Document:

exv10w15

 

Exhibit 10.15

OMNITURE, INC.

CHANGE OF CONTROL AGREEMENT

     This Change of Control Agreement (the “Agreement”) is made and entered into by and between
Michael Herring (the “Employee”) and Omniture, Inc. (the “Company”), effective as of June 7, 2006
(the “Effective Date”).

RECITALS

     1.      It is expected that the Company from time to time will consider the possibility of an
acquisition by another company or other change of control. The Board of Directors of the Company
(the “Board”) recognizes that such consideration can be a distraction to the Employee and can cause
the Employee to consider alternative employment opportunities. The Board has determined that it is
in the best interests of the Company and its stockholders to assure that the Company will have the
continued dedication and objectivity of the Employee, notwithstanding the possibility, threat or
occurrence of a Change of Control (as defined herein) of the Company.

     2.      The Board believes that it is in the best interests of the Company and its stockholders to
provide the Employee with an incentive to continue his or her employment and to motivate the
Employee to maximize the value of the Company upon a Change of Control for the benefit of its
stockholders.

     3.      The Board believes that it is imperative to provide the Employee with certain severance
benefits upon the Employee’s termination of employment following a Change of Control. These
benefits will provide the Employee with enhanced financial security and incentive and encouragement
to remain with the Company notwithstanding the possibility of a Change of Control.

     4.      Certain capitalized terms used in the Agreement are defined in Section 7 below.

AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto
agree as follows:

     1.      Term of Agreement. This Agreement shall terminate upon the date that all of the
obligations of the parties hereto with respect to this Agreement have been satisfied.

     2.      At-Will Employment. The Company and the Employee acknowledge that the Employee’s
employment is and shall continue to be at-will, as defined under applicable law, except as may
otherwise be specifically provided under the terms of any written formal employment agreement or
offer letter between the Company and the Employee (an “Employment Agreement”). If the Employee’s
employment terminates for any reason, including (without limitation) any termination prior to a
Change of Control, the Employee shall not be entitled to any payments, benefits, damages,

 

 

awards or compensation other than as provided by this Agreement or under his or her Employment
Agreement, or as may otherwise be available in accordance with the Company’s established employee
plans.

     3.      Severance Benefits.

              (a)      Involuntary Termination Other than for Cause, Voluntary Termination for Good Reason or
Death or Disability During the Change of Control Period. If within the period commencing three
months prior to a Change of Control and ending on the later of (A) twelve (12) months following a
Change of Control, or (B) one month following the latest of the originally scheduled one-year,
two-year or four-year cliff vesting date on any of Employee’s Company stock options held by
Employee immediately prior to a Change of Control (the “Change of Control Period”), (i) the
Employee terminates his or her employment with the Company (or any parent or subsidiary of the
Company) for “Good Reason” (as defined herein) or (ii) the Company (or any parent or subsidiary of
the Company) terminates the Employee’s employment for other than “Cause” (as defined herein), or
(iii) the Employee dies or terminates employment due to becoming Disabled (as defined herein) and
the Employee, except in the case of death, signs and does not revoke a standard release of claims
with the Company in a form acceptable to the Company (the “Release”), then the Employee shall
receive the following severance from the Company:

                          (i)      Severance Payment. The Employee shall be entitled to receive a lump-sum severance
payment (less applicable withholding taxes) equal to seventy-five percent of the Employee’s annual
base salary (as in effect immediately prior to (A) the Change of Control, or (B) the Employee’s
termination, whichever is greater) plus seventy-five percent of the Employee’s target bonus for the
fiscal year in which the Change of Control or the Employee’s termination occurs, whichever is
greater.

                          (ii)      Equity Compensation Acceleration. One hundred percent (100%) of the then
unvested Employee’s outstanding stock options, stock appreciation rights, restricted stock units
and other Company equity compensation awards (the “Equity Compensation Awards”) shall immediately
vest and became exercisable. Any Company stock options and stock appreciation rights shall
thereafter remain exercisable following the Employee’s employment termination for the period
prescribed in the respective option and stock appreciation right agreements.

                          (iii)       Continued Employee Benefits. Company-paid health, dental, vision, and life
insurance coverage at the same level of coverage as was provided to such Employee immediately prior
to the Change of Control and at the same ratio of Company premium payment to Employee premium
payment as was in effect immediately prior to the Change of Control (the “Company-Paid Coverage”).
If such coverage included the Employee’s dependents immediately prior to the Change of Control,
such dependents shall also be covered at Company expense. Company-Paid Coverage shall continue
until the earlier of (i) nine (9) months from the date of termination, or (ii) the date upon which
the Employee and his dependents become covered under another employer’s group health, dental,
vision, long-term disability or life insurance plans that provide Employee and his dependents with
comparable benefits and levels of coverage. For purposes of Title X of the Consolidated Budget
Reconciliation Act of 1985 (“COBRA”), the date of

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the “qualifying event” for Employee and his or her dependents shall be the date upon which the
Company-Paid Coverage terminates.

              (b)      Timing of Severance Payments. The severance payment to which Employee is entitled
shall be paid by the Company to Employee in cash and in full, not later than ten (10) calendar days
after the effective date of the Release. If the Employee should die before all amounts have been
paid, such unpaid amounts shall be paid in a lump-sum payment (less any withholding taxes) to the
Employee’s designated beneficiary, if living, or otherwise to the personal representative of the
Employee’s estate.

              (c)      Voluntary Resignation; Termination for Cause. If the Employee’s employment with
the Company terminates (i) voluntarily by the Employee other than for Good Reason, or (ii) for
Cause by the Company, then the Employee shall not be entitled to receive severance or other
benefits except for those (if any) as may then be established under the Company’s then existing
severance and benefits plans and practices or pursuant to other written agreements with the
Company.

              (d)      Termination Outside of Change of Control Period. In the event the Employee’s
employment is terminated for any reason, either prior to the Change of Control Period or after the
Change of Control Period, then the Employee shall be entitled to receive severance and any other
benefits only as may then be established under the Company’s existing written severance and
benefits plans and practices or pursuant to other written agreements with the Company.

              (e)      Internal Revenue Code Section 409A. Notwithstanding any other provision of this
Agreement, if the Employee is a “key employee” under Code Section 409A and a delay in making any
payment or providing any benefit under this Plan is required by Code Section 409A, such payments
shall not be made until the end of six (6) months following the date of the Employee’s separation
from service as required by Code Section 409A.

     4.      Coordination with Existing Agreements. In the event of a termination of Employee’s
employment within the Change of Control Period, the provisions of this Agreement are intended to
enhance, but not be additive, to any pre-existing written agreements between the Company and
Employee. For example, if Employee’s employment agreement with the Company provides for a
specified cash payment upon a termination without cause, and severance payments are triggered under
both the employment agreement and this Agreement, Employee shall be entitled to the larger cash
payment provided in either agreement but shall not be entitled to the sum of the two cash payments.
The same principle applies to the other individual elements of severance provided herein including
equity compensation award accelerated vesting. Except as otherwise provided in this Section 4, the
benefits provided to Employee under this Agreement are intended to be and are exclusive and in lieu
of any other rights or remedies to which the Employee or the Company may otherwise be entitled,
whether at law, tort or contract, in equity, and including pursuant to the Company’s other
severance plans, arrangements or practices.

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     5.       Conditional Nature of Severance Payments and Benefits.

              (a)      Noncompete. Employee acknowledges that the nature of the Company’s business is
such that if Employee were to become employed by, or substantially involved in, the business of a
competitor of the Company during the nine months following the termination of Employee’s employment
with the Company, it would be very difficult for Employee not to rely on or use the Company’s trade
secrets and confidential information. Thus, to avoid the inevitable disclosure of the Company’s
trade secrets and confidential information, Employee agrees and acknowledges that Employee’s right
to receive the severance payments and benefits set forth in Section 3(a) (to the extent Employee is
otherwise entitled to such payments) shall be conditioned upon Employee’s compliance in all
respects with any covenant not to compete in effect between Employee and the Company on the date of
this Agreement during the nine-months following the termination of Employee’s employment with the
Company.

              (b)      Remedy for Breach. Upon any breach by Employee of the covenant not to compete
referred to in Section 5(a) during the nine months following the termination of Employee’s
employment with the Company, then, in addition to any other remedy that the Company may otherwise
have, all severance payments and benefits pursuant to this Agreement shall immediately cease and
any stock options or stock appreciation rights then held by Employee shall immediately terminate
and be without further force and effect, and Employee shall be required to reimburse the Company
any lump-sum severance payment previously paid under Section 3(a)(i) and the value of any welfare
plan reimbursements previously paid under Section 3(a)(iii).

     6.       Golden Parachute Excise Tax.

              (a)      On or After Initial Public Offering. In the event that, on or after the date
that the Company’s initial public offering of its equity securities on Form S-1 is declared
effective by the U.S. Securities & Exchange Commission (an “IPO”), benefits are triggered
hereunder, then, then Employee’s excise taxes under Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”), shall be treated as follows:

                          (i)      Parachute Payments of Less than 3.6 x Base Amount. In the event that the benefits
provided for in this agreement or otherwise payable to Employee, including vesting acceleration
upon a change of control pursuant to Employee’s employment agreement with the Company (a)
constitute “parachute payments” within the meaning of Section 280G of the Code, (b) would be
subject to the excise tax imposed by Section 4999 of the Code, and (c) the aggregate value of such
parachute payments, as determined in accordance with Section 280G of the Code and the proposed
Treasury Regulations thereunder (or the final Treasury Regulations, if they have then been adopted)
is less than the product obtained by multiplying three and six-tenths by Employee’s “base amount”
within the meaning of Code Section 280G(b)(3), then such benefits shall be reduced to the extent
necessary (but only to that extent) so that no portion of such benefits will be subject to excise
tax under Section 4999 of the Code.

                          (ii)      Parachute Payments Equal to or Greater than 3.6 x Base Amount. In the event that
the benefits provided for in this agreement or otherwise payable to Employee, including vesting
acceleration upon a change of control pursuant to Employee’s employment

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agreement with the Company (a) constitute “parachute payments” within the meaning of Section
280G of the Code, (b) would be subject to the excise tax imposed by Section 4999 of the Code, and
(c) the aggregate value of such parachute payments, as determined in accordance with Section 280G
of the Code and the proposed Treasury Regulations thereunder (or the final Treasury Regulations, if
they have then been adopted) is equal to or greater than the product obtained by multiplying three
and six-tenths by Employee’s “base amount” within the meaning of Code Section 280G(b)(3), then (A)
the benefits shall be delivered in full, and (B) the Employee shall receive (1) a payment from the
Company sufficient to pay such excise tax, and (2) an additional payment from the Company
sufficient to pay the federal and state income and employment taxes and additional excise taxes
arising from the payments made to the Employee by the Company pursuant to this clause (B).

              (b)      Prior to Initial Public Offering. In the event that, prior to an IPO, the
severance and other benefits provided for in this agreement or otherwise payable to Employee (a)
constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”) and (b) would be subject to the excise tax imposed by Section 4999 of
the Code, then such benefits shall be either be:

                          (i)      delivered in full, or

                          (ii)      delivered as to such lesser extent which would
result in no portion of such severance benefits being subject to excise
tax under Section 4999 of the Code,

whichever of the foregoing amounts, taking into account the applicable federal, state and local
income and employment taxes and the excise tax imposed by Section 4999, results in the receipt by
Employee, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or
some portion of such benefits may be taxable under Section 4999 of the Code.

              (c)      280G Determinations. Unless the Company and the Employee otherwise agree in
writing, the determination of Employee’s excise tax liability and the amount required to be paid or
reduced under this Section 5 shall be made in writing by the Company’s independent auditors who are
primarily used by the Company immediately prior to the Change of Control (the “Accountants”). For
purposes of making the calculations required by this Section 6, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith
interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and
the Employee shall furnish to the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this Section. The Company shall bear all
costs the Accountants may reasonably incur in connection with any calculations contemplated by this
Section 6.

     7.      Definition of Terms. The following terms referred to in this Agreement shall have
the following meanings:

              (a)      Cause. “Cause” shall mean (i) an act of personal dishonesty taken by the Employee
in connection with his responsibilities as an employee and intended to result in substantial
personal enrichment of the Employee, (ii) Employee being convicted of, or pleading nolo
contendere

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to a felony, (iii) a willful act by the Employee which constitutes gross misconduct and which
is injurious to the Company, (iv) following delivery to the Employee of a written demand for
performance from the Company which describes the basis for the Company’s reasonable belief that the
Employee has not substantially performed his duties, continued violations by the Employee of the
Employee’s obligations to the Company which are demonstrably willful and deliberate on the
Employee’s part.

              (b)      Change of Control. “Change of Control” means the occurrence of any of the
following:

                          (i)      Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Company representing fifty percent (50%) or more of
the total voting power represented by the Company’s then outstanding voting securities; or

                          (ii)      Any action or event occurring within a two-year period, as a result of which fewer than a
majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who
either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for
election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors
at the time of such election or nomination (but shall not include an individual whose election or
nomination is in connection with an actual or threatened proxy contest relating to the election of
directors to the Company); or

                          (iii)      The consummation of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity) at least fifty percent (50%) of
the total voting power represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation; or

                          (iv)       The consummation of the sale, lease or other disposition by the Company of all or
substantially all the Company’s assets.

              (c)      Disability. “Disability” shall mean that the Employee has been unable to perform
his or her Company duties as the result of his incapacity due to physical or mental illness, and
such inability, at least twenty-six (26) weeks after its commencement, is determined to be total
and permanent by a physician selected by the Company or its insurers and acceptable to the Employee
or the Employee’s legal representative (such Agreement as to acceptability not to be unreasonably
withheld). Termination resulting from Disability may only be effected after at least thirty (30)
days’ written notice by the Company of its intention to terminate the Employee’s employment. In
the event that the Employee resumes the performance of substantially all of his or her duties
hereunder before the termination of his or her employment becomes effective, the notice of intent
to terminate shall automatically be deemed to have been revoked.

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              (d)      Good Reason. “Good Reason” means without the Employee’s express written consent
(i) a material reduction of the Employee’s duties, title, authority or responsibilities, relative
to the Employee’s duties, title, authority or responsibilities as in effect immediately prior to
such reduction, or the assignment to Employee of such reduced duties, title, authority or
responsibilities; provided, however, that Employee may only resign for Good Reason
under this subsection 7(d)(i) in the period commencing six months following a Change of Control and
ending on the termination of the Change of Control Period; provided, further, that
such resignation for Good Reason may be on account of a material reduction in Employee’s duties,
title, authority or responsibilities effectuated at any time during the Change of Control Period,
including prior to the date that is six months following a Change of Control; (ii) a reduction by
the Company in the base salary of the Employee as in effect immediately prior to such reduction; or
(iii) the relocation of the Employee to a facility or a location more than thirty-five (35) miles
from such Employee ‘s then present location.

     8.      Successors.

              (a)      The Company’s Successors. Any successor to the Company (whether direct or
indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or
substantially all of the Company’s business and/or assets shall assume the obligations under this
Agreement and agree expressly to perform the obligations under this Agreement in the same manner
and to the same extent as the Company would be required to perform such obligations in the absence
of a succession. For all purposes under this Agreement, the term “Company” shall include any
successor to the Company’s business and/or assets which executes and delivers the assumption
agreement described in this Section 8(a) or which becomes bound by the terms of this Agreement by
operation of law.

              (b)      The Employee’s Successors. The terms of this Agreement and all rights of the
Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or
legal representatives, executors, administrators, successors, heirs, distributees, devisees and
legatees.

     9.      Notice.

              (a)      General. All notices and other communications required or permitted hereunder
shall be in writing, shall be effective when given, and shall in any event be deemed to be given
upon receipt or, if earlier, (a) five (5) days after deposit with the U.S. Postal Service or other
applicable postal service, if delivered by first class mail, postage prepaid, (b) upon delivery, if
delivered by hand, (c) one (1) business day after the business day of deposit with Federal Express
or similar overnight courier, freight prepaid or (d) one (1) business day after the business day of
facsimile transmission, if delivered by facsimile transmission with copy by first class mail,
postage prepaid, and shall be addressed (i) if to Employee, at his or her last known residential
address and (ii) if to the Company, at the address of its principal corporate offices (attention:
Secretary), or in any such case at such other address as a party may designate by ten (10) days’
advance written notice to the other party pursuant to the provisions above.

              (b)      Notice of Termination. Any termination by the Company for Cause or by the
Employee for Good Reason or Disability or as a result of a voluntary resignation shall be
communicated by a notice of termination to the other party hereto given in accordance with Section
9(a) of

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this Agreement. Such notice shall indicate the specific termination provision in this
Agreement relied upon, shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination under the provision so indicated, and shall specify the termination
date (which shall be not more than thirty (30) days after the giving of such notice). The failure
by the Employee to include in the notice any fact or circumstance which contributes to a showing of
Good Reason or Disability shall not waive any right of the Employee hereunder or preclude the
Employee from asserting such fact or circumstance in enforcing his or her rights hereunder.

     10.      Miscellaneous Provisions.

              (a)      No Duty to Mitigate. The Employee shall not be required to mitigate the amount of
any payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings
that the Employee may receive from any other source.

              (b)      Waiver. No provision of this Agreement shall be modified, waived or discharged
unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and
by an authorized officer of the Company (other than the Employee). No waiver by either party of
any breach of, or of compliance with, any condition or provision of this Agreement by the other
party shall be considered a waiver of any other condition or provision or of the same condition or
provision at another time.

              (c)      Headings. All captions and section headings used in this Agreement are for
convenient reference only and do not form a part of this Agreement.

              (d)      Entire Agreement. This Agreement, along with other written agreements relating to
the subject matter hereof between Employee and a duly authorized Company officer constitute the
entire agreement of the parties hereto and supersede in their entirety all prior representations,
understandings, undertakings or agreements (whether oral or written and whether expressed or
implied) of the parties with respect to the subject matter hereof.

              (e)      Choice of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Utah. The Utah state courts in Utah
County, Utah and/or the United States District Court for the District of Utah in Salt Lake City
shall have exclusive jurisdiction and venue over all controversies in connection with this
Agreement.

              (f)      Severability. The invalidity or unenforceability of any provision or provisions
of this Agreement shall not affect the validity or enforceability of any other provision hereof,
which shall remain in full force and effect.

              (g)      Withholding. All payments made pursuant to this Agreement will be subject to
withholding of applicable income and employment taxes.

              (h)      Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together will constitute one and the same instrument.

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     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year set forth below.

	 	 	 	 	 
	COMPANY 	OMNITURE, INC.

 	 
	 	By:  	/s/ Joshua G. James
 	 
	 	 	 
	 	Title:  	Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	EMPLOYEE 	By:  	/s/ Michael S. Herring
 	 
	 	 	 
	 	Title:  	Chief Financial Officer
 	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

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                                                                   EXHIBIT 10.36

                                                                  EXECUTION COPY

                   AMENDED AND RESTATED TERM CREDIT AGREEMENT

         THIS TERM CREDIT AGREEMENT (this "Agreement") is made and entered into
as of June 22, 2006, by and between STONEPATH HOLDINGS (HONG KONG) LIMITED
("Borrower") and SBI BRIGHTLINE, a Delaware limited liability company,
("Lender"). This Agreement amends and restates that certain Term Credit
Agreement, dated as of June 19, 2006, by and between the parties, in its
entirety.

                                   WITNESSETH:

         WHEREAS, Lender desires to make a Term Loan to Borrower, and Borrower
desires to borrow from Lender the amount of such Term Loan, subject to and in
accordance with the terms and conditions set forth herein, and in the Term Note
agreement.

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

         1. Certain Defined Terms. As used in this Agreement, the following
terms shall have the following meanings:

         "Business Day" means a day (a) other than Saturday or Sunday, and (b)
on which commercial banks are open for business in New York, New York, and Los
Angeles, California.

         "Closing Date" means the date each of the conditions precedent set
forth in SECTION 5 hereof is fully satisfied.

         "Dollars" and "$" means the lawful currency of the United States of
America.

         "Event of Default" has the meaning set forth in SECTION 7.

         "Interest Rate" has the meaning set forth in SECTION 2(c).

         "Maturity Date" has the meaning set forth in SECTION 2(b).

         "Note" has the meaning set forth in SECTION 2(d).

         "Person" means an individual, corporation, limited liability company,
partnership, joint venture, trust, unincorporated organization or any other
juridical entity.

         "Term Loan" has the meaning set forth in SECTION 2(a).

         2. Amount and Terms of the Term Loan.

                  (a) Term Loan Advance. Subject to the terms and conditions of
this Agreement, Lender hereby agrees to make a loan to Borrower (the "Term
Loan") on the Closing Date in the principal amount of FOUR MILLION U.S. DOLLARS
(U.S.$4,000,000), which amount may be repaid at any time prior to the Maturity
Date without premium or penalty, but may not be reborrowed once repaid.

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<PAGE>

                  (b) Term. All unpaid principal and accrued but unpaid interest
of the Term Loan shall, subject to subsection (c) below, be payable in full on
June 19, 2008 (the "Maturity Date").

                  (c) Interest Rate and Interest Payments. Borrower shall pay,
interest on the unpaid principal amount of the Term Loan from the Closing Date
until the Maturity Date, at a rate equal to ten percent (10.0%) per annum on a
basis of a 360 day year (the "Interest Rate"). Subject to Section 2(e) and 2(g)
below, interest on the outstanding principal amount of the Term Loan shall be
due and payable to Lender, monthly in arrears, on the last Business Day of each
calendar month, commencing on the first of such dates following, the Closing
Date until the Maturity Date, at which time all accrued but unpaid interest
shall be due and payable.

                  (d) Promissory Note. The Term Loan shall be evidenced by a
promissory note (the "Note") in the form of Exhibit "A" attached hereto, duly
executed and delivered to Lender by Borrower.

                  (e) Interest on Event of Default. Upon the occurrence and
during the continuance of an Event of Default, Borrower agrees to pay interest
on the entire unpaid principal amount of the Term Loan, as well as on any
interest or other amount past due, from the date of such Event of Default until
the date the same is cured in full, payable on demand, at a fluctuating rate per
annum equal at all times to the Interest Rate plus three percent (3.0%).

                  (f) Manner of Payment. All payments of principal or interest
hereunder or under the Note shall be made in United States dollars and delivered
to Lender in immediately available funds on the date due at such place as Lender
may from time to time designate.

                  (g) Limitation on Interest Rate. In no contingency or event
whatsoever shall the aggregate of all amounts deemed interest hereunder and
charged or collected by Lender or any holder of the Note exceed the highest rate
permissible under any law which a court of competent jurisdiction shall, in a
final determination, deem applicable hereto. In the event that such a court
determines that Lender has charged or received interest hereunder or under the
Note in excess of the highest applicable rate, the rate in effect hereunder and
under the Note shall automatically be reduced to the maximum rate permitted by
applicable law and Lender shall apply all interest paid in excess of the maximum
lawful rate to the principal balance of the amounts outstanding hereunder and
under the Note. It is the intent of the parties hereto that Borrower not pay or
contract to pay, and that Lender not receive or contract to receive, directly or
indirectly in any manner whatsoever, interest in excess of that which may be
paid by Borrower to Lender under applicable law.

         3. Representations and Warranties. In order to induce Lender to enter
into this Agreement and to make the Term Loan contemplated hereunder, Borrower
hereby represents and warrants to Lender as follows:

                  (a) Legal Status. Borrower is a corporation duly incorporated,
validly existing, and in good standing under the laws of Hong Kong. Borrower is
qualified or licensed to do business, and is in good standing as a foreign
corporation in all jurisdictions in which such

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<PAGE>

qualification or licensing is required or in which the failure to so qualify or
to be so licensed could have a material adverse effect on Borrower.

                  (b) Authorization and Validity. This Agreement and the Note
have been duly authorized, and upon their execution and delivery in accordance
with the provisions hereof and thereof will constitute legal, valid and binding
agreements and obligations of Borrower, enforceable in accordance with their
respective terms.

                  (c) No Conflict. The execution, delivery, and performance by
Borrower of this Agreement and the Note do not and will not conflict with the
terms of the Certificate of Incorporation or bylaws of Borrower, violate any
provision of any judgment, decree or order of any court or governmental
authority by which Borrower is bound, or any provision of any law or regulation
applicable to Borrower, or result in a breach of or constitute a default under
any contract, obligation, indenture, or other instrument to which Borrower is a
party or by which Borrower may be bound.

                  (d) No Consents. The execution, delivery, and performance by
Borrower of this Agreement and the Note do not and will not require any
authorization, approval, or other action by, or notice to or filing with, any
governmental authority, regulatory body, or any other person or entity.

                  (e) Use of Proceeds. No proceeds of the Term Loan will be used
to acquire any equity security of a class that is registered pursuant to Section
12 of the Securities Exchange Act of 1934, as amended. Borrower shall use TWO
MILLION U.S. DOLLARS (U.S.$2,000,000) of the Term Loan to satisfy in full
Borrower's debts and obligations under (i) the Term Credit Agreement by and
between Borrower, Hong Kong League Central Credit Union and SBI Advisors, LLC, a
California limited liability company, dated October 27, 2004, and as amended on
October 26, 2005, and the note in the principal amount of ONE MILLION U.S.
DOLLARS (U.S.$1,000,000) issued in connection therewith, (ii) the Term Credit
Agreement by and between Borrower, Hong Kong League Central Credit Union and SBI
Advisors, LLC, a California limited liability company, dated February 17, 2006
and the note in the principal amount of FIVE HUNDRED THOUSAND U.S. DOLLARS
(U.S.$ 500,000) issued in connection therewith, and (iii) the Term Credit
Agreement by and between Borrower, Curried Clover, LLC and SBI Advisors, LLC,
dated February 17, 2006 and the note in the principal amount of FIVE HUNDRED
THOUSAND U.S. DOLLARS (U.S.$500,000) issued in connection therewith. The other
TWO MILLION U.S. DOLLARS (U.S.$2,000,000) of the Term Loan shall be new working
capital to be used by Borrower as Borrower deems fit.

                  (f) Margin Stock. Borrower is not engaged in the business of
extending credit for the purpose of purchasing or carrying margin stock (within
the meaning of Regulation G or U issued by the Board of Governors of the Federal
Reserve System), and no proceeds of the Term Loan will be used to purchase or
carry any margin stock or extend credit to others for the purpose of purchasing
or carrying any margin stock, or be used for any purpose which violates or is
inconsistent with the provisions of Regulation X of said Board of Governors.

                                       3
<PAGE>

         4. Covenants. Borrower hereby covenants that until all amounts
outstanding hereunder and under the Note have been indefeasibly paid in full, it
shall:

                  (a) Punctual Payments. Punctually pay the interest and
principal with respect to the Term Loan as provided herein and in the Note.

                  (b) Existence. Do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its existence and comply with
the provisions of all documents pursuant to which it is organized and/or which
govern its continued existence; maintain all licenses, permits, governmental
approvals, rights, privileges, and franchises necessary for the conduct of its
business; and conduct its business in an orderly and regular manner and in
accordance with all laws, rules, regulations, and orders of any governmental
authority having jurisdiction over it or its business.

                  (c) Books and Records. Maintain adequate books and records in
accordance with US GAAP consistently applied, and permit any representative
agent of Lender, at any reasonable time, to inspect, audit and examine such
books and records; to make copies of the same, and to inspect its assets and
properties.

         5. Conditions Precedent to Term Loan. The obligation of Lender to make
the Term Loan shall be subject to the condition precedent that Lender shall have
received each of the following, each in form and substance satisfactory to
Lender:

                  (a) This Agreement, duly executed by the parties hereto;

                  (b) The Note, duly executed by Borrower;

                  (c) A Security Deed, duly executed by the parties hereto;

                  (d) An undertaking by all relevant shareholders of the
Borrower to amend the articles of association of the Borrower so that paragraph
(D) of the definition of "Triggering Event" in Article 2 shall be replaced with
the following or such other provision as the Lender may consider appropriate:

         "(D) the material breach or default by the Company of any of the
material provisions or material obligations of the Company under the Term Credit
Agreement dated on or about June 19, 2006 by and between the Company and SBI
Brightline, LLC, as amended or modified from time to time. Without prejudice to
the generality of the foregoing, any late payment of any interest and/or
installment shall be deemed to be a material breach."

                  (e) An undertaking by all relevant shareholders of the
Borrower to amend the articles of association of the Borrower to add an
additional "Triggering Event" in Article 2 in the event of the Company's
payment of dividends on the Preferred Shares in additional Preferred Shares
rather than in cash, which event shall result in the right, at the holder's
option, to redeem such Preferred Shares at par value (i.e., ONE HUNDRED U.S.
DOLLARS (U.S. $100) per share).

                  (f) An undertaking by all relevant shareholders of the
Borrower to amend the articles of association of the Borrower to permit the
voluntary redemption by Borrower of its Preferred Shares.

         6. Survival of Representations and Warranties. Borrower covenants,
warrants and represents to Lender that all representations and warranties of
Borrower contained in this Agreement or the Note shall be true at the time of
Borrower's execution of this Agreement and the Note, and shall survive the
execution, delivery and acceptance thereof by Lender and the parties thereto and
the closing of the transactions described therein or related thereto.

                                       4
<PAGE>

         7. Events of Default. The occurrence of any of the following shall
constitute an "Event of Default" and shall, at the option of Lender, require
immediate payment in full of all sums then remaining unpaid hereunder and under
the Note:

                  (a) Failure to Pay the Note. The failure of Borrower to pay
any principal, interest or other amount due under the Note when due and payable.

                  (b) Breach of Covenant, Representation or Warranty. The
failure of Borrower to perform or observe any covenant, condition or agreement
contained in this Agreement (other than the payment obligations, the breach of
which shall be governed by subsection (a) above) where such failure is not cured
within ten (10) Business Days after receipt of written notice thereof from
Lender, or any representation or warranty made or deemed made under or in
connection with this Agreement that was false or misleading in any material
respect when made.

                  (c) Non-Payment of Indebtedness. Borrower shall default in the
payment when due of any indebtedness for borrowed money if the effect of any
such default is to cause or permit the acceleration of such indebtedness, or to
permit the holder of the note evidencing such indebtedness to cause the same to
become due prior to its stated maturity.

                  (d) Insolvency. Borrower shall become insolvent; admit in
writing its inability to pay its debts as they mature; make an assignment for
the benefit of creditors; or if bankruptcy proceedings or other proceedings for
relief under any bankruptcy law or any law for the relief of debtors shall be
instituted by or against it and, if instituted against it, the same is not
dismissed within thirty (30) days of the filing thereof.

                  (e) Dissolution. Any order, judgment, or decree shall be
entered against Borrower decreeing its involuntary dissolution or split up and
such order shall remain undischarged and unstayed for a period in excess of
thirty (30) days; or Borrower shall otherwise dissolve or cease to exist.

                  (f) Cross Default. Any default by Stonepath Group, Inc., or
any of its domestic subsidiaries under the several agreements with Laurus Master
Fund, Ltd. ("Laurus"), dated August 31, 2005 (the "Laurus Agreements"), which is
not waived by Laurus within thirty (30) days thereof, including, but not limited
to any failure to pay any principal, interest or other amount due, when due and
payable under the Laurus Agreements.

         8. Conversion of Preferred Shares. Following the effectiveness of the
amendment in Section 5(e) above, immediately upon any default by Stonepath
Group, Inc., or any of its domestic subsidiaries under the several agreements
with Laurus Master Fund, Ltd., dated August 31, 2005 (the "Laurus Agreements"),
including, but not limited to any failure to pay any principal, interest or
other amount due, when due and payable under the Laurus Agreements, Borrower
shall permit Hong Kong League Central Credit Union ("HKLCCU") to redeem the
thirty thousand (30,000) shares of the Borrower's Preferred Shares issued to
HKLCCU pursuant to an Exchange Agreement dated October 7, 2005, by and among
Borrower, STONEPATH GROUP, INC., HKLCCU, and SBI ADVISORS, LLC, at par value
(i.e., ONE HUNDRED U.S. DOLLARS (U.S.$100) per share), if such shares remain
outstanding at that time.

                                       5
<PAGE>

         9. Remedies. If an Event of Default shall occur, all amounts
outstanding hereunder or under the Note, notwithstanding any term of this
Agreement or the Note to the contrary, shall at Lender's option and without
notice to Borrower become immediately due and payable, without presentment,
demand, protest or notice of dishonor, all of which are hereby expressly waived
by Borrower. All rights, powers and remedies of Lender in connection with this
Agreement and the Note may be exercised at any time by Lender and from time to
time after the occurrence of an Event of Default, are cumulative and not
exclusive, and shall be in addition to any other rights, powers or remedies
provided by law or equity.

         10. Miscellaneous.

                  (a) Failure or Indulgence Not Waiver. No failure or delay on
the part of Lender, or any holder of the Note in the exercise of any power,
right or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise thereof or of any other right, power or privilege.

                  (b) Modification. No modification, amendment or waiver of any
provision of this Agreement or the Note, nor the consent to any departure by
Borrower therefrom, shall in any event be effective unless the same shall have
been approved by Lender and shall be in writing signed by Lender and, with
respect to any amendment, Borrower. Such waiver or consent shall then be
effective only in the specific instance and for the purpose for which given. No
notice to or demand on Borrower in any case shall entitle Borrower to any other
or further notice or demand in the same, similar or other circumstances.

                  (c) Notices. Except as otherwise expressly provided herein,
any notice herein required or permitted to be given shall be in writing and
shall be deemed effective when personally delivered, mailed, telecopied (with a
confirming copy sent by mail) or delivered by telex to the appropriate party at
the address set forth below (or at such other address as may be designated by
either party in a written notice sent in accordance with this Section):

                  If to Borrower:   Stonepath Holdings (Hong Kong) Limited
                                    Unit 2602, 26th Floor, Miramar Tower
                                    132 Nathan Road, Tsimshatsui, Kowloon
                                    Hong Kong

                  with a copy to:   Stonepath Group, Inc.
                                    2200 Alaskan Way, Suite 200
                                    Seattle, WA 98121
                                    Attention: Corporate Counsel
                                    Telecopy No.: 206-336-5401

                  If to Lender:     SBI Brightline, LLC
                                    610 Newport Center Drive, Suite 1205
                                    Newport Beach, CA 92660
                                    Telecopy No.: 949-679-7280

                                       6
<PAGE>

         (d) Severability. In case any provision in this Agreement or the Note
shall be invalid, illegal or unenforceable, such provision shall be severable
from the remainder of such contract and the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

         (e) Applicable Law. This Agreement and the Note, and the rights and
obligations of the parties thereto, shall be governed by the laws of Hong Kong
and the parties hereby submit to the non-exclusive jurisdiction of the courts of
Hong Kong.

         (f) Assignability. Borrower shall not assign its rights or obligations
hereunder, or under the Note to any other Person without the prior written
consent of Lender, and any attempted assignment in violation hereof shall be
null and void ab initio. Lender shall have the right to freely assign its rights
and obligations hereunder and no consent or approval from Borrower is required
in connection with any such assignment.

         (g) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

         (h) Section Headings. The various headings used in this Agreement are
inserted for convenience only and shall not affect the meaning or
interpretations of this Agreement or any provision hereof.

         (i) Attorneys' Fees. In the event any party institutes any action or
proceeding to enforce the terms and conditions of this Agreement or the Note,
the prevailing party shall be entitled to reasonable attorneys' fees and costs.

         (j) WAIVER OF TRIAL BY JURY. EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR
OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE,
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS
AGREEMENT, THE NOTE OR THE SUBJECT MATTER HEREOF AND THEREOF OR ANY DOCUMENT
RELATING HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING OR WHETHER IN CONTRACT, TORT OR OTHERWISE.

         (k) Integration. This Agreement, the Note, and the Security Deed
reflect the entire understanding of the parties with respect to the transactions
contemplated hereby and shall not be contradicted or qualified by any other
agreement, oral or written, whether before or after the date hereof.

                                       7
<PAGE>

         IN WITNESS WHEREOF, the parties hereto do execute this Agreement as of
the date first above written.

                                   "BORROWER"

                                   STONEPATH HOLDINGS
                                   (HONG KONG) LIMITED

                                   By: /s/ ROBERT AROVAS
                                       -----------------------------------------
                                   Name: Robert Arovas
                                         ---------------------------------------
                                   Its: President and Chief Financial Officer
                                        ----------------------------------------

                                   "LENDER"

                                   SBI BRIGHTLINE, LLC

                                   By: /s/ SHELLY SINGHAL
                                       -----------------------------------------
                                   Name: Shelly Singhal
                                         ---------------------------------------
                                   Its: Managing Member
                                        ----------------------------------------

                                       8
<PAGE>
                                                                  EXECUTION COPY

                                    EXHIBITS

                             Exhibit "A" - Term Note

<PAGE>
                                                                  EXECUTION COPY

                                    EXHIBIT A

                          TO THE TERM CREDIT AGREEMENT

                                FORM OF TERM NOTE

                                    TERM NOTE

                                                                       Hong Kong
U.S.$4,000,000                                                     June 19, 2006

         FOR VALUE RECEIVED, the undersigned, STONEPATH HOLDINGS (HONG KONG)
LIMITED, a Hong Kong corporation (the "Borrower"), HEREBY UNCONDITIONALLY
PROMISES TO PAY to the order of SBI BRIGHTLINE, a Delaware limited liability
company (the "Lender"), without offset or counterclaim, the principal sum of
FOUR MILLION U.S. DOLLARS (U.S.$4,000,000) on or before the Maturity Date (as
such term is defined in the Credit Agreement referred to below). The Borrower
further promises to pay interest on the Term Loan outstanding hereunder from
time to time at the interest rates, and payable on the dates, set forth in the
Credit Agreement referred to below. This Term Note may be prepaid at any time
prior to the Maturity Date without premium or penalty.

         1. Payment. Both principal and interest are payable in lawful money of
the United States of America and in immediately available funds to the Lender at
610 Newport Center Drive, Suite 1205, Newport Beach, CA 92660, or such other
place as the Lender may designate in writing to the Borrower from time to time.

         2. Record Keeping. The Lender shall record the amount of principal and
interest due and payable from time to time hereunder, each payment thereof and
the resulting unpaid principal balance hereof, in the Lender's internal records,
and any such recordation shall be rebuttable presumptive evidence of the
accuracy of the information so recorded; provided, however, that the Lender's
failure so to record shall not limit or otherwise affect the obligations of the
Borrower hereunder and under the Credit Agreement to repay the principal of and
interest on the Term Loan.

         3. Credit Agreement. This Term Note is the Note referred to in, and is
subject to and entitled to the benefits of, that certain Term Credit Agreement,
dated of even date herewith (as amended, modified, renewed or extended from time
to time, the "Credit Agreement") between the Borrower, the Lender and certain
other parties thereto. Unless otherwise defined herein, capitalized terms used
herein shall have the respective meanings assigned to them in the Credit
Agreement. The Credit Agreement provides, among other things, for acceleration
(which in certain cases shall be automatic) of the maturity hereof upon the
occurrence of certain stated events, in each case without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived.

         4. Limitation on Interest Rate. In no contingency or event whatsoever
shall the aggregate of all amounts deemed interest hereunder or under the Credit
Agreement and charged

                                       A-1
<PAGE>

or collected by the Lender or any holder of this Term Note exceed the highest
rate permissible under any law which a court of competent jurisdiction shall, in
a final determination, deem applicable hereto. In the event that such a court
determines that the Lender has charged or received interest hereunder or under
the Credit Agreement in excess of the highest applicable rate, the rate in
effect hereunder and under the Credit Agreement shall automatically be reduced
to the maximum rate permitted by applicable law and the Lender shall apply all
interest paid in excess of the maximum lawful rate to reduce the principal
balance of the amounts outstanding hereunder and under the Credit Agreement. It
is the intent of the parties hereto that the Borrower not pay or contract to
pay, and that the Lender not receive or contract to receive, directly or
indirectly in any manner whatsoever, interest in excess of the maximum rate of
interest that may be paid by the Borrower to the Lender under applicable law.

         5. Governing Law. THIS TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF HONG KONG AND BORROWER HEREBY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF THE COURTS OF HONG KONG.

                                          STONEPATH HOLDINGS (HONG KONG) LIMITED

                                          By: /s/ ROBERT AROVAS
                                              ----------------------------------

                                          Name: Robert Arovas
                                                --------------------------------

                                          Its: President and Chief Financial
                                               Officer
                                               ---------------------------------

                                      A-2

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