DUTCHESS CAPITAL MANAGEMENT, LLC

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50 Commonwealth Ave, Suite 2, Boston, MA 02116
 
1110 Route55, Suite 206, LaGrangeville, NY 12540
Phone: (617) 301-4700
 
Phone (845) 575-6770

 
August 6, 2008

Mr. Bruce Littell
Logistical Support, LLC
19734 Dearborn St
Chatsworth, CA 91311

Re:  Amendment to Transaction Documents

Dear Mr. Littell:

For the limited purposes set forth below, this shall operate as approval for the
Company to extend certain Payments on Advance Amounts due to Dutchess Private
Equities Fund, LTD (“Dutchess”) for Orders as outlined in the Purchase Order
Financing Agreement dated August 24, 2007 and any amendments made thereto (the
“PO”) between Dutchess, on the one hand, and Logistical Support, LLC and all of
its subsidiaries and its parent, Logistical Support, Inc. (“LGSL” or the
“Company”), on the other hand. The Transaction Documents remain in full force
and effect, with the exception of the following: the second amendment to the PO
dated August 6th, 2008 shall take effect; and, 2) the Company shall be permitted
an extension on the Repayment of Orders for an additional forty-five (45) days
from the PO.

Regards,

Douglas Leighton
Director
Dutchess Private Equities Fund, Ltd.

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SECOND AMENDMENT

This SECOND Amendment (“Amendment”), to the Purchase Order Financing Agreement
dated August 27, 2007 (the "PO") between Dutchess Private Equities Fund, Ltd
("Dutchess") and Logistical Support, LLC (the "Company"), is made this 6th day
of August 2008.

WHEREAS, it is in the best interest of both parties to facilitate (the
"Facilitation") the amendments in connection with the Previous Agreements.

NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency
of is hereby acknowledged, and the premises and mutual covenants and agreements
set forth herein and in reliance upon the representations and warranties
contained herein, the parties hereto covenant and agree as follows:

1.
Amendment to the PO. The PO is hereby amended to update Exhibit B:

EXHIBIT B

List of Contracts for Order:
 
All current contracts owned by the Company or future contracts received by the
Company, with the sole exception of:
 
2.
Amendment to the PO. The PO is hereby amended to update Exhibit C:

EXHIBIT C

ASSIGNMENT OF ORDERS

AS OF August 4, 2008
FOR LOGISTICAL SUPPORT, INC (“COMPANY”) and
Dutchess Private Equities Fund, Ltd. (“HOLDER”)

FOR VALUE RECEIVED, Company unconditionally and irrevocably sells, bargains,
transfers and assigns to Holder, with full recourse in Holder, as of the date
shown above, all of Company’s right, title and interest in and to the Raw
Materials Orders enumerated in Exhibit “B” attached hereto (hereinafter
“Collateral Orders”), together with any security or guarantees associated with
those Collateral Orders, including the proceeds of credit insurance due and
payable in connection with the Collateral Orders.

2

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Holder shall have the rights to the Collateral Orders set forth in that certain
Project Order Financing Agreement dated August 24, 2007 and to which Company and
Holder are Parties including, but not limited to, (i) in Holder’s own name and
for Holder’s own benefit, to make and effect collections from the Account
Debtors of the Collateral Orders; and, (ii) to receive, take possession of,
endorse and deposit in Holder’s own bank account(s) any and all payments,
commercial paper, notes or acceptances or other things of value received in
payment of the Collateral Orders.

By signing below, Holder accepts the assignment of the Orders set out in the
attached Exhibit “B”.

The terms “Account Debtors”, “Orders”, “Parties” and “Collateral Orders” shall
have the same meaning as defined in Section 1 of this Amendment and entered into
by the Parties.

3. No other terms, rights or provisions of the Transaction Documents are or
should be considered to have been modified by the terms of this Amendment and
each party retains all other rights, obligations, privileges and duties
contained in the Transaction Documents.

4. Any reference made in the Transaction Documents to Exhibit B or Exhibit C,
shall, as of the date of this Amendment, have the meanings specified herein.
 
Agreed and Accepted, and duly authorized to sign, on this 6th day of August,
2008.
 
By Dutchess:
 
   
Douglas H. Leighton, Director
 

 
By Company:
 
   
Bruce Littell, CEO
 

3

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EXHIBIT B - COLLATERAL ORDERS (UPDATED ON 8-5-08)

LS JOB NUMBER/ITEM DESCRIPTION
 
CONTRACT NUMBER
 
 
 
007 GEARBOX
 
SP048002C1045
 
 
 
039 INPUT ASSY
 
W58RGZ05D0133/0001
 
 
 
042 COLLAR
 
FA820305C0055
 
 
 
049 COLLAR
 
FA820305M0290
 
 
 
071 ABSORBER
 
W58RGZ06D0272/0001
 
 
 
095 UH60 PUMPS
 
W58RGZ04D0301/0003
 
 
 
100 GEARBOX
 
SPM480-03-D-0327
 
 
 
104 SPAR
 
SPM4A707D3187/0001
 
 
 
105 BOLT ASSY
 
FA850907C0016
 
 
 
112 COLLAR
 
FA820307C0111
 
 
 
113,114,115 CARGO RAMP RODS
 
SPM47003D1333/0001-0003
 
 
 
116 INPUT ASSY
 
W58RGZ05D0133/0002
 
 
 
118 UH60 DAMPERS
 
W58RGZ05D0255/0004
 
 
 
119 FITTING
 
W58RGZ07P0534
 
 
 
124 ROD ASSEMBLY RAMP
 
SPM47003D1333/0004
 
 
 
125 ROD ASSEMBLY RAMP
 
SPM47003D1333/0005
 
 
 
126 ROD ASSEMBLY RAMP
 
SPM47003D1333/0006
 
 
 
127 CYLINDER ACTUATING
 
FA820307C0204
 
 
 
128 FORK
 
FA820307C0191
 
 
 
130 CASTING
 
SPM4A707C0263
 
 
 
134 Module Assy UH-60
 
W58RGZ04D0301/0004
 
 
 
138 PYLON
 
W58RGZ08D0041/0001
 
 
 
140 ROD ASSEMBLY RAMP
 
SPM47003D1333/0007
 
 
 
142 Umbilical Retract Mechanism
 
NNK08MA03P
 
 
 
146 Rod, Piston, Linear
 
FA8203-07-M-0386
 
 
 
147 Cylinder, Positioning
 
FA8203-08-C-0012
 
 
 
149 Landing Gear Fork
 
FA8203-08-C-0068
 
 
 
150 CH-47 Damper Overhaul
 
W58RGZ-08-D-0067/0001
 
 
 
151 Parts Kit, Beam
 
SPM4A7-08-C-0119

 
4

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EXHIBIT B - COLLATERAL ORDERS (UPDATED ON 8-5-08)

153 Collar, Yoke, Landing
 
FA8203-08-C-0041
 
 
 
154 UH60 Damper Overhaul
 
W58RGZ-05-D-0255/0005
 
 
 
159 Cylinder Assy
 
FA8203-08-C-0029
 
 
 
162 Absorber Assy - Overhaul
 
W58RGZ-06-D-0272/0002
 
 
 
164 Detent Assy
 
SPM4A7-08-C-0380
 
 
 
167 Rigid Shaft
 
SPM4A7-08-M-C480
 
 
 
171 Drag Link, Landing Gear
 
SPRHA1-08-C-0008
 
 
 
172 Cylinder Actuating
 
SPRHA1-08-C-0011
 
 
 
173 Cylinder Position
 
SPRHA1-08-C-0016
 
 
 
175 Retract Assy
 
SPRHA1-08-C-0017

 
5

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