Document:

EXHIBIT 10.26

                  NARRATIVE SUMMARY OF AMERICAN CONSUMERS, INC.
                  ---------------------------------------------
                EXECUTIVE OFFICER CASH BONUS PLAN FOR FISCAL 2008
                -------------------------------------------------

The following is a description of the Cash Bonus Plan applicable to the fiscal
year ending in May 2008 for those executive officers of American Consumers, Inc.
(the "Company") who qualify as "named executive officers" pursuant to Item
402(a)(3) of Securities and Exchange Commission Regulation S-K.  The Board of
Directors of the Company, acting upon the recommendation of the Board's
Compensation Committee, has elected to leave these potential bonus percentages
unchanged from the potential bonus percentages established for these officers
for the Company's 2007 fiscal year.

During fiscal 2008, the following named executive officers of the Company will
be eligible to receive a discretionary cash bonus equal to the fixed percentage
of the Company's net income before taxes for such year set forth below for each
such officer:

<TABLE>
<CAPTION>
                                                                  POTENTIAL BONUS AS A
       NAME:                          TITLE:                 PERCENTAGE OF PRE-TAX INCOME:
----------------------  -----------------------------------  ------------------------------
<S>                     <C>                                  <C>
Michael A. Richardson   Chairman of the Board, President                   6%
                        and Chief Executive Officer

Paul R. Cook            Executive Vice President, Treasurer                4%
                        and Chief Financial Officer
</TABLE>

The amount of any bonus ultimately paid will be determined in the discretion of
the Compensation Committee.  As reported in the Company's proxy statement for
its 2007 Annual Meeting of Shareholders, such officers were paid bonuses in the
following amounts with respect the Company's performance in fiscal 2007:  Mr.
Richardson - $7,219 and Mr. Cook - $4,813.EXHIBIT 10.27

                  NARRATIVE SUMMARY OFAMERICAN CONSUMERS, INC.
                  --------------------------------------------
                       DIRECTOR COMPENSATION ARRANGEMENTS
                       ----------------------------------

The following is a description of the current director compensation arrangements
for American Consumers, Inc. (the "Company").  The Board of Directors of the
Company, acting upon the recommendation of the Board's Compensation Committee,
has elected to leave these arrangements unchanged for the Company's fiscal year
ending in May 2008 as compared to the Company's fiscal 2007 and prior years.

During fiscal 2008, all Company directors (including both employee and
non-employee directors) will receive cash payments of $300.00 per month for
service as directors, plus reimbursement for reasonable expenses incurred in
attending meetings of the Board of Directors and any Board committee on which a
director serves.  Directors who are members of the Audit Committee and the
Compensation Committee of the Board of Directors do not receive any additional
compensation for such committee service.Exhibit
      10.1

    Purchase
      Order Financing Agreement 

    (the
      “Agreement”)

     

    
      	
              LINE
                AMOUNT

            	
              $2,000,000

            
	
              ISSUANCE
                DATE

            	
              August
                24, 2007

            
	
              MATURITY
                DATE

            	
              August
                24, 2009

            

    

    

    FOR
      VALUE
      RECEIVED, LOGISTICAL
      SUPPORT, LLC.,
      a
      California limited liability company (the “Company”), as a duly authorized and
      wholly owned subsidiary of Logistical Support, Inc., a Utah corporation (OTC
      BB:
      LGSL) (“Parent”) hereby promises to pay DUTCHESS
      PRIVATE EQUITIES FUND, LTD.
      (the
“Holder”)
      on
      August 24, 2009 (the “Maturity Date”), or earlier, the Line Amount of Two
      Million Dollars ($2,000,000) U.S., plus accrued and unpaid interest thereon,
      in
      such amounts, at such times and on such terms and conditions as are specified
      herein. The Company, Parent and the Holder are sometimes hereinafter
      collectively referred to as the “Parties”
and
      each a “Party”
to
      this
      Agreement.

     

    WHEREAS,
      the Company desires to finance, from the Holder, certain of its Orders (as
      hereinafter defined) now existing, or hereinafter received, which represent
      amounts due from bona fide contracts for the sale and delivery of goods, in
      the
      ordinary course of the Company’s business; and,

     

    WHEREAS,
      the Holder desires to finance those Orders of the Company that it deems
      acceptable upon the terms and conditions set forth in the this
      Agreement.

     

    WHEREAS,
      the Parent hereby agrees to fully secure all obligation entered into herein
      by
      the Company through the Continuing Unconditional Guaranty of even date herewith
      between the Holder and the Parent.

     

    WHEREAS,
      the Holder shall fund the Line Amount in an escrow account with Gersten Savage,
      LLP.

     

    In
      consideration of the above recitals, the terms and covenants of this Agreement
      and other good and valuable consideration, including the payment of money from
      Holder to Company, the receipt of which is hereby acknowledged, and intending
      to
      be bound hereby, the Parties agree as follows:

     

    Article
      1 Payment;
      Repayment; Interest

     

    Section
      1.1 Interest

     

    a. The
      Company shall pay interest on the unused portion of the Line Amount
      (“Line
      Amount Interest”)
      at the
      rate of three percent (3%) per annum, at such times and in such amounts as
      outlined in this Article
      1.
      The
      Company shall make mandatory monthly payments of interest (the “Line
      Amount Interest Payments”),
      in an
      amount equal to the interest accrued on the unused balance of the Line Amount
      from the last Line Amount Interest Payment until such time as the current Line
      Amount Interest Payment is due and payable. The Line Amount Interest Payments
      shall commence on the first month following the Issuance Date and shall continue
      until the Maturity Date. The Line Amount Interest Payments shall be paid on
      the
      first day of each such month. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    b. The
      Company shall pay interest on each Advance Amount (as hereinafter defined)
      (“Advance
      Interest”)
      at the
      rate of two percent (2%) per month, at such times and in such amounts as
      outlined in this Article
      1.
      The
      Company shall make mandatory monthly payments of interest (the “Advance
      Interest Payments”),
      in an
      amount equal to the interest accrued on the balance of the Advance Amount from
      the last Advance Interest Payment until such time as the current Advance
      Interest Payment is due and payable. The Advance Interest Payments shall
      commence on the first month immediately following the Advance Request (as
      defined herein) and shall continue until the Maturity Date. The Advance Interest
      Payments shall be paid on the first day of each such month. 

     

    c. The
      Company shall have the right, but not the obligation, to make the Line Amount
      Interest Payments or the Advance Interest Payments (collectively, hereinafter
      referred to as “Interest
      Payments”)
      from
      the Line Amount. In the event the Company chooses to make Interest Payments
      from
      the Line Amount, the Holder shall treat any such funds drawn for an Interest
      Payment as an Advance on the Line Amount and such interest shall thereafter
      accrue interest at the rate applicable on Advance Amounts
      hereunder.

     

    Section
      1.2 Payment
      for Orders.

     

    At
      such
      time as the Company desires to request funds from the Line Amount for an Order
      or for Interest Payments as outlined in this Article 1 (each, an “Advance”),
      the
      Company shall submit to the Holder, a duly authorized request for an Advance
      (“Advance
      Request”),
      in
      the form attached as Exhibit A hereto and incorporated by reference, specifying
      the amount requested for such Advance (each, an “Advance
      Amount”
or
      collectively, the “Advance
      Amounts”),
      and,
      subject to the satisfaction of the Holder, the Company and the Holder shall
      sign
      a release for the requested funds to be transferred directly from the escrow
      account with Gersten Savage (“Escrow
      Account”)
      to the
      Company’s account. 

     

    Notwithstanding
      anything to the contrary contained herein, in no event shall the outstanding
      Advances exceed the Line Amount. If at any time the aggregate amount of
      outstanding Advances exceeds the Line Amount, the Company shall immediately
      pay
      to Holder, in cash, the amount of such excess. The Holder shall have the right
      to terminate its obligation to make any Advance under this Agreement immediately
      and without notice upon the occurrence and during the continuance of an Event
      of
      Default.

     

    Section
      1.3 Repayment

     

    The
      Company shall make mandatory payments to the Holder on each Advance
      (“Payment”
or
      collectively, the “Payments”)
      as
      funds are paid to and received by the Company from the contract of orders in
      Exhibit B (“Collateral
      Orders”
or
      “Orders”)
      (attached hereto and incorporated herein by reference). Immediately upon, and
      in
      any event not later than one (1) business day of Company’s receipt of all or any
      portion of funds from Collateral Orders or from the Company’s Factoring Line
      (defined below) for the proceeds related specifically to the Collateral Orders,
      the Company shall pay to the Holder such portion of funds received by the
      Company via wire transfer in immediately available funds. Notwithstanding
      anything to the contrary contained herein, the Company shall immediately make
      Payment to the Holder on ANY funds received from the customer listed on Exhibit
      B.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    The
      Company shall use all commercially reasonable best efforts to maintain and
      use
      the current factoring line of credit with Wells Fargo Bank, NA (“Factoring
      Line”)
      in
      order to ensure the Holder full payment on the Advance Amount. Intercreditor
      Agreement s/b entered into w/ Wells.

     

    The
      Company may make additional payments (“Prepayment”)
      without any penalties provided the Company has paid all Interest Payments then
      required to be paid.

     

    Article
      2 Collateral;
      Sale; Purchase Price; Assignment and Transfer of Ownership.

     

    2.1 Collateral.

     

    As
      security for all outstanding Advances, Interest Payments and other amounts
      owing
      from the Company to the Holder under this Agreement or any other document
      executed in connection herewith, the Company shall grant in favor of the Holder
      a security interest in parts and supplies for the Orders (“Raw
      Materials”)
      and
      all finished goods created from the Raw Materials as are listed on the Schedules
      of Orders (collectively with the Raw Materials and all other property provided
      as collateral security under or in connection with this Agreement or the
      Security Agreement, the “Collateral”)
      pursuant to a Security Agreement dated of even date herewith from the Company
      in
      favor of the Holder (the “Security
      Agreement,”)
      and
      the Continuing Unconditional Guaranty dated of even date herewith from the
      Parent in favor of the Holder (the “Guaranty” and together with the Security
      Agreement and this Agreement and all other documents executed in connection
      herewith, the “Transaction
      Documents”).

     

    2.2 Offer
      of
      Orders for Sale; Acceptance by Holder. 

     

    a. Company
      shall offer to sell to Holder as absolute owner, with full recourse, all of
      Company’s right, title and interest in such Raw Materials and all finished goods
      created from the Raw Materials as are listed on the Schedules of Orders. The
      current version of the Schedule of Orders is attached hereto as Exhibit B and
      may be periodically revised by Holder.

     

    b. Each
      Schedule of Orders shall be accompanied by such documentation supporting and
      evidencing the Order, as Holder shall from time-to-time request, as outlined
      on
      Exhibit B or this Agreement, including, without limitation, Section 24 of this
      Agreement.

     

    2.3 Assignment
      and Sale

     

    For
      those
      Orders that Holder agrees to finance for the Company, the Company shall assign
      and transfer over to Holder as absolute owner with full recourse all of
      Company’s right, title and interest in the parts and supplies being used to
      fulfill such Order. The Company agrees to execute the Assignment of Order
      substantially in the form attached hereto as Exhibit C for Orders being sold
      to
      Holder.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    2.4 Threshold
      Amount

     

    If
      at any
      time during the term of this Agreement, the Company raises any funds from a
      third-party, whether involving the issuance of debt or equity, in excess of
      one
      dollar ($1.00) (a “Financing”),
      then
      the Company shall pay to the Holder one hundred percent (100%) of the net
      proceeds therefrom as prepayment of the Line Amount and all accrued and unpaid
      interest thereon and all penalties, if any, then due. A Financing will also
      include the sale by the Company of any of its assets which are deemed to be
      material to the Company (excluding assets sold in the normal course of
      business). All prepayments described in this Section
      2.4
      shall be
      made to the Holder within three (3) business day of the Company’s receipt of
      proceeds from the Financing. Failure to comply with this Section
      2.4
      shall
      constitute an Event of Default (as described in Article
      4
      hereof).

     

    Article
      3 Term;
      Renewal; Unpaid Amounts

     

    a. The
      term
      of this Agreement shall be for twenty-four (24) months. All amounts outstanding
      under the Line Amount and all accrued and unpaid interest thereon shall become
      immediately due and payable to the Holder, if not earlier in accordance with
      the
      terms of this Agreement, on the Maturity Date.

     

    b. So
      long
      as no Event of Default has occurred and is continuing, the Company shall have
      the option to renew the Line Amount for an additional twenty-four (24) months
      upon the Maturity Date. At such time, the Company shall pay to the Holder three
      percent (3%) of the Line Amount as a renewal fee.

     

    c. In
      the
      event that on the Maturity Date, there is an outstanding balance on the Line
      Amount, the Holder can exercise its right to increase the Advance Amounts by
      ten
      percent (10%) as an initial penalty and increase the interest rates applicable
      under this Agreement by an additional two and one-half percent (2.5%) per month,
      compounded daily, until the Line Amount and all accrued and unpaid interest
      thereon is paid in full. The Company shall also continue to pay interest on
      the
      Advance Amounts in accordance with the interest rates outlined in this
      Agreement. The foregoing shall constitute an Event of Default under this
      Agreement and entitle the Holder, in its discretion, to exercise any and all
      remedies available to the Holder including those remedies described in Article
      4
      of this Agreement. 

     

    Article
      4 Defaults
      and Remedies

     

    Section
      4.1 Events
      of Default.
      Each of
      the following shall constitute an “Event
      of Default”
under
      this Agreement:

     

    (a) the
      Company fails to make any Payment on the Line Amount of this Agreement within
      two (2) business days of the Payment being due, as outlined herein, or on the
      Maturity Date, as applicable, upon receipt of Collateral Orders or otherwise;
      or

     

    (b) the
      Company, pursuant to or within the meaning of any Bankruptcy Law (as hereinafter
      defined): (i) commences a voluntary case; (ii) consents to the entry of an
      order
      for relief against it in an involuntary case or if such an involuntary case
      is
      commenced against the Company and is not dismissed or stayed within thirty
      (30)
      calendar days (and the Holder shall not be obligated to make Advances during
      such 30 calendar day period); (iii) consents to the appointment of a Custodian
      (as hereinafter defined) of it or for all or substantially all of its property;
      (iv) makes a general assignment for the benefit of its creditors; or (v) a
      court
      of competent jurisdiction enters an order or decree under any Bankruptcy Law
      that: (A) is for relief against the Company in an involuntary case; (B) appoints
      a Custodian of the Company or for all or substantially all of its property;
      or
      (C) orders the liquidation of the Company, and the order or decree remains
      unstayed and in effect for sixty (60) calendar days; or 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c) any
      of
      the Company’s representations or warranties contained in this Agreement or any
      other Transaction Document were false when made; or, 

     

    (d) the
      Company breaches any covenant or condition of this Agreement or any other
      Transaction Document, and such breach, if subject to cure, continues for a
      period of five (5) business days.

     

    (f) the
      Company’s failure to pay any taxes when due unless such taxes are being
      contested in good faith by appropriate proceedings and with respect to which
      adequate reserves have been provided on the Company’s books; provided, however,
      that in the event that such failure is curable, the Company shall have ten
      (10)
      business days to cure such failure; or,

     

    (g) an
      attachment or levy is made upon the Company’s assets having an aggregate value
      in excess of twenty-five thousand dollars ($25,000) or a judgment is rendered
      against the Company or the Company’s property involving a liability of more than
      twenty-five thousand dollars ($25,000) which shall not have been vacated,
      discharged, stayed or bonded pending appeal within ninety (90) days from the
      entry hereof; or,

     

    (h) any
      change in the Company’s condition or affairs (financial or otherwise) which in
      the Holder’s reasonable, good faith opinion, would have a Material Adverse
      Effect; provided, however, that in the event that such failure is curable,
      the
      Company shall have ten (10) business days to cure such failure; or,

     

    (i) any
      lien
      in the Collateral in favor of the Holder, except for liens permitted under
      the
      Security Agreement, created hereunder or under any of the Transaction Documents
      for any reason ceases to be or is not a valid and perfected lien in such
      Collateral having a first priority interest in favor of the Holder;
      or,

     

    (j) If
      there
      is a default or other failure to perform in any agreement to which the Company
      is a party with a third party or parties, including the Factoring Line,
      resulting in a right by such third party or parties, whether or not exercised,
      to accelerate the maturity of any Indebtedness in an amount in excess of
      $25,000; or

     

    (k) the
      indictment or threatened indictment of the Company, any officer of the Company
      under any criminal statute, or commencement or threatened commencement of
      criminal or civil proceeding against the Company or any officer of the Company
      pursuant to which statute or proceeding penalties or remedies sought or
      available include forfeiture of any of the property of the company.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    As
      used
      in this Section 4.1, the term “Bankruptcy
      Law”
means
      Title 11 of the United States Code or any similar federal or state law for
      the
      relief of debtors. The term “Custodian”
means
      any receiver, trustee, assignee, liquidator or similar official under any
      Bankruptcy Law. 

     

    Section
      4.2 Remedies.
      Upon
      the occurrence of an Event of Default, in addition to the rights and remedies
      contained herein and in the other Transaction Documents, the Holder may enforce
      its rights and remedies against any Collateral

     

    For
      each
      Event
      of
      Default, as outlined in this Agreement, the Holder can exercise its right to
      increase the Advance Amounts ten percent (10%) as an initial penalty. In
      addition, the Holder may elect to increase the Advance Amounts by two and
      one-half percent (2.5%) per month paid as a penalty for Liquidated Damages
      in
      addition to the current Interest being paid on the Line Amount and Advance
      Amounts. The Liquated Damages will be compounded daily. It is the intention
      and
      acknowledgement of both parties that the Liquidated Damages not be deemed as
      interest. 

     

    In
      the
      event of an Event of Default hereunder remains uncured for a period of five
      (5)
      days, the Holder shall be unilaterally entitled to request the Escrow Agent,
      as
      defined herein, to transfer any Remaining Escrow Funds (as defined in the Escrow
      Agreement between the Company and the Escrow Agent of even date herewith) to
      be
      transferred immediately back to the Holder. All Advance Amounts shall also
      become immediately due and payable to the Holder.

     

    In
      the
      event of an Event of Default hereunder remains uncured for sixty (60) days,
      the
      Holder shall have the right, but not the obligation, to switch the Advance
      Amounts to a three-year (“Convertible Maturity Date”) fifteen percent (15%)
      interest bearing convertible debenture at the terms described in Section 4.2
      (the “Convertible Debenture”) the Parent. At such time of an Event of Default,
      the Convertible Debenture shall be considered issued (“Convertible Closing
      Date”). If the Holder chooses to convert the Advance Amounts to a Convertible
      Debenture (“Residual Amount”), the Parent shall have forty-five (45) business
      days after notice of the same (the “Notice of Convertible Debenture”) to file a
      registration statement covering an amount of shares equal to three hundred
      percent (300%) of the Residual Amount. The Parent shall use its best efforts
      to
      require such registration statement shall be declared effective under the
      Securities Act of 1933, as amended (the “Securities Act”), by the Securities and
      Exchange Commission (the “Commission”) within ninety (90) business days of the
      date the Parent files such Registration Statement. In the event the Parent
      does
      not file such registration statement within twenty (20) business days of the
      Holder’s request, or such registration statement is not declared by the
      Commission to be effective under the Securities Act within the time period
      described above , the Residual Amount shall increase by five thousand dollars
      ($5,000) per day. In the event the Parent is given the option for accelerated
      effectiveness of the registration statement, it agrees that it shall cause
      such
      registration statement to be declared effective as soon as reasonably
      practicable. In the event that the Parent is given the option for accelerated
      effectiveness of the registration statement, but chooses not to cause such
      registration statement to be declared effective on such accelerated basis,
      the
      Residual Amount shall increase by five thousand dollars ($5,000) per day
      commencing on the earliest date as of which such registration statement would
      have been declared to be effective if subject to accelerated
      effectiveness.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Section
      4.3 Conversion
      Privilege

     

    (a) The
      Holder shall have the right to convert the Convertible Debenture into shares
      of
      Common Stock at any time following the Convertible Closing Date and which is
      before the close of business on the Convertible Maturity Date. The number of
      shares of Common Stock issuable upon the conversion of the Convertible Debenture
      shall be determined pursuant to Article 4, but the number of shares issuable
      shall be rounded up or down, as the case may be, to the nearest whole share.
      

     

    (b) The
      Convertible Debenture may be converted, whether in whole or in part, at any
      time
      and from time to time.

     

    (c) In
      the
      event all or any portion of the Convertible Debenture remains outstanding on
      the
      Convertible Maturity Date (the “Debenture Residual Amount”), the unconverted
      portion of such Convertible Debenture will automatically be converted into
      shares of Common Stock on such date in the manner set forth in Section
      4.3.

     

    Section
      4.4 Conversion
      Procedure

     

    (a) The
      Residual Amount may be converted, in whole or in part any time and from time
      to
      time, following the Convertible Closing Date. Such conversion shall be
      effectuated by surrendering to the Parent, or its attorney, the Convertible
      Debenture to be converted together with a facsimile or original of the signed
      notice of conversion (the “Notice of Conversion”). The date on which the Notice
      of Conversion is effective (“Conversion Date”) shall be deemed to be the date on
      which the Holder has delivered to the Parent a facsimile or original of the
      signed Notice of Conversion, as long as the original Convertible Debenture(s)
      to
      be converted are received by the Parent within five (5) business days
      thereafter. At such time that the original Convertible Debenture has been
      received by the Parent, the Holder can elect to whether a reissuance of the
      Convertible Debenture is warranted, or whether the Parent can retain the
      Convertible Debenture as to a continual conversion by the Holder.
      Notwithstanding the above, any Notice of Conversion received after 4:00 P.M.
      EST
      shall be deemed to have been received the following business day (receipt being
      via a confirmation of the time such facsimile to the Parent is received).

     

    (b) Common
      Stock to be Issued.
      Upon
      the conversion of any Convertible Debentures and upon receipt by the Parent
      or
      its attorney of a facsimile or original of the Holder’s signed Notice of
      Conversion, the Parent shall instruct its transfer agent to issue stock
      certificates without restrictive legends or stop transfer instructions, if
      at
      that time the aforementioned registration statement described in Section 4.1
      has
      been declared effective (or with proper restrictive legends if the registration
      statement has not as yet been declared effective), in such denominations to
      be
      specified at conversion representing the number of shares of Common Stock
      issuable upon such conversion, as applicable. In the event that the Debenture
      is
      aged one year and deemed sellable under Rule 144, the Parent shall, upon a
      Notice of Conversion, instruct the transfer agent to issue free trading
      certificates without restrictive legends, subject to other applicable securities
      laws. The Parent is responsible to provide all costs associated with the
      issuance of the shares, including but not limited to the opinion letter, FedEx
      of the certificates and any other costs that arise. The Parent shall act as
      registrar and shall maintain an appropriate ledger containing the necessary
      information with respect to each Convertible Debenture. The Parent warrants
      that
      no instructions, other than these instructions, have been given or will be
      given
      to the transfer agent and that the Common Stock shall otherwise be freely
      resold, except as may be set forth herein or subject to applicable
      law.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (c) Conversion
      Rate.
      Holder
      is entitled to convert the Debenture Residual Amount, plus accrued interest,
      anytime following the Convertible Maturity Date, at eighty percent (80%) of
      the
      lowest closing bid price during the twenty (20) trading immediately preceding
      the Convertible Maturity Date (“Conversion Price”). No fractional shares or
      scrip representing fractions of shares will be issued on conversion, but the
      number of shares issuable shall be rounded up or down, as the case may be,
      to
      the nearest whole share.

     

    (d) Nothing
      contained in the Convertible Debenture shall be deemed to establish or require
      the payment of interest to the Holder at a rate in excess of the maximum rate
      permitted by governing law. In the event that the rate of interest required
      to
      be paid exceeds the maximum rate permitted by governing law, the rate of
      interest required to be paid thereunder shall be automatically reduced to the
      maximum rate permitted under the governing law and such excess shall be returned
      with reasonable promptness by the Holder to the Parent. 

     

    (e) It
      shall
      be the Parent’s responsibility to take all necessary actions and to bear all
      such costs to issue the Common Stock as provided herein, including the
      responsibility and cost for delivery of an opinion letter to the transfer agent,
      if so required. Holder shall be treated as a shareholder of record on the date
      Common Stock is issued to the Holder. If the Holder shall designate another
      person as the entity in the name of which the stock certificates issuable upon
      conversion of the Convertible Debenture are to be issued prior to the issuance
      of such certificates, the Holder shall provide to the Parent evidence that
      either no tax shall be due and payable as a result of such transfer or that
      the
      applicable tax has been paid by the Holder or such person. Upon surrender of
      any
      Convertible Debentures that are to be converted in part, the Parent shall issue
      to the Holder a new Convertible Debenture equal to the unconverted amount,
      if so
      requested in writing by the Holder. 

     

    (f) Within
      five (5) business days after receipt of the documentation referred to above
      in
      Section 4.2, the Parent shall deliver a certificate, for the number of shares
      of
      Common Stock issuable upon the conversion. In the event the Parent does not
      make
      delivery of the Common Stock as instructed by Holder within five (5) business
      days after the Conversion Date, then in such event the Parent shall pay to
      the
      Holder one percent (1%) in cash of the dollar value of the Debenture Residual
      Amount remaining after said conversion, compounded daily, per each day after
      the
      fifth (5th) business day following the Conversion Date that the Common Stock
      is
      not delivered to the Holder.

     

    (g) The
      Parent acknowledges that its failure to deliver the Common Stock within five
      (5)
      business days after the Conversion Date will cause the Holder to suffer damages
      in an amount that will be difficult to ascertain. Accordingly, the parties
      agree
      that it is appropriate to include in this Agreement a provision for liquidated
      damages. The parties acknowledge and agree that the liquidated damages provision
      set forth in this section represents the parties’ good faith effort to quantify
      such damages and, as such, agree that the form and amount of such liquidated
      damages are reasonable and will not constitute a penalty. The payment of
      liquidated damages shall not relieve the Parent from its obligations to deliver
      the Common Stock pursuant to the terms of this Convertible
      Debenture.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (h) The
      Parent shall at all times reserve (or make alternative written arrangements
      for
      reservation or contribution of shares) and have available all Common Stock
      necessary to meet conversion of the Convertible Debentures by the Holder of
      the
      entire amount of Convertible Debentures then outstanding. If, at any time the
      Holder submits a Notice of Conversion and the Parent does not have sufficient
      authorized but unissued shares of Common Stock (or alternative shares of Common
      Stock as may be contributed by stockholders of the Parent) available to effect,
      in full, a conversion of the Convertible Debentures (a “Conversion Default,” the
      date of such default being referred to herein as the “Conversion Default Date”),
      the Parent shall issue to the Holder all of the shares of Common Stock which
      are
      available, and the Notice of Conversion as to any Convertible Debentures
      requested to be converted but not converted (the “Unconverted Convertible
      Debentures”), may be deemed null and void upon written notice sent by the Holder
      to the Parent. The Parent shall provide notice of such Conversion Default
      (“Notice of Conversion Default”) to the Holder, by facsimile within three (3)
      business days of such default (with the original delivered by overnight mail
      or
      two day courier), and the Holder shall give notice to the Parent by facsimile
      within five (5) business days of receipt of the original Notice of Conversion
      Default (with the original delivered by overnight mail or two day courier)
      of
      its election to either nullify or confirm the Notice of Conversion.

     

    (i) The
      Parent agrees to pay the Holder payments for a Conversion Default (“Conversion
      Default Payments”) in the amount of (N/365) multiplied by .24 multiplied by the
      initial issuance price of the outstanding or tendered but not converted
      Convertible Debentures held by the Holder where N = the number of days from
      the
      Conversion Default Date to the date (the “Authorization Date”) that the Parent
      authorizes a sufficient number of shares of Common Stock to effect conversion
      of
      all remaining Convertible Debentures. The Parent shall send notice
      (“Authorization Notice”) to the Holder that additional shares of Common Stock
      have been authorized, the Authorization Date, and the amount of Holder’s accrued
      Conversion Default Payments. The accrued Conversion Default shall be paid in
      cash or shall be convertible into Common Stock at the conversion rate set forth
      in the first sentence of this paragraph, upon written notice sent by the Holder
      to the Parent, which Conversion Default shall be payable as follows: (i) in
      the
      event the Holder elects to take such payment in cash, cash payments shall be
      made to the Holder by the fifth (5th) day of the following calendar month,
      or
      (ii) in the event Holder elects to take such payment in stock, the Holder may
      convert such payment amount into Common Stock at the conversion rate set forth
      in the first sentence of this paragraph at any time after the fifth (5th) day
      of
      the calendar month following the month in which the Authorization Notice was
      received, until the expiration of the mandatory three (3) year conversion
      period.

     

    (j) The
      Parent acknowledges that its failure to maintain a sufficient number of
      authorized but unissued shares of Common Stock to effect in full a conversion
      of
      the Convertible Debentures will cause the Holder to suffer damages in an amount
      that will be difficult to ascertain. Accordingly, the parties agree that it
      is
      appropriate to include in this Agreement a provision for liquidated damages.
      The
      parties acknowledge and agree that the liquidated damages provision set forth
      in
      this section represents the parties’ good faith effort to quantify such damages
      and, as such, agree that the form and amount of such liquidated damages are
      reasonable and will not constitute a penalty. The payment of liquidated damages
      shall not relieve the Parent from its obligations to deliver the Common Stock
      pursuant to the terms of this Convertible Debenture. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (k) If,
      by
      the third (3rd) business day after the Conversion Date of any portion of the
      Convertible Debentures to be converted (the “Delivery Date”), the transfer agent
      fails for any reason to deliver the Common Stock upon conversion by the Holder
      and after such Delivery Date, the Holder purchases, in an open market
      transaction or otherwise, shares of Common Stock (the “Covering Shares”) solely
      in order to make delivery in satisfaction of a sale of Common Stock by the
      Holder (the “Sold Shares”), which delivery such Holder anticipated to make using
      the Common Stock issuable upon conversion (a “Buy-In”), the Parent shall pay to
      the Holder, in addition to any other amounts due to Holder pursuant to this
      Convertible Debenture, and not in lieu thereof, the Buy-In Adjustment Amount
      (as
      defined below). The “Buy In Adjustment Amount” is the amount equal to the
      excess, if any, of (x) the Holder’s total purchase price (including brokerage
      commissions, if any) for the Covering Shares over (y) the net proceeds (after
      brokerage commissions, if any) received by the Holder from the sale of the
      Sold
      Shares. The Parent shall pay the Buy-In Adjustment Amount to the Holder in
      immediately available funds within five (5) business days of written demand
      by
      the Holder. By way of illustration and not in limitation of the foregoing,
      if
      the Holder purchases shares of Common Stock having a total purchase price
      (including brokerage commissions) of $11,000 to cover a Buy-In with respect
      to
      shares of Common Stock it sold for net proceeds of $10,000, the Buy-In
      Adjustment Amount which the Parent will be required to pay to the Holder will
      be
      $1,000.

     

    (l) The
      Parent shall defend, protect, indemnify and hold harmless the Holder and all
      of
      its shareholders, officers, directors, employees, counsel, and direct or
      indirect investors and any of the foregoing person’s agents or other
      representatives (including, without limitation, those retained in connection
      with the transactions contemplated by this Agreement) (collectively, the
“Section
      16 Indemnitees”)
      from
      and against any and all actions, causes of action, suits, claims, losses, costs,
      penalties, fees, liabilities and damages, and expenses in connection therewith
      (irrespective of whether any such Section 16 Indemnitee is a party to the action
      for which indemnification hereunder is sought), and including reasonable
      attorneys’ fees and disbursements (the “Section
      16 Indemnified Liabilities”),
      incurred by any Section 16 Indemnitee as a result of, or arising out of, or
      relating to (i) any misrepresentation or breach of any representation or
      warranty made by the Parent in the Transaction Documents or any other
      certificate, instrument or document contemplated hereby or thereby, (ii) any
      breach of any covenant, agreement, or obligation of the Parent or Company
      contained in the Transaction Documents or any other certificate, instrument,
      or
      document contemplated hereby or thereby, (iii) any cause of action, suit, or
      claim brought or made against such Section 16 Indemnitee by a third party and
      arising out of or resulting from the execution, delivery, performance, or
      enforcement of the Transaction Documents or any other certificate, instrument,
      or document contemplated hereby or thereby, (iv) any transaction financed or
      to
      be financed in whole or in part, directly or indirectly, with the proceeds
      of
      the issuance of the Common Stock underlying the Convertible Debenture
      (“Securities”), or (v) the status of the Holder or holder of the Securities as
      an investor in the Parent, except insofar as any such misrepresentation, breach
      or any untrue statement, alleged untrue statement, omission, or alleged omission
      is made in reliance upon and in conformity with written information furnished
      to
      the Parent by the Holder or the Investor which is specifically intended by
      the
      Holder or the Investor to be relied upon by the Parent, including for use in
      the
      preparation of any such registration statement, preliminary prospectus, or
      prospectus, or is based on illegal trading of the Common Stock by the Holder
      or
      the Investor. To the extent that the foregoing undertaking by the Parent may
      be
      unenforceable for any reason, the Parent shall make the maximum contribution
      to
      the payment and satisfaction of each of the Indemnified Liabilities that is
      permissible under applicable law. The indemnity provisions contained herein
      shall be in addition to any cause of action or similar rights the Holder may
      have, and any liabilities the Holder may be subject to.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Article
      5 Additional
      Financing and Registration Statements

     

    Section
      5.1 The
      Company and the Parent will not enter into any additional financing agreements,
      debt or equity, without prior expressed written consent from the Holder, which
      shall not be unreasonably withheld. Failure to do so will result in an Event
      of
      Default and the Holder may elect to take the action outlined in Article 4.
      

     

    Section
      5.2 The
      Holder shall also reserve the right to switch to the terms of the new financing.
      If at any time while the Line Amount is outstanding, if the Company or Parent
      issues or agree to issue any common stock or securities convertible into or
      exercisable for shares of commons stock (or modify any of the foregoing which
      may be outstanding) to any person or entity. Additionally, if the Company or
      Parent shall, issue or agree to issue any of the aforementioned securities
      to
      any person, firm or corporation at terms deemed by the Holder to be more
      favorable to the other investor than the terms or conditions of this Agreement,
      then the Holder is granted the right to modify any such term or condition of
      the
      Agreement to be the same as any such term or condition of any subsequent
      offering. The rights of the Holder in this Section 5 are in addition to any
      other right the Holder has pursuant to this Agreement and the Security Agreement
      of even date between the Holder and the Company.

     

    The
      Company and Parent agree that it shall cause its Chief Executive Officer, Bruce
      Littell (“Littell”), and any entity under the control of Littell, to refrain
      from selling any Stock, while there is an outstanding balance owed to the Holder
      by the Company on this Agreement (“Lock-Up Period”).

     

    Article
      6 Notice.

     

    Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided a confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) one (1) day after deposit with a nationally recognized overnight
      delivery service, in each case properly addressed to the party to receive the
      same. The addresses and facsimile numbers for such communications shall
      be:

     

    
      	
              If
                to the Company:

               

              Logistical
                Support, LLC.

              19734
                Dearborn St

              Chatsworth,
                CA 91311 

              Phone:
                818-885-0300

            	 

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              If
                to the Holder:

               

              Dutchess
                Capital Management

              Douglas
                Leighton

              50
                Commonwealth Ave Suite 2

              Boston,
                MA 02116

              Phone:
                617-301-4700

              Facsimile:
                617-249-0947

            	 

    

    Each
      party shall provide five (5) business days prior notice to the other party
      of
      any change in address, phone number or facsimile number.

     

    Article
      7 Time

     

    Where
      this Agreement authorizes or requires the payment of money or the performance
      of
      a condition or obligation on a Saturday or Sunday or a public holiday, or
      authorizes or requires the payment of money or the performance of a condition
      or
      obligation within, before or after a period of time computed from a certain
      date, and such period of time ends on a Saturday or a Sunday or a public
      holiday, such payment may be made or condition or obligation performed on the
      next succeeding business day, and if the period ends at a specified hour, such
      payment may be made or condition performed, at or before the same hour of such
      next succeeding business day, with the same force and effect as if made or
      performed in accordance with the terms of this Agreement. A “business day” shall
      mean a day on which the banks in New York are not required or allowed to be
      closed.

     

    Article
      8 No
      Assignment

     

    This
      Agreement and the terms and conditions herein, shall not be
      assignable.

     

    Article
      9 Rules
      of Construction.

     

    In
      this
      Agreement, unless the context otherwise requires, words in the singular number
      include the plural, and in the plural include the singular, and words of the
      masculine gender include the feminine and the neuter, and when the sense so
      indicates, words of the neuter gender may refer to any gender. The numbers
      and
      titles of sections contained in the Agreement are inserted for convenience
      of
      reference only, and they neither form a part of this Agreement nor are they
      to
      be used in the construction or interpretation hereof. Wherever, in this
      Agreement, a determination of the Company is required or allowed, such
      determination shall be made by a majority of the Board of Directors of the
      Parent and if it is made in good faith, it shall be conclusive and binding
      upon
      the Company and the Holder of this Agreement.

     

    Article
      10 Governing
      Law

     

    The
      validity, terms, performance and enforcement of this Agreement shall be governed
      and construed by the provisions hereof and in accordance with the laws of the
      Commonwealth of Massachusetts applicable to agreements that are negotiated,
      executed, delivered and performed solely in the Commonwealth of Massachusetts.
      

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Article
      11 Litigation

     

    The
      parties to this agreement will submit all disputes arising under this agreement
      to arbitration in Boston, Massachusetts before a single arbitrator of the
      American Arbitration Association (“AAA”). The arbitrator shall be selected by
      application of the rules of the AAA, or by mutual agreement of the parties,
      except that such arbitrator shall be an attorney admitted to practice law in
      the
      Commonwealth of Massachusetts. No party to this agreement will challenge the
      jurisdiction or venue provisions as provided in this section. Nothing in this
      section shall limit the Holder’s right to obtain an injunction for a breach of
      this Agreement from a court of law.

     

    Article
      12 Conditions
      to Closing

     

    The
      Company shall have delivered this Agreement and the Security Agreement duly
      executed by the Company to the Holder before Closing and shall have paid to
      the
      Holder all fees and expenses owing to the Holder pursuant to this Agreement.
      

     

    Article
      13 Fees
      & Expenses

     

    Section
      13.1 Administration
      Fee. The Company agrees to pay for related expenses associated with the proposed
      transaction of thirty-five thousand dollars ($35,000) of which, seventeen
      thousand five hundred dollars ($17,500) has been paid. This amount shall cover,
      but is not limited to, the following: due diligence expenses, document creation
      expenses, closing costs, and transaction administration expenses. This shall
      be
      deducted from the first closing and funding.

     

    Section
      13.1 Misdirected
      Payment Fee. Fifteen percent (15%) of the amount of any payment (but in no
      event
      less than $1,000) on account of a Collateral Order which has been received
      by
      Company and not delivered in kind to Holder on the next business day following
      the date of receipt by Company, or thirty percent (30%) of the amount of any
      such payment which has been received by Company as a result of any action taken
      by Company to cause such payment to be made to Company.

     

    Section
      13.2 Out-of-Pocket
      Expenses. The out-of-pocket expenses directly incurred by Holder in the
      administration of this Agreement such as wire transfer fees, postage and audit
      fees shall be the responsibility of the Company. 

     

    Section
      13.3 Advance
      Fee. The Company agrees to pay one percent (1%) of the Advance Amount at the
      time of each Advance. The Company, at its sole option, may elect to pay the
      Advance Fee from the Line Amount. In the event the Company chooses to pay the
      Advance Fee from the Line Amount, the Company agrees to deliver all necessary
      paperwork to Gersten Savage, LLP along with the Request for
      Advance.

     

    Article
      16 Indemnification
      

     

    In
      consideration of the Holder’s execution and delivery of this Agreement and the
      acquisition and funding by the Holder hereunder and in addition to all of the
      Company’s other obligations under the documents contemplated hereby, the Company
      shall defend, protect, indemnify and hold harmless the Holder and all of their
      shareholders, officers, directors, employees, counsel, and direct or indirect
      investors and any of the foregoing person’s agents or other representatives
      (including, without limitation, those retained in connection with the
      transactions contemplated by this Agreement) (collectively, the “INDEMNITEES”)
      from and against any and all actions, causes of action, suits, claims, losses,
      costs, penalties, fees, liabilities and damages, and expenses in connection
      therewith (irrespective of whether any such Indemnitee is a party to the action
      for which indemnification hereunder is sought), and including reasonable
      attorneys’ fees and disbursements (the “INDEMNIFIED LIABILITIES’), incurred by
      any Indemnitee as a result of, or arising out of, or relating to (i) any
      misrepresentation or breach of any representation or warranty made by the
      Company in the Agreement, or any other certificate, instrument or document
      contemplated hereby or thereby (ii) any breach of any covenant, agreement or
      obligation of the Company contained in the Agreement or any other certificate,
      instrument or document contemplated hereby or thereby, except insofar as any
      such misrepresentation, breach or any untrue statement, alleged untrue
      statement, omission or alleged omission is made in reliance upon and in
      conformity with written information furnished to the Company by, or on behalf
      of, the Holder or based on illegal or alleged illegal trading of the Shares
      by
      the Holder. To the extent that the foregoing undertaking by the Company may
      be
      unenforceable for any reason, the Company shall make the maximum contribution
      to
      the payment and satisfaction of each of the Indemnified Liabilities which is
      permissible under applicable law. The indemnity provisions contained herein
      shall be in addition to any cause of action or similar rights the Holder may
      have, and any liabilities the Holder may be subject to.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Article
      17 Waiver

     

    The
      Holder’s delay or failure at any time or times hereafter to require strict
      performance by Company of any undertakings, agreements or covenants shall not
      waiver, affect, or diminish any right of the Holder under this Agreement to
      demand strict compliance and performance herewith. Any waiver by the Holder
      of
      any Event of Default shall not waive or affect any other Event of Default,
      whether such Event of Default is prior or subsequent thereto and whether of
      the
      same or a different type. None of the undertakings, agreements and covenants
      of
      the Company contained in this Agreement, and no Event of Default, shall be
      deemed to have been waived by the Holder, nor may this Agreement be amended,
      changed or modified, unless such waiver, amendment, change or modification
      is
      evidenced by an instrument in writing specifying such waiver, amendment, change
      or modification and signed by the Holder. 

     

    Article
      18 Senior
      Obligation

     

    The
      Company shall cause this Agreement to be senior in right of payment to all
      other
      Indebtedness of the Company for the Collateral.

     

    Article
      19 Transactions
      With Affiliates

     

    The
      Company shall not, and shall cause each of its Subsidiaries not to, enter into,
      amend, modify or supplement, or permit any Subsidiary to enter into, amend,
      modify or supplement, any agreement, transaction, commitment or arrangement
      with
      any of its or any Subsidiary’s officers, directors, persons who were officers or
      directors at any time during the previous two years, shareholders who
      beneficially own five percent (5%) or more of the Common Stock, or affiliates
      or
      with any individual related by blood, marriage or adoption to any such
      individual or with any entity in which any such entity or individual owns a
      five
      percent (5%) or more beneficial interest (each a “Related Party”) during the
      Lock Up Period. 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Article
      20 Security

     

    As
      security for the Line Amount, the Company grants to the Holder a continuing
      first priority in the Raw Materials and other Collateral as more particularly
      described in Section 2.1 hereof. The Company agrees to execute all documents
      appropriate and necessary in order to perfect Holder’s security interest in the
      Collateral Orders, the Raw Materials and the other Collateral.

     

    Article
      21 Investor
      Shares; Date of Consideration

     

    a. The
      Parent shall issue to the Holder five hundred thousand (500,000) shares of
      unregistered, restricted Common Stock (the “Incentive
      Shares”)
      as an
      incentive for the Holder entering into this Agreement with the Company. The
      Incentive Shares shall be issued and delivered to the Holder upon Closing.
      The
      Parent’s failure to issue the Incentive Shares shall constitute an Event of
      Default and the Holder may elect to enforce the remedies outlined in
Article
      4
      hereof.
      The Parent’s obligation to provide the Holder with the Incentive Shares, as set
      forth herein, shall survive the termination of this Note and any default on
      this
      obligation shall provide the Holder with all rights, remedies and default
      provisions set forth in this Note or otherwise available by law. The Incentive
      Shares shall carry piggy back registration rights until such time as the Holder
      can freely sell the Incentive Shares promulgated under Rule 144 without
      restrictions for volume limitations thereunder. The Parent shall notify the
      Holder within ten (10) business days of its intention to file a registration
      statement, and the Holder shall have the option to request the Incentive Shares
      to be included in the registration statement. In the event the Holder requests
      the Parent includes the Incentive Shares and the Parent files a registration
      statement that does not include the Incentive Shares, the Parent shall pay
      to
      the Holder five hundred thousand (500,000) additional shares. The Parent shall
      not be obligated to pay the five hundred thousand (500,000) additional shares
      in
      the event the United States Securities and Exchange Commission deems the
      Incentives Shares in excess of those allowed to be registered under Rule 415.
      The Holder shall have retain the full right to waive any such piggyback
      registration rights.

     

    b. The
      Parent hereby acknowledges that the date of consideration for the Incentive
      Shares is August 24, 2007 and shall use all commercially reasonable best efforts
      to facilitate sales under Rule 144 of the Securities Act. The Parent shall
      provide an opinion letter from counsel within two (2) business days of written
      request by the Holder stating that the date of consideration for the Incentives
      Shares is August 24, 2007 and submission of proper Rule 144 support
      documentation consisting of a Form 144, a broker’s representation letter and a
      seller’s representation letter. In the event the Parent does not deliver the
      opinion letter within two business days, the Parent shall be in default as
      outlined in Article 4. In the event that counsel to the Parent fails or refuses
      to render an opinion as required to issue the Incentive Shares in accordance
      with this paragraph (either with or without restrictive legends, as applicable),
      then the Parent irrevocably and expressly authorizes counsel to the Holder
      to
      render such opinion and shall authorize the Transfer Agent to accept and to
      rely
      on such opinion for the purposes of issuing the Shares (which is attached as
      Exhibit D hereto). Any costs incurred by Holder for such opinion letter shall
      be
      added to the current outstanding Advance Amounts.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Article
      22 Disputes
      on Collateral Orders

     

    Company
      shall notify Holder promptly of and, if requested by Holder, will settle all
      disputes concerning any Collateral Order at Company’s sole cost and expense.
      Holder may, but is not required to, attempt to settle, compromise, or litigate
      (collectively, “Resolve”) the dispute upon such terms, as Holder in its sole
      discretion deems advisable, for Company’s account and risk and at Company’s sole
      expense. Upon the occurrence of an Event of Default, Holder may resolve such
      issues with respect to any Account of Company and any expenses incurred by
      Holder in connection therewith shall be added to the obligations owing
      hereunder. 

     

    Article
      23 Escrow

     

    The
      delivery and execution of this Agreement is done in conjunction with the Escrow
      Agreement between the Company and Gersten Savage, LLP (“Escrow Agent’) of even
      date herewith.

     

    Article
      24 Representations
      and Warranties of the Company

     

    a. It
      is
      fully authorized to enter into this Agreement and to perform hereunder.

     

    b. This
      Agreement constitutes its legal, valid and binding obligation.

     

    c. Company
      is in good standing in the jurisdiction of its organization and in the
      Utah.

     

    d. The
      Collateral Orders are and will remain:

     

    i. Bona
      fide
      existing obligations created by the sale and delivery of goods or the rendition
      of services in the ordinary course of Company’s business and are valid, fully
      collectible obligations form the vendors and/or payors to the Company for the
      Collateral Orders (“Account Debtors”).

     

    ii. Unconditionally
      owed and to the best knowledge of Company will be paid to the Holder without
      defenses, disputes, offsets, counterclaims, or rights of return or
      cancellation.

     

    iii. Not
      sales
      to any entity that is affiliated with Company or in any way not an “arm’s
      length” transaction.

     

    e. No
      person
      has a lien or ownership interest in, or claim against, the Collateral
      Orders.

     

    f. The
      Raw
      Materials for the Collateral Orders have not been previously financed by
      Company.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    g. The
      Account Debtors have not paid to Company, or Company’s representatives, or
      otherwise for Company’s benefit, any part or all of the Line Amount of the
      Collateral Orders except as reflected in the Schedule of Orders covering that
      Collateral Orders.

     

    h. There
      exist no circumstances, to the Company’s best knowledge, that would entitle the
      Account Debtors to refuse to pay the amounts due on the Collateral Orders,
      or to
      reduce the amounts due on the Collateral Orders from those amounts shown in
      the
      Schedule of Orders.

     

    i. Company
      has not received notice or otherwise learned of actual or imminent bankruptcy,
      insolvency, or material impairment of the financial condition of any applicable
      Account Debtor regarding the Collateral Orders.

     

    j. The
      financial statements, Purchase Order / Invoices, orders, proofs of delivery,
      account ledgers and all other documents submitted by Company to Holder
      concerning the Collateral Orders or otherwise required under this Agreement
      are
      true, accurate and genuine.

     

    Article
      25 Miscellaneous

     

    a. All
      pronouns and any variations thereof used herein shall be deemed to refer to
      the
      masculine, feminine, impersonal, singular or plural, as the identity of the
      person or persons may require.

     

    b. Neither
      this Agreement nor any provision hereof shall be waived, modified, changed,
      discharged, terminated, revoked or canceled, except by an instrument in writing
      signed by the party effecting the same against whom any change, discharge or
      termination is sought.

     

    c. Notices
      required or permitted to be given hereunder shall be in writing and shall be
      deemed to be sufficiently given when personally delivered or sent by facsimile
      transmission: (i) if to the Company, at its executive offices or (ii) if to
      the
      Holder, at the address for correspondence set forth in the Article 6, or at
      such
      other address as may have been specified by written notice given in accordance
      with this paragraph.

     

    d. This
      Agreement may be executed in two or more counterparts, all of which taken
      together shall constitute one instrument. Execution and delivery of this
      Agreement by exchange of facsimile copies bearing the facsimile signature of
      a
      party shall constitute a valid and binding execution and delivery of this
      Agreement by such party. Such facsimile copies shall constitute enforceable
      original documents.

     

    e. This
      Written Agreement represent the FINAL AGREEMENT between the Company and the
      Holder and may not be contradicted by evidence of prior, contemporaneous, or
      subsequent oral agreements of the parties, there are no unwritten oral
      agreements among the parties.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    f. The
      execution, delivery and performance of this Agreement by the Company and the
      consummation by the Company of the transactions contemplated hereby and thereby
      will not (i) result in a violation of the Articles of Incorporation, any
      Certificate of Designations, Preferences and Rights of any outstanding series
      of
      preferred stock of the Company or the By-laws or (ii) conflict with, or
      constitute a material default (or an event which with notice or lapse of time
      or
      both would become a material default) under, or give to others any rights of
      termination, amendment, acceleration or cancellation of, any material agreement,
      contract, indenture mortgage, indebtedness or instrument to which the Company
      or
      any of its Subsidiaries is a party, or result in a violation of any law, rule,
      regulation, order, judgment or decree, including United States federal and
      state
      securities laws and regulations and the rules and regulations of the principal
      securities exchange or trading market on which the Common Stock is traded or
      listed (the “Principal Market”), applicable to the Company or any of its
      Subsidiaries or by which any property or asset of the Company or any of its
      Subsidiaries is bound or affected. Neither the Company nor its Subsidiaries
      is
      in violation of any term of, or in default under, the Articles of Incorporation,
      any Certificate of Designations, Preferences and Rights of any outstanding
      series of preferred stock of the Company or the By-laws or their organizational
      charter or by-laws, respectively, or any contract, agreement, mortgage,
      indebtedness, indenture, instrument, judgment, decree or order or any statute,
      rule or regulation applicable to the Company or its Subsidiaries, except for
      possible conflicts, defaults, terminations, amendments, accelerations,
      cancellations and violations that would not individually or in the aggregate
      have a Material Adverse Effect. The business of the Company and its Subsidiaries
      is not being conducted, and shall not be conducted, in violation of any law,
      statute, ordinance, rule, order or regulation of any governmental authority
      or
      agency, regulatory or self-regulatory agency, or court, except for possible
      violations the sanctions for which either individually or in the aggregate
      would
      not have a Material Adverse Effect. The Company is not required to obtain any
      consent, authorization, permit or order of, or make any filing or registration
      (except the filing of a registration statement) with, any court, governmental
      authority or agency, regulatory or self-regulatory agency or other third party
      in order for it to execute, deliver or perform any of its obligations under,
      or
      contemplated by, this Agreement in accordance with the terms hereof or thereof.
      All consents, authorizations, permits, orders, filings and registrations which
      the Company is required to obtain pursuant to the preceding sentence have been
      obtained or effected on or prior to the date hereof and are in full force and
      effect as of the date hereof. The Company and its Subsidiaries are unaware
      of
      any facts or circumstances which might give rise to any of the foregoing. The
      Company is not, and will not be, in violation of the listing requirements of
      the
      Principal Market as in effect on the date hereof and on each of the Closing
      Dates and is not aware of any facts which would reasonably lead to delisting
      of
      the Common Stock by the Principal Market in the foreseeable future.

     

    g. The
      Company and its “Subsidiaries” (which for purposes of this Agreement means any
      entity in which the Company, directly or indirectly, owns capital stock or
      holds
      an equity or similar interest) are corporations duly organized and validly
      existing in good standing under the laws of the respective jurisdictions of
      their incorporation, and have the requisite corporate or limited liability
      company power and authorization to own their properties and to carry on their
      business as now being conducted. Both the Company and its Subsidiaries are
      duly
      qualified to do business and are in good standing in every jurisdiction in
      which
      their ownership of property or the nature of the business conducted by them
      makes such qualification necessary, except to the extent that the failure to
      be
      so qualified or be in good standing would not have a Material Adverse Effect.
      As
      used in this Agreement, “Material Adverse Effect” means any material adverse
      effect on the business, properties, assets, operations, results of operations,
      financial condition or prospects of the Company and its Subsidiaries, if any,
      taken as a whole, or on the transactions contemplated hereby or by the
      agreements and instruments to be entered into in connection herewith, or on
      the
      authority or ability of the Company to perform its obligations under the
      Agreement.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    h. Authorization;
      Enforcement; Compliance with Other Instruments. (i) The Company has the
      requisite corporate or limited liability company power and authority to enter
      into and perform this Agreement, and to issue the Agreement in accordance with
      the terms hereof and thereof, (ii) the execution and delivery of the Agreement
      by the Company and the consummation by it of the transactions contemplated
      hereby and thereby, have been duly and validly authorized by the Company’s Board
      of Directors and no further consent or authorization is required by the Company,
      its Board of Directors, or its shareholders, (iii) the Agreement has been duly
      and validly executed and delivered by the Company, and (iv) the Agreement
      constitutes the valid and binding obligations of the Company enforceable against
      the Company in accordance with their terms, except as such enforceability may
      be
      limited by general principles of equity or applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting generally, the enforcement of creditors’ rights and
      remedies.

     

    i. The
      execution and delivery of this Agreement shall not alter any prior written
      agreements between the Company and the Holder.

     

    j. 
      There
      are no disagreements of any kind presently existing, or reasonably anticipated
      by the Company to arise, between the Company and the accountants, auditors
      and
      lawyers formerly or presently employed by the Company, including but not limited
      to disputes or conflicts over payment owed to such accountants, auditors or
      lawyers.

     

    k. All
      representations made by or relating to the Company of a historical nature and
      all undertaking described herein shall relate and refer to the Company, its
      predecessors, and the Subsidiaries. 

     

    l. The
      only
      officer, director, employee and consultant stock option or stock incentive
      plan
      currently in effect or contemplated by the Company has been submitted to the
      Holder or is described with Reports. No other plan will be adopted nor may
      any
      options.

     

    m.
      The
      Company hereby represent and warrants to the Holder that: (i) it has voluntarily
      entered into this Agreement of its own freewill, (ii) it is not entering into
      this Agreement under economic duress with this Agreement and anticipated
      continued financing, (iii) the terms of this Agreement are reasonable and fair
      to the Company, and (iv) the Company has had independent legal counsel of its
      own choosing review this Agreement, advise the Company with respect to this
      Agreement, and represent the Company in connection with its entering into this
      Agreement.

     

    [SIGNATURE
      PAGE TO FOLLOW]

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company has duly executed this Debenture as of the date
      first written above.

    
      	 	 	 
	 	 
	 	 	LOGISTICAL SUPPORT, INC.
	 
 	 
 	 
 
	 	 	   
              
	 	
              
Name: Bruce
              W. Littell
	 	Title: Chief
              Executive Officer
	 	 
	 	 
	 	DUTCHESS PRIVATE EQUITIES FUND, LTD.
	 	 
	 	 
	 	
              
Name: Douglas
              H. Leighton
	 	
              Title: Director

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    REQUEST
      FOR ADVANCE

     

    AS
      OF
      ____________

    FOR
      LOGISTICAL SUPPORT, INC (“COMPANY”) and

    Dutchess
      Private Equities Fund, Ltd. (“HOLDER”)

     

    

    Date: 
      ____________________

     

    Dear
      Mr.
      Leighton,

     

    Pursuant
      to the terms and conditions of the Purchase Order Financing Agreement dated
      August 24, 2007, the Company is hereby requesting an Advance of $__________
      for
      fulfillment of the attached orders.

     

    The
      Company is hereby executing this request in conjunction with the Assignment
      of
      Orders.

     

    Sincerely,

     

    _____________________________

    Bruce
      Littell

    Chief
      Executive Officer

     

    

    Accepted:

     

    ______________________________

    Douglas
      Leighton

    Director

     

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    SCHEDULE
      OF ORDERS

     

    

    

    

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      C

     

    ASSIGNMENT
      OF ORDERS

     

    AS
      OF
      ____________

    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 “A” 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.

     

    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 “A”.

     

    The
      terms
“Account Debtors”, “Orders”, “Parties” and “Collateral Orders” shall have the
      same meaning as defined in the Purchase Order Financing Agreement dated August
      24, 2007 and entered into by the Parties.

     

    
      	
              COMPANY

               

               

               

              ___________________________________

              Name: Bruce
                W. Littell

              Title: Chief
                Executive Officer

            	
              DUTCHESS
                PRIVATE EQUITIES FUND, LTD.

               

               

               

              ______________________________________

              Name: Douglas
                H. Leighton

              Title: Director

            
	
              PARENT

               

               

              ___________________________________

              Name: Bruce
                W. Littell

              Title: Chief
                Executive Officer

            	 

    

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

     

    Interwest
      Transfer Company

    1981
      East
      Murray Holladay Road, Suite 100

    Salt
      Lake
      City, Utah 84117

    Telephone
      (801) 272-9294

     

    RE:
      Issuance of Common Stock

     

    To
      Whom
      It May Concern:

     

    Please
      use this letter as authorization to have the attached request for the issuance
      of free trading shares, pursuant to paragraph Rule 144 of the Securities Act,
      to
      Dutchess Private Equities Fund, Ltd which acquired the fully paid,
      non-assessable securities.

     

    The
      Company does hereby instruct Interwest Transfer Company to rely on the opinion
      for resale of shares from Trombly Business Law or Gersten Savage,
      LLP.

     

    The
      Company represents that Dutchess is not recognized as an affiliate of the
      company.

     

    Regards,

     

    

    Bruce
      W.
      Littell

    Chief
      Executive Officer 

    Logistical
      Support, Inc.

     

    

    
      
        
        

      

      
        24

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