Document:

SECURED PROMISSORY NOTE

 

	US$25,000	December 21, 2011          

 

FOR VALUE RECEIVED, the undersigned, Innolog
Holdings Corporation, a Nevada Corporation, and Innovative Logistics Techniques, Inc., a Virginia corporation (“Innolog”),
with principal executive offices are located at 4000 Legato Road, Suite 830, Fairfax, Virginia 22033, telephone number is (703)
766-1412, fax number is (703) 766-1425 and five additional offices located in Washington D.C., Tennessee and Florida (together,
the “Maker”), promises to pay to Erich Winkler, (the “Payee”), at such place as the Payee may later designate
in writing, in lawful money of the United States, the principal sum of TWENTY-FIVE THOUSAND United States dollars ($25,000) (the
“Principal Amount” as further defined herein) in accordance with this secured promissory note (the “Note”)
under the terms set forth herein. This Note is being made in conjunction with one or more other substantially similar notes of
even date herewith (collectively the “BoD AR Notes”)

 

		1.	Principal Amount:

 

The Principal Amount is TWENTY-FIVE THOUSAND
thousand dollars ($25,000) ((“Principal Amount”). This note shall be repaid pari passu with each of the other BoD AR
Notes.

 

		2.	Maturity Date/Pre-payment:

 

The maturity date (“Maturity Date”)
is forty-five (45) days from the receipt of the Principal Amount. The Maker shall have the right to prepay at any time and from
time to time, in advance of the respective Maturity Date, without premium or penalty (but the entire Fee shall be due and payable),
all or part of the then outstanding Principal Amount and other amounts due and owing. Each payment shall be applied first to the
principal balance due. The Maturity Date may be extended with the approval of all parties.

 

		3.	Rate of Interest/Fee:

 

Maker shall pay to Payee a flat fee (“Fee”)
of ten percent of the Principal Amount, due and payable on the Maturity Date, which Fee shall be deemed earned at the time of the
initial funding of the loan.

 

		4.	Additional Compensation:

 

Maker shall issue to Payee or Payee’s
designee Warrants in a number equal to the Principal Amount, convertible into common stock of Innolog Holdings Corporation, a Nevada
corporation, at an exercise price of $0.06 per share for five years from the date hereof, with such other terms that are substantially
the same as other similar warrants.

 

		5.	Late Fee:

 

If this Note is not paid in full within
three (3) business days of the Maturity Date, a late fee (“Late Fee”) of ten percent (10%) of the amount outstanding
hereunder shall be due and owing, in which case, Maker shall have an additional thirty (30) days in which to pay the total amount
owed (Principal Amount, Fee, Late Fee and any collection costs).

 

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		6.	Security Interest/Subordination/Guaranty

 

Maker shall grant to Payee and the
holders of the other BoD AR Notes a joint and several security interest in the specific accounts receivable of Maker or Innolog
as listed below:

 

Naval Research Laboratories, Prime Contract No. N00173-11-F-0438,
Contract No. 5073-007, Electric Warfare Sys (INTOP), as billed on or about January 2, 2012, as may be more fully described in an
Attachment A if so attached.

 

and the proceeds therefrom (the “Collateral”). Maker
shall execute and promptly deliver such documents and instruments as Payee may request from time to time to secure, evidence and
perfect Payee's security interest and relative priority in the Collateral.

 

Payee is an officer, director or insider of Maker and acknowledges
that as such the repayment of this Note may be subordinate to the repayment or payment to other creditors of Maker.

 

This Note is also being guaranteed by Dr. Ian Reynolds pursuant
to a separate Guaranty Agreement of even date herewith.

 

		7.	Events of Default

 

The following shall constitute Events of
Default hereunder:

 

(a)          If
Maker defaults in the payment of any amount due on this Note when due; and

 

(b)          If
Maker shall (i) make a general assignment for the benefit of creditors, or (ii) apply for or consent to the appointment of a receiver,
trustee or liquidator for itself or all or a substantial part of its assets, or (iii) be adjudicated a bankrupt or insolvent, or
(iv) file a voluntary petition in bankruptcy or file a petition or an answer seeking reorganization or an arrangement with creditors
or seeking to take advantage of any other law (whether Federal or state) relating to relief of debtors, or admit (by answer, by
default or otherwise) the material allegations of a petition filed against it in any bankruptcy, reorganization, insolvency or
other proceeding (whether Federal or state) relating to relief of debtors, or (v) suffer or permit to continue unstayed and in
effect for sixty (60) consecutive days any judgment, decree or order entered by a court of competent jurisdiction, that approves
an involuntary petition seeking reorganization of Maker, or appoints, pursuant to such a petition, a receiver, trustee or liquidator
for it or all or a substantial part of its assets.

 

		8.	Remedies

 

(a)          Upon
the happening of an Event of Default, Payee may, in Payee's sole and absolute discretion and without notice or demand to Maker,
declare the entire amount of principal and interest thereon remaining outstanding hereunder immediately due and payable, whereupon,
the same shall forthwith become and be due and payable without any presentment, demand or notice of any kind, all of which are
expressly waived by Maker.

 

(b)          If
an Event of Default shall occur, the Maker shall pay the Payee, on demand by the Payee, all reasonable costs and expenses incurred
by the Payee in connection with the collection and enforcement of this Note, including attorneys fees.

 

(c)          Upon
an event of default, all amounts outstanding shall bear interest at the default interest rate of eighteen percent 18% per annum
until paid in full, which shall be in addition to any Late Fees owed.

  

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9. Miscellaneous

 

(a)          This
Note shall be deemed to be made and entered into under the laws of the Commonwealth of Virginia and for all purposes shall be construed
and enforced in accordance with the laws of the Commonwealth of Virginia, but not with respect to the law of conflicts.

 

(b)          This
Note shall be binding upon Maker and Maker's successors and assigns and shall inure to the benefit of Payee and Payee's successors
and assigns; and each reference herein to Maker or to Payee shall, except where the context shall otherwise require, be deemed
to include its respective successors and assigns. Notwithstanding the foregoing, Maker shall not have any right to assign his obligations
hereunder without Payee's prior written consent and Payee may not assign its interests hereunder without Maker’s prior written
consent.

 

(c)          Any
failure by Payee to exercise any right or remedy hereunder shall not constitute a waiver of the right to exercise the same or any
other right or remedy at any subsequent time, and no single or partial exercise of any right or remedy shall preclude other or
further exercise of the same or any other right or remedy.

 

(d)          None
of the terms and provisions hereof may be waived, altered, modified, or amended except by an agreement in writing signed by Maker
and Payee.

 

IN WITNESS WHEREOF, intending to be legally bound, Maker has
caused this Secured Promissory Note to be executed as of the day and year first above written by its duly authorized and empowered
officer or representative.

 

	Innolog Holdings Corporation	 
	 	 
	By:	 	 
	 	Richard Stewart, Vice President	 
	 	 
	Innovative Logistics, Techniques, Inc.	 
	 	 
	By:	 	 
	 	Richard Stewart, President	 

 

    	- 3 -GUARANTY AGREEMENT

 

This GUARANTY AGREEMENT (“Guaranty”),
made as of October 19, 2011 by Dr. Ian Reynolds (“Guarantor”), whose address is 450 Medical Center Drive, Suite 206,
Webster, TX 77598 (email: janrey@comcast.net) (“Guarantor”),
in favor of Erich Winkler (“Lender”).

 

Lender has extended to
and will in the future extend to Innolog Holdings Corporation and Innovative Logistics Techniques, Inc. (together “Borrower”)
a loan (the “Loan”) evidenced by a Promissory Note (the “Note”) in the initial principal
amount of $25,000 and secured by certain accounts receivable of Borrower (the “Collateral”). The Note and all
other instruments evidencing, securing or relating thereto are hereinafter referred to, collectively, as the “Loan Documents”.
Each capitalized term not defined herein shall have the meaning set forth in the respective Note.

 

NOW, THEREFORE, the parties
covenant and agree as follows:

 

1.         Guaranty.

 

(a)       Guarantor
hereby unconditionally and irrevocably guarantees the full and complete performance of the Note upon any default under the Note
or hereunder.

 

(b)       In
the event of a Default, Lender shall have the right to enforce any and all rights, powers and remedies available to Lender, which
shall be non-exclusive and cumulative. If the indebtedness and obligations guaranteed hereby are partially paid or discharged by
reason of the exercise of any of the remedies available to Lender, this Guaranty shall nevertheless remain in full force and effect,
and Guarantor shall remain liable for all remaining indebtedness and obligations guaranteed hereby, including the Costs and the
Obligations. Guarantor shall be liable for any deficiencies in the event Lender does not receive the full amount of the Obligations
owing under the Loan Documents after foreclosure on any collateral.

 

2.       Reinstatement
of Obligations. If at any time all or any part of any payment made to Lender under this Guaranty must be rescinded or returned
for any reason whatsoever (including, but not limited to, the bankruptcy of Guarantor), then Guarantor’s obligations hereunder
shall, to the extent of the payment rescinded or returned, be deemed to have continued in existence, notwithstanding such previous
payment to Lender, and the obligations of Guarantor hereunder shall continue or be reinstated, as the case may be, as to such payment,
as if such previous payment had never been made.

 

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3.       Waivers
by Guarantor. To the extent permitted by law, Guarantor hereby waives (a) demand, presentment for payment, notice of nonpayment,
protest, notice of protest and all other notices of any kind, or the lack of any thereof, including, without limitation, notice
of the existence, creation or incurring of any new or additional indebtedness or obligation or of any action or non-action on the
part of Lender, any endorser or creditor of either Guarantor or any other person whomsoever under this or any other instrument
in connection with any obligation or evidence of indebtedness held by Lender; (b) any defense based upon an election of remedies
by Lender; (c) any principle or provision of law, statutory or otherwise, which is or might be in conflict with the terms and provisions
of this Guaranty; (d) any duty on the part of Lender to disclose to Guarantor any facts Lender may know about the Collateral or
Borrower, regardless of whether Lender has reason to believe that any such facts materially increase the risk beyond that which
Guarantor intends to assume or has reason to believe that such facts are unknown to Guarantor or has a reasonable opportunity to
communicate such facts to Guarantor, it being understood and agreed that Guarantor is fully responsible for being and keeping informed
of the condition of the Collateral or Borrower and of any and all circumstances bearing on the risk that liability may be incurred
by Guarantor; (e) any lack of notice of disposition or of manner of disposition of any collateral for the Loan; (f) any assertion
or claim that the automatic stay provided by 11 U.S.C. §362 or any other stay provided under any other Guarantor relief law
of any jurisdiction whatsoever, now or hereafter in effect, shall operate to stay or inhibit the ability of Lender to enforce any
of its rights which Lender may have against Guarantor, or the collateral for the Loan; (g) any modifications of the Loan Documents
or any obligation of Borrower relating to the Loan by operation of law or by action of any court, whether pursuant to Title 11
of the United States Code, as amended, or any other Guarantor relief law of any jurisdiction whatsoever, now or hereafter in effect,
or otherwise; and (f) any action, occurrence, event or matter consented to by Guarantor under any provision hereof, or otherwise.

 

4.       General
Provisions.

 

(a)              Survival.
This Guaranty shall be deemed to be continuing in nature and shall remain in full force and effect and shall survive the payment
of the Costs and Obligations and the exercise of any remedy by Lender under the Mortgage or any of the other Loan Documents, even
if, as a part of such remedy, the Loan is paid or satisfied in full.

 

(b)              No
Subrogation; No Recourse Against Lender. Notwithstanding the satisfaction by Guarantor of any liability hereunder, Guarantor
shall not have any right of subrogation, contribution, reimbursement or indemnity whatsoever or any right of recourse to or with
respect to the assets or Collateral of Borrower or to any collateral for the Loan. In connection with the foregoing, Guarantor
expressly waives any and all rights of subrogation to Lender against Borrower, and Guarantor hereby waives any rights to enforce
any remedy which Lender may have against Borrower and any right to participate in any collateral for the Loan. In addition to and
without in any way limiting the foregoing, Guarantor hereby subordinates any and all indebtedness of Borrower now or hereafter
owed to Guarantor to all indebtedness of Borrower to Lender, and agrees with Lender that Guarantor shall not demand or accept any
payment of principal or interest from Borrower, shall not claim any offset or other reduction of Guarantor’s obligations
hereunder because of any such indebtedness and shall not take any action to obtain any of the collateral securing the Loan. Further,
Guarantor shall not have any right of recourse against Lender by reason of any action Lender may take or omit to take under the
provisions of this Guaranty or any of the other Loan Documents.

 

(c)              Reservation
of Rights. Nothing contained in this Guaranty shall prevent, diminish or interfere with any rights or remedies, including the
right to contribution or cost recovery, which Lender may have against Guarantor or any other party under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (codified at Title 42 U.S.C. §9601 et seq.), as it may be amended
from time to time, or any other applicable federal, state or local laws, all such rights being hereby expressly reserved.

 

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(d)              Rights
Cumulative; Payments. Lender’s rights under this Guaranty shall be in addition to all rights of Lender under the Note,
and security agreement and the other Loan Documents. FURTHER, PAYMENTS MADE BY GUARANTOR UNDER THIS GUARANTY SHALL NOT REDUCE IN
ANY RESPECT BORROWER’S OBLIGATIONS AND LIABILITIES UNDER THE NOTE OR THE OTHER LOAN DOCUMENTS EXCEPT WITH RESPECT TO, AND
TO THE EXTENT OF, BORROWER’S OBLIGATION AND LIABILITY FOR THE PAYMENT MADE BY GUARANTOR.

 

(e)              No
Limitation on Liability. Guarantor consents and agrees that Lender may at any time and from time to time without further consent
from Guarantor do any of the following, and the liability of Guarantor under this Guaranty shall be unconditional and absolute
and shall in no way be impaired or limited by any of the following, whether occurring with or without notice to Guarantor or with
or without consideration: (i) any extensions of time for performance required by any of the Loan Documents or extension or renewal
of the Note; (ii) any sale, assignment or foreclosure of the Note, any security agreement or any of the other Loan Documents or
any sale or transfer of the Collateral; (iii) any change in the composition of Borrower, including, without limitation, the withdrawal
or removal of Guarantor from any current or future position of ownership, management or control of Borrower; (iv) the accuracy
or inaccuracy of the representations and warranties made by Borrower; (v) the release of Borrower or of any other person or entity
from performance or observance of any of the provisions of any of the Loan Documents by operation of law, Lender’s voluntary
act or otherwise; (vi) the release or substitution in whole or in part of any security for the Loan; (vii) Lender’s failure
to properly record the Mortgage or file any financing statement or to otherwise perfect, protect, secure or insure any lien or
security interest given as security for the Loan; (viii) the modification of the terms of any one or more of the Loan Documents;
or (ix) the taking or failure to take any action of any type whatsoever. No such action or inaction, nor any course of dealing
with Borrower or any other person, shall limit, impair or release Guarantor’s obligations hereunder, affect this Guaranty
in any way or afford Guarantor any recourse against Lender. Nothing contained in this Section shall be construed to require Lender
to take or refrain from taking any action referred to herein.

 

(f)              Notice.
All notices, demands, requests or other communications to be sent by one party to the other hereunder or required by law shall
be in writing and shall be deemed to have been validly given by delivery of the same in person to the intended addressee, by electronic
mail, or by depositing the same with a reputable private courier service for next business day delivery to the intended addressee
at its address set forth on the first page of this Guaranty or at such other address as may be designated by such party as herein
provided, or by depositing the same in the United States mail, postage prepaid, registered or certified mail, return receipt requested,
addressed to the intended addressee at its address set forth on the first page of this Guaranty or at such other address as may
be designated by such party as herein provided. All notices, demands and requests shall be effective upon such personal delivery,
or one (1) business day after being deposited with the private courier service or by electronic mail, or two (2) business days
after being deposited in the United States mail as required above. Rejection or other refusal to accept or the inability to deliver
because of changed address of which no notice was given as herein required shall be deemed to be receipt of the notice, demand
or request sent.

 

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(g)              Waiver
by Guarantor. Guarantor agrees that upon the commencement of a voluntary or involuntary bankruptcy proceeding by or against
Borrower, Guarantor shall not or cause Borrower or any other person or entity to seek a supplemental stay, pursuant to 11 U.S.C.
§105 or any other provision of Title 11 United States Code, as amended, or any other Guarantor relief law (whether statutory,
common law, case law, or otherwise) of any jurisdiction whatsoever, now or hereafter in effect, which may be or become applicable,
to stay, interdict, condition, reduce or inhibit the ability of Lender to enforce any rights of Lender against Guarantor by virtue
of this Guaranty or otherwise.

 

(h)              Assignment
of Loan. Lender may sell, transfer and deliver the Loan Documents to one or more assignees, and may retain or assign responsibility
for servicing the Loan or delegate some or all of such responsibility and/or obligations to one or more servicers on behalf of
the investors. All references to Lender herein shall include any servicers, as applicable.

 

(i)              Miscellaneous.

 

(i)       This
Guaranty contains the entire agreement between the parties respecting the matters herein set forth and supersedes all prior agreements,
whether written or oral, between the parties respecting such matters, except for the stock purchase agreement. Any amendments or
modifications hereto, in order to be effective, shall be in writing and executed by the parties hereto. A determination that any
provision of this Guaranty is unenforceable or invalid shall not affect the enforceability or validity of any other provision,
and any determination that the application of any provision of this Guaranty to any person or circumstance is illegal or unenforceable
shall not affect the enforceability or validity of such provision as it may apply to any other persons or circumstances. Headings
are for convenience only.

 

(ii)       The
parties hereto agree that they have been represented by counsel or have had an opportunity to seek legal counsel during the negotiation,
preparation and execution of this Guaranty and, therefore, voluntarily and expressly waive the application of any law or rule of
construction providing that ambiguities in an agreement or other document will be construed against the Party drafting such agreement
or document.

 

(iii)       This
Guaranty shall bind each Guarantor and its personal representatives, successors, heirs and assigns and shall inure to the benefit
of Lender, its Trustees, officers, directors, shareholders, agents and employees of Lender and their respective heirs, personal
representatives, successors and assigns. Notwithstanding the foregoing, Guarantor shall not assign any of its rights or obligations
under this Guaranty without the prior written consent of Lender, which consent may be withheld in its sole discretion.

 

(iv)       The
failure of any party hereto to enforce any right or remedy hereunder, or to promptly enforce any such right or remedy, shall not
constitute a waiver thereof nor give rise to any estoppel against such party nor excuse any of the parties hereto from their respective
obligations hereunder. Any waiver of such right or remedy must be in writing and signed by the party to be bound.

 

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(v)       GUARANTOR
UNDERSTANDS THAT THERE ARE SIGNIFICANT LATE PAYMENT PROVISIONS UNDER THE NOTE AND THAT LATE FEES AND DEFAULT INTEREST MAY BE SUBSTANTIAL.

 

(vi)      GUARANTOR
UNDERSTANDS THAT THE NOTE COULD BE IN DEFAULT AT ANY TIME AND THAT ACCELERATION OF PAYMENTS OF THE OBLIGATIONS DUE MAY REQUIRE
GUARNTOR TO MAKE PAYMENT ALMOST IMMEDIATELY.

 

Executed as of the day and year first written
above.

 

	 	GUARANTOR
	 	Dr. Ian Reynolds
	 	 
	 	 	 

 

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