Document:

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Exhibit 10.61

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is made as of June 21,
2001, by and among STONEPATH GROUP, INC., a Delaware corporation (the
"Employer"), and DENNIS L. PELINO (the "Executive").

                                    RECITALS

         WHEREAS, the Employer considers it essential and in the best interests
of its stockholders to foster the employment of key management personnel and
desires to engage the services of the Executive on the terms and conditions
hereinafter set forth; and

         WHEREAS, Executive desires to render services to the Employer on the
terms and conditions provided in this Agreement;

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, the parties hereto, intending to be legally bound, hereby
agree as follows:

         The parties, intending to be legally bound, agree as follows:

         1.       DEFINITIONS

                  For the purposes of this Agreement, the following terms have
the meanings specified or referred to in this Section 1:

                  "Agreement" means this Employment Agreement, as amended from
time to time.

                  "Basic Compensation" shall include base salary, bonuses that
have been declared and are payable and benefits provided for in Section 3.1(c)
of this Agreement.

                  "Benefits" is defined in Section 3.1(b).

                  "Board of Directors" means the board of directors of Employer.

                  "Change of Control" shall be deemed to occur if (A) there
occurs a sale, exchange, transfer or other disposition of 50% or more in value
of the assets of Employer to another Person or entity, except to an entity
controlled directly or indirectly by Employer; or (B) there occurs a merger,
consolidation or other reorganization of Employer in which Employer is not the
surviving entity, provided Persons who were shareholders of Employer prior to
the transaction continue to own less than 50% of the outstanding securities of
the acquiror immediately following the transaction; (C) there occurs a merger,
consolidation or other reorganization of Employer in which the Employer is the
surviving entity, provided Persons who were shareholders of Employer prior to
the transaction continue to own less than 50% of the outstanding securities of
the surviving entity following the transaction; or (D) a plan of liquidation or
dissolution of Employer other than pursuant to bankruptcy or insolvency laws is
adopted. Notwithstanding the foregoing, a "change of control" shall not be

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deemed to have occurred for purposes of this Agreement (i) in the event of a
sale, exchange, transfer or other disposition of substantially all of the assets
of Employer to, or a merger, consolidation or other reorganization of Employer
and any entity in which Executive (alone or with other officers) has, directly
or indirectly, at least a 25% equity or ownership interest; or (ii) in a
transaction otherwise commonly referred to as a "management leveraged buy-out",
as a result of which Executive (alone or with other officers) has, directly or
indirectly, at least a 25% equity or ownership interest.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  "Disability" shall mean once the Executive is unable for the
"Disability Period" (as hereafter defined) to perform the essential functions of
the Executive's duties with reasonable accommodation. The disability of the
Executive will be determined by a medical doctor selected by written agreement
of the Employer and the Executive upon the request of either party by notice to
the other. If the Employer and the Executive cannot agree on the selection of a
medical doctor, each of them will select a medical doctor and the two medical
doctors will attempt to make a determination of disability. If they cannot
agree, they will select a third medical doctor who will determine whether the
Executive has a disability. The determination of the third medical doctor
selected under this provision will be binding on both parties. The Executive
must submit to a reasonable number of examinations by the medical doctor making
the determination of disability under this provision, and the Executive hereby
authorizes the disclosure and release to the Employer of such determination and
all supporting medical records. If the Executive is not legally competent, the
Executive's legal guardian or duly authorized attorney-in-fact will act in the
Executive's stead for the purposes of submitting the Executive to the
examinations, and providing the authorization of disclosure, required under this
provision.

                  "Disability Period" shall mean 180 consecutive days or 180
days during any twelve (12) month period; or such lesser number of days as
elapse until disability insurance benefits commence under any disability
insurance coverage furnished by Employer to Executive, if any.

                  "Effective Date" means June 21, 2001.

                  "Employment Period" means the term of the Executive's
employment under this Agreement as defined in Section 2.2.

                  "For Cause" shall mean: (a) any violation of a law, rule or
regulation other than minor traffic violations, which causes or is likely to
cause material damages to the Employer, including without limitation, any
violation of the Foreign Corrupt Practices Act; (b) a breach of fiduciary duty
for personal profit; (c) fraud, dishonesty or other acts of willful misconduct
in the rendering of services on behalf of the Employer or relating to the
Executive's employment; (d) willful misconduct by the Executive which would
cause the Employer to violate any state or federal law relating to sexual
harassment or age, sex or other prohibited discrimination or any violation of
written policy of the Employer or any successor entity adopted in respect to
such law; (e) failure to follow Employer work rules or the lawful instructions
(written or otherwise) of the Board of Directors of the Employer or a
responsible executive to whom the employee directly or indirectly reports,
provided compliance with such directive was reasonably within the scope of the
Executive's duties and the Executive was given notice that his or her conduct
could give rise to termination and such conduct is not, or could not be cured,

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within ten (10) days thereafter; (f) any violation by the Executive of the terms
of this Agreement; or (g) in the event the Employer fails to achieve the
financial performance targets in the manner and to the extent established on
Schedule A attached hereto and made a part hereof; provided, however, that in
order to terminate Executive For Cause, Employer must first provide Executive
with thirty (30) days written notice of the particular For Cause events alleged
by Employer; however, in the event of a For Cause event specified at
sub-sections (e) and (f) above, the thirty (30) day notice period must be
accompanied with a right to cure within such thirty (30) day period.
Notwithstanding the above, subsection (g) relating to financial performance
targets, shall be of no further force and effect following a Change of Control.

                  "Good Reason" shall mean, unless Executive shall have
consented in writing thereto, any of the following: (i) a reduction in
Executive's title, duties, responsibilities or status which are inconsistent
with Executive's position with Employer; (ii) a reduction by Employer in
Executive's base salary or material reduction in fringe benefits; (iii) the
breach by Employer of any material agreement or obligation under this Agreement;
or (iv) the failure or inability of the Employer to cause the election of
Executive as Chairman of the Board of Directors within the "Board Nomination
Period" as specified at Section 11.1; any of such events to be preceded by
notice from Executive to Employer and a thirty (30) day right to cure.

                  "Person" means any individual, corporation (including any
non-profit corporation), general or limited partnership, limited liability
company, joint venture, estate, trust, association, organization, or
governmental body.

         2.       EMPLOYMENT TERMS AND DUTIES

                  2.1      EMPLOYMENT

                  The Employer agrees to, and hereby does, continue to employ
the Executive for the term of this Agreement upon the terms and conditions set
forth in this Agreement.

                  2.2      TERM

                           Subject to the provisions of Section 6, the
Employment Period for the Executive's employment under this Agreement will be
five (5) years, beginning on the Effective Date, and expiring on the earlier of
June 21, 2006, or as earlier permitted under this Agreement.

                  2.3      DUTIES

                           The Executive will serve as the Chief Executive
Officer of Employer and will perform all duties required in
furtherance of his position, including without limitation, all such duties as
are customarily associated with such position or such duties as are assigned or
delegated to the Executive by the Board of Directors. The Executive agrees to
perform in good faith and to the best of his ability all services which may be
required of him hereunder and will devote his full-time efforts and business
time, skill, attention and energies as are reasonably necessary to perform his
duties and responsibilities under this Agreement and to promote the success of
the Employer's business. Executive may continue to engage in the following
activities: (a) attending board of directors' or like meetings of other
companies in which Executive or an affiliate has invested or in which Executive
has been elected to serve, and (b) managing his personal investments, provided
that such activities set forth in (a) and (b) (individually or collectively) do
not in the good faith view of Employer's Board of Director's materially
interfere or conflict with the performance of Executive's duties or
responsibilities under this Agreement.

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                           The base of operations of the Executive shall be in
Miami, Florida; provided that Executive will from time to time participate in
meetings and undertake other activities at the Employer's headquarters in
Philadelphia, Pennsylvania but only to such reasonable extent as would not
necessitate the Executive obtaining residence other than his current residences.

         3.       COMPENSATION

                  3.1      BASIC COMPENSATION

                  (a) Base Salary. The Executive will be paid an annual base
salary of $250,000, subject to adjustment as provided below (the "Salary"),
which will be payable in equal periodic installments according to the Employer's
customary payroll practices, but no less frequently than monthly. The
Executive's Salary will be reviewed by Employer's Board of Directors not less
frequently than annually, and may be adjusted upward or downward by Employer,
but in no event will the Base Salary be less than $250,000 per year.

                  (b) Bonus. Executive shall be eligible to receive annual bonus
compensation at the discretion of Employer's Board of Directors and in
accordance with Employer's executive bonus or incentive compensation plan that
may be in effect from time to time. In addition, Executive will be eligible to
participate in an annual incentive plan which will provide an incentive payment
based upon achievement of agreed upon performance goals. The Compensation
Committee of Employer will determine the goals to be measured against as well as
the target incentive (the "Target Incentive"), which will be expressed as a
percentage of base salary. The Target Incentive will initially be set at up to
50% of Base Salary, subject to adjustment from time to time. In the event that
the Executive is not employed for the full year on which any such bonus is
based, he shall be entitled on a prorata basis to such bonus as achievement of
performance goals to the time of termination entitles him.

                  (c)      Benefits.

                                    (i)     The Executive will, during the
Employment Period, be permitted to participate in such pension, profit sharing,
bonus (subject to the provisions of Section 3.1 (b)), life insurance,
hospitalization, major medical, and other employee benefit plans of the Employer
that may be in effect from time to time, to the extent the Executive is eligible
under the terms of those plans (collectively, the "Benefits"). The Executive
shall also be entitled to such other fringe benefits as are now or may become
available to any of Employer's other executive officers.

                                    (ii)    During the term of this Agreement,
the Employer shall pay the annual premium on a term or other life insurance
policy or policies secured by Executive on the life of Executive in the face
amount not to exceed Two Million Dollars ($2,000,000), payable to such
beneficiaries as Executive may designate; provided, however, Employer shall only
be obligated to pay an annual premium not to exceed $5,000.

                                    (iii)   A yearly expense allowance of
$12,000 (paid monthly or quarterly at the discretion of Executive) will be paid

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by Employer to Executive to pay for an auto allowance for the cost of
maintaining, insuring and operating one automobile for business purposes, dues,
assessments and expenses incurred by the Executive relating to membership or
participation in professional or social groups or organizations which the
Executive determines are useful or necessary for the purpose of promoting and
maintaining the business of the Company or for other travel and entertainment
expenses incurred by Executive which he believes are useful or necessary for the
purpose of promoting and maintaining the business of the Company.

                  3.2      OPTIONS

                           Employer hereby grants to Executive options to
purchase up to one million eight hundred thousand (1,800,000) shares of its
common stock at an exercise price of $.82 per share (the "Options"). The Options
shall be granted under and subject to the terms and conditions of the Stock
Option Agreement dated June 21, 2001. The Options shall be covered by a
Registration Statement on Form S-8 to be filed with the Securities and Exchange
Commission as promptly following the Effective Date as is practicable.

         4.       EXPENSE REIMBURSEMENT

                  The Employer will pay reasonable expenses incurred by the
Executive in the performance of the Executive's duties pursuant to this
Agreement, including without limitation reasonable expenses incurred by the
Executive in attending conventions, other business meetings and for promotional
expenses, provided that any such activities must be related to Employer's
business and all individual expenses (or those aggregated for a single
convention, seminar or other business trip) greater than $5,000 must be approved
by either Employer's Chief Financial Officer or Employer's Compensation
Committee (or if Employer has no Compensation Committee, its Board of
Directors). The Executive must file expense reports with respect to such
expenses in accordance with the Employer's policies.

         5.       VACATIONS AND HOLIDAYS

                  The Executive will be entitled to three (3) weeks' paid
vacation each calendar year in accordance with the vacation policies of the
Employer in effect for its executive officers from time to time. The Executive
will also be entitled to the paid holidays and other paid leave set forth in the
Employer'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. Accrued but unused vacation days will be paid for by
Employer in certain instances upon the termination of this Agreement as provided
for in Section 6.2 hereafter.

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         6.       TERMINATION

                  6.1      EVENTS OF TERMINATION

                           The Executive's employment pursuant to this Agreement
may be terminated by Employer on the following grounds:

                           (a)      upon the death of the Executive;

                           (b)      upon the disability of the Executive
immediately upon notice from either party to the other;

                           (c)      For Cause (following the expiration of any
applicable notice period from Employer to Executive);

                           (d)      at the discretion of Employer other than For
Cause.

                           The Executive may terminate his employment on the
following grounds:

                           (e)      without Good Reason, provided that Executive
gives Employer at least thirty (30) days prior written notice of his termination
of employment; or

                           (f)      for Good Reason (following the expiration of
any applicable notice period from Executive to Employer).

                  6.2      TERMINATION PAY

                           Effective upon the termination of this Agreement, the
Employer will be obligated to pay the Executive (or, in the event of his death,
his designated beneficiary as defined below) the compensation provided in this
Section 6.2:

                           (a)      Termination by the Employer For Cause or
Termination by Executive Without Good Reason. If the Employer terminates this
Agreement For Cause or Executive resigns or terminates his employment for other
than Good Reason, the Executive will be entitled to receive his Basic
Compensation through the date such termination is effective.

                           (b)      Termination upon Disability. If this
Agreement is terminated by either party as a result of the Executive's
Disability, the Employer will pay the Executive his Basic Compensation through
the remainder of the calendar quarter during which such termination is effective
and for the lesser of (i) six consecutive months thereafter, or (ii) the period
until disability insurance benefits commence under any disability insurance
coverage furnished by the Employer to the Executive.

                           (c)      Termination upon Death. If this Agreement is
terminated because of the Executive's death, the Executive's estate will be
entitled to receive his Basic Compensation through the end of the calendar month
in which his death occurs.

                            (d)     Termination by Executive For Good Reason or
Termination by Employer Without Cause. If this Agreement is terminated by
Executive for Good Reason, or if this Agreement is terminated by Employer other
than For Cause, then as severance under this Agreement (i) Employer shall

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continue to pay to Executive his Basic Compensation for the greater of six (6)
months or until June 30, 2003 (the "Severance Period") as if Executive had
continued to remain employed during the Severance Period; provided, however, as
a condition to receiving such severance payments, Executive shall provide
Employer with a general release in form and substance satisfactory to Employer.

         7.       CHARACTER OF TERMINATION PAYMENTS; MITIGATION

                           The amounts payable to Executive upon any termination
of this Agreement shall be considered severance pay in consideration of past
services rendered on behalf of the Employer and his continued service from the
date hereof to the date he becomes entitled to such payments. Executive shall
have no duty to mitigate his damages by seeking other employment and, should
Executive actually receive compensation from any such other employment, the
payments required hereunder shall not be reduced or offset by any such other
compensation.

         8.       CONFIDENTIALITY AND RELATED MATTERS.

                  8.1      NON-DISCLOSURE COVENANT

                  Employer and the Executive acknowledge that the services to be
performed by the Executive under this Agreement are unique and valuable and
that, as a result of the Executive's employment, the Executive will be in a
relationship of confidence and trust with Employer and will come into possession
of "Confidential Information" (i) owned or controlled by Employer and its
subsidiaries and affiliates; (ii) in the possession of Employer and its
subsidiaries and affiliates and belonging to third parties; or (iii) conceived,
originated, discovered or developed, in whole or in part, by the Executive
during the term of this Agreement and relating to his duties for the Employer
under this Agreement. As used herein "Confidential Information" means trade
secrets and other confidential or proprietary business, technical, personnel or
financial information of Employer, whether or not the Executive's work product,
in written, graphic, oral or other tangible or intangible forms, including but
not limited to specifications, samples, records, data, computer programs,
drawings, diagrams, models, consumer names, ID's or e-mail addresses, business
or marketing plans, studies, analyses, projections and reports, communications
by or to attorneys (including attorney-client privileged communications), memos
and other materials prepared by attorneys or under their direction (including
attorney work product), and software systems and processes that are not readily
available to the public, even it is not specifically marked as a trade secret or
confidential, unless Employer advises the Executive otherwise in writing or
unless the information has been shared by Employer with entities not bound by
non-disclosure agreements. In consideration of the compensation and benefits to
be paid or provided to the Executive by the Employer under this Agreement, the
Executive agrees not to directly or indirectly use or disclose to anyone, either
during the Employment Period or after the termination of this Agreement, except
in the performance of his duties of his employment with Employer or with
Employer's prior written consent, any Confidential Information of Employer. This
non-disclosure covenant does not apply to information that is disclosed or
becomes public through another source that is not bound by a confidentiality
agreement with Employer; which Executive is required to disclose pursuant to
court order, subpoena or applicable law (provided that Executive will use
reasonable efforts to provide Employer with prompt notice of any such requests
or requirement so that Employer may seek an appropriate protective order); or
which is disclosed in any proceeding to enforce or interpret this Agreement. The

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Executive agrees that in the event of the termination of the Executive's
employment for any reason, the Executive will deliver to Employer, upon request,
all property belonging to Employer, including all documents and materials of any
nature pertaining to the Executive's work with Employer and will not take with
him any documents or materials of any description, or any reproduction thereof
of any description, containing or pertaining to any Confidential Information.

                  8.2   WORK MADE FOR HIRE

                  Executive recognizes and understands that Executive's duties
at the Employer may include the preparation of materials, including without
limitation written or graphic materials, and that any such materials conceived
or written by Executive shall be done as "work made for hire" as defined and
used in the Copyright Act of 1976, 17 U.S.C. ss.ss. 1 et seq. In the event of
publication of such materials, Executive understands that since the work is a
"work made for hire", the Employer will solely retain and own all rights in said
materials, including right of copyright.

                  8.3   DISCLOSURE OF WORKS AND INVENTIONS/ASSIGNMENT OF PATENTS

                  In consideration of the promises set forth herein, Executive
agrees to disclose promptly to the Employer, or to such person whom the Employer
may expressly designate for this specific purpose (its "Designee"), any and all
works, inventions, discoveries and improvements authored, conceived or made by
Executive during the period of employment and related to the business or
activities of the Employer, and Executive hereby assigns and agrees to assign
all of Executive's interest in the foregoing to the Employer or to its Designee.
Executive agrees that, whenever he is requested to do so by the Employer,
Executive shall execute any and all applications, assignments or other
instruments which the Company shall deem necessary to apply for and obtain
Letters Patent or Copyrights of the United States or any foreign country or to
otherwise protect the Company's interest therein. Such obligations shall
continue beyond the termination or nonrenewal of Executive's employment with
respect to any works, inventions, discoveries and/or improvements that are
authored, conceived of, or made by Executive during the period of Executive's
employment, and shall be binding upon Executive's successors, assigns,
executors, heirs, administrators or other legal representatives.

         9.             NON-COMPETITION AND NON-SOLICITATION MATTERS

                        9.1      NON-COMPETITION

                        During the term of this Agreement the Executive agrees
that he shall not work for or be interested in any business which provides
services or products which are directly competitive with "primary" services or
products offered by the Employer or a subsidiary or affiliate of Employer at the
Executive's termination date (the "Non-Compete Period"). In the event the
Executive is terminated For Cause or Executive terminates for other than Good
Reason, the Non-Compete Period shall be extended until the earlier of (i) one
year; or (ii) the then scheduled expiration of the term of the Agreement. In the
event the Executive is terminated in a manner in which he is paid severance, his
Basic Compensation is continued, or he is paid a lump-sum as though his
employment had continued, the Non-Compete Period shall be extended through the
period of such severance or compensation continuation. For the purpose of this
Agreement, a product or service shall be deemed "primary" only if such service
or product constitutes a primary component of the core business of Employer on

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Executive's termination date. For the further purposes of this Agreement, the
term "work for or be interested in any business" means that the Executive is a
stockholder, director, officer, employee, partner, individual proprietor, lender
or consultant with that business, but not if (i) his interest is limited solely
to the passive ownership of five percent (5%) or less of any class of the equity
or debt securities of a corporation whose shares are listed for trading on a
national securities exchange or traded in the over-the-counter market. In the
event that any part of this Section 10 is adjudged invalid or unenforceable by
any court of record, board of arbitration or judicial or quasi judicial entity
having jurisdiction thereof by reason of length of time, geographical coverage,
activities covered, or for any other reason, then the invalid or unenforceable
provisions of this covenant shall be deemed reformed and amended to the maximum
extent permissible under applicable law and shall be enforced and enforceable as
so amended in accordance with the intention of the parties as expressed herein.

                  9.2      NON-SOLICITATION

                           During the Non-Compete Period, the Executive  also
agrees that he will not directly or indirectly: (i) solicit the trade of, or
trade with, any past, present or prospective customer of the Employer for any
business purpose that directly or indirectly competes with the business of
Employer or a subsidiary or affiliate of Employer; or (ii) solicit or induce, or
attempt to solicit or induce, any employee of Employer to leave Employer for any
reason whatsoever, or assist or participate in the hiring of any employee of
Employer to work for another entity.

         10.      REPRESENTATIONS OF EXECUTIVE

                  As a material inducement to Employer to execute this Agreement
  and consummate the transactions contemplated thereby, the Executive hereby
  makes the following representations to Employer, each of which are true and
  correct in all material respects as of the date hereof.

                  10.1     QUESTIONNAIRE

                         On or before the date hereof Executive has completed
and returned to Employer a Directors and Officers Questionnaire (the
"Questionnaire") which is true and correct in all material respects.

                  10.2     NO PRIOR AGREEMENTS

                           Executive represents and warrants that Executive is
not a party to or otherwise subject to or bound by the terms of any contract,
agreement or understanding which in any manner would limit or otherwise affect
Executive's ability to perform his obligations hereunder, including without
limitation any contract, agreement or understanding containing terms and
provisions similar in any manner to those contained in Sections 8 and 9 of this
Agreement. Executive further represents and warrants that his employment with
the Employer will not under any circumstances require him to disclose or use any
confidential information belonging to prior employers or other persons or
entities, or to engage in any conduct which may potentially interfere with the
contractual, statutory or common-law rights of such other employers, persons or
entities. In the event that Executive knows or learns of any facts whatsoever
which suggest that such interference might arguably occur as the result of any
proposed actions by either Executive or the Employer, Executive expressly
promises that he will immediately bring such facts to the Employer's attention.

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                  10.3     REVIEW BY COUNSEL

                           Executive expressly acknowledges and represents that
Executive has been given a full and fair opportunity to review this Agreement
with an attorney of Executive's choice, and that Executive has satisfied
himself, with or without consulting with counsel, that the terms and provisions
of this Agreement, specifically including, but not limited to, the restrictive
covenant and related provisions of Section 9 hereof, are reasonable and
enforceable.

                  10.4     NO CONFLICTS OF INTEREST

                           Executive covenants that, as of the date hereof, he
is not involved in any venture or activity that could compete with Employer or
which could potentially interfere with his ability to perform under this
Agreement. During the Term, he will disclose to the Company, in writing, any and
all interests he may have, whether for profit or compensation or not, in any
venture or activity which could potentially interfere with his ability to
perform under this Agreement or create a conflict of interest for him with the
Company. For purposes of this Section 10.4 only, "conflict of interest" shall
mean ownership of greater than one percent (1%) of, or $25,000 worth of equity
in, another company which conducts business similar to that undertaken by the
Employer.

                  10.5     EXECUTIVE'S ABILITY

                           Executive represents that Executive's experience and
capabilities, and the limited provisions of Section 9, are such that he will not
be prevented from earning his livelihood in businesses similar to that of
Employer. Executive acknowledges that there are a significant number of
businesses for which his qualifications and experience would render him
qualified for employment that do not constitute a competing businesses such that
his ability to become employed after the termination or nonrenewal of this
Agreement would not be impaired.

         11.      COVENANTS

                  11.1     APPOINTMENT OF EXECUTIVE TO BOARD OF DIRECTORS

                           Within ten (10) days after the date of this
Agreement, Employer agrees to appoint Executive to its Board of
Directors as Chairman and to take such actions as are necessary and reasonable
to renominate him to that position at all meetings of its stockholders called
for the purpose of electing directors and meetings of its Board of Directors
called for the purpose of electing officers through the period ending on earlier
of the second anniversary of this Agreement or such earlier date that Executive
no longer remains an employee of Employer (such period referred to hereafter as
the "Board Nomination Period").

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                  11.2     CONSTITUTION OF THE BOARD OF DIRECTORS

                           During the Board Nomination Period, unless the
Executive agrees otherwise, Employer agrees to maintain its Board of Directors
at seven (7) members. Also during the Board Nomination Period, Employer agrees
within thirty (30) days following the written request of Executive to: (x)
appoint two (2) nominees of Executive to its Board of Directors, provided such
nominees are reasonably acceptable to the Board of Directors, and at least one
(1) of the nominees is a director who qualifies as an "independent director"
under applicable rules and regulations of The American Stock Exchange and the
Nasdaq Stock Market; and (y) renominate such nominees to Board positions at all
meetings of stockholders called for the purpose of electing directors.

                  11.3     COVENANTS OF THE EXECUTIVE

                           (a) During the Board Nomination Period, Executive
agrees to take all actions that are necessary and reasonable, and permitted by
applicable law, to vote, as a director and as a stockholder for the nomination
and elections of a Board of Directors of which four (4) members of the seven (7)
would either be incumbent Employer Board members as of the date of this
Agreement or nominees of such incumbents (in the aggregate, the "Incumbent STG
Board Members"); and in the absence of the consent of the majority of the
Incumbent STG Board Members, will not vote for or propose a change in the size
of Employer's Board of Directors.

                           (b) Executive agrees to tender his resignation as a
member of Executive's Board of Directors following his termination or
resignation, immediately upon request from Employer.

         12.      GENERAL PROVISIONS

                  12.1     INJUNCTIVE RELIEF AND ADDITIONAL REMEDY

                           The  Executive  acknowledges  that the injury that
would be suffered by the Employer as a result of a breach of the provisions of
any provision of Sections 8 and 9 of this Agreement would be irreparable and
that an award of monetary damages to the Employer for such a breach would be an
inadequate remedy. Consequently Employer will have the right, in addition to any
other rights it may have, to obtain injunctive relief to restrain any breach or
threatened breach or otherwise to specifically enforce any provisions of
Sections 8 and 9 of this Agreement, and the Employer will not be obligated to
post bond or other security in seeking such relief.

                  12.2     WAIVER

                           The rights and remedies of the parties to this
Agreement are cumulative and not alternative. Neither the failure nor any delay
by either party in exercising any right, power, or privilege under this
Agreement will operate as a waiver of such right, power, or privilege, and no
single or partial exercise of any such right, power, or privilege will preclude
any other or further exercise of such right, power, or privilege or the exercise
of any other right, power, or privilege.

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                  12.3     TOLLING PERIOD

                           The non-competition, non-disclosure and non-
solicitation obligations contained in Sections 8 and 9 of this Agreement shall
be extended by the length of time during which Executive shall have been in
breach of any of the provisions of such Sections 8 and 9, regardless of whether
the Employer knew or should have known of such breach.

                  12.4     EMPLOYER VIOLATION NOT A DEFENSE

                           In an action by the Employer to enforce any provision
of this Agreement, any claims asserted by Executive against the Employer shall
not constitute a defense to the Employer's action.

                  12.5     INDEMNIFICATION

                           Employer shall indemnify and defend Executive and his
heirs, executors and administrators against any costs or expense (including
reasonable attorneys' fees and amounts paid in settlement, if such settlement is
approved by the Employer), fine, penalty, judgment and liability reasonable
incurred by or imposed upon Executive in connection with any action, suit or
proceeding, civil or criminal, to which Executive may be made a party or with
which Executive shall be threatened, by reason of Executive's being or having
been and officer or director, unless with respect to such matter Executive shall
have been adjudicated in any proceeding not to have acted in good faith or in
the reasonable belief that the action was in the best interests of the Employer,
or unless such indemnification is precluded by law, public policy, or in the
judgment of the Employer's Board of Directors, such indemnification is being
sought as a result of actions of Executive which were either: (i) grossly
negligent; (ii) reflective of Executive misconduct; (iii) in violation of rules,
regulations or laws applicable to the Employer; or (iv) in disregard of Employer
policies.

                  12.6     NOTICES

                           All notices, consents, waivers, and other
communications under this Agreement must be in writing and will
be deemed to have been duly given when (a) delivered by hand, (b) sent by
facsimile (with written confirmation of receipt), provided that a copy is mailed
by registered mail, return receipt requested, or (c) when received by the
addressee, if sent by a nationally recognized overnight delivery service
(receipt requested), in each case to the appropriate addresses and facsimile
numbers set forth below (or to such other addresses and facsimile numbers as a
party may designate by notice to the other parties):

                           If to Employer:      Stonepath Group, Inc.
                                                Two Penn Center, Suite 605
                                                Philadelphia, PA 19102
                                                Telephone No.: (215) 564-9190
                                                Facsimile No.: (215) 564-3133

                           If to Executive:     Dennis L. Pelino
                                                1500 Ocean Drive, Suite 1201
                                                Miami Beach, FL  33139

                           With a copy to:      Thomas J. Quinlan, Esquire
                                                Crosby, Heafey, Roach & May
                                                1999 Harrison Street, 26th Floor
                                                Oakland, CA 94612
                                                Telephone No.: 510-466-6833
                                                Facsimile No.: 510-273-8823

<PAGE>

                  12.7     ENTIRE AGREEMENT; AMENDMENTS

                           This Agreement and the documents referenced herein,
contain the entire agreement between the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, oral or
written, between the parties hereto with respect to the subject matter hereof.
This Agreement may not be amended orally, but only by an agreement in writing
signed by the parties hereto.

                  12.8     GOVERNING LAW

                           This Agreement will be governed by the laws of the
State of Delaware without regard to conflicts of laws principles.

                  12.9     ARBITRATION, OTHER DISPUTES.

                           In the event of any dispute or controversy  arising
under or in connection with this Agreement, the parties shall first promptly try
in good faith to settle such dispute or controversy by mediation under the
applicable rules of the American Arbitration Association before resorting to
arbitration. In the event such dispute or controversy remains unresolved in
whole or in part for a period of thirty (30) days after it arises, the parties
will settle any remaining dispute or controversy exclusively by arbitration in
the city in which Employer has its principal executive offices in accordance
with the commercial arbitration rules of the American Arbitration Association
then in effect. Judgment may be entered on the arbitrator's award in any court
having jurisdiction. All administration fees and arbitration fees shall be paid
solely by Employer. Notwithstanding the above, Employer shall be entitled to
seek a restraining order or injunction in any court of competent jurisdiction to
prevent any continuation of any violation of section 8 or 9 hereof. The
prevailing party may recover attorneys' fees in any dispute or controversy
arising under or in connection with this Agreement

                  12.10    ASSIGNABILITY, BINDING NATURE

                           This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors, heirs (in the case of
the Executive) and assigns. No rights or obligations of the Executive under this
Agreement may be assigned or transferred by the Executive other than his rights
to compensation and benefits, which may be transferred only by will or operation
of law.

<PAGE>

                  12.11    SURVIVAL

                           The respective rights and obligations of the parties
hereunder shall survive any termination of the Executive's employment to the
extent necessary to the intended preservation of such rights and obligations.

                  12.12    SECTION HEADINGS, CONSTRUCTION

                           The headings of Sections in this Agreement are
provided for convenience only and will not affect its construction or
interpretation. All references to "Section" or "Sections" refer to the
corresponding Section or Sections of this Agreement unless otherwise specified.
All words used in this Agreement will be construed to be of such gender or
number as the circumstances require. Unless otherwise expressly provided, the
word "including" does not limit the preceding words or terms.

                  12.13    SEVERABILITY

                           If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of
this Agreement will remain in full force and effect. Any provision of this
Agreement held invalid or unenforceable only in part or degree will remain in
full force and effect to the extent not held invalid or unenforceable.

                  12.14    COUNTERPARTS

                           This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same agreement. This Agreement (and all other agreements, documents,
instruments and certificates executed and/or delivered in connection herewith)
may be executed by facsimile signatures, each of which shall be deemed an
original copy of this Agreement (or other such agreement, document, instrument
and certificate).

         IMPORTANT NOTICE: THIS AGREEMENT RESTRICTS EXECUTIVE'S RIGHTS TO OBTAIN
         OTHER EMPLOYMENT FOLLOWING HIS EMPLOYMENT WITH THE EMPLOYER. BY SIGNING
         IT, EXECUTIVE ACKNOWLEDGES THIS FACT, AND FURTHER ACKNOWLEDGES THAT HE
         HAS BEEN ADVISED BY THE EMPLOYER TO READ THE AGREEMENT CAREFULLY,
         AND/OR TO CONSULT WITH COUNSEL OF HIS CHOICE CONCERNING THE LEGAL
         EFFECTS OF SIGNING THE AGREEMENT, PRIOR TO SIGNING IT.

<PAGE>

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

WITNESS:                                 EMPLOYER:

                                         STONEPATH GROUP INC.

---------------------------------
Signature
                                         By:  /s/  Andrew P. Panzo
                                             -----------------------------------
---------------------------------            Authorized Executive Officer
Print Name

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

Address

---------------------------------
Address

                                         EMPLOYEE:

                                         /s/  Dennis L. Pelino
                                         ---------------------------------------
                                         Dennis L. Pelino

<PAGE>

                                  SCHEDULE "A"
                                  ------------
                          FINANCIAL PERFORMANCE TARGETS
                          -----------------------------

         Failure of the Employer to achieve the following financial performance
targets will constitute a "For Cause" event within the context of the Employment
Agreement dated June 21, 2001 between Stonepath Group, Inc. (the "Employer") and
Dennis L. Pelino ("Executive").

         In order to constitute a "For Cause" event, the Employer must either
fail to achieve any one or more of the Annual Performance Targets identified
below:

                           Annual Performance Targets
                           --------------------------

         1.       By no later than March 30, 2002, the Employer shall have
                  completed the acquisition of one or more businesses whose
                  financial statements reflect for the year-ended December 31,
                  2001 income before taxes of at least $5.0 million, through a
                  combination of audited historical (for the periods prior to
                  the acquisition) and actual audited (for periods following the
                  acquisition).

         2.       For the year-ended December 31, 2002, the Employer reports net
                  income available to common stockholders before income taxes
                  computed in accordance with generally accepted accounting
                  principles, of at least $12.2 million on its audited financial
                  statements included as a part of the Employer's Annual Report
                  on Form 10-K filed with the Securities and Exchange
                  Commission.

         3.       For the year-ended December 31, 2003, the Employer reports net
                  income available to common stockholders before income taxes
                  computed in accordance with generally accepted accounting
                  principles, of at least $21.4 million on its audited financial
                  statements included as a part of the Employer's Annual Report
                  on Form 10-K filed with the Securities and Exchange
                  Commission.

         4.       For the year-ended December 31, 2004, the Employer reports net
                  income available to common stockholders before income taxes
                  computed in accordance with generally accepted accounting
                  principles, of at least $25 million on its audited financial
                  statements included as a part of the Employer's Annual Report
                  on Form 10-K filed with the Securities and Exchange
                  Commission.<PAGE>

Exhibit 10.62

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS.
THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF REGISTRATION, OR THE AVAILABILITY OF EXEMPTION FROM REGISTRATION,
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, BASED ON AN OPINION LETTER OF
COUNSEL SATISFACTORY TO THE COMPANY OR A NO-ACTION LETTER FROM THE SECURITIES
AND EXCHANGE COMMISSION.

                                                              Option No.2001--11

                         OPTION TO PURCHASE COMMON STOCK
                                       OF
                              STONEPATH GROUP, INC.

         This certifies that, for value received, DENNIS L. PELINO ("Holder"),
is entitled, subject to the terms set forth below, to purchase from STONEPATH
GROUP, INC. (the "Company"), a Delaware corporation, that number of shares of
the Common Stock of the Company (the "Shares") as are set forth in Section 2
below, with the Notice of Exercise attached hereto duly executed, and
simultaneous payment therefore in lawful money of the United States or for other
consideration permitted herein, of the Exercise Price as set forth in Section 2
below. The number, character and Exercise Price of the Shares are subject to
adjustment as provided below.

         1. Term of Option. Subject to compliance with the vesting provisions
identified at Section 2.3 hereafter, this Option shall be exercisable, in whole
or in part, during the term (the "Term") commencing on the Grant Date and ending
on the Option Termination Date identified on Schedule A hereto and shall be void
thereafter.

         2. Exercise Price, Number of Shares and Vesting Provisions.

            2.1 Exercise Price. The Exercise Price at which this Option may be
exercised and pursuant to which Shares of the Company's Common Stock may be
purchased shall, on a per Share basis, be identified on Schedule A hereto, as
adjusted pursuant to Section 11 hereof.

            2.2 Number of Shares. The number of shares of the Company's Common
Stock, $.01 par value per share ("Common Stock") which may be purchased pursuant
to this Option shall be as identified on Schedule A hereto, as adjusted pursuant
to Section 11 hereof.

            2.3 Vesting. The Options granted hereunder shall vest in the manner
identified on Schedule A attached hereto.

<PAGE>

            2.4 Termination of Holder's Service to the Company.

                (a) If during the Term the Holder shall cease to perform
"Service" (as hereafter defined) to the Company as a result of such Holder's
death, then, notwithstanding any provisions otherwise contained in this Option
Agreement, any Options then exercisable upon Holder's death shall be exercisable
(by the Holder's personal representative or persons entitled thereto under the
Holder's will or the applicable laws of descent and distribution) until the
earlier to occur of the one year anniversary of the Holder's death or the
expiration of the Term; and if not exercised within that period, such Options
shall lapse and be of no further force and effect. All remaining Options not
exercisable at the time of Holder's death shall lapse and be of no further force
and effect.

                (b) If during the Term the Holder shall cease to perform Service
to the Company as a result of such Holder's "Disability" (as hereafter defined),
then, notwithstanding any provisions otherwise contained in this Option
Agreement, any Options then exercisable upon Holder's Disability shall be
exercisable until the earlier to occur of the one year anniversary of the
Holder's Disability or the expiration of the Term; and if not exercised within
that period, such Options shall lapse and be of no further force and effect. All
remaining Options not exercisable at the time of Holder's Disability shall lapse
and be of no further force and effect.

                (c) If during the Term the Holder shall cease to perform Service
to the Company as a result of termination of Holder's employment by the Company
"For Cause" (as hereafter defined) or termination or resignation by Holder
without "Good Reason" (as hereafter defined), then, notwithstanding any
provisions otherwise contained in this Option Agreement, any Options then
exercisable on the date of such termination or resignation, shall only be
exercisable for a period of ninety (90) days thereafter; and if not exercised
within that period, such Options shall lapse and be of no further force and
effect. All remaining Options not exercisable at the time of Holder's
termination or resignation as covered by this subparagraph (c), shall lapse and
be of no further force and effect.

                (d) If during the Term the Holder shall cease to perform Service
to the Company as a result of termination of Holder's employment by the Company
other than For Cause or by Holder for Good Reason, then, notwithstanding any
provisions otherwise contained in this Option Agreement: (i) any Options then
exercisable on the date of such termination shall be exercisable until the
earlier to occur of the third year anniversary of the Holder's termination of
Service under this paragraph or the expiration of the Term; (ii) the Holder
shall, upon occurrence of the next scheduled acceleration event identified on
Schedule A, be permitted to accelerate vesting of such additional number of
Options as are then eligible for acceleration on that date as if Holder had
continued to remain employed by the Company through that date (i.e., the
Employer must satisfy the specific financial performance targets), and such
additional Options shall be exercisable until the earlier to occur of the third
year anniversary of the Holder's termination of Service under this paragraph or
the expiration of the Term; and (iii) thereafter, any and all Options covered by
this Agreement that are not exercisable by virtue of subparagraphs (i) and (ii)
above shall lapse and be of no further force and effect.

            2.5 Definitions. As used in this Option Agreement, the following
terms shall be defined as set forth hereafter:

<PAGE>

                (iv) "Administrator" shall mean the Company's Compensation
Committee if comprised of a majority of independent directors; and if there
shall be no such Compensation Committee, the "Administrator" shall be the
Company's Board of Directors.

                (b) "Disability" shall be defined as provided in the Holder's
Employment Agreement with the Company dated June 21, 2001.

                (c) "For Cause" shall be defined as provided in the Holder's
Employment Agreement with the Company dated June 21, 2001.

                (d) "Good Reason" shall be defined as provided in the Holder's
Employment Agreement with the Company dated June 21, 2001.

                (e) "Service" means the Holder's employment services rendered to
the Company. A Holder's Service with the Company shall not be deemed to have
terminated if the Holder takes any military leave, sick leave, or other bona
fide leave of absence approved by the Company; provided, however, that if any
such leave exceeds ninety (90) days, on the ninety-first (91st) day of such
leave the Holder's Service shall be deemed to have terminated unless the
Holder's right to return to Service with the Company is guaranteed by statute or
contract.

         3. Exercise of Option.

            (a) The Option exercise price of each share purchased pursuant to an
Option shall be paid in full at the time of each exercise (the "Payment Date")
of the Option (i) in cash; (ii) by delivering to the Company a notice of
exercise with an irrevocable direction to a broker-dealer registered under the
Securities Act of 1933, as amended (the "Securities Act") to sell a sufficient
portion of the Shares and deliver the sale proceeds directly to the Company to
pay the exercise price; (iii) in the discretion of the Administrator, through
the delivery to the Company of previously-owned shares of Common Stock having an
aggregate "Fair Market Value" (as defined) equal to the Option exercise price of
the Shares being purchased pursuant to the exercise of the Option; provided,
however, that Shares of Common Stock delivered in payment of the Option price
must have been held by the Holder for at least six (6) months in order to be
utilized to pay the Option price; (iv) in the discretion of the Administrator,
by an election to have the Company withhold Shares otherwise issuable to the
Holder having a Fair Market Value equal to the Option exercise price of the
Shares being purchased pursuant to the exercise of the Option; or (v) in the
discretion of the Administrator, through any combination of the payment
procedures set forth in subsections (i)-(iv) above.

                (i) the "Fair Market Value" of the Shares shall be (i) if the
Company's Common Stock is listed on any established stock exchange or a national
market system, including without limitation the National Market or SmallCap
Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing
sales price for such stock (or the closing bid, if no sales were reported) as
quoted on such exchange or system for the last market trading day prior to the
time of determination, as reported in The Wall Street Journal or such other
source as the Administrator deems reliable; (ii) if the Common Stock is
regularly traded on the Nasdaq OTC Bulletin Board, or a comparable automated
quotation system, its Fair Market Value shall be the mean between the high bid
and low asked prices for the Common Stock on the last market trading day prior
to the day of determination; or (iii) in the absence of an established market
for the Common Stock, the Fair Market Value thereof shall be determined in good
faith by the Administrator.

<PAGE>

                (b) Subject to compliance with the vesting provisions identified
at Section 2.3 of this Agreement, the purchase rights represented by this Option
are exercisable by the Holder in whole or in part, at any time, or from time to
time, by the surrender of this Option and the Notice of Exercise annexed hereto
duly completed and executed on behalf of the Holder, at the office of the
Company (or such other office or agency of the Company as it may designate by
notice in writing to the Holder at the address of the Holder appearing on the
books of the Company).

                (c) As promptly as practicable on or after the date of exercise
and in any event within ten (10) days thereafter, the Company at its expense
shall issue and deliver to the person or persons entitled to receive the same a
certificate or certificates for the number of Shares issuable upon such
exercise. In the event that this Option is exercised in part, the Company at its
expense will execute and deliver a new Option of like tenor exercisable for the
number of Shares for which this Option may then be exercised.

         4. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this Option.
In lieu of any fractional share to which the Holder would otherwise be entitled,
the Company shall make a cash payment equal to the Exercise Price multiplied by
such fraction.

         5. Replacement of Option. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Option and, in the case of loss, theft or destruction, on delivery of an
indemnity agreement reasonably satisfactory in form and substance to the Company
or, in the case of mutilation, on surrender and cancellation of this Option, the
Company at its expense shall execute and deliver, in lieu of this Option, a new
Option of like tenor and amount.

         6. Rights of Stockholder. Except as otherwise contemplated herein, the
Holder shall not be entitled to vote or receive dividends or be deemed the
holder of Common Stock or any other securities of the Company that may at any
time be issuable on the exercise hereof for any purpose, nor shall anything
contained herein be construed to confer upon the Holder, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of stock, change of par
value, or change of stock to no par value, consolidation, merger, conveyance or
otherwise) or to receive notice of meetings, or to receive dividends or
subscription rights or otherwise until the Option shall have been exercised as
provided herein.

         7. Transfer of Option.

            7.1 Non-Transferability. No Option shall be assignable or
transferable other than by the laws of descent and distribution. During the
lifetime of the Holder, an Option shall be exercisable only by the Holder or, in
the event of the Holder's incapacity, by the Holder's legal guardian or legal
representative.

<PAGE>

            7.2 Exchange of Option Upon a Transfer. On surrender of this Option
for exchange, properly endorsed, the Company at its expense shall issue to or on
the order of the Holder a new Option or Options of like tenor, in the name of
the Holder or as the Holder (on payment by the Holder of any applicable transfer
taxes) may direct, of the number of shares issuable upon exercise hereof.

            7.3 Compliance with Securities Laws; Restrictions on Transfers.

                (a) The Holder of this Option, by acceptance hereof,
acknowledges that this Option and the Shares to be issued upon exercise hereof
are being acquired solely for the Holder's own account and not as a nominee for
any other party, and for investment (unless such Shares are subject to resale
pursuant to an effective prospectus), and that the Holder will not offer, sell
or otherwise dispose of this Option or any Shares to be issued upon exercise
hereof except under circumstances that will not result in a violation of
applicable federal and state securities laws. Upon exercise of this Option, the
Holder shall, if requested by the Company, confirm in writing, in a form
satisfactory to the Company, that the shares of Common Stock so purchased are
being acquired solely for the Holder's own account and not as a nominee for any
other party, for investment (unless such shares are subject to resale pursuant
to an effective prospectus), and not with a view toward distribution or resale.

                (b) Neither this Option nor any share of Common Stock issued
upon exercise of this Option may be offered for sale or sold, or otherwise
transferred or sold in any transaction which would constitute a sale thereof
within the meaning of the Securities Act, unless (i) such security has been
registered for sale under the Securities Act and registered or qualified under
applicable state securities laws relating to the offer an sale of securities, or
(ii) exemptions from the registration requirements of the Securities Act and the
registration or qualification requirements of all such state securities laws are
available and the Company shall have received an opinion of counsel satisfactory
to the Company that the proposed sale or other disposition of such securities
may be effected without registration under the Securities Act and would not
result in any violation of any applicable state securities laws relating to the
registration or qualification of securities for sale, such counsel and such
opinion to be satisfactory to the Company.

                (c) All Shares issued upon exercise hereof shall be stamped or
imprinted with a legend in substantially the following form (in addition to any
legend required by state securities laws).

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY APPLICABLE STATE
SECURITIES LAWS. THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF REGISTRATION, OR THE AVAILABILITY OF EXEMPTION
FROM REGISTRATION, UNDER THE SECURITIES ACT OF 1933, AS AMENDED, BASED ON AN
OPINION LETTER OF COUNSEL SATISFACTORY TO THE COMPANY OR A NO-ACTION LETTER FROM
THE SECURITIES AND EXCHANGE COMMISSION."

                (d) Holder recognizes that investing in the Option and the
Common Stock involves a high degree of risk, and Holder is in a financial
position to hold the Option and the Common Stock indefinitely and is able to
bear the economic risk and withstand a complete loss of its investment in the

<PAGE>

Option and the Common Stock. The Holder is a sophisticated investor and is
capable of evaluating the merits and risks of investing in the Company. The
Holder has had an opportunity to discuss the Company's business, management and
financial affairs with the Company's management, has been given full and
complete access to information concerning the Company, and has utilized such
access to its satisfaction for the purpose of obtaining information or verifying
information and has had the opportunity to inspect the Company's operation.
Holder has had the opportunity to ask questions of, and receive answers from the
management of the Company (and any person acting on its behalf) concerning the
Option and the Common Stock and the agreements and transactions contemplated
hereby, and to obtain any additional information as Holder may have requested in
making its investment decision.

                (e) Holder acknowledges and represents: (i) that he has been
afforded the opportunity to review and is familiar with the quarterly, annual
and periodic reports of the Company and has based his decision to invest solely
on the information contained therein and has not been furnished with any other
literature, prospectus or other information except as included in such reports;
(ii) he is at least 21 years of age; (iii) he has adequate means of providing
for his current needs and personal contingencies; (iv) he has no need for
liquidity for his investment in the Option or Common Stock; (v) he maintains his
domicile and is not a transient or temporary resident at the address on the
books and records of the Company; (vi) all of his investments and commitments to
non-liquid assets and similar investments are, after his acquisition of the
Option and Common Stock, will be reasonable in relation to his net worth and
current needs; (vii) he understands that no federal or state agency has approved
or disapproved the Option or Common Stock or made any finding or determination
as to the fairness of the Option and Common Stock for investment; and (viii) he
recognizes that the Common Stock is presently eligible for trading on the
American Stock Exchange, and that the Company has made no representations,
warranties, or assurances as to the future trading value of the Common Stock,
whether a public market will continue to exist for the resale of the Common
Stock, or whether the Common Stock can be sold at a price reflective of past
trading history at any time in the future.

         8. Reservation and Issuance of Stock; Payment of Taxes.

                (a) The Company covenants that during the term that this Option
is exercisable, the Company will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Shares
upon the exercise of this Option, and from time to time will take all steps
necessary to amend its Certificate of Incorporation to provide sufficient
reserves of Shares of Common Stock issuable upon the exercise of the Option.

                (b) The Company further covenants that all Shares of Common
Stock issuable upon the due exercise of this Option will be free and clear from
all taxes or liens, charges and security interests created by the Company with
respect to the issuance thereof, however, the Company shall not be obligated or
liable for the payment of any taxes, liens or charges of Holder, or any other
party contemplated by Section 7, incurred in connection with the issuance of
this Option or the Common Stock upon the due exercise of this Option. The
Company agrees that its issuance of this Option shall constitute full authority
to its officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Shares of Common Stock upon
the exercise of this Option. The Common Stock issuable upon the due exercise of
this Option, will, upon issuance in accordance with the terms hereof, be duly
authorized, validly issued, fully paid and non-assessable.

<PAGE>

                (c) Whenever Options are to be issued or exercised under this
Agreement, under circumstances in which the Administrator believes that any
federal, state or local tax withholding may be imposed, the Company shall have
the right to require the Holder to promptly remit to the Company an amount
sufficient to satisfy the minimum federal, state and local tax withholding
requirements prior to the delivery of any Options or certificate for Shares or
any proceeds. If a Holder makes a disposition of Shares acquired upon the
exercise of an Incentive Stock Option within either two years after the Option
was granted or one year after its exercise by the Holder, the Holder shall
promptly notify the Company and the Company shall have the right to require the
Holder to pay to the Company an amount sufficient to satisfy federal, state and
local tax withholding requirements.

                (d) A Holder who is obligated to pay the Company an amount
required to be withheld under applicable tax withholding requirements may pay
such amount (i) in cash; (ii) in the discretion of the Administrator, through
the delivery to the Company of previously-owned Shares of Common Stock having an
aggregate Fair Market Value on the date payment is requested by the
Administrator equal to the tax obligation provided that the previously owned
shares delivered in satisfaction of the withholding obligations must have been
held by the Holder for at least six (6) months; (iii) in the discretion of the
Administrator, through an election to have the Company withhold shares of Stock
otherwise issuable to the Holder having a Fair Market Value on such date equal
to the amount of tax required to be withheld, or (iv) in the discretion of the
Administrator, through a combination of the procedures set forth in subsections
(i), (ii) and (iii) of this Section 8(d).

                (e) An election by a Holder to have shares of Stock withheld to
satisfy federal, state and local tax withholding requirements pursuant to
Section 8(d) must be in writing and delivered to the Company prior to the date
when such payment is due.

         9. Notices.

                (a) All notices, advices and communications under this Option
shall be deemed to have been given, (i) in the case of personal delivery, on the
date of such delivery and (ii) in the case of mailing, on the third business day
following the date of such mailing, addressed as follows:

                    If to the Company:

                    Stonepath Group, Inc.
                    2 Penn Center, Suite 605
                    Philadelphia, PA  19102
                    Attention:  Stephen M. Cohen, Esquire, General Counsel

                    and to the Holder:

                    at the address of the Holder appearing on the books of the
                    Company or the Company's transfer agent, if any.

<PAGE>

         Either of the Company or the Holder may from time to time change the
address to which notices to it are to be mailed hereunder by notice in
accordance with the provisions of this Section 9.

         10. Amendments.

             (a) Any term of this Option may be amended with the written consent
of the Company and the Holder. Any amendment effected in accordance with this
Section 10 shall be binding upon the Holder, each future Holder and the Company.

             (b) No waivers of, or exceptions to, any term, condition or
provision of this Option, in any one or more instances, shall be deemed to be,
or construed as, a further or continuing waiver of any such term, condition or
provision.

         11. Adjustments. The number of Shares of Common Stock purchasable
hereunder and the Exercise Price is subject to adjustment from time to time upon
the occurrence of certain events, as follows:

             11.1 Reorganization, Merger or Sale of Assets. If at any time while
this Option, or any portion thereof, is outstanding there shall be (i) a
reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), (ii) a merger or
consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, or a merger in which the Company is the
surviving entity but the shares of the Company's capital stock outstanding
immediately prior to the merger are converted by virtue of the merger into other
property, whether in the form of securities, cash or otherwise, or represent
less than 50% of the shares of the Company's capital stock immediately after the
merger, or (iii) a sale or transfer of substantially all of the Company's
properties and assets as, or substantially as, an entirety to any other person,
then, unless lawful provision is made for the assumption of the Option with
appropriate proportional adjustments in the number of Options and the Exercise
Price, as determined by the Administrator, any unvested Options shall vest, if
at all, in accordance with Schedule A hereto and as a part of such
reorganization, merger, consolidation, sale or transfer, lawful provision shall
be made so that the holder of this Option shall for a period of thirty (30) days
following written notice to the Holder, have the right by exercising such
Option, to purchase the kind and number of shares of Common Stock or other
securities or property (including cash) otherwise receivable upon such
reorganization, merger, consolidation or sale or transfer by a holder of the
number of shares of Common Stock that might have been purchased upon exercise of
such Option immediately prior to such reorganization, merger, consolidation or
sale or transfer. Unless assumed, all unvested Options and all vested Options
which are not exercised during the thirty (30) day period referred to in the
preceding sentence shall thereupon expire.

             11.2 Reclassification. If the Company, at any time while this
Option, or any portion thereof, remains outstanding, by reclassification of
securities or otherwise, shall change any of the securities as to which purchase
rights under this Option exist into the same or a different number of securities
of any other class or classes, this Option shall thereafter represent the right
to acquire such number and kind of securities as would have been issuable as the
result of such change with respect to the securities that were subject to the
purchase rights under this Option immediately prior to such reclassification or
other change and the Exercise Price therefore shall be appropriately adjusted,
all subject to further adjustment as provided in this Section 11.

<PAGE>

             11.3 Split, Subdivision or Combination of Shares. If the Company at
any time while this Option, or any portion thereof, remains outstanding shall
split, subdivide or combine the securities as to which purchase rights under
this Option exist, into a different number of securities of the same class, the
Exercise Price and the number of shares issuable upon exercise of this Option
shall be proportionately adjusted.

             11.4 Adjustments for Dividends in Stock or Other Securities or
Property. If while this Option, or any portion hereof, remains outstanding the
holders of the securities as to which purchase rights under this Option exist at
the time shall have received, or, on or after the record date fixed for the
determination of eligible Stockholders, shall have become entitled to receive,
without payment therefore, other or additional stock or other securities or
property (other than cash) of the Company by way of dividend, then and in each
case, this Option shall represent the right to acquire, in addition to the
number of shares of the security receivable upon exercise of this Option, and
without payment of any additional consideration therefore, the amount of such
other or additional stock or other securities or property (other than cash) of
the Company that such holder would hold on the date of such exercise had it been
the holder of record of the security receivable upon exercise of this Option on
the date hereof and had thereafter, during the period from the date hereof to
and including the date of such exercise, retained such shares and/or all other
additional stock, other securities or property available by this Option as
aforesaid during such period.

             11.5 No Avoidance. The Company will not, by any voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good
faith assist in the carrying out of all the provisions of this Section 11 and in
the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder of this Option against impairment.

             11.6 No Fractional Shares. No adjustment or substitution provided
for in this Section 11 shall require the Company to issue or to sell a
fractional share under any Option Agreement or share award agreement and the
total adjustment or substitution with respect to each stock Option and share
award agreement shall be limited accordingly.

             11.7 Notice of Adjustment. Whenever the Exercise Price or number of
shares purchasable hereunder shall be adjusted pursuant to Section 11 hereof,
the Company shall issue a certificate signed by its Chief Financial Officer
setting forth, in reasonable detail, the event requiring the adjustment, the
amount of the adjustment, the method by which such adjustment was calculated,
and the Exercise Price and number of shares purchasable hereunder after giving
effect to such adjustment, and shall cause a copy of such certificate to be
mailed (by first class mail, postage prepaid) to the Holder of this Option.

         12. Severability. Whenever possible, each provision of this Option
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Option is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
the validity, legality or enforceability of any other provision of this Option
in such jurisdiction or affect the validity, legality or enforceability of any

<PAGE>

provision in any other jurisdiction, but this Option shall be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein.

         13. Governing Law. The corporate law of the State of Delaware shall
govern all issues and questions concerning the relative rights of the Company
and its stockholders. All other questions concerning the construction, validity,
interpretation and enforceability of this Option and the exhibits and schedules
hereto shall be governed by, and construed in accordance with, the laws of the
State of Delaware, without giving effect to any choice of law or conflict of law
rules or provisions (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the
State of Delaware.

         14. Jurisdiction. Any action or proceeding seeking to enforce any
provision of, or based on any right arising out of, this Agreement shall be
brought against either of the parties in the courts of the City in which the
principal executive offices of the Company are located, or, if either party has
or can acquire jurisdiction, in the United States Federal District Court for the
district most proximate to the city in which the principal executive offices are
located, and each of the parties consents to the jurisdiction of such courts
(and of the appropriate appellate courts) in any such action or proceeding and
waives any objection to venue laid therein. Process in any action or proceeding
referred to in the preceding sentence may be served on either party anywhere in
the world.

         15. Corporate Power; Authorization; Enforceable Obligations. The
execution, delivery and performance by the Company of this Agreement: (i) are
within the Company's corporate power; (ii) have been duly authorized by all
necessary or proper corporate action; (iii) are not in contravention of the
Company's certificate of incorporation or by-laws; (iv) will not violate in any
material respect, any law or regulation, including any and all Federal and state
securities laws, or any order or decree of any court or governmental
instrumentality; and (v) will not, in any material respect, conflict with or
result in the breach or termination of, or constitute a default under any
agreement or other material instrument to which the Company is a party or by
which the Company is bound.

         16. Successors and Assigns. This Option shall inure to the benefit of
and be binding on the respective successors, assigns and legal representatives
of the Holder and the Company.

         IN WITNESS WHEREOF, the Company has caused this Option to be executed
by its officers thereunto duly authorized.

Dated:  June 21, 2001

                         ATTEST:       STONEPATH GROUP, INC.

By:                                    By:   /s/  Andrew P. Panzo
   -----------------------------           ------------------------------------
                                       Andrew P. Panzo, Chief Executive Officer

                         WITNESS:      HOLDER: Dennis Pelino

                                       By: /s/  Dennis L. Pelino
--------------------------------          ------------------------------------
                                          Please Print Name

                                          ------------------------------------
                                          Signature

<PAGE>

                               NOTICE OF EXERCISE

                (vi)     TO:      [_____________________________]

         (1) The undersigned hereby elects to purchase _______ shares of Common
Stock of STONEPATH GROUP, INC. pursuant to the terms of the attached Option, and
tenders herewith payment of the purchase price for such shares in full.

         (2) In exercising this Option, the undersigned hereby confirms and
acknowledges that the shares of Common Stock to be issued upon conversion
thereof are being acquired solely for the account of the undersigned and not as
a nominee for any other party, and for investment (unless such shares are
subject to resale pursuant to an effective prospectus), and that the undersigned
will not offer, sell or otherwise dispose of any such shares of Common Stock
except under circumstances that will not result in a violation of the Securities
Act of 1933, as amended, or any state securities laws.

         (3) Please issue a certificate or certificates representing said shares
of Common Stock in the name of the undersigned or in such other name as is
specified below:

                                                 _______________________________
                                                 (Name)

                                                 _______________________________
                                                 (Name)

__________________________                       _______________________________
(Date)                                           (Signature)

<PAGE>

                                   Schedule A

1.  Optionee:     Dennis L. Pelino

2.  Grant Date:   June 21, 2001

3.  Option Termination Date: June 21, 2011

4.  Number of Shares of Common Stock covered by the Option: One Million
                                                            Eight Hundred
                                                            Thousand (1,800,000)

5.  Exercise Price:   $.82

6.  The Option shall vest in accordance with the following schedule:

    (iv)          Options to purchase one million eight hundred thousand
                  (1,800,000) Shares shall vest on June 21, 2005; provided
                  Holder remains continuously employed by the Company from the
                  Grant Date through June 21, 2005. Holder's termination from
                  employment prior to June 21, 2005 shall result in the
                  termination of Options not yet vested at the time of such
                  termination as provided in paragraph 2.4 of this Agreement.

    (ii)          Notwithstanding the provisions of subparagraph (i) above,
                  Options to purchase that number of shares identified below
                  shall vest on an accelerated basis: (x) provided Holder
                  remains continuously employed by the Company from the Grant
                  Date through the Accelerated Vesting Date identified below;
                  and (y) once and to the extent the Company satisfies the
                  financial performance criteria identified below (the
                  "Financial Performance Criteria"):
<TABLE>
<CAPTION>
------------------------------------------------- -------------------------------- -----------------------------------------
         FINANCIAL PERFORMANCE                               ACCELERATED                    OPTIONS TO PURCHASE
              CRITERIA                                       VESTING DATE                     SHARES SUBJECT TO
                                                                                                ACCELERATION
------------------------------------------------- -------------------------------- -----------------------------------------
<S>                                               <C>                              <C>
1.  If by no later than March 30, 2002, the       The earlier of March 30, 2002                    160,000
Company shall have completed the acquisition of   or once the income before
one or more businesses whose financial            taxes for 2001 is determined.
statements reflect for the year-ended December
31, 2001, net income before taxes of at least
$5.0 million, derived through a combination of
audited historical financial statements (for
periods prior to the acquisition) and actual
audited financial statements (for periods
following the acquisition).
------------------------------------------------- -------------------------------- -----------------------------------------
</TABLE>

<PAGE>

<TABLE>
<S>                                               <C>                              <C>
------------------------------------------------- -------------------------------- -----------------------------------------
2.  If for the year-ended December 31, 2002,      March 30, 2003, or such          Vesting of Options will accelerate in
the Company reports net income available to       earlier date that the            proportion to the achievement of the
common stockholders before income taxes           Company's 10-K is filed with     Company's targeted net income before
computed in accordance with generally accepted    the SEC.                         taxes, commencing with a minimum of
accounting principles ("GAAP"), of between                                         328,000 Options accelerating vesting if
$12.2 million (the "Low Range") and $20.25                                         the Company achieves the Low Range
million (the "High Range") on its audited                                          Financial Performance Criteria for the
financial statements included as a part of the                                     applicable period and a maximum of
Company's Annual Report on Form 10-K filed with                                    546,667 Options accelerating vesting if
the Securities and Exchange Commission ("SEC").                                    the Company achieves the High Range
                                                                                   Financial Performance Criteria for the
                                                                                   applicable period.
------------------------------------------------- -------------------------------- -----------------------------------------
3.  If for the year-ended December 31, 2003,      March 30, 2004, or such          Vesting of Options will accelerate in
the Company reports net income available to       earlier date that the            proportion to the achievement of the
common stockholders before income taxes           Company's 10-K is filed with     Company's targeted net income before
computed in accordance with GAAP, of between      the SEC.                         taxes, commencing with a minimum of
$21.4 million (the "Low Range") and $35.66                                         328,000 Options accelerating vesting if
million (the "High Range") on its audited                                          the Company achieves the Low Range
financial statements included as a part of the                                     Financial Performance Criteria for the
Company's Annual Report on Form 10-K filed with                                    applicable period and a maximum of
the SEC.                                                                           546,667 Options accelerating vesting if
                                                                                   the Company achieves the High Range
                                                                                   Financial Performance Criteria for the
                                                                                   applicable period.
------------------------------------------------- -------------------------------- -----------------------------------------
4.  If for the year-ended December 31, 2004,      March 30, 2005, or such          Vesting of Options will accelerate in
the Company reports net income available to       earlier date that the            proportion to the achievement of the
common stockholders before income taxes           Company's 10-K is filed with     Company's targeted net income before
computed in accordance with GAAP, of between      the SEC.                         taxes, commencing with a minimum of
$25 million (the "Low Range") and $41.5 million                                    328,000 Options accelerating vesting if
(the "High Range") on its audited financial                                        the Company achieves the Low Range
statements included as a part of the Company's                                     Financial Performance Criteria for the
Annual Report on Form 10-K filed with the SEC.                                     applicable period and a maximum of
                                                                                   546,667 Options accelerating vesting if
                                                                                   the Company achieves the High Range
                                                                                   Financial Performance Criteria for the
                                                                                   applicable period.
------------------------------------------------- -------------------------------- -----------------------------------------
</TABLE>

(iii) Automatic Acceleration: Notwithstanding the above, if during the Term of
this Option the closing price of the Company's common shares, as listed on the
principal exchange, market system or quotation system upon which such shares are
regularly traded, exceeds $9.00 for each trading day for a period of nine (9)
consecutive months, the Holder will be deemed to have satisfied all of the
Financial Performance Criteria for the remaining unvested Options and the
remaining unvested Options will thereafter vest quarterly in equal installments
(irrespective of any further Financial Performance Criteria) until the third
anniversary of Holder's employment with the Company whereupon such Options will
be deemed fully vested by the Holder. If the Company's common share achieve the
trading level identified above at any time during the Term after the
commencement of the Holder's third year of employment with the Company, all of
such Options shall vest immediately at that time.

(iv) Acceleration in the event of Reorganization, Merger or Sale of Assets: In
the event of a transaction described in Section 11.1 which causes a termination
of the Options after expiration of the applicable notice period specified
therein, that percentage of the remaining Options that have not yet vested
through the date of such transaction shall vest concurrent with the transaction
in accordance with the following schedule:

---------------------------------------- -----------------------------
    PER SHARE CONSIDERATION RECEIVED        PERCENTAGE OF REMAINING
     BY STOCKHOLDERS IN THE                    OPTIONS VESTING
           TRANSACTION
---------------------------------------- -----------------------------
           Below $5.00                                -0 -
---------------------------------------- -----------------------------
          $5.00 - $5.99                                50%
---------------------------------------- -----------------------------
          $6.00 - $6.99                               62.5%
---------------------------------------- -----------------------------
          $7.00 - $7.99                                75%
---------------------------------------- -----------------------------
          $8.00 - $8.99                               87.5%
---------------------------------------- -----------------------------
         $9.00 and above                              100%
---------------------------------------- -----------------------------

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

                  If the per share consideration payable to the stockholders in
                  connection with any such transaction is payable other than in
                  cash or marketable securities, then the value of such
                  consideration shall be determined in good faith by the
                  Administrator.

<PAGE>

         The terms of this Schedule A have been agreed to by the following
parties:

                                          STONEPATH GROUP, INC.

                                          By: /s/ Dennis L. Pelino
                                             ----------------------------------
                                                Authorized Executive Officer

                                          HOLDER

                                          ______________________________________
                                          DENNIS PELINO

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