Proprietary." Proprietary Information shall exclude information that has become
part of the public domain, except (i) when and to the extent that such public
information, when applied to or combined with other information, is non-public
and proprietary to the Company or its affiliates, or (ii) where such information
became public through unauthorized disclosure by Executive or another party
under an obligation of confidentiality to the Company or its affiliates.
Proprietary Information shall also exclude information that becomes available to
Executive on a non-confidential basis from a non-Company third party which has
not been disclosed in breach of any confidentiality agreement with the Company.

         3.2 Non-Disclosure. Executive acknowledges that all Proprietary
Information shall be the sole property of the Company, its affiliates and their
successors and assigns. During the Term and for so long as the information
remains Proprietary Information, Executive agrees to keep in confidence and
trust all Proprietary Information, and not to use, disclose, disseminate,
publish, copy, or otherwise make available, directly or indirectly, except in
the ordinary course of the performance of Executive's duties under this
Agreement, any Proprietary Information except as expressly authorized in writing
by the Company; provided, however, that Executive shall be relieved of his
obligation of nondisclosure hereunder if Proprietary Information is required to
be disclosed by any applicable judgment, order or decree of any court or
governmental body or agency having jurisdiction or by any law, rule or
regulation, provided that in connection with any such disclosure, Executive
shall give the Company reasonable prior written notice of the disclosure of such
information pursuant to this exception and shall cooperate with the Company to
permit the Company to seek confidential treatment for such information from any
authority requiring delivery of such information; provided, further, however,
that if Company has not obtained such confidential treatment by the date
Executive is required by such distraint to disclose the Proprietary Information,
Executive shall be free to provide such disclosure and there shall be no
violation of or damages determined under this Agreement or otherwise for
Executive's disclosure action and compliance with or pursuant to such authority.

         3.3 Return of Proprietary Information. Executive agrees that when he
ceases to be employed by the Company, whether such cessation of employment shall
be for any reason or for no reason, with or without cause, voluntary or
involuntary, or by termination, resignation, disability, retirement or
otherwise, Executive shall deliver to the Company all documents and data of any
nature owned by the Company pertaining to the Proprietary Information.

                                    ARTICLE 4

                                   COMPETITION

         4.1 Noncompetition Covenant.

                  (a) Executive covenants and agrees with the Company that
         during the "Noncompete Term" as hereinafter defined he will not,
         without the Purchaser's prior written consent, which may be withheld or
         given in its sole discretion, directly or indirectly, or individually
         or collectively within the United States of America, lend any material
         credit, advice or assistance, or engage in any activity or act in any

                                       4
<PAGE>

         manner, including but not limited to, as an individual, owner, sole
         proprietor, founder, associate, promoter, partner, joint venturer,
         shareholder (other than as a less than five percent (5%) shareholder of
         a publicly traded corporation), officer, director, trustee, manager,
         employer, employee, licensor, licensee, principal, agent, salesman,
         broker, representative, consultant, advisor, investor or otherwise for
         the purpose of establishing, operating, assisting or managing any
         business or entity that is engaged in activities competitive with the
         Business of the Companies.

                  (b) Executive covenants and agrees with the Company that
         during the term hereof, and thereafter for a period of twelve (12)
         months, without the Purchaser's prior written consent, which may be
         withheld or given in its sole discretion, he will not act in any
         manner, including but not limited to, as an individual, owner, sole
         proprietor, founder, associate, promoter, partner, joint venturer,
         shareholder (other than as a less than five percent (5%) shareholder of
         a publicly traded corporation), officer, director, trustee, manager,
         employer, employee, licensor, licensee, principal, agent, salesman,
         broker, representative, consultant, advisor, investor or otherwise,
         directly or indirectly, to solicit, counsel or attempt to induce any
         person who is then in the employ of the Company to leave the employ of
         the Company or employ or attempt to employ any such person or persons
         who at any time during the preceding four (4) months was in the employ
         of the Company.

         4.2 Noncompete Term. The "Noncompete Term" shall mean the period
commencing on the Effective Date and ending one (1) year following the
Executive's voluntary termination of employment. In the event of Executive's
involuntary termination without Cause, including termination due to Good Reason,
the Noncompete Term (and therefore the restrictions of Section 4.1) shall not
apply to Executive unless the Company elects (pursuant to a writing delivered to
Executive on or before the date of such termination) to compensate the Executive
in accordance with the salary payment terms of this Agreement through December
31, 2005.

         4.3 Blue Pencil Rule. The Executive and the Company desire that the
provisions of this Article 4 be enforced to the fullest extent permissible under
the laws and public policies applied in each jurisdiction in which enforcement
is sought. The parties agree that Executive is a key executive of the Company.
If a court of competent jurisdiction, however, determines that any restrictions
imposed on the Executive in this Article 4 are unreasonable or unenforceable
because of duration, geographic area or otherwise, the Executive and Company
agree and intend that the court shall enforce this Article 4 to the maximum
extent the court deems reasonable and that the court shall have the right to
strike or change any provisions of this Article 4 and substitute therefore
different provisions to effect the intent of this Article 4 to the maximum
extent possible.

         4.4 Inevitable Disclosure. The Company hereby agrees that it will look
only to the provisions of this Article 4 with regard to enforcing any
non-competition obligation on Executive, and expressly disavows reliance at any
time on the inevitable disclosure doctrine.

                                       5
<PAGE>

                                   ARTICLE 5

                                 INDEMNIFICATION

         5.1 Indemnification of Executive. The Company agrees to indemnify
Executive in connection with the performance of his duties and obligations
hereunder to the maximum extent permitted by applicable law. In addition,
expenses of defense which may be indemnifiable under applicable law shall be
paid by the Company in advance of the final disposition of a proceeding,
provided that Executive agrees to repay such amount if he is later found not
entitled to be indemnified as authorized by applicable law. As a condition to
the Company's obligation of indemnification hereunder, Executive shall provide
the Company with written notice of any claim for which indemnification will be
sought as promptly as practicable after learning thereof, stating the identity
of the claimant, the nature and basis of the claim and the amount thereof, and
copies of all notices and documents received by Executive in connection with the
claim. Thereafter, as a condition of the Company's obligation of
indemnification, Executive shall cooperate in the defense of the claim by the
Company, and shall provide the Company with all additional information and
copies of documents received by him, or otherwise in his possession, related to
the claim. The Company will promptly assume the defense of a claim against
Executive, unless the claim is properly determined by the Company not be
indemnifiable under this Agreement or applicable law. Executive may challenge
the Company's determination as to the indemnifiable nature of the claim and
during the pendency of such challenge, the Company shall provide such defense at
its expense provided that Executive provides a written agreement, reasonably
satisfactory to the Company, obligating Executive to reimburse all costs and
expenses incurred by the Company in the event the Company's determination as to
the unindemnifiable nature of the claim is upheld. Except as otherwise provided
herein, the Company will defend Executive at the Company's sole cost and expense
utilizing counsel of the Company's choice, reasonably acceptable to Executive.
Executive may also participate in the defense utilizing his own counsel at
Executive's sole expense. In the event the Company does not assume the defense
of Executive as required herein, Executive may assume such defense by written
notice to the Company and the Company shall be obligated to advance Executive's
reasonable costs and expenses of counsel reasonably acceptable to the Company,
and the action (including experts), subject to Executive's contingent obligation
to repay such expenses if the claim is not indemnifiable. Executive will not
independently consent to the settlement of any claim without the prior written
consent of the Company, which will not be unreasonably withheld. The Company
will not independently consent to the settlement of any claim without
Executive's prior written consent which will not be unreasonably withheld.

                                   ARTICLE 6

                TERMINATION OF EMPLOYMENT AND SEVERANCE BENEFITS

         6.1 Events of Termination by the Company.

                  (a) Death or Disability. In the event Executive dies or
         becomes permanently disabled during the term of this Agreement, his
         employment hereunder shall automatically terminate. In such case, the
         Company shall pay to Executive or his estate, personal representative
         or beneficiary, as the case may be, such amounts as may be payable to

                                       6
<PAGE>

         Executive pursuant to Article 2 and Section 6.1(d) of this Agreement.
         For the purpose of this Agreement, "permanent disability" or
         "permanently disabled" shall mean the inability of the Executive, due
         to physical or mental illness or disease, to perform the functions then
         performed by such Executive for one hundred eighty (180) substantially
         consecutive days, accompanied by the likelihood, in the opinion of a
         physician chosen by the Company and reasonably acceptable to the
         Executive, that the disabled Executive will be unable to perform such
         functions within the reasonably foreseeable future; provided, however,
         that the foregoing definition shall not include a disability for which
         the Company is required to provide reasonable accommodation pursuant to
         the Americans with Disabilities Act or other similar statute or
         regulation. If any question shall arise as to whether during any period
         Executive has suffered disability, Executive may, and at the request of
         the Company will, submit to the Company a certification in reasonable
         detail by a physician selected by Executive or his guardian to whom the
         Company has no reasonable objection as to whether Executive was so
         disabled and such certification, which opinion shall for the purposes
         of this Agreement be conclusive of the issue. If such question shall
         arise and Executive shall fail to submit such certification to such
         examination by such physician, the Company's determination of such
         issue shall be binding on Executive.

                  (b) By the Company for Cause. The Company may terminate
         Executive's employment hereunder for "Cause" at any time upon prior
         written notice to Executive, and after any applicable cure period has
         expired without a cure by Executive setting forth in reasonable and
         specific detail the nature of such cause. The following shall
         constitute "Cause" for termination.

                           (i) Executive's falsification of the accounts of the
                  Company, embezzlement of funds of the Company or other similar
                  material dishonesty with respect to the Company or any of its
                  subsidiaries;

                           (ii) Conduct engaged in or action taken or omitted to
                  be taken by Executive which is in material breach of this
                  Agreement, which breach continues for more than fifteen (15)
                  days after written notice of such breach is given to
                  Executive; or

                           (iii) Conviction of, or plea of nolo contendere to, a
                  felony or other crime involving moral turpitude (it being
                  understood for example that violation of a motor vehicle code
                  does not constitute such a crime); or

                           (iv) Gross or willful misconduct of Executive with
                  respect to the Company or any subsidiary thereof, which
                  misconduct continues for more than fifteen (15) days after
                  written notice of such misconduct is given to Executive.

                  Upon termination of Executive's employment hereunder for
         Cause, the Company shall have no further obligation or liability to
         Executive other than the payment of (i) base salary earned but unpaid
         at the date of termination and (ii) any unpaid accrued benefits of the
         Executive, (iii) reimbursement for any expenses for which the Executive
         shall not have been reimbursed as provided in Section 2.6, and (iv) any

                                       7
<PAGE>

         unpaid bonus, including, without limitation, any bonus provided under
         Section 2.2 hereof, earned by the Executive prior to the date of such
         termination.

                  (c) By Executive For Good Reason. Executive may terminate his
         employment by the Company for "Good Reason" at any time upon notice to
         the Company setting forth in reasonable detail the nature of such good
         reason. "Good Reason" for Executive to terminate his employment shall
         mean any act or omission by the Company and not consented to by the
         Executive in a writing signed by Executive which constitutes a material
         breach of any term or provision of this Agreement or which results in
         the assignment to Executive of any duties materially inconsistent with,
         or in any material diminution of, the positions, duties,
         responsibilities and status of Executive hereunder or any change in
         Executive's titles or duties with the same intent or effect which
         breach continues for more than fifteen (15) days after written notice
         of such breach to Company.

                  (d) In the event of (i) the termination or cessation by the
         Company of Executive's employment with the Company other than for
         "Cause" as defined above, or (ii) the termination of the Executive's
         employment with the Company by Executive for "Good Reason" as defined
         above, or (iii) the termination or cessation of Executive's employment
         by reason of death pursuant to Section 6.1(a), Executive shall be
         entitled to receive from the Company continuation of payment of all
         salary and bonus and continuation of all benefits which Executive would
         have been entitled to receive had his employment not terminated, at the
         same times as such payments would otherwise have been made pursuant to
         Article 2 hereof for a period of one year after such termination of
         employment. The foregoing shall be exclusive of any non-compete payment
         required to be made by the Company under Section 4.2 hereof.

         6.2 Voluntary Termination by Executive. If Executive voluntarily
resigns or terminates his employment for other than Good Reason, the Company
shall have no further obligation or liability to Executive other than the
payment of (i) base salary earned but unpaid at the date of termination, (ii)
any unpaid accrued benefits of the Executive and (iii) reimbursement for any
expenses for which the Executive shall not have been reimbursed as provided in
Section 2.6.

         6.3 Survival. Notwithstanding termination of this Agreement as provided
in this Article 6, the rights and obligations of Executive and the Company under
Article 3 through Article 6 and Sections 7.5, 7.9, 7.10 and 7.14 shall survive
termination.

                                   ARTICLE 7

                              CONCLUDING PROVISIONS

         7.1 Entire Agreement. This Agreement contains the entire understanding
of the parties with respect to the matters contained herein. There are no oral
understandings, terms, or conditions, and no party has relied upon any
representation, express or implied, not contained in this Agreement.

                                       8
<PAGE>

         7.2 Amendments. This Agreement may not be amended in any respect
whatsoever, nor may any provision hereof be waived by any party, except by a
further agreement, in writing, fully executed by each of the parties.

         7.3 Successors. This Agreement shall be binding upon and inure to the
benefit of the parties and to their respective heirs, personal representatives,
successors and assigns, executors and/or administrators, provided that (a)
Executive may not assign his rights hereunder (except by will or the laws of
descent) without the prior written consent of the Company and (b) Company may
not assign its rights hereunder without the prior written consent of Executive
which will not be unreasonably withheld.

         7.4 Captions. The captions of this Agreement are for convenience and
reference only and in no way define, describe, extend or limit the scope or
intent of this Agreement or the intent of any provision contained in this
Agreement.

         7.5 Notice. Any notice, demand, offer or other written instrument
("Notice") required or permitted to be given shall be in writing signed by the
party giving such Notice and shall be hand delivered or sent, postage prepaid,
by Certified or Registered Mail, Return Receipt Requested, to the parties at the
addresses as set forth in this Agreement. Any Notice to be given to the estate
of any deceased person shall be addressed to the personal representative of such
deceased person at his address as set forth in this Agreement. Any party shall
have the right to change the place to which such Notice shall be sent or
delivered by similar notice sent in like manner to all other parties hereto.

         7.6 Effective Date of Notice. The effective date of any offer, demand,
notice or instrument shall be the date of actual (as opposed to presumptive)
delivery to the addressee.

         7.7 Counterparts. This Agreement may be executed in one or more copies,
each of which shall be deemed an original. This Agreement may be executed by
facsimile signature and each party may fully rely upon facsimile execution; this
agreement shall be fully enforceable against a party which has executed the
agreement by facsimile.

         7.8 Partial Invalidity. The invalidity of one or more of the phrases,
sentences, clauses, sections or Articles contained in this Agreement shall not
affect the validity of the remaining portions so long as the material purposes
of this Agreement can be determined and effectuated.

         7.9 Applicable Law. This Agreement shall be governed by, construed and
enforced in accordance with the laws of the State of Minnesota without regard to
principles of comity or conflicts of laws provisions of any jurisdiction.

         7.10 Resolution of Disputes.

                  (a) Subject to the provisions of Section 7.10(b), any dispute,
         difference or controversy arising under this Agreement regarding the
         payment of money shall be settled by arbitration. Any arbitration
         pursuant to this Section 7.10 shall be held before a single arbitrator.
         Except as otherwise set forth herein, each party shall bear its own
         expenses for counsel and other out-of-pocket costs in connection with

                                       9
<PAGE>

         any resolution of a dispute, difference or controversy. Any arbitration
         shall take place in Minneapolis, Minnesota or at such other location as
         the parties may agree upon, according to the American Arbitration
         Association's Commercial Arbitration Rules now in force and hereafter
         adopted or by the parties' further agreement or as set forth herein.
         The parties agree that, in any arbitration the parties shall, to the
         maximum extent possible, have such rights as to the scope and manner of
         discovery as are permitted in the Federal Rules of Civil Procedure and
         consent to the entry of any order of any court of competent
         jurisdiction necessary to enforce such discovery. In submitting the
         dispute to the arbitrators, each of the parties shall concurrently
         furnish, at its own expense, to the arbitrator and the other parties
         such documents and information as the arbitrator may request. Each
         party may also furnish to the arbitrator such other information and
         documents as it deems relevant, with the appropriate copies and
         notification being concurrently given to the other party. Neither party
         shall have or conduct any communication, either written or oral, with
         the arbitrator without the other party either being present or
         receiving a concurrent copy of such written communication. The
         arbitrator may conduct a conference concerning the objections and
         disagreements between the parties, at which conference each party shall
         have the right to (i) present its documents, materials and other
         evidence (as previously provided to the arbitrator and the other
         parties), and (ii) to have present its or their advisors, accountants
         and/or counsel. The arbitrator shall make his award in accordance with
         and based upon all the provisions of this Agreement,, and judgment upon
         any award rendered by the arbitrator shall be entered in any court
         having jurisdiction thereof. The fees and disbursements of the
         arbitrator shall be borne equally by the parties, with each party
         bearing its own expenses for counsel and other out-of-pocket costs. The
         arbitrator is specifically authorized to award costs and attorney's
         fees to the party substantially prevailing in the arbitration and shall
         do so in any case in which he believes the arbitration was not
         commenced in good faith.

                  (b) The parties acknowledge that in the case of disputes
         regarding matters other than the payment of money, damages may be
         insufficient to remedy a breach of this Agreement and that irreparable
         harm may result from a breach of this Agreement. Accordingly, the
         parties consent to the award of preliminary and permanent injunctive
         relief and specific performance to remedy any material breach of this
         Agreement, regarding disputes other than the payment of money, without
         limiting any other rights or remedies to which the parties may be
         entitled under law or equity. Either party may pursue injunctive relief
         or specific performance in any court of competent jurisdiction.

         7.11 Genders. Any reference to the masculine gender shall be deemed to
include feminine and neuter genders, and vice versa, and any reference to the
singular shall include the plural, and vice versa, unless the context otherwise
requires.

         7.12 Initialing. Each page which contains handwritten or typewritten
changes and each exhibit which is not attached to this Agreement shall be
initialed or signed by each party.

         7.13 No Conflicts. The parties represent and warrant that the terms of
this Agreement do not violate any existing agreements with other parties.

                                       10
<PAGE>

         7.14 Withholding. All payments made by Company to Executive hereunder
shall be subject to applicable withholding.

         7.15 Guarantee. The full and faithful performance of the Agreement by
the Company is guaranteed by Stonepath Group, Inc. as an Ancillary Document
pursuant to that certain Guaranty given by Stonepath Group, Inc. on or about the
date of this Agreement pursuant to the Stock Purchase Agreement.

         7.16 Earn-Out. Nothing in this Agreement shall affect Executive's right
to Earn-Out payments under the Stock Purchase Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       11
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first set forth above.

                                              COMPANY:

                                              M.G.R., INC.

                                              By_______________________________
                                                    Its:_______________________

                                              EXECUTIVE:

                                              _________________________________
                                              Jack E. Duffey

               [SIGNATURE PAGE TO EXECUTIVE EMPLOYMENT AGREEMENT]

                                       12

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