Document:

SECURED PROMISSORY NOTE

 

	US$25,000	February 22, 2012

 

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 November 3, 2011, 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:	 	 
	William P. Danielczyk, Chairman	 
	 	 	 
	Innovative Logistics, Techniques, Inc.	 
	 	 	 
	By:	 	 
	Richard Stewart, President	 

 

    	- 3 -CONFESSED JUDGMENT PROMISSORY NOTE
WITH SECURITY

 

	US$50,000.00	February 28, 2012

 

FOR VALUE RECEIVED, the undersigned, Innolog
Holdings Corporation, a Nevada Corporation and a foreign corporation doing business in Virginia, 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 “Makers”), promises to pay to Evan Gappelberg and/or Atlas Advisers,
LLC (the “Payee”), and Guarantor, Dr. Ian Reynolds (“Guarantor”) guarantees such performance, at such place
as the Payee may later designate in writing, in lawful money of the United States, the principal sum of FIFTY THOUSAND & 00/100
United States Dollars ($50,000.00) (the “Principal Amount” as further defined herein) in accordance with this secured
Promissory Note (the “Note”) under the terms set forth herein.

 

		1.	Principal Amount:

 

The Principal Amount is FIFTY THOUSAND &
00/100 DOLLARS ($50,000.00) (“Principal Amount”).

 

2.Maturity Date/Pre-payment:

 

The maturity date (“Maturity Date”)
is thirty (30) business days from the receipt of the Principal Amount, but in no event later than April 3, 2012. The Makers and
Guarantor 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:

 

Makers shall pay to Payee a flat fee (“Fee”)
of FIVE THOUSAND & 00/100 DOLLARS ($5,000.00), due and payable on or before March 5, 2012, which Fee shall be deemed earned
at the time of the initial funding of the loan.

 

		4.	Additional Compensation:

 

Simultaneous with the execution of this
Note, but no later than March 7, 2012, Makers shall grant and issue to Payee or Payee’s designee 125,000 shares of common
stock of Innolog Holdings Corporation, a Nevada corporation.

 

In addition, at the option of Payee, Makers
shall either (a) pay to Payee on or before the Maturity Date an additional ten percent (10%) fee of FIVE THOUSAND & 00/100
DOLLARS ($5,000.00) or (b) grant and issue to Payee or its designee warrants to purchase FIFTY THOUSAND (50,000) shares of common
stock of Innolog Holdings Corporation with an exercise price of $0.07 per share through February 28, 2017 pursuant to the company’s
standard warrant agreement.

 

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		5.	Late Fee/ No right to Extend:

 

If this Note is not paid in full within
five (5) business days of the Maturity Date, a late fee (“Late Fee”) of TEN THOUSAND & 00/100 DOLLARS ($10,000.00)
shall be due and owing and paid at the time the Note is extended, in which case, Makers and Guarantor shall have an additional
twenty-one (21) days in which to pay the total amount owed.

 

		6.	Security Interest

 

Makers shall grant to Payee a
security interest in the specific monthly accounts receivable of Makers or Innolog as listed below:

 

5030-116 ODCSLOG ARMY Receiveable from W91WAW-09-C-0173
DFAS for March 2012

 

(the “Collateral”). Makers and Guarantor 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.

 

In addition,
this Note is being secured by a personal guarantee of Dr. Ian Reynolds, whose address is as follows: 450 Medical Center
Drive, Suite 206, Webster, TX 77598.

  

7.    Events of Default

 

The following shall constitute Events of
Default hereunder:

 

(a)      If Makers and Guarantor default in the payment of
any amount due on this Note when due or defaults by failing to perform any of the other terms and conditions of the Note; and

 

(b)      If Makers and Guarantor 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 Makers and/or Guarantor, 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 Makers and Guarantor, declare the entire
amount of principal and flat fees 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 Makers and Guarantor.

 

(b)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.

 

    	- 2 -

    	 

    

 

 

9.    Miscellaneous

 

(a)This Note shall be deemed to be made
and entered into under the laws of the Commonwealth of Virginia and jurisdiction shall be proper in a court of competent jurisdiction
in Fairfax County, Virginia. The Note 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 Makers
and Guarantor, as guarantor, and Makers’ and Guarantor’s successors and assigns and shall inure to the benefit of Payee
and Payee's successors and assigns; and each reference herein to Makers and Guarantor or to Payee shall, except where the context
shall otherwise require, be deemed to include its respective successors and assigns. Notwithstanding the foregoing, Makers and
Guarantor 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 Makers’ and Guarantor’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 Makers and Guarantor and Payee.

 

(e)The Makers and Guarantor of this
Note hereby waive the benefit of their homestead exemption as to this debt and agree to pay all reasonable expenses incurred in
collecting same including up to 25% attorney's fees of the remaining balance owed, if this Note is placed in the hands of an attorney
for collection, and interest at the of eighteen percent (18%) per annum from date of default.

 

IMPORTANT NOTICE

 

THIS INSTRUMENT CONTAINS A CONFESSION
OF JUDGMENT PROVISION WHICH CONSTITUTES A WAIVER OF IMPORTANT RIGHTS YOU MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO OBTAIN
A JUDGMENT AGAINST YOU WITHOUT ANY FURTHER NOTICE.

 

    	- 3 -

    	 

    

 

IN WITNESS WHEREOF, intending to be legally bound, Makers and
Guarantor have caused this 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, Maker	 	Innovative Logistics, Techniques, Inc., Maker
	 	 	 	 	 
	By:	 	 	By:	 
	 	William P. Danielczyk, Chairman	 	 	Richard Stewart, President
	 	 	 	 	 
	By:	 	 	 	 
	 	Dr. Ian Reynolds, Guarantor	 	 	 

 

    	- 4 -

    	 

    

 

*********************************************************************************

TO THE CLERK OF THE CIRCUIT COURT OF FAIRFAX
COUNTY, VIRGINIA:

 

GREETINGS: Be it known
to you that the parties signatories hereto are justly indebted to Evan Gappelberg and/or Atlas Advisers, LLC pursuant to the terms
and conditions as stated above in the sum of FIFTY THOUSAND & 00/100 DOLLARS ($50,000.00), plus late fees, interest at 18%
per annum from March 31, 2012 or date of default, until paid and 25% attorney's fees of the remaining balance due, as to which
debt is waived the benefit of the Homestead Exemptions; and do hereby constitute Terry C. Legum, Esquire, and/or Adam R. Wilk,
Esquire, as their true and lawful attorney in fact, and with full power and authority hereby given to appear before you in your
said office for him to confess judgment before you therein against the said parties signatories hereto, pursuant to the terms and
conditions as stated above in favor of the payee of this Note, or assigns, for said sum of money with late fees and interest thereon,
and the Makers and Guarantor further agrees to pay all expenses incurred in collecting same, including 25% attorney's fees of the
remaining balance due and interest at the rate of eighteen percent (18%) per annum from March 31, 2012 or date of default, for
the collection of said Note and for which the Makers and Guarantor authorized said attorney in fact to confess judgment against
the undersigned, with waiver of the Homestead and all other exemptions.

 

    	- 5 -

    	 

    

 

IMPORTANT NOTICE

 

THIS INSTRUMENT CONTAINS A CONFESSION
OF JUDGMENT PROVISION WHICH CONSTITUTES A WAIVER OF IMPORTANT RIGHTS YOU MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO OBTAIN
A JUDGMENT AGAINST YOU WITHOUT ANY FURTHER NOTICE.

 

	Innolog Holdings Corporation, Maker	 	Innovative Logistics, Techniques, Inc., Maker
	 	 	 	 	 
	By:	 	 	By:	 
	 	William P. Danielczyk, Chairman	 	 	Richard Stewart, President
	 	 	 	 	 
	By:	 	 	 	 
	 	Dr. Ian Reynolds, Guarantor	 	 	 

 

    	- 6 -

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