Document:

Exhibit 10.1

                            STOCK EXCHANGE AGREEMENT

         This STOCK EXCHANGE AGREEMENT (this "Agreement") is dated as of May 27,
2004,  by and among  Logistical  Support,  LLC, a California  limited  liability
company ("LS"),  Hill Aerospace & Defense,  LLC, a California  limited liability
company and its subsidiaries or affiliates  ("Hill",  and, together with LS, the
"Company")  and The  Children's  Trust of 1988,  G.  Scott  Littell  as  trustee
("Littell"),  Harry Lebovitz  ("Lebovitz"),  Joseph Lucan  ("Lucan"),  Dave Will
("Will"),   Hill  Industries,   LLC,  a  California  limited  liability  company
("Industries LLC"), Hill Industries, Inc., a California corporation ("Industries
Inc." and together with  Littell,  Lebovitz,  Lucan,  Will and  Industries  LLC,
"Common  Holders"),   The  Morpheus  Trust  dated  10/1/03   ("Shareholder  1"),
Livingston  Investments,   Ltd.  ("Shareholder  2"),  The  Gateway  Real  Estate
Investment Trust ("Shareholder 3"), Picasso,  LLC ("Shareholder 4"), The Glacier
Trust   ("Shareholder   5"),  and  The   Breitman   Family  Trust  dated  7/1/03
("Shareholder  6,"  and,  together  with  the  Common  Holders,  Shareholder  1,
Shareholder 2, Shareholder 3, Shareholder 4 and Shareholder 5, collectively, the
"Sellers") and Bikini Team International,  Inc., a Utah corporation  ("NewCo" or
"Purchaser"),   Tryant  Capital,  LLC,  a  Delaware  limited  liability  company
("Tryant")  and  Jeffrey  Jenson  ("Jenson").   Shareholder  1,  Shareholder  2,
Shareholder  3,  Shareholder  4,  Shareholder 5 and  Shareholder 6 shall also be
referred to as "Preferred Holders."

                  WHEREAS,  the Company and the Sellers have  determined that it
is in the best  interest  of the Company and its members to arrange for the sale
of all of the  issued  and  outstanding  membership  interests  of the  Company,
including all issued and outstanding shares of common membership  interests (the
"Common Stock"),  and all issued and outstanding shares of Preferred  Membership
Interests (the "Preferred Stock," and, together with the Common Stock, the "Hill
Securities").

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

                                    ARTICLE I

                       PURCHASE AND SALE OF COMPANY STOCK

                  Section 1.1 Sale of Stock. Subject to the terms and conditions
herein  stated,  the Sellers each hereby sell to  Purchaser,  and the  Purchaser
hereby  purchases from the Sellers,  (i) 1,000 Preferred Stock of Hill, and (ii)
1,000 Preferred  Stock of LS, and (iii) all issued and outstanding  Common Stock
of LS and Hill.

                  Section 1.2 Purchase  Price.  On the Closing  Date,  Purchaser
shall  deliver to the  Sellers in  accordance  with  Schedule  1, the  following
consideration (the "Purchase Price"):

                  a.       Common Stock Purchase Price.

                           i.       52,000,000 shares of NewCo common stock (the
                                    "Management  Common Stock"),  which shall be
                                    restricted   shares,   and  which  shall  be
                                    subject  to a  two-year  lock-up  agreement,
                                    shall  be  exchanged  for all of the  Common
                                    Stock.

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                  b.       Preferred   Stock  Purchase   Price.   The  following
                           securities   shall  be  referred  to  herein  as  the
                           "Preferred Stock Purchase Securities":

                           i.       11,200,000 shares of NewCo common stock; and

                           ii.      a  five-year   warrant  to  purchase  up  to
                                    11,363,637  shares of NewCo  common stock at
                                    an  exercise  price of $0.20 per share  (the
                                    "Investor Warrants").

                  Section 1.3 Closing. The closing of the transactions  referred
to in Section 1.1 hereof (the "Closing") shall take place as of May 27, 2004, or
at such other time as the parties may agree upon.  Such time and date are herein
referred to as the "Closing Date."

                  Section 1.4 Tax Free Transfers.  The transactions  referred to
in Sections 1.1 and 1.2 hereof,  are intended to qualify for tax free  treatment
pursuant to Section 351 of the  Internal  Revenue  Code of 1986,  as amended and
applicable California provisions.  Immediately following the transfers described
in Sections 1.1 and 1.2 hereof, the Sellers will own in excess of eighty percent
of the total combined  voting power of all classes of stock entitled to vote and
in excess of eighty  percent of the total number of shares of all other  classes
of stock of NewCo.

                                   ARTICLE II

                           REPRESENTATIONS OF COMPANY

                  Except as set forth in the Disclosure Schedule, Company hereby
represents  and  warrants,  to the  knowledge  of  Bruce  Littell  and/or  Harry
Lebovitz, as follows:

                  Section  2.1 Company  Stock.  All of the  membership  units of
Company  have  been  duly  authorized.  The  Sellers  respectively  own the Hill
Securities  free and  clear of any liens or  encumbrances  of any type or nature
whatsoever,  and each has full right,  power and  authority to exchange the Hill
Securities that are owned by each hereunder without qualification.  There are no
outstanding  options,  warrants  or calls  pursuant  to which any person has the
right to purchase any  membership  interests or other  securities of Hill or LS,
except for those which will be cancelled on or prior to the Closing Date.

                  Section  2.2.  Corporate  Status.  Each  of  Hill  and LS is a
limited liability company duly organized,  validly existing and in good standing
under the laws of the State of  California  and is  licensed or  qualified  as a
foreign  corporation  in all  states  in which the  nature  of their  respective
businesses or the character or ownership of their  respective  properties  makes
such licensing or qualification necessary.

                  Section  2.3  Authorization  and  Validity of  Agreement.  The
Company has full power and  authority  (corporate  or  otherwise) to execute and
deliver this Agreement,  to perform its obligations  hereunder and to consummate
the transactions  contemplated hereby. This Agreement has been duly executed and
delivered by the Company and,  assuming the due  execution of this  Agreement by
Purchaser, is a valid and binding obligation of the Company, enforceable against
the  Company  in  accordance  with its  terms,  except  to the  extent  that its
enforceability   may  be   subject   to   applicable   bankruptcy,   insolvency,
reorganization  and similar laws affecting the enforcement of creditors'  rights
generally and to general equitable principles.

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                  Section  2.4  Consents  and  Approvals;  No  Violations.   The
execution and delivery of this Agreement by the Company and the  consummation by
the Company of the  purchase  and sale of the Hill  Securities  as  contemplated
herein and the other transactions  contemplated  hereby (a) will not violate the
provisions  of the  Articles  of  Organization  or  Operating  Agreement  of the
Company, (b) will not violate any statute, rule, regulation,  order or decree of
any public  body or  authority  by which the Company is bound or by which any of
their respective properties or assets are bound, (c) will not require any filing
with,  or permit,  consent or  approval  of, or the giving of any notice to, any
United States  governmental or regulatory body,  agency or authority on or prior
to the Closing  Date (as defined in Section  1.3),  and (d) will not result in a
violation or breach of, conflict with, constitute (with or without due notice or
lapse of time or both) a  default  (or give  rise to any  right of  termination,
cancellation,  payment or acceleration)  under, or result in the creation of any
Encumbrance  upon any of the properties or assets of the Company  under,  any of
the terms,  conditions  or provisions of any note,  bond,  mortgage,  indenture,
license,  franchise,  permit, agreement, lease, franchise agreement or any other
instrument or  obligation  to which the Company is a party,  or by which they or
any of its properties or assets may be bound.

                  Section 2.5 Financial Statements. To the best of the Company's
knowledge,  the financial  statements of the Company furnished to the Purchaser,
consisting  of  unaudited  interim  financial  statements  for the period  ended
September 30, 2003 are correct and fairly present the financial condition of the
Company as of these dates and for the periods  involved;  such  statements  were
prepared  in  accordance   with   generally   accepted   accounting   principles
consistently  applied,  and no  material  change  has  occurred  in the  matters
disclosed  therein.  These  financial  statements  do  not  contain  any  untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements made, in light of the circumstances under which they were
made, not misleading.

                  Section 2.6  Undisclosed  Liabilities.  Except as set forth on
Schedule  2.6, the Company has no material  liabilities  of any nature except to
the extent reflected or reserved against in its balance sheets, whether accrued,
absolute,   contingent  or  otherwise,   including,   without  limitation,   tax
liabilities and interest due or to become due.

                  Section 2.7 Interim  Changes.  Except as set forth in Schedule
2.7, since the dates of its balance sheet, there have been no (i) changes in the
financial condition,  assets,  liabilities or business of the Company,  which in
the aggregate,  have been materially adverse; (ii) damages,  destruction or loss
of or to  the  property  of  the  Company,  payment  of any  dividend  or  other
distribution  in respect of the  capital  stock of the  Company or any direct or
indirect  redemption,  purchase or other acquisition of any such stock; or (iii)
increases paid or agreed to in the  compensation,  retirement  benefits or other
commitments to their employees.

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                  Section  2.8  Title  to  Property.  The  Company  has good and
marketable title to all properties and assets, real and personal, proprietary or
otherwise, reflected in its balance sheets, and the properties and assets of the
Company are  subject to no  mortgage,  pledge,  lien or  encumbrance,  except as
reflected in the financial  statements of the Company,  with respect to which no
default exists.

                  Section 2.9  Litigation.  Except as set forth in Schedule 2.9,
here is no litigation or proceeding pending, or to the knowledge of the Company,
threatened,  against or relating to the Company or its  properties  or business,
except  litigation  which is not expected to have any material adverse effect on
the Company.  Further, no officer, director or person who may be deemed to be an
affiliate of the Company is party to any material legal  proceeding  which could
have an adverse  effect on the Company  (financial  or  otherwise),  and none is
party to any action or  proceeding  wherein any has an  interest  adverse to the
Company.

                  Section  2.10  Books  and  Records.  From  the  date  of  this
Agreement  to the Closing,  Sellers will cause  Company to (i) give to NewCo and
its  representatives  full access during normal business hours to all of Company
offices, books, records,  contracts and other corporate documents and properties
so that NewCo may inspect  and audit them;  and (ii)  furnish  such  information
concerning  the  properties  and  affairs  of  Company  as NewCo may  reasonably
request.

                  Section  2.11 Tax  Returns.  Except as set  forth in  Schedule
2.11,  Company has filed all federal and state income or  franchise  tax returns
that have been  required to be filed by it or has received  currently  effective
extensions of the required filing dates.

                  Section   2.12   Confidentiality.   Until  the  Closing   (and
continuously   if  there  is  no   Closing),   Company,the   Sellers  and  their
representatives  will keep  confidential any information  which they obtain from
NewCo  concerning  its  properties,  assets and  business.  If the  transactions
contemplated by this Agreement are not consummated by May 30, 2004, Company, the
Sellers will return to NewCo all written  matter with respect to NewCo  obtained
by them in connection with the negotiation or consummation of this Agreement.

                  Section 2.13 Environmental Matters.  Company, the Sellers have
no knowledge of any  assertion by any  governmental  agency or other  regulatory
authority of any environmental  lien, action or proceeding,  or of any cause for
any such lien,  action or  proceeding  related  to the  business  operations  of
Company  or  its   predecessors.   "Hazardous   Materials"   means  any  oil  or
petrochemical   products,   PCB's,   asbestos,   urea  formaldehyde,   flammable
explosives,  radioactive materials,  solid or hazardous wastes, chemicals, toxic
substances or related materials,  including,  without limitation, any substances
defined as or included in the definition of "hazardous  substances,"  "hazardous
wastes," "  hazardous  materials"  or "toxic  substances"  under any  applicable
federal or state laws or regulations.  "Hazardous  Materials  Regulations" means
any regulations  governing the use, generation,  handling,  storage,  treatment,
disposal or release of hazardous materials,  including,  without limitation, the
Comprehensive  Environmental  Response,  Compensation  and  Liability  Act,  the
Resource  Conservation and Recovery Act and the Federal Water Pollution  Control
Act.

                  Section 2.14 Access to Information  Regarding NewCo.  Company,
The Sellers  acknowledge  that NewCo has delivered  them copies of what has been
represented to be documentation  containing all material information  respecting
NewCo  and  its  present  and  contemplated   business   operations,   potential
acquisitions,  management and other factors, by personal delivery to them and/or
by  notification of access to the reports and  registration  statements of NewCo
that  contain  such  information  in the EDGAR  Archives of the  Securities  and
Exchange Commission at www.sec.gov;  that they have had a reasonable opportunity
to review  such  documentation  and to discuss it, to the extent  desired,  with
their legal counsel,  directors and executive  officers;  that they have had, to
the extent desired,  the  opportunity to ask questions of and receive  responses
from the sole  director and executive  officer of NewCo,  and with the legal and
accounting firms of NewCo, with respect to such  documentation;  and that to the
extent  requested,  all questions  raised have been  answered to their  complete
satisfaction.

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                                   ARTICLE III

                    INVESTMENT AND PURCHASER REPRESENTATIONS

         Section 3.1. The Purchaser  and Tryant hereby  represent and warrant to
the Sellers, jointly and severally, that:

                  (a) Common and  Preferred  Stock.  All of the common stock and
Preferred  Stock of the Purchaser  have been duly  authorized,  validly  issued,
fully paid and are  non-assessable.  Upon issuance,  the Management Common Stock
and  Preferred  Stock  Purchase  Securities  shall be duly  authorized,  validly
issued, fully paid and non-assessable.

                  (b) Authorization and Validity of Agreement. The Purchaser has
full power and  authority  (corporate  or otherwise) to execute and deliver this
Agreement,   to  perform  its  obligations   hereunder  and  to  consummate  the
transactions  contemplated  hereby.  This  Agreement  has been duly executed and
delivered by the Purchaser and,  assuming the due execution of this Agreement by
each of the  Sellers,  is a  valid  and  binding  obligation  of the  Purchaser,
enforceable  against the Purchaser in accordance  with its terms,  except to the
extent  that  its  enforceability  may  be  subject  to  applicable  bankruptcy,
insolvency,  reorganization  and  similar  laws  affecting  the  enforcement  of
creditors' rights generally and to general equitable principles.

                  (c) Consents and Approvals;  No Violations.  The execution and
delivery  of  this  Agreement  by the  Purchaser  and  the  consummation  by the
Purchaser of the purchase and sale of the Hill Securities as contemplated herein
and the  other  transactions  contemplated  hereby  (a)  will  not  violate  the
provisions of the Articles of Incorporation or Bylaws of the Purchaser, (b) will
not violate any statute, rule, regulation, order or decree of any public body or
authority by which the  Purchaser is bound or by which any of its  properties or
assets are bound,  (c) will not require any filing with,  or permit,  consent or
approval of, or the giving of any notice to, any United States  governmental  or
regulatory body, agency or authority on or prior to the Closing Date (as defined
in Section 1.3),  and (d) will not result in a violation or breach of,  conflict
with, constitute (with or without due notice or lapse of time or both) a default
(or  give  rise  to  any  right  of   termination,   cancellation,   payment  or
acceleration)  under, or result in the creation of any  Encumbrance  upon any of
the properties or assets of the Purchaser under, any of the terms, conditions or
provisions of any note, bond, mortgage,  indenture,  license, franchise, permit,
agreement,  lease,  franchise agreement or any other instrument or obligation to
which the  Purchaser is a party,  or by which they or any of its  properties  or
assets may be bound.

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<PAGE>

                  (d)  Organization  and Good  Standing.  NewCo is a corporation
duly organized, validly existing and in good standing under the laws of Utah and
is qualified to do business as a foreign  corporation in each jurisdiction where
the failure to be so qualified would have a material adverse effect on NewCo.

                  (e) Capitalization.  NewCo's authorized capital stock consists
of 105,000,000  shares of common stock,  $0.001 par value per share,  800,000 of
which are issued and outstanding and 5,000,000 shares of preferred stock, 50,000
of which are issued  and  outstanding  as Series A  Preferred  Stock.  As of the
Closing Date,  580,000  shares of the currently  issued and  outstanding  common
stock, and all of the issued and outstanding  Series A Preferred Stock,  will be
cancelled, and there will be a total of 220,000 shares of common stock remaining
outstanding.  All of the issued and outstanding shares of NewCo common stock and
preferred stock were duly authorized for issuance and are validly issued,  fully
paid and non-assessable. There are no options, warrants, convertible securities,
any rights of first refusal, any preemptive rights or any other right to acquire
equity securities of NewCo outstanding, except for those which will be cancelled
on or prior to the Closing Date.

                  (f) Subsidiaries.  NewCo does not, directly or indirectly, own
any shares of any capital  stock or other  equity  interest in, has not made any
investment  in, and does not control or have any  proprietary  interest  in, any
corporation, partnership, joint venture or other business association or entity.

                  (g) SEC Documents.  NewCo has filed all reports required to be
filed by it under the Securities Act of 1933, as amended (the "Securities  Act")
and the  Securities  Exchange  Act of 1934,  as amended  (the  "Exchange  Act"),
including  pursuant  to  Section  13(a) or 15(d)  thereof,  for the three  years
preceding  the date hereof (or such shorter  period as NewCo was required by law
to file such material) (the foregoing materials, including the exhibits thereto,
being collectively  referred to herein as the "SEC Reports").  The SEC Documents
constitute all of the documents and reports that NewCo was required to file with
the SEC pursuant to the Exchange Act and the rules and  regulations  promulgated
thereunder by the SEC since January 24, 2002. As of their respective  dates, the
SEC Documents  complied in all material  respects with the  requirements  of the
Exchange Act and the rules and  regulations  promulgated  thereunder and none of
the SEC Documents contained an untrue statement of a material fact or omitted to
state a material  fact  required to be stated  therein or  necessary to make the
statements  therein,  in light of the circumstances  under which they were made,
not misleading.  The financial statements of NewCo included in the SEC Documents
comply  as  to  form  in  all  material  respects  with  applicable   accounting
requirements  and the published  rules and  regulations  of the SEC with respect
thereto,  have been prepared in accordance  with generally  accepted  accounting
principles in the United States ("U.S.  GAAP") (except, in the case of unaudited
statements,  as permitted by the applicable form under the Exchange Act) applied
on a consistent basis during the periods involved (except as may be indicated in
the notes thereto) and fairly present the financial  position of NewCo as of the
dates thereof and its  statements of operations,  shareholders'  equity and cash
flows for the periods then ended (subject,  in the case of unaudited statements,
to normal  and  recurring  year-end  audit  adjustments  which  were and are not
expected to have a material  adverse  effect on NewCo,  its business,  financial
condition  or results of  operations).  Except as and to the extent set forth on
the  consolidated  balance  sheet of NewCo at December 31, 2003,  including  the
notes thereto,  and Schedule 3.1(g) attached  hereto,  NewCo has no liability or
obligation of any nature (whether accrued, absolute, contingent or otherwise and
whether required to be reflected on a balance sheet or not).

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          (h) Financial Statements.

              (1) Included in the SEC Documents are the audited  balance  sheets
of NewCo December 31, 2003 and 2002, and the related consolidated  statements of
operations and shareholders'  deficit,  and cash flows for the years then ended,
and for the period January 1, 2002 through December 31, 2003,  together with the
unqualified  report  thereon  (except  with respect to  continuation  as a going
concern)  of  Rogelio  G.  Castro,   Certified  Public  Accountant   ("Castro"),
independent auditor (collectively, "NewCo's Audited Financials").

              (2) NewCo's Audited Financials  ("NewCo's  Financial  Statements")
are (i) in  accordance  with the books and  records of NewCo,  (ii)  correct and
complete,  (iii) fairly present the financial position and results of operations
of NewCo as of the dates  indicated,  and (iv) prepared in accordance  with U.S.
GAAP (except that (x) unaudited  financial  statements  may not be in accordance
with U.S. GAAP because of the absence of footnotes  normally  contained therein,
and (y) interim  (unaudited)  financials  are subject to normal  year-end  audit
adjustments  that in the aggregate  will not have a material  adverse  effect on
NewCo, its business, financial condition or results of operations).

                  (i)  Events  Subsequent  to  Financial  Statements.  Except as
 reflected  in the Annual  Report on Form  10-KSB for the  annual  period  ended
 December 31, 2003, since December 31, 2003:

                           (1) NewCo has not  entered  into any  transaction  or
         contract  or  conducted  any  business  other  than  seeking a business
         combination or other strategic transaction;

                           (2) NewCo has not  failed  to pay and  discharge  its
         current  liabilities in the ordinary course of business consistent with
         past practice;

                           (3)  NewCo  has  not  incurred  any  indebtedness  or
         liability or assumed any obligations;

                           (4) NewCo has not waived or released any right of any
         material value;

                           (5) NewCo has not paid any compensation or benefits
         to officers or directors of NewCo;

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                           (6) NewCo has not made or authorized any amendment in
         the  Certificate of  Incorporation  or Bylaws of NewCo,  other than the
         designation of NewCo's  Series B Preferred  Stock which forms a part of
         the Preferred Stock Purchase Securities;  and the proposed amendment to
         the   Certificate  of   Incorporation   regarding  the  change  of  the
         corporation's   name  from   "Bikini  Team   International,   Inc."  to
         "Logistical Support, Inc.".

                           (7) there has been no material  adverse change in the
         condition   (financial  or  otherwise)  of  the   properties,   assets,
         liabilities or business of NewCo.

                  (j) Public  Listing of NewCo.  NewCo has never been  listed on
any national  stock  exchange or national  market system in the United States or
elsewhere except the NASD OTC Bulletin Board ("OTCBB"),  and its common stock is
currently  quoted on the OTCBB.  Since its last application for quotation on the
OTCBB was approved,  NewCo has not received  notice from the OTCBB to the effect
that NewCo is not in compliance with the listing or maintenance  requirements of
the  OTCBB.  NewCo is,  and has no reason to  believe  that it will not,  in the
foreseeable  future,  continue to be, in  compliance  with all such  listing and
maintenance requirements.

                  (k)  Litigation.   There  is  no  suit,  action,   proceeding,
investigation,  claim or order pending or, to the knowledge of NewCo, threatened
against NewCo (or to the knowledge of NewCo, pending or threatened,  against any
of the officers or directors of NewCo with respect to their business  activities
on behalf of NewCo),  or to which NewCo is otherwise a party,  before any court,
or  before  any  governmental   department,   commission,   board,   agency,  or
instrumentality; nor to the knowledge of NewCo is there any reasonable basis for
any such action, proceeding or investigation.

                  (l) Governmental  Consents. All consents,  approvals,  orders,
authorizations or registrations,  qualifications,  designations, declarations or
filings with any U.S.,  federal or state  governmental  authority on the part of
NewCo  required  in  connection  with  the   consummation  of  the  transactions
contemplated herein shall have been obtained prior to and be effective as of the
Closing,  except that NewCo shall be required to file with the SEC following the
Closing an amendment to its Schedule 13D.

                  (m) Third Party Consents. All third party consents, approvals,
orders or authorizations required to be obtained by NewCo in connection with the
consummation of the transactions contemplated herein have been obtained.

                  (n)  Books  and  Records.  NewCo has  delivered  to  Company a
complete copy of all corporate  minutes and financial  records of NewCo from its
inception through the Closing Date, and has disclosed to Company NewCo's current
CCC number as provided by the SEC.

                  (o) No Disagreements  with Accountants and Lawyers.  There are
no disagreements of any kind presently  existing,  or reasonably  anticipated by
NewCo to arise,  between the accountants and lawyers presently employed by NewCo
and  NewCo is  current  with  respect  to any fees owed to its  accountants  and
lawyers.

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                  (p)  Disclosure.   The   representations  and  warranties  and
statements of fact made by NewCo in this  Agreement  are  accurate,  correct and
complete in all material  respects and do not contain any untrue  statement of a
material fact or omit to state any material fact  necessary in order to make the
statements and information contained herein not false or misleading.

         Section 3.2 Investment Representations. The Purchaser hereby represents
to the Company and each Shareholder that:

                  (a) Purchaser has such  knowledge and  experience in financial
and business  matters so as to be capable of evaluating and  understanding,  and
has  evaluated  and  understood,  the merits and risks of an  investment  in the
Company and the acquisition of securities of the Company, and Purchaser has been
given the  opportunity  to (i) obtain  information  and to examine all documents
relating to the Company and the  Company's  business,  to (ii) ask questions of,
and to receive answers from, the Company  concerning the Company,  the Company's
business and the terms and  conditions of an  investment in the Company,  and to
(iii) obtain any  additional  information,  to the extent the Company  possesses
such information or could acquire such information  without  unreasonable effort
or  expense,  necessary  to verify the  accuracy of any  information  previously
furnished.   All  such  questions   have  been  answered  to  Purchaser's   full
satisfaction, and all information and documents, records and books pertaining to
an  investment  in the Company  which  Purchaser  has  requested  have been made
available to Purchaser.

                  (b) Purchaser is able to bear the  substantial  economic risks
of  Purchaser's  investment in the Company and the purchase of securities of the
Company in that, among other factors, Purchaser can afford to hold securities of
the  Company  for an  indefinite  period  and  can  afford  a  complete  loss of
Purchaser's investment in the Company.

                  (c)  No  material  adverse  change  in  Purchaser's  financial
condition has taken place during the past twelve (12) months, and Purchaser will
have sufficient  liquidity with respect to Purchaser's net worth for an adequate
period of time to provide for Purchaser's needs and contingencies.

                  (d) Purchaser is relying solely on Purchaser's own decision or
the advice of Purchaser's  own  adviser(s)  with respect to an investment in the
Company  and the  acquisition  of  securities  of the  Company,  and has neither
received  nor  relied  on any  communication  from the  Company,  the  Company's
officers or the Company's agents  regarding any legal,  investment or tax advice
relating to an  investment in the Company and the  acquisition  of securities of
the Company.

                  (e)  Purchaser  recognizes  that  investments  in the  Company
involve substantial risks in that, among other factors: (i) successful operation
of the Company  depends on factors  beyond the control of the  Company;  (ii) an
investment in the Company is a speculative investment and involves a high degree
of risk of loss;  (iii) the  Company is engaged in an  industry  which is highly
competitive  and subject to substantial  risks  relating to rapid  technological
change,  fierce  competition,  uncertain markets and an uncertain customer base;
(iv) retention of key employees is critical to the Company's  business;  (v) the
Company has a limited amount of working capital  available to it; and (vi) there
will be no public  market for  securities  of the Company  acquired by Purchaser
hereunder and, accordingly, it may not be possible to liquidate an investment in
the Company in case of  immediate  need of funds or any other  emergency,  if at
all. Purchaser has taken full cognizance of, and understands, such risks and has
obtained  sufficient  information  to  evaluate  the  merits  and  risks  of  an
investment in the Company and the acquisition of securities of the Company.

                                       9
<PAGE>

                  (f) Purchaser confirms that none of the Company's officers nor
any of the Company's agents have made any warranties concerning an investment in
the  Company,   including,   without  limitation,   any  warranties   concerning
anticipated  financial results,  or the likelihood of success of the operations,
of the Company.

                  (g)  Securities  of the Company are acquired by Purchaser  for
Purchaser's own account, for investment and not with a view to, or in connection
with, any public  offering or  distribution  of the same and without any present
intention to sell the same at any particular event or  circumstances.  Purchaser
has no  agreement  or other  arrangement  with any person to sell,  transfer  or
pledge any part of securities of the Company which would guarantee Purchaser any
profit or provide any  guarantee to  Purchaser  against any loss with respect to
securities of the Company.

                  (h)  Purchaser  understands  that no  federal,  state or other
governmental  agency of the United  States or any other  territory or nation has
passed  on or  made  any  recommendation  or  endorsement  of an  investment  in
securities of the Company.

                  (i) Purchaser  understands that securities of the Company have
not been registered  under the United States  Securities Act of 1933, as amended
(the "Act") or applicable  state or other securities laws, and securities of the
Company are offered and sold under an exemption  from  registration  provided by
such  laws  and  the  rules  and  regulations  thereunder;   further,  Purchaser
understands  that the Company is under no obligation  to register  securities of
the  Company or to comply with any  applicable  exemption  under any  applicable
securities  laws with respect to securities of the Company.  Purchaser must bear
the economic  risks of an investment in the Company for an indefinite  period of
time because it is not anticipated  that there will be any market for securities
of the Company and because  securities  of the Company  cannot be resold  unless
subsequently  registered under applicable securities laws or unless an exemption
from  such  registration  is  available.  Purchaser  also  understands  that the
exemption provided by Rule 144 under the Act may not be available because of the
conditions  and  limitations  of  such  Rule,  and  that in the  absence  of the
availability  of such Rule,  any  disposition  by  Purchaser  of any  portion of
securities of the Company may require compliance with some other exemption under
the Act.

                                       10
<PAGE>

                  (j) Purchaser has been informed that legends  referring to the
restrictions  indicated  herein  are  placed  on the  certificate(s)  evidencing
securities of the Company held by Purchaser.

                  (k) Purchaser  agrees that the foregoing  representations  and
warranties  will survive the sale of securities of the Company to Purchaser,  as
well as any investigation made by any party relying on same.

                  (l)  Purchaser  is an  "accredited  investor"  as such term is
defined in Regulation D promulgated under the Act.

         Section 3.3  Shareholder Investment Representations. The Sellers each
hereby represent to the Purchaser, jointly but not severally, that:

                  (a) Seller has such  knowledge and experience in financial and
business  matters so as to be capable of evaluating and  understanding,  and has
evaluated and understood, the merits and risks of an investment in the Purchaser
and the  acquisition of securities of the  Purchaser,  and Seller has been given
the opportunity to (i) obtain  information and to examine all documents relating
to the Purchaser and the Purchaser's  business, to (ii) ask questions of, and to
receive  answers from, the Purchaser  concerning the Purchaser,  the Purchaser's
business and the terms and conditions of an investment in the Purchaser,  and to
(iii) obtain any additional  information,  to the extent the Purchaser possesses
such information or could acquire such information  without  unreasonable effort
or  expense,  necessary  to verify the  accuracy of any  information  previously
furnished.  All such questions have been answered to Seller's full satisfaction,
and all information and documents, records and books pertaining to an investment
in the Purchaser  which  Shareholder  has requested  have been made available to
Seller.

                  (b) Seller is able to bear the  substantial  economic risks of
Seller's  investment  in the  Purchaser  and the purchase of  securities  of the
Purchaser in that, among other factors,  Seller can afford to hold securities of
the  Purchaser  for an  indefinite  period  and can  afford a  complete  loss of
Seller's investment in the Purchaser.

                  (c) No material adverse change in Seller's financial condition
has taken  place  during the past  twelve  (12)  months,  and  Seller  will have
sufficient  liquidity with respect to Seller's net worth for an adequate  period
of time to provide for Seller's needs and contingencies.

                  (d) Seller is relying  solely on Seller's  own decision or the
advice of Seller's own advisor(s) with respect to an investment in the Purchaser
and the acquisition of securities of the Purchaser, and has neither received nor
relied on any communication from the Purchaser,  the Purchaser's officers or the
Purchaser's agents regarding any legal,  investment or tax advice relating to an
investment in the Purchaser and the acquisition of securities of the Purchaser.

                                       11
<PAGE>

                  (e)  Securities  of the  Purchaser  are acquired by Seller for
Seller's own account,  for  investment  and not with a view to, or in connection
with, any public  offering or  distribution  of the same and without any present
intention to sell the same at any particular event or circumstances.  Seller has
no agreement or other  arrangement  with any person to sell,  transfer or pledge
any part of securities of the Purchaser which would guarantee  Seller any profit
or provide any  guarantee to Seller  against any loss with respect to securities
of the Purchaser.

                  (h)  Seller  understands  that  no  federal,  state  or  other
governmental  agency of the United  States or any other  territory or nation has
passed  on or  made  any  recommendation  or  endorsement  of an  investment  in
securities of the Purchaser.

                  (i) Seller  understands  that securities of the Purchaser have
not been registered  under the United States  Securities Act of 1933, as amended
(the "Act") or applicable  state or other securities laws, and securities of the
Purchaser are offered and sold under an exemption from registration  provided by
such laws and the rules and regulations thereunder;  further, Seller understands
that  the  Purchaser  is under  no  obligation  to  register  securities  of the
Purchaser  or to comply  with any  applicable  exemption  under  any  applicable
securities  laws with respect to securities of the  Purchaser.  Seller must bear
the economic risks of an investment in the Purchaser for an indefinite period of
time because it is not anticipated  that there will be any market for securities
of the Purchaser and because securities of the Purchaser cannot be resold unless
subsequently  registered under applicable securities laws or unless an exemption
from such registration is available.  Seller also understands that the exemption
provided  by  Rule  144  under  the  Act may  not be  available  because  of the
conditions  and  limitations  of  such  Rule,  and  that in the  absence  of the
availability  of such Rule,  any  disposition  by  Shareholder of any portion of
securities  of the Purchaser may require  compliance  with some other  exemption
under the Act.

                  (j) Seller has been  informed  that  legends  referring to the
restrictions  indicated  herein  are  placed  on the  certificate(s)  evidencing
securities of the Purchaser held by Seller.

                  (k)  Seller  agrees  that the  foregoing  representations  and
warranties  will survive the sale of securities  of the Purchaser to Seller,  as
well as any investigation made by any party relying on same.

                                   ARTICLE IV

                            CONDITIONS TO OBLIGATIONS

                  Section 4.1 Purchaser.  The purchase of the Hill Securities by
Purchaser on the Closing Date is conditioned upon the satisfaction or waiver, at
or prior to the  consummation of the sale of Hill  Securities,  of the following
conditions:

                  (a)   Truth   of   Representations    and   Warranties.    The
representations  and warranties of contained in this Agreement shall be true and
correct in all  material  respects on and as of the  Closing  Date with the same
effect as though such representations and warranties have been made on and as of
such date  (except to the extent that any such  representation  and  warranty is
stated in this  Agreement to be made as of a specific  date,  in which case such
representation  and  warranty  shall be true and  correct  as of such  specified
date).

                                       12
<PAGE>

                  (b)   Performance  of  Agreements.   Seller  and  all  of  the
agreements  of Company to be performed at or prior to the Closing Date  pursuant
to the terms hereof shall have been duly performed in all material respects.

                  (c) No Injunction. No court or other government body or public
authority  shall have issued an order which shall then be in effect  restraining
or prohibiting the completion of the transactions contemplated hereby.

                  (d) No  Litigation.  There  shall not be any  action,  suit or
proceeding  pending or threatened that seeks to (i) make the consummation of the
transactions  contemplated  hereby  illegal or  otherwise  restrict  or prohibit
consummation  thereof or (ii) require the divestiture by Purchaser or any of its
subsidiaries  or  Affiliates  of shares of stock or of any  business,  assets or
property  of any of its  subsidiaries  or  Affiliates,  or impose  any  material
limitation on the ability of any of them to conduct their  business or to own or
exercise control of such assets,  properties or stock and which, in either case,
in the  reasonable,  good faith  determination  of Purchaser  has a  significant
likelihood of having a material adverse effect on Purchaser.

                  Section  4.2  Sellers  and  Company.  The  sale  of  the  Hill
Securities by Sellers on the Closing Date is conditioned  upon the  satisfaction
or waiver,  at or prior to the consummation of the sale of Hill  Securities,  of
the following conditions:

                  (a)   Truth   of   Representations    and   Warranties.    The
representations and warranties of Purchaser contained in this Agreement shall be
true and correct in all material respects on and as of the Closing Date with the
same effect as though such  representations and warranties have been made on and
as of such date (except to the extent that any such  representation and warranty
is stated in this Agreement to be made as of a specific date, in which case such
representation  and  warranty  shall be true and  correct  as of such  specified
date).

                  (b)   Performance  of  Agreements.   Seller  and  all  of  the
agreements of Purchaser to be performed at or prior to the Closing Date pursuant
to the terms hereof shall have been duly performed in all material respects.

                  (c) No Injunction. No court or other government body or public
authority  shall have issued an order which shall then be in effect  restraining
or prohibiting the completion of the transactions contemplated hereby.

                  (d) No  Litigation.  There  shall not be any  action,  suit or
proceeding  pending or threatened that seeks to (i) make the consummation of the
transactions  contemplated  hereby  illegal or  otherwise  restrict  or prohibit
consummation  thereof or (ii) require the divestiture by Purchaser or any of its
subsidiaries  or  Affiliates  of shares of stock or of any  business,  assets or
property  of any of its  subsidiaries  or  Affiliates,  or impose  any  material
limitation on the ability of any of them to conduct their  business or to own or
exercise control of such assets,  properties or stock and which, in either case,
in the  reasonable,  good faith  determination  of Purchaser  has a  significant
likelihood of having a material adverse effect on Purchaser.

                                       13
<PAGE>

                  (e) Due  Diligence.  The Company shall have  completed its due
diligence of NewCo, including without limitation, its capitalization,  corporate
books and liabilities, to its reasonable satisfaction.

                                    ARTICLE V

                             POST-CLOSING COVENANTS

                  Section 5.1 Audit.  The Company  shall,  as soon as  possible,
commence an audit,  with an independent  certified public accounting firm chosen
by the  Company  Board,  of the  Company's  2002 and 2003 fiscal year end income
statements and balance sheets,  as well as any other  financial  statements that
are  required  to be  filed  by  NewCo,  within  60 days of the  closing  of the
acquisition of the Company by NewCo.

                  Section  5.2  Consulting  Fee.  The  Purchaser  shall issue to
Tryant  Capital,  LLC a  consulting  fee in the amount of 525,000  shares of the
common  stock  of  Purchaser,  issued  immediately  after  the  closing  of  the
transactions  contemplated herein. This fee is paid for services rendered to the
Purchaser  in  identifying  the  Company  and   negotiating   the   transactions
contemplated  herein,  as well as  arranging  for the  payment of all  currently
outstanding  liabilities of the Purchaser  (approximately $20,000) and providing
the indemnification set forth in this Agreement.  Tryant Capital, LLC shall have
paid all outstanding liabilities of the Purchaser prior to the Closing Date.

                  Section 5.3 Survival.  The  representations  and warranties of
Articles II and III shall survive the termination of this Agreement indefinitely
(subject to applicable statute of limitations).

                  Section 5.4 Warrant. The Purchaser shall issue Bruce Littell a
warrant to purchase  9,633,937  shares of common  stock at $0.20 per share for a
five-year period promptly after the Closing.

                                       14
<PAGE>

                                   ARTICLE VI

                                  MISCELLANEOUS

                  Section 6.1  Expenses.  Except as  otherwise  provided in this
Agreement,  each  party to this  Agreement  will  bear its  respective  fees and
expenses incurred in connection with the preparation, negotiation, execution and
performance of this Agreement and the transactions  contemplated herein. If this
Agreement is  terminated,  the  obligation of each party to pay its own fees and
expenses  will be subject to any rights of such party  arising  from a breach of
this Agreement by another party.

                  Section  6.2  Waiver;  Remedies  Cumulative.  The  rights  and
remedies of the parties to this Agreement are  cumulative  and not  alternative.
Neither any failure nor any delay by any party in exercising any right, power or
privilege  under this  Agreement  or any of the  documents  referred  to in this
Agreement  will operate as a waiver of such right,  power or  privilege,  and no
single or partial  exercise of any such right,  power or privilege will preclude
any other or further exercise of such right,  power or privilege or the exercise
of any other  right,  power or  privilege.  To the maximum  extent  permitted by
applicable  law, (a) no claim or right  arising out of this  Agreement or any of
the documents  referred to in this Agreement can be discharged by one party,  in
whole or in part,  by a waiver or  renunciation  of the claim or right unless in
writing  signed by the other  party;  (b) no waiver that may be given by a party
will be applicable  except in the specific  instance for which it is given;  and
(c) no notice  to or  demand  on one party  will be deemed to be a waiver of any
obligation  of that  party or of the right of the party  giving  such  notice or
demand to take  further  action  without  notice or demand as  provided  in this
Agreement or the documents referred to in this Agreement.

                  Section 6.3 Entire Agreement and Modification.  This Agreement
supersedes all prior  agreements,  whether written or oral,  between the parties
with respect to its subject  matter,  and  constitutes  a complete and exclusive
statement of the terms of the agreement  between the parties with respect to its
subject matter.  This Agreement may not be amended,  supplemented,  or otherwise
modified except by a written agreement  executed by the party to be charged with
the amendment.

                  Section 6.4 Assignments, Successors and No Third-Party Rights.
No party may assign any of its rights or delegate any of its  obligations  under
this Agreement  without the prior written consent of the other parties.  Subject
to the  preceding  sentence,  this  Agreement  will  apply to, be binding in all
respects upon and inure to the benefit of the successors  and permitted  assigns
of the  parties.  Nothing  expressed  or referred to in this  Agreement  will be
construed to give any Person other than the parties to this  Agreement any legal
or equitable  right,  remedy or claim under or with respect to this Agreement or
any  provision  of this  Agreement,  except  such  rights  as  shall  inure to a
successor or permitted assignee pursuant to this Section.

                  Section 6.5  Severability.  If any provision of this Agreement
is held invalid or  unenforceable  by any court of competent  jurisdiction,  the
other  provisions of this  Agreement  will remain in full force and effect.  Any
provision of this Agreement held invalid or unenforceable only in part or degree
will  remain  in full  force  and  effect  to the  extent  not held  invalid  or
unenforceable.

                                       15
<PAGE>

                  Section  6.6  Construction.   The  headings  of  Articles  and
Sections in this Agreement are provided for convenience only and will not affect
its construction or interpretation.  All references to "Articles" and "Sections"
refer to the corresponding Articles and Sections of this Agreement.

                  Section 6.7 Time of Essence. With regard to all dates and time
periods set forth or referred to in this Agreement, time is of the essence.

                  Section 6.8 Notices. All notices,  consents, waivers and other
communications  required or permitted by this Agreement  shall be in writing and
shall be deemed given to a party when (a) delivered to the  appropriate  address
by hand or by nationally  recognized  overnight courier service (costs prepaid);
(b) sent by  facsimile  or  e-mail  with  confirmation  of  transmission  by the
transmitting  equipment,  so long as such  facsimile  or e-mail is followed by a
copy sent by mail;  or (c)  received or rejected  by the  addressee,  if sent by
certified  mail,  return  receipt  requested,  in  each  case  to the  following
addresses,  facsimile numbers or e-mail addresses and marked to the attention of
the  person  (by name or  title)  designated  below (or to such  other  address,
facsimile number, e-mail address or person as a party may designate by notice to
the other parties):

                  if to Purchaser, to it at:

                  c/o GCH Capital, Ltd.
                  269 S. Beverly Drive, #185
                  Beverly Hills, California 90212
                  Attention: General Counsel
                  Tel: (310) 785-0330
                  Fax: (310) 785-0040

                  TO THE COMPANY:

                  Logistical Support, Inc.
                  19734 Dearborn Street
                  Chatsworth, California 91311
                  Attention: President
                  Tel: (818) 885-0300
                  Fax: (818) 885-5091

                  Section 6.9 Governing Law;  Consent to  Jurisdiction.  (a) The
interpretation  and  construction  of this Agreement,  and all matters  relating
hereto,  shall be governed by the laws of the State of California  applicable to
contracts made and to be performed entirely within the State of California.

                                       16
<PAGE>

         (b) Any  proceeding,  action,  litigation  or  claim  (a  "Proceeding")
arising  out of or  relating  to  this  Agreement  or  any  of the  transactions
contemplated  herein may be  brought  in the courts of the State of  California,
County of Los Angeles, or, if it has or can acquire jurisdiction,  in the United
States  District Court for the Central  District of California,  and each of the
parties irrevocably submits to the exclusive  jurisdiction of each such court in
any such Proceeding,  waives any objection it may now or hereafter have to venue
or to convenience of forum,  agrees that all claims in respect of the Proceeding
shall be heard and determined only in any such court and agrees not to bring any
Proceeding  arising  out  of or  relating  to  this  Agreement  or  any  of  the
transactions  contemplated  herein in any other  court.  The parties  agree that
either  or both of them may  file a copy of this  paragraph  with  any  court as
written evidence of the knowing,  voluntary and bargained  agreement between the
parties irrevocably to waive any objections to venue or to convenience of forum.
Each party hereto hereby  consents to process being served in any such action or
proceeding  by the mailing of a copy  thereof to the address set forth  opposite
its name below and agrees that such service upon receipt shall  constitute  good
and sufficient  service of process or notice thereof.  Nothing in this paragraph
shall  affect or  eliminate  any  right to serve  process  in any  other  manner
permitted by law.

                  Section  6.10 WAIVER OF JURY TRIAL.  THE PARTIES  HEREBY WAIVE
ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING  ARISING OUT OF OR RELATING TO THIS
AGREEMENT  OR ANY OF THE  CONTEMPLATED  TRANSACTIONS,  WHETHER  NOW  EXISTING OR
HEREAFTER  ARISING,  AND WHETHER  SOUNDING IN CONTRACT,  TORT OR OTHERWISE.  THE
PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS  PARAGRAPH WITH ANY COURT
AS WRITTEN EVIDENCE OF THE KNOWING,  VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG
THE  PARTIES  IRREVOCABLY  TO  WAIVE  TRIAL  BY JURY  AND  THAT  ANY  PROCEEDING
WHATSOEVER  BETWEEN THEM RELATING TO THIS  AGREEMENT OR ANY OF THE  CONTEMPLATED
TRANSACTIONS  SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT  JURISDICTION  BY A
JUDGE SITTING WITHOUT A JURY.

                  Section 6.11  Execution of  Agreement.  This  Agreement may be
executed  in one or more  counterparts,  each of which  will be  deemed to be an
original copy of this Agreement and all of which,  when taken together,  will be
deemed to constitute one and the same agreement.  The exchange of copies of this
Agreement  and of signature  pages by facsimile  transmission  shall  constitute
effective  execution and delivery of this Agreement as to the parties and may be
used in lieu of the  original  Agreement  for all  purposes.  Signatures  of the
parties transmitted by facsimile shall be deemed to be their original signatures
for all purposes.

                                       17
<PAGE>

                                   ARTICLE VII

                                INDEMNIFICATION.

                  Section  7.1 Tryant  and  Jenson  hereby  agree,  jointly  and
severally,  to indemnify  and hold harmless the Company and its  affiliates  and
their respective officers, directors, partners, members, managers, shareholders,
employees and agents ("Indemnified  Party") from and against any and all losses,
claims, damages, judgments, penalties,  liabilities and deficiencies, and agrees
to reimburse  the other for all  reasonable  out-of-pocket  expenses  (including
reasonable  fees and  expenses  of legal  counsel),  in each  case  promptly  as
incurred by the Indemnified Party, to the extent arising out of or in connection
with any  material  misrepresentation  or  material  breach  of any of  Tryant's
representations or warranties contained in this Agreement.

                  Section 7.2 Tryant and Jenson agree, jointly and severally, to
indemnify  Company  against any and all debts,  liabilities  and  obligations of
NewCo  (whether  contingent or  otherwise)  existing or arising on or before the
date of this Agreement.  Following the Closing, Tryant agrees to pay any and all
such  pre-existing   debts,   liabilities  and  obligations  when  and  as  such
liabilities  and  obligations  are discovered or become due, upon demand made by
Company.

                            [SIGNATURE PAGE FOLLOWS]

                                       18
<PAGE>

         IN WITNESS WHEREOF, each of the parties have caused this Stock Purchase
Agreement to be executed all as of the day and year first above written.

Logistical Support, LLC,
a California limited liability company           Bikini Team International, Inc.
                                                 a Utah corporation

By: ________________________                     By: _______________________
     Joseph Lucan                                    Name:
     President                                       Title:

By: ________________________
     Bruce Littell                               The Morpheus Trust:
     Manager and Chief Executive Officer

Hill Aerospace & Defense, LLC,
a California limited liability company           By: _________________
                                                      Name: Diane Breitman
By:  Hill Industries, LLC                              Title: Trustee
     Its: Managing Member

                                                 Livingston Investments, Ltd.:

     By: _______________________________
     Harry Lebovitz, Managing Member             By: _________________
                                                      Name: Carsten Rykov
                                                      Title: Managing Director

                                                 The Breitman Family Trust
                                                 dated 7/1/03:

LITTELL
The Children's Trust of 1988,

G. Scott Littell, as Trustee
                                                 By:_________________
                                                      Name:
By: __________________________                        Title:
Name: G. Scott Littell

                                                 The Gateway Real Estate
                                                 Investment Trust:

LEBOVITZ

                                                 By: _________________
_____________________________                         Name: Ari Kaplon
Harry Lebovitz                                        Title: Trustee

                                       1
<PAGE>

               [Stock Exchange Agreement signature page continued]

LUCAN

_____________________________
Joseph Lucan

HILL INDUSTRIES, INC.

_____________________________
Harry Lebovitz, President

WILL

_____________________________
Dave Will

Tryant Capital, LLC
a Delaware limited liability company

By: _____________________
Name:
Title:

<PAGE>

               [Stock Exchange Agreement signature page continued]

PICASSO, LLC.

_____________________________
Name: Jennifer Mazur
Title:

THE GLACIER TRUST

_____________________________
Name: Albert Kashini
Title:

_____________________________
Jeffrey D. Jensonmgcnsb2a061404ex106b

  
    
      

    

     Exhibit 10.6b

    DEFINITIVE SETTLEMENT AGREEMENT AND GENERAL RELEASE

    Pursuant to the September 10, 2003 executed Agreement in Principle, the parties hereto hereby agree to settle all of the lawsuits and disputes between Magic Media Networks, Inc., a Delaware corporation ("Magic"); Dr. H. K. Terry; La Jolla Cove Investors, Inc., a California corporation ("La Jolla"); Mr. Travis Huff; Mr. Alan L. Atlas; and their respective agents, representatives, subsidiaries, and affiliates ("Settling Parties") on the following terms and conditions:

    1.         Within ten (10) days after the execution of this Definitive Settlement Agreement and General Release ("Agreement"), Magic will dismiss with prejudice its lawsuit against La Jolla in the United States District Court for the Southern District of California (Case No. 03CV 00564BTM).

    2.         Within ten (10) days after the execution of this Agreement, Magic, and Dr. H. K. Terry will dismiss with prejudice their lawsuit against La Jolla, Mr. Travis Huff, and Mr. Alan Atlas in the United States District Court for the Southern District of Florida (Case No. 03CIV 60475).

    3.1       Magic and Dr. H. K. Terry hereby forever release and discharge La Jolla, Mr. Travis Huff, and Mr. Alan L. Atlas, and each and every one of their past, present, and future officers, directors, members, employees, agents, affiliates, subsidiaries, parents, attorneys, representatives, successors, and predecessors (collectively, the "La Jolla Releasees") and all actions, causes of action, suits, complaints, claims, liabilities, obligations, promises, contracts, disputes, controversies, costs, damages, losses, debts, liabilities, demands, and expenses (including attorneys' fees and costs actually incurred) of any nature whatsoever, known or unknown, suspected or unsuspected, fixed or contingent, that Magic and Dr. H. K. Terry ever had, now have, or hereafter may have against the La Jolla Releasees, including, but not limited to, those that arise from, relate to, or that are asserted or could have been asserted in the two lawsuits referred to in paragraphs 1 and 2 above; including, but not limited to, all of their obligations under the Financing Documents (i.e., the September 24, 2002 $300,000 73⁄4% Convertible Debenture; the September 24, 2002 Warrant to Purchase Common Stock; the September 24, 2002 Registration Rights Agreement; the September 24, 2002 Securities Purchase Agreement; and the October 2, 2002 Mortgage and Security Agreement).

    3.2       Magic and Dr. H. K. Terry represent that they are aware of the provisions of Section 1542 of the California Civil Code, which reads:

    "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor."

  
    Magic and Dr. H. K. Terry expressly, knowingly, and voluntarily waive and relinquish any and all rights they may have under the provisions of Section 1542 of the California Civil Code and under any state or federal statute of similar import.  In waiving the provisions of Section 1542 and any similar state or federal statute, Magic and Dr. H. K. Terry acknowledge that they may hereafter discover facts in addition to or different from those which they now believe to be true with respect to the above two referenced lawsuits, but agree that they have taken that responsibility into  account in entering into this Agreement and that the Agreement given herein shall be, and remain, in effect as a full, complete, and general release, notwithstanding the discovery or existence of any such additional or different facts.

    3.3       La Jolla, Mr. Travis Huff, and Mr. Alan L. Atlas hereby forever release and discharge Magic and Dr. H. K. Terry, and each and every one of their past, present, and future officers, directors, members, employees, agents, affiliates, subsidiaries, parents, attorneys, representatives, successors, and predecessors (collectively, the "Magic Releasees") and all actions, causes of action, suits, complaints, claims, liabilities, obligations, promises, contracts, disputes, controversies, costs, damages, losses, debts, liabilities, demands, and expenses (including attorneys' fees and costs actually incurred) of any nature whatsoever, known or unknown, suspected or unsuspected, fixed or contingent, that La Jolla, Mr. Travis Huff, and Mr. Alan L. Atlas ever had, now have, or hereafter may have against the Magic Releasees, including, but not limited to, those that arise from, relate to, or that are asserted or could have been asserted in the two lawsuits referred to in paragraphs 1 and 2 above; including, but not limited to, all of their obligations under the Financing Documents (i.e., the September 24, 2002 $300,000 73⁄4% Convertible Debenture; the September 24, 2002 Warrant to Purchase Common Stock; the September 24, 2002 Registration Rights Agreement; the September 24, 2002 Securities Purchase Agreement; and the October 2, 2002 Mortgage and Security Agreement).

    3.4       La Jolla, Mr. Travis Huff, and Mr. Alan L. Atlas represent that they are aware of the provisions of Section 1542 of the California Civil Code, which reads:

    "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor."

  

  
    La Jolla, Mr. Travis Huff, and Mr. Alan L. Atlas expressly, knowingly, and voluntarily waive and relinquish any and all rights they may have under the provisions of Section 1542 of the California Civil Code and under any state or federal statute of similar import.  In waiving the provisions of Section 1542 and any similar state or federal statute, La Jolla, Mr. Travis Huff, and Mr. Alan L. Atlas acknowledge that they may hereafter discover facts in addition to or different from those which they now believe to be true with respect to the above two referenced lawsuits, but agree that they have taken that responsibility into the account in entering into this Agreement and that the Agreement given herein shall be, and remain, in effect as a full, complete, and general release, notwithstanding the discovery or existence of any such additional or different facts.

    4.         Upon execution of this Agreement, La Jolla will advance to Magic $18,393.56 (by means of a $10,000 check payable to David Kahn and a $8,393.56 check payable to Magic), which amount is included in the $300,000 Promissory Note referred to in numbered 5 paragraph herein.

    5.         In lieu of the September 24, 2002 Convertible Debenture, and as a novation thereof, the Settling Parties agree that a new Promissory Note (Exhibit A attached hereto) will be executed by Magic, payable to La Jolla in the amount of $300,000, with interest at 73⁄4% per annum from October 15, 2002 through August 15, 2003 (and at 63⁄4% per annum thereafter) payable on April 24, 2005 ("Note").  All interest set forth herein shall accrue, but shall not be payable to La Jolla until the April 24, 2005 maturity date of the Note. $280,000 of the $300,000 principal shall be deemed to have interest accrued thereon from October 15, 2002 through August 15, 2003 at 73⁄4% per annum, and thereafter at 63⁄4% per annum; less the interest already paid by Magic to La Jolla of $2,389.58 on December 5, 2002, $1,937.50 on December 23, 2002, and $1,937.50 on January 16, 2003.  In addition, interest at 73⁄4% per annum will accrue to La Jolla on $1,606.44 from June 12, 2003 through August 15, 2003, and at 63⁄4% per annum thereafter on both the $1,606.44 and on the $18,393.56 advance from the date of execution of this Agreement.  The only event of default under the Note shall be Magic's failure to pay at the April 24, 2005 maturity date all of the above accrued interest and the $300,000 principal.

    6.         In lieu of the October 2, 2002 Mortgage and Security Agreement, and as a novation thereof, the Settling Parties agree that an amended first mortgage (Exhibit B attached hereto) will be executed by Dr. H. K. Terry, on the same property covered by the previous Mortgage and Security Agreement.  The mortgage shall secure Magic's above financial obligations to pay to La Jolla the $300,000 principal and the above accrued interest at the April 24, 2005 maturity date.  The only event of default under the Mortgage shall be Magic's failure to pay at the April 24, 2005 maturity date all of the above accrued interest and/or the $300,000 principal.

  

  
    7.1       The Settling Parties agree that a "warrant" (Exhibit C attached hereto) will be granted by Magic to La Jolla for 10,000,000 common shares of Magic, exercisable for a period of two (2) years from the execution date of this Agreement, at a price equal to the greater of (a) 85% of the average of the 5 lowest volume weighted average prices in the prior 20 trading days before the date of exercise, or (b) $0.25 per share.  Even though the Settling Parties refer to this document as a "warrant", La Jolla agrees that (subject to the terms and conditions of such "warrant") La Jolla will exercise such "warrant" if and when (a) the market price of Magic's common stock pursuant to the above formula equals $0.29 or more per share, (b) La Jolla's "piggy-back" rights have been declared "effective" by the S.E.C., and (c) in an amount at least equal to 10% of the volume of Magic's common shares that trade at a price of $0.29 or more per share, excluding block trades of 50,000 shares or more.   

    7.2.      La Jolla shall have "piggy-back" rights for the above 10,000,000 shares on any Registration Statement that Magic files with the S.E.C. during a period of two (2) years from the execution date of the Definitive Agreement.

    8.                  The Settling Parties represent and warrant that they have not heretofore assigned, transferred, hypothecated, pledged, or granted, or purported to assign, hypothecate, pledge, or grant to any person, firm, corporation, trust, association, or other entity the claims, or any part thereof, released by this Agreement.

    9.                  The Settling Parties represent and warrant that they have read and understand this Agreement and that this Agreement is executed voluntarily and without duress or undue influence on the part of or on behalf of any party hereto.  The Settling Parties hereby acknowledge that they have been represented in the negotiations and in the preparation of this Agreement by counsel of their own choice, and they (and, in the case of the corporate Settling Parties hereto, the officers executing this Agreement) have had it fully explained to them by such counsel, and that they are fully aware of the contents of this Agreement and of the legal effect of each and every provision thereof.  Each of the officers executing this Agreement on behalf of his or her respective company, corporation, or association is empowered to do so and thereby binds his or her respective company, corporation, or association.

    10.              The Settling Parties represent that all authorizations, consents, and approvals that are conditions precedent to the authority of such party to execute this Agreement have been obtained.

    11.              This Agreement shall inure to the benefit of, and shall be binding upon, the Settling Parties, and each of them, and their respective officers, directors, members, employees, agents, affiliates, subsidiaries, parents, stockholders, attorneys, representatives, successors, predecessors, heirs, and assigns.

    12.              This Agreement constitutes the entire agreement and understanding concerning the subject matter of this Agreement among the Settling Parties, and supersedes any prior and contemporaneous oral and written agreements, negotiations, and discussions.  The Settling Parties acknowledge that no other party has made any promise, representation, or warranty whatsoever, express or implied, not contained here, concerning the subject matter hereof, to induce him, her, or it to execute this instrument, and each acknowledges that he, she, or it shall not execute this instrument in reliance on any such promise, representation, or warranty not contained in this Agreement.  This instrument may be amended only by an agreement in writing signed by all of the Settling Parties.

  

  
    13.              This Agreement shall in all respects be interpreted, enforced, and governed by the laws of the State of California.

    14.              The Settling Parties agree to cooperate and execute any further documents and take such additional action as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

    15.              The Settling Parties agree that this Agreement is the result of a compromise and shall never at any time or for any purpose be considered as an admission of liability or responsibility on the part of any party.

    16.              This Agreement is the result of mutual negotiations among the Settling Parties represented by counsel.  The rule of contract construction that an agreement shall be construed against the drafter thereof shall have no application to this Agreement.

    17.              In the event any provision of this Agreement is held to be unenforceable or invalid,  the remaining provisions shall nevertheless be given full effect, unless the ineffectiveness or invalidity of one or more of the provisions would result in a failure of consideration or materially alter the benefits intended hereby.

    18.              No provision hereof may be waived unless in writing signed by all of the Settling Parties.  Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein.

    19.              Should any action be required or undertaken to enforce the provisions of this Agreement, the prevailing party shall be entitled to recover all costs and/or expenses, including attorneys' fees, incurred thereby.

    20.              This Agreement may be executed in two or more counterparts and all so executed shall constitute one Agreement, binding upon all of the Settling Parties, notwithstanding that all of the Settling Parties have not executed the original or the same counterpart.  The exchange of facsimile signatures shall constitute evidence of due execution of this Agreement.

    /s/ Alan L. Atlas                     10/22/03                      /s/ David L. Kahn,               9/25/03

                                                                                                                                                   

    Alan L. Atlas,                         Date                          David L. Kahn,                   Date

    Attorney for the Defendants                                     Attorney for the Plaintiffs

    La Jolla Cove Investors, Inc.,                                        Magic Media Networks, Inc.   

    A California corporation                                               A Delaware corporation

    By    /s/ Travis Huff                        10/24/03              By   /s/ Gordon Scott Venters             10/20/03    

    Date                                                                          Date

  

  /s/ Alan L. Atlas                             10/22/03                     /s/ Dr. H. K. Terry                 10/20/03         

Mr. Alan L. Atlas                        Date                       Dr. H. K. Terry                           Date
  
  

    /s/ Travis Huff                                10/24/03              

    Mr. Travis Huff                           Date

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