Document:

SECURITY AGREEMENT

 

This Security Agreement
(as amended, modified or otherwise supplemented from time to time, this “Security Agreement”), dated as of May
21, 2012, is executed by Innolog Holdings Corporation, a Nevada corporation (“IHC”), and Innovative Logistics
Techniques, Inc., a Virginia corporation (“ILT”, and together with IHC, their successors and assigns, are referred
to herein collectively as “Company”), in favor of Collateral Agent (as herein defined) on behalf of the
purchasers listed on the signature pages hereto and executing this Security Agreement (“Purchasers”).

 

RECITALS

 

A.           Company
has entered into a Confessed Judgment Promissory Note with certain Purchasers, dated March 31, 2009 (the “2009 Note”),
which is secured by liens on the Collateral (as defined below).

 

B.           Company
and certain Purchasers have entered into a Note Purchase Agreement, dated as of the date hereof (as amended, modified or otherwise
supplemented from time to time, the “Purchase Agreement”), pursuant to which Company has issued, or may issue,
convertible promissory notes (together with the 2009 Note, each a “Note” and collectively, the “Notes”).

 

C.           In
order to induce each Purchaser to extend the credit evidenced by the Notes, Company desires to enter into this Security Agreement
and to grant Collateral Agent, for the benefit of itself and the Purchasers, the security interest in the Collateral described
below.

 

D.           The
undersigned that are holders of the 2009 Note (“2009 Noteholders”) have agreed that the lien and security interest
granted in the Collateral as contemplated herein will be pari passu in all respects with the lien granted under the 2009
Note with respect to their interests and that, notwithstanding anything to the contrary in the 2009 Note, the Collateral Agent
appointed herein will endeavor to serve all Purchasers equally in right of payment and exercising rights with respect to any security
interests in the Collateral.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Company hereby agrees with Collateral Agent and the Purchasers as follows:

 

1.    Definitions
and Interpretation. When used in this Security Agreement, the following terms have the following respective meanings:

 

“Collateral”
has the meaning given to that term in Section 2 hereof.

 

“Obligations”
means all loans, advances, debts, liabilities and obligations, howsoever arising, owed by Company to Collateral Agent and the Purchasers
of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money),
now existing or hereafter arising under or pursuant to the terms of the Notes and the other Loan Documents, including, all interest,
fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by Company
hereunder and thereunder, in each case, whether direct or indirect, absolute or contingent, due or to become due, and whether or
not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U.S.C. Section 101 et seq.), as
amended from time to time (including post-petition interest) and whether or not allowed or allowable as a claim in any such proceeding.

 

    	 

    	 

    

  

“Person”
means and includes an individual, a partnership, a corporation (including a business trust), a joint stock company, a limited liability
company, an unincorporated association, a joint venture or other entity or a governmental authority.

 

“UCC”
means the Uniform Commercial Code as in effect in the Commonwealth of Virginia from time to time.

 

All capitalized terms not otherwise defined
herein shall have the respective meanings given in the Purchase Agreement. Unless otherwise defined herein, all terms defined in
the UCC have the respective meanings given to those terms in the UCC.

 

2.    Grant
of Security Interest; Acknowledgment. As security for the Obligations, Company hereby pledges to Collateral Agent and grants
to Collateral Agent a security interest of first priority in all right, title and interests of Company in and to the property described
in Attachment 1 hereto, whether now existing or hereafter from time to time acquired (collectively, the “Collateral”).
The Company and each Purchaser hereby agrees that each lien or security interest of the 2009 Noteholders in the property
and assets constituting the Collateral, to the extent of the obligations secured by such lien or security interest, shall
be pari passu in all respects with respect to such Purchaser, including, but not limited to, priority and payment, with
each lien or security interest of all Purchasers in the property and assets constituting the Collateral, to the extent
of the obligations secured by such liens or security interests.

 

Notwithstanding the
foregoing, the security interest granted herein shall not extend to and the term “Collateral” shall not include any
equipment or other property financed by a third party, provided that such third party’s Liens are Liens of the type described
in subsection (e) of the definition of Permitted Liens; provided further that such equipment or other property shall be deemed
“Collateral” hereunder if such third party’s Lien is released or otherwise terminated.

 

For the avoidance of
doubt, the priorities of the liens or security£interests established, altered or specified herein and any payment resulting
therefrom are applicable£irrespective of: (i) the time or order of attachment or perfection thereof;£(ii) the method
of perfection; (iii) the time or order of filing or£recording of financing statements or other instruments; or (iv) any£amendments
to the liens or security interest established, altered or£specified herein. The agreements among the Purchasers in this Section
are for the purpose of£establishing the relative priorities of the interests of the Purchasers in the Collateral and shall
not inure to the benefit of£any other Person, other than each Purchaser’s successors and assigns. The security interest
granted under the 2009 Note shall continue uninterrupted by the grant of the security interest under this Agreement.

 

Each
Purchaser and the Company understands, acknowledges and agrees that the payment of all or any portion of the outstanding
principal amount under the Notes and all interest thereon shall be pari passu in right of payment and in all other respects
to the other Notes. In the event Purchaser receives payments in excess of its Pro Rata Share (as defined below) of the Company’s
payments to the Purchasers of all of the Notes, then Purchaser shall hold in trust all such excess payments for the benefit of
the holders of the other Notes and shall pay such amounts held in trust to such other holders upon demand by such holders.

 

    	-2-

    	 

    

 

3.    General
Representations and Warranties. Company represents and warrants to Collateral Agent and the Purchasers that (a) Company
is the owner of the Collateral (or, in the case of after-acquired Collateral, at the time Company acquires rights in the Collateral,
will be the owner thereof) and that no other Person has (or, in the case of after-acquired Collateral, at the time Company acquires
rights therein, will have) any right, title, claim or interest (by way of Lien or otherwise) in, against or to the Collateral,
other than Permitted Liens; (b) upon the filing of UCC-1 financing statements in the appropriate filing offices, Collateral Agent
has (or in the case of after-acquired Collateral, at the time Company acquires rights therein, will have) a first priority perfected
security interest in the Collateral to the extent that a security interest in the Collateral can be perfected by such filing, except
for Permitted Liens; (c) all Inventory has been (or, in the case of hereafter produced Inventory, will be) produced in compliance
with applicable laws, including the Fair Labor Standards Act; (d) all accounts receivable and payment intangibles are genuine
and enforceable against the party obligated to pay the same; and (e) the originals of all documents evidencing all accounts receivable
and payment intangibles of Company and the only original books of account and records of Company relating thereto are, and will
continue to be, kept at the address of the Company set forth in Section 7 of this Security Agreement.

 

4.    Authorized
Action by Collateral Agent. Company hereby irrevocably appoints Collateral Agent as its attorney-in-fact (which appointment
is coupled with an interest) and agrees that Collateral Agent may perform (but Collateral Agent shall not be obligated to and shall
incur no liability to Company or any third party for failure so to do) any act which Company is obligated by this Security Agreement
to perform, and to exercise such rights and powers as Company might exercise with respect to the Collateral, including the right
to (a) collect by legal proceedings or otherwise and endorse, receive and receipt for all dividends, interest, payments, proceeds
and other sums and property now or hereafter payable on or on account of the Collateral; (b) enter into any extension, reorganization,
deposit, merger, consolidation or other agreement pertaining to, or deposit, surrender, accept, hold or apply other property in
exchange for the Collateral; (c) make any compromise or settlement, and take any action it deems advisable, with respect to
the Collateral; (d) insure, process and preserve the Collateral; (e) pay any indebtedness of Company relating to the
Collateral; and (f) file UCC financing statements and execute other documents, instruments and agreements required hereunder;
provided, however, that Collateral Agent shall not exercise any such powers granted pursuant to subsections (a) through
(e) prior to the occurrence of an Event of Default and shall only exercise such powers during the continuance of an Event of Default.
Company agrees to reimburse Collateral Agent upon demand for any reasonable costs and expenses, including attorneys’ fees,
Collateral Agent may incur while acting as Company’s attorney-in-fact hereunder, all of which costs and expenses are included
in the Obligations. It is further agreed and understood between the parties hereto that such care as Collateral Agent gives to
the safekeeping of its own property of like kind shall constitute reasonable care of the Collateral when in Collateral Agent’s
possession; provided, however, that Collateral Agent shall not be required to make any presentment, demand or protest,
or give any notice and need not take any action to preserve any rights against any prior party or any other person in connection
with the Obligations or with respect to the Collateral.

 

5.    Default
and Remedies.

 

(a)  Default.
Company shall be deemed in default under this Security Agreement upon the occurrence and during the continuance of an Event of
Default (as defined in the Notes).

 

(b)  Remedies.
Upon the occurrence and during the continuance of any such Event of Default, Collateral Agent shall have the rights of a secured
creditor under the UCC, all rights granted by this Security Agreement and by law, including the right to: (a) require Company
to assemble the Collateral and make it available to Collateral Agent and the Purchasers at a place to be designated by Collateral
Agent and the Purchasers; and (b) prior to the disposition of the Collateral, store, process, repair or recondition it or
otherwise prepare it for disposition in any manner and to the extent Collateral Agent and the Purchasers deem appropriate. Company
hereby agrees that ten (10) days’ notice of any intended sale or disposition of any Collateral is reasonable. In furtherance
of Collateral Agent’s rights hereunder, Company hereby grants to Collateral Agent an irrevocable, non-exclusive license,
exercisable without royalty or other payment by Collateral Agent, and only in connection with the exercise of remedies hereunder,
to use, license or sublicense any patent, trademark, trade name, copyright or other intellectual property in which Company now
or hereafter has any right, title or interest together with the right of access to all media in which any of the foregoing may
be recorded or stored. During the continuance of any Event of Default, the Company shall not, without the written consent of the
Collateral Agent, sell, license, grant a right of use or otherwise dispose of any patent, trademark, trade name, copyright or other
intellectual property in which Company has any right, title or interest, other than pursuant to standard end-user license agreements,
support/maintenance agreements and agreements entered in the ordinary course of the Company’s business.

 

    	-3-

    	 

    

  

(c)  Application
of Collateral Proceeds. The proceeds and/or avails of the Collateral, or any part thereof, and the proceeds and the avails
of any remedy hereunder (as well as any other amounts of any kind held by Collateral Agent at the time of, or received by Collateral
Agent after, the occurrence of an Event of Default) shall be paid to and applied as follows:

 

(i)          First,
to the payment of reasonable costs and expenses, including all amounts expended to preserve the value of the Collateral, of foreclosure
or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper fees, expenses, liability
and advances, including reasonable legal expenses and attorneys’ fees, incurred or made hereunder by Collateral Agent;

 

(ii)         Second,
to the payment to each Purchaser of the amount then owing or unpaid on such Purchaser’s Note, and in case such proceeds shall
be insufficient to pay in full the whole amount so due, owing or unpaid upon such Note, then its Pro Rata Share of the amount remaining
to be distributed (to be applied first to accrued interest and second to outstanding principal);

 

(iii)        Third,
to the payment of other amounts then payable to each Purchaser under any of the Loan Documents, and in case such proceeds shall
be insufficient to pay in full the whole amount so due, owing or unpaid under such Loan Documents, then its Pro Rata Share of the
amount remaining to be distributed; and

 

(iv)         Fourth,
to the payment of the surplus, if any, to Company, its successors and assigns, or to whomsoever may be lawfully entitled to receive
the same.

 

For purposes of this
Security Agreement, the term “Pro Rata Share” shall mean, when calculating a Purchaser’s portion of any
distribution or amount, that distribution or amount (expressed as a percentage) equal to a fraction (i) the numerator of which
is the aggregate amount of principal and interest then outstanding under such Purchaser’s Note and (ii) the denominator of
which is the aggregate amount of principal and interest then outstanding under all Notes held by all Purchasers. In the event that
a Purchaser receives payments or distributions in excess of its Pro Rata Share, then such Purchaser shall hold in trust all such
excess payments or distributions for the benefit of the other Purchasers and shall pay such amounts held in trust to such other
Purchasers upon demand by such Purchasers.

 

6.    Collateral
Agent.

 

(a)   Appointment.
The Purchasers hereby appoint Glen Hill Investments LLC as collateral agent for the Purchasers under this Security Agreement (in
such capacity, the “Collateral Agent”) to serve from the date hereof until the termination of the Security Agreement
or until the Collateral Agent resigns from such appointment or is removed by a Majority in Interest. For the avoidance of doubt,
the 2009 Noteholders hereby appoint the Collateral Agent to serve in such capacity with respect to the obligations contained under
the 2009 Note.

 

    	-4-

    	 

    

 

(b)   Powers
and Duties of Collateral Agent, Indemnity by Purchasers.

 

(i)          Each
Purchaser hereby irrevocably authorizes the Collateral Agent to take such action and to exercise such powers hereunder as provided
herein or as requested in writing by the Majority in Interest in accordance with the terms hereof, together with such powers as
are reasonably incidental thereto, and each Purchaser hereby agrees that it will not exercise any remedy available to it other
than in accordance with this agreement independent of the Collateral Agent unless approved in writing by the Majority in Interest.
Collateral Agent may execute any of its duties hereunder by or through agents or employees and shall be entitled to request and
act in reliance upon the advice of counsel concerning all matters pertaining to its duties hereunder and shall not be liable for
any action taken or omitted to be taken by it in good faith in accordance therewith.

 

(ii)         Neither
the Collateral Agent nor any of its member, managers, directors, officers, employees or representatives (collectively, the “Representatives”)
shall be liable or responsible to any Purchaser or to Company for any action taken or omitted to be taken by Collateral Agent or
any other such person hereunder or under any related agreement, instrument or document, except in the case of gross negligence
or willful misconduct on the part of the Collateral Agent, nor shall the Collateral Agent or any of its Representatives be liable
or responsible for (i) the validity, effectiveness, sufficiency, enforceability or enforcement of the Notes, this Security
Agreement or any instrument or document delivered hereunder or relating hereto; (ii) the title of Company to any of the Collateral
or the freedom of any of the Collateral from any prior or other liens or security interests; (iii) the determination, verification
or enforcement of Company’s compliance with any of the terms and conditions of this Security Agreement; (iv) the failure
by Company to deliver any instrument or document required to be delivered pursuant to the terms hereof; or (v) the receipt,
disbursement, waiver, extension or other handling of payments or proceeds made or received with respect to the collateral, the
servicing of the Collateral or the enforcement or the collection of any amounts owing with respect to the Collateral.

 

(iii)        In
the case of this Security Agreement and the transactions contemplated hereby and any related document relating to any of the Collateral,
each of the Purchasers agrees to pay to the Collateral Agent, on demand, such Purchaser’s Pro Rata Share of all fees and
all expenses incurred in connection with the operation and enforcement of this Security Agreement, the Notes or any related agreement
to the extent that such fees or expenses have not been paid by Company. In the case of this Security Agreement and each instrument
and document relating to any of the Collateral, each of the Purchasers and the Company hereby agrees to hold the Collateral Agent
harmless, and to indemnify the Collateral Agent from and against any and all loss, damage, expense or liability which may be incurred
by the Collateral Agent under this Security Agreement and the transactions contemplated hereby and any related agreement or other
instrument or document, as the case may be, unless such liability shall be caused by the willful misconduct or gross negligence
of the Collateral Agent.

 

(iv)         Collateral
Agent may resign at any time from its appointment for any reason upon written notice thereof to the Company. Collateral Agent may
be removed by a Majority in Interest upon written notice to Collateral Agent and the Company. Collateral Agent shall have no liability
to any party arising from such resignation or removal or with respect to acts, omissions or events occurring after the date of
such resignation or removal. Upon such resignation or removal, a new Collateral Agent may be appointed by a Majority in Interest
or the Initial Note Purchaser.

 

7.    Miscellaneous.

 

(a)  Notices.
Except as otherwise provided herein, all notices, requests, demands, consents, instructions or other communications to or upon
Company or Collateral Agent under this Security Agreement shall be in writing and faxed, mailed or delivered to each party to the
facsimile number or its address set forth below (or to such other facsimile number or address as the recipient of any notice shall
have notified the other in writing). All such notices and communications shall be effective (a) when sent by Federal Express or
other overnight service of recognized standing, on the business day following the deposit with such service; (b) when mailed, by
registered or certified mail, first class postage prepaid and addressed as aforesaid through the United States Postal Service,
upon receipt; (c) when delivered by hand, upon delivery; and (d) when faxed, upon confirmation of receipt.

 

    	-5-

    	 

    

 

Collateral Agent:

 

Glen Hill Investments
LLC

836 Glen Leven Drive

Nashville TN 37204

 

Company:

 

Innolog Holdings Corporation

4000 Legato Road, Suite
830

Fairfax, VA 22033

Attn: Executive Chairman

 

(b)  Termination
of Security Interest. Upon the payment in full of all Obligations under the Notes issued pursuant to the Purchase Agreement,
the security interest granted herein shall terminate and all rights to the Collateral granted pursuant to this Security Agreement
shall revert to Company, provided that any rights obtained other than pursuant to this Security Agreement (including rights under
the 2009 Note) shall not be terminated by this Section 7(b). Upon such termination Collateral Agent hereby authorizes Company to
file any UCC termination statements necessary to effect such termination and Collateral Agent will execute and deliver to Company
any additional documents or instruments as Company shall reasonably request to evidence such termination.

 

(c)  Nonwaiver.
No failure or delay on Collateral Agent’s part in exercising any right hereunder shall operate as a waiver thereof or of
any other right nor shall any single or partial exercise of any such right preclude any other further exercise thereof or of any
other right.

 

(d)  Amendments
and Waivers. This Security Agreement may not be amended or modified, nor may any of its terms be waived, except by written
instruments signed by Company, a Majority in Interest and the 2009 Noteholders that hold at least a majority of the outstanding
principal in the aggregate under the 2009 Note held by such 2009 Noteholders. Each waiver or consent under any provision hereof
shall be effective only in the specific instances for the purpose for which given. Each subsequent purchaser of Notes under the
Purchase Agreement may become a party to this Security Agreement by executing a counterpart signature page hereto.

 

(e)  Assignments.
This Security Agreement shall be binding upon and inure to the benefit of Collateral Agent and Company and their respective successors
and assigns; provided, however, that Company may not sell, assign or delegate rights and obligations hereunder without
the prior written consent of Collateral Agent.

 

(f)  Cumulative
Rights, etc. The rights, powers and remedies of Collateral Agent under this Security Agreement shall be in addition to all
rights, powers and remedies given to Collateral Agent by virtue of any applicable law, rule or regulation of any governmental authority,
any Loan Document or any other agreement, all of which rights, powers, and remedies shall be cumulative and may be exercised successively
or concurrently without impairing Collateral Agent’s rights hereunder. Company waives any right to require Collateral Agent
to proceed against any person or entity or to exhaust any Collateral or to pursue any remedy in Collateral Agent’s power.

 

    	-6-

    	 

    

 

(g)  Payments
Free of Taxes, Etc. All payments made by Company under the Loan Documents shall be made by Company free and clear of and without
deduction for any and all present and future taxes, levies, charges, deductions and withholdings. In addition, Company shall pay
upon demand any stamp or other taxes, levies or charges of any jurisdiction with respect to the execution, delivery, registration,
performance and enforcement of this Security Agreement. Upon request by Collateral Agent, Company shall furnish evidence satisfactory
to Collateral Agent that all requisite authorizations and approvals by, and notices to and filings with, governmental authorities
and regulatory bodies have been obtained and made and that all requisite taxes, levies and charges have been paid.

 

(h)  Partial
Invalidity. If at any time any provision of this Security Agreement is or becomes illegal, invalid or unenforceable in any
respect under the law or any jurisdiction, neither the legality, validity or enforceability of the remaining provisions of this
Security Agreement nor the legality, validity or enforceability of such provision under the law of any other jurisdiction shall
in any way be affected or impaired thereby.

 

(i)  Expenses.
Company shall pay on demand all reasonable fees and expenses, including reasonable attorneys’ fees and expenses, incurred
by Collateral Agent in connection with custody, preservation or sale of, or other realization on, any of the Collateral or the
enforcement or attempt to enforce any of the Obligations which is not performed as and when required by this Security Agreement.

 

(j)  Construction.
Each of this Security Agreement and the other Loan Documents is the result of negotiations among, and has been reviewed by, Company,
Purchasers, Collateral Agent and their respective counsel. Accordingly, this Security Agreement and the other Loan Documents shall
be deemed to be the product of all parties hereto, and no ambiguity shall be construed in favor of or against Company, Purchasers
or Collateral Agent.

 

(k)  Entire
Agreement. This Security Agreement taken together with the other Loan Documents constitute and contain the entire agreement
of Company, Purchasers and Collateral Agent and supersede any and all prior agreements, negotiations, correspondence, understandings
and communications among the parties, whether written or oral, respecting the subject matter hereof.

 

(l)  Other
Interpretive Provisions. References in this Security Agreement and each of the other Loan Documents to any document, instrument
or agreement (a) includes all exhibits, schedules and other attachments thereto, (b) includes all documents, instruments
or agreements issued or executed in replacement thereof, and (c) means such document, instrument or agreement, or replacement
or predecessor thereto, as amended, modified and supplemented from time to time and in effect at any given time. The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Security Agreement or any other
Loan Document refer to this Security Agreement or such other Loan Document, as the case may be, as a whole and not to any particular
provision of this Security Agreement or such other Loan Document, as the case may be. The words “include” and “including”
and words of similar import when used in this Security Agreement or any other Loan Document shall not be construed to be limiting
or exclusive.

 

(m)  Governing
Law. This Security Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia
without reference to conflicts of law rules (except to the extent governed by the UCC).

 

(n)  Counterparts.
This Security Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together
shall be deemed to constitute one instrument.

 

[The remainder of this
page is intentionally left blank]

 

    	-7-

    	 

    

 

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

 

	 	INNOLOG HOLDINGS CORPORATION	 
	 	 	 
	 	By:	/s/ William P. Danielczyk 	 
	 	 	William P. Danielczyk	 
	 	 	Executive Chairman	 
	 	 	 	 
	 	INNOVATIVE LOGISTICS TECHNIQUES, INC.	 
	 	 	 
	 	By:	/s/ Richard E. Stewart	 
	 	Name:	Richard E. Stewart	 
	 	Title:	President	 

 

AGREED:

  

	GLEN HILL INVESTMENTs LLC	 
	As Collateral Agent	 
	 	 
	By:	/s/ Harry R. Jacobson	 
	Name:	Harry R. Jacobson	 
	Title:	Manager	 

 

Signature page to Security Agreement

 

    	 

    	 

    

 

ATTACHMENT 1

 

To
Security Agreement

 

All right, title, interest,
claims and demands of Company in and to the following property:

 

(i)          All
Accounts;

 

(ii)         All
Chattel Paper;

 

(iii)        All
Deposit Accounts and cash;

 

(iv)         All
Documents;

 

(v)          All
Equipment;

 

(vi)         All
General Intangibles;

 

(vii)        All
Goods;

 

(viii)      All
Instruments;

 

(ix)         All
Intellectual Property;

 

(x)          All
Inventory;

 

(xi)         All
Investment Property;

 

(xii)        All
Letter-of-Credit Rights

 

(xiii)        To
the extent not otherwise included, all Proceeds and products of any and all of the foregoing, and all accessions to, substitutions
and replacements for, and rents and profits of each of the foregoing.

 

The term “Intellectual
Property” means all intellectual and similar property of every kind and nature now owned or hereafter acquired
by Company, including inventions, designs, patents (whether registered or unregistered), copyrights (whether registered or unregistered),
trademarks (whether registered or unregistered), trade secrets, domain names, confidential or proprietary technical and business
information, know-how, methods, processes, drawings, specifications or other data or information and all memoranda, notes and records
with respect to any research and development, software and databases and all embodiments or fixations thereof whether in tangible
or intangible form or contained on magnetic media readable by machine together with all such magnetic media and related documentation,
registrations and franchises, and all additions, improvements and accessions to, and books and records describing or used in connection
with, any of the foregoing.

 

All capitalized terms
used in this Attachment 1 and not otherwise defined herein, shall have the respective meanings given to such terms in the
Uniform Commercial Code of the State of Virginia as in effect from time to time.RIGHTS AGREEMENT

 

This Rights Agreement
(this “Agreement”) is entered into as of May 21, 2012 by and among Innolog Holdings Corporation, a Nevada corporation
(the “Company”) and the individuals and entities set forth on Exhibit A attached to this Agreement
(individually, a “Rights Holder,” and collectively, the “Rights Holders”).

 

RECITALS:

 

Simultaneous with the
execution of this Agreement, the Company is executing a Note Purchase Agreement with the initial Rights Holder (the “Note
Purchase Agreement”), providing for the issuance of (i) one or more Convertible Promissory Notes (the “Notes”)
in favor of the Rights Holders, convertible into shares of Series B Convertible Preferred Stock of the Company (the “Shares”),
and (ii) warrants (the “Warrants”) to the Rights Holders, exercisable for shares of Common Stock of the Company
(“Common Stock”).

 

In connection with
these transactions, the parties to this Agreement deem it in their best interests to set forth certain rights and obligations of
the Rights Holders.

 

NOW, THEREFORE,
in consideration of the foregoing recitals and the promises, covenants and conditions set forth herein, the parties hereby agree
as follows:

 

Section 1.              REGISTRATION
RIGHTS.

 

1.1           Definitions.
As used in this Agreement, the following terms shall have the meanings set forth below:

 

“Holder”
means any Rights Holder holding Registrable Securities, or any assignee of record of such Registrable Securities to whom the rights
under this Agreement have been duly assigned in accordance with this Agreement.

 

The terms “register,”
“registration,” and “registered” refer to a registration effected by preparing and filing
a registration statement or similar document in compliance with the Securities Act and the declaration or ordering of effectiveness
of such registration statement or document.

 

“Majority-in-Interest”
means Holders holding at least 51% the Registrable Securities (assuming conversion of the Notes and the Shares and exercise of
the Warrants).

 

“Registrable
Securities” shall mean (i) shares of Common Stock issued or issuable pursuant to the conversion of the Notes and
the Shares or upon exercise of the Warrants and (ii) any Common Stock issued as a dividend or other distribution with respect
to or in exchange for or in replacement of the shares referenced in (i) above; provided, however, that Registrable
Securities shall not include any shares of Common Stock described in clause (i) or (ii) above which have previously been registered
or which have been sold to the public either pursuant to a registration statement or Rule 144, or which have been sold in
a private transaction in which the transferor’s rights under this Agreement are not validly assigned in accordance with this
Agreement.

 

“Registration
Expenses” means all expenses incurred in effecting any registration pursuant to this Agreement, including, without limitation,
all registration, qualification and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company,
reasonable fees and expenses incurred by one special counsel to all selling Holders, blue sky fees and expenses and expenses of
any regular or special audits incident to or required by any such registration, but shall not include underwriting discounts, selling
commissions and stock transfer taxes applicable to the sale of Registrable Securities.

 

    	1

    	 

    

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

1.2           
Piggyback Registrations. If, at any time after the date of this Agreement, the Company proposes to register (including
for this purpose a registration effected by the Company for its stockholders) any of its securities under the Securities Act (other
than pursuant to a registration solely in connection with an employee benefit or unit ownership plan) and the registration form
to be used may be used for the registration of Registrable Securities (a “Piggyback Registration”), the Company
shall give prompt written notice to all Holders of Registrable Securities of its intention to effect such a registration (each,
a “Piggyback Notice”). Subject to Sections 1.2(a) and 1.2(b) below, the Company shall include
in such registration all shares of Registrable Securities that Holders request the Company to include in such registration by written
notice given to the Company within 30 days after the date of sending of the Piggyback Notice. The Company shall have the right
to terminate or withdraw any registration initiated by it under this Section 1.2 prior to the effectiveness of such
registration whether or not any Holder has elected to include Registrable Securities in such registration.

 

(a)          Priority
on Primary Registrations. If a Piggyback Registration relates to an underwritten public offering of equity securities by the
Company and the representative of the underwriters advises the Company in writing that in its opinion marketing factors require
a limitation of the number of securities to be included in such registration, the Company shall include in such registration (i) first,
the securities proposed to be sold by the Company; (ii) second, the Registrable Securities requested to be included in such
registration, pro rata among the Holders on the basis of the number of shares of Registrable Securities requested to be included
by each such Holder; and (iii) third, other securities requested to be included in such registration.

 

(b)          Priority
on Secondary Registrations. If a Piggyback Registration relates to an underwritten public offering of equity securities by
holders of the Company’s securities (other than pursuant to this Agreement) and the representative of the underwriters advises
the Company in writing that in its opinion marketing factors require a limitation of the number of securities to be included in
such registration, the Company shall include in such registration (i) first, the securities requested to be included in such
registration by the holders requesting such registration; (ii) second, the Registrable Securities requested to be included
in such registration among the Holders on the basis of the number of shares of Registrable Securities requested to be included
in such registration by each such Holder; and (iii) third, any other securities.

 

(c)          Underwritten
Piggyback Registrations. If a Piggyback Registration relates to an underwritten public offering of equity securities by the
Company, the Company shall not be required to include any of the Holders’ securities in such registration unless they accept
the terms of the underwriting as agreed upon between the Company and its underwriters; provided, that no Holders shall be
required to make any representations or warranties to the Company or the underwriters other than representations and warranties
regarding such Holder and such Holder’s intended method of distribution. For purposes of the allocation of shares of Registrable
Securities to be included in a registration pursuant to Sections 1.2(a) and (b), for any Rights Holder which
is an investment fund, partnership, limited liability company or corporation, (i) the partners, members, retired partners,
retired members, stockholders and affiliates of such Rights Holder, or the estates and family members of any such partners, retired
partners, members and retired members and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single
“Holder”; (ii) any pro rata allocation with respect to such “Holder” shall be based upon the aggregate
amount of shares of Registrable Securities owned by all entities and individuals included in such “Holder,” as defined
in this sentence; and (iii) such “Holder” may allocate the Registrable Securities allowed to be included in such
registration by such “Holder” to its related entities and individuals in its sole discretion.

 

    	2

    	 

    

 

1.3           Registration
Procedures. Whenever required to effect the registration of any Registrable Securities under this Agreement, the Company
shall, as expeditiously as reasonably possible:

 

(a)          Prepare
and file with the SEC a registration statement with respect to such Registrable Securities and use its reasonable best efforts
to cause such registration statement to become effective.

 

(b)          Prepare
and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with
such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by such registration statement.

 

(c)          Furnish
to the Holders such number of copies of a prospectus, including a preliminary prospectus, and each amendment and supplement to
any such prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably
request in order to facilitate the disposition of the Registrable Securities owned by them that are included in such registration.

 

(d)          Use
its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities
or blue sky laws of such jurisdictions as shall be reasonably requested by the Holders; provided, that the Company shall
not be required in connection with such registration and qualification or as a condition to such registration and qualification
(i) to qualify to do business or to file a general consent to service of process in any such states or jurisdictions or (ii) to
subject itself to taxation in any jurisdiction.

 

(e)          In
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the managing underwriter(s) of such offering.

 

(f)          Notify
each Holder of Registrable Securities covered by such registration statement, at any time when a prospectus relating to such registration
statement is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus
included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated in such prospectus or necessary to make the statements in such prospectus not misleading in
the light of the circumstances then existing.

 

(g)          Furnish,
at the request of any Holder requesting registration of Registrable Securities, on the date that such Registrable Securities are
delivered to the underwriters for sale, if such securities are being sold through underwriters, or, if such securities are not
being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective,
(i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form
and substance as is customarily given to underwriters in an underwritten public offering and reasonably satisfactory to a majority
in interest of the Holders requesting registration, addressed to the underwriters, if any, and to the Holders requesting registration
of Registrable Securities and (ii) a “comfort” letter dated as of such date, from the independent certified public
accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters
in an underwritten public offering and reasonably satisfactory to a majority in interest of the Holders requesting registration,
addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities.

 

    	3

    	 

    

 

(h)          Cause
all such Registrable Securities registered pursuant to such registration statement to be listed on each securities exchange and
trading system on which similar securities issued by the Company are then listed.

 

(i)          Provide
a transfer agent and registrar for all Registrable Securities registered pursuant to such registration statement and a CUSIP number
for all such Registrable Securities, in each case not later than the effective date of such registration.

 

(j)          Make
available for inspection by any underwriter participating in any disposition pursuant to such registration statement and any attorney,
accountant or other agent retained by any such underwriter, all financial and other records, pertinent corporate documents and
properties of the Company, and cause the Company’s officers, directors, employees, and independent accountants to supply
all information reasonably requested by any such underwriter, attorney, accountant or agent in connection with such registration
statement.

 

(k)          In
the event of the issuance of any stop order suspending the effectiveness of a registration statement, or of any order suspending
or preventing the use of any related prospectus or suspending the qualification of any Registrable Securities included in such
registration statement for sale in any jurisdiction, the Company shall use its reasonable efforts promptly to obtain the withdrawal
of such order.

 

(l)          Otherwise
use its best efforts to comply with all applicable rules and regulations of the Commission and make available to its security holders,
as soon as reasonably practicable, an earnings statement covering the period of at least 12 months, but not more than 18 months,
beginning with the first month after the effective date of the Registration Statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the Securities Act.

 

(m)          If
any such registration or comparable statement refers to any Holder by name or otherwise as the holder of any securities of the
Company and if, in the sole and exclusive judgment of such Holder, such Holder is or might be deemed to be a controlling person
of the Company, such Holder shall have the right to require (i) the inclusion in such registration statement of language,
in form and substance reasonably satisfactory to such Holder, to the effect that the holding of such securities by such Holder
is not to be construed as a recommendation by such Holder of the investment quality of the Company’s securities covered by
such registration statement and that such holding does not imply that such Holder shall assist in meeting any future financial
requirements of the Company or (ii) in the event that such reference to such Holder by name or otherwise is not required by
the Securities Act or any similar federal statute then in force, the deletion of the reference to such Holder; provided,
that with respect to this clause (ii) such Holder shall furnish to the Company an opinion of counsel to such effect,
which opinion of counsel shall be reasonably satisfactory to the Company.

 

1.4           Expenses
of Registration. All Registration Expenses incurred in connection with any registration, qualification or compliance pursuant
to Section 1.2 of this Agreement shall be borne by the Company. All underwriting discounts, selling commissions and
stock transfer taxes relating to securities so registered shall be borne by the Holders of such securities pro rata on the basis
of the number of shares of securities so registered on their behalf, as shall any other expenses in connection with the registration
required to be borne by the Holders of such securities.

 

    	4

    	 

    

 

1.5           Furnish
Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to Section
1.2 that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities
held by them and the intended method of disposition of such securities as shall be required to effect the timely registration of
their Registrable Securities.

 

1.6           Delay
of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 1.

 

1.7           Indemnification.
If any Registrable Securities are included in a registration statement under Section 1.2:

 

(a)          By
the Company. To the extent permitted by law, the Company shall indemnify and hold harmless each Holder, the partners, officers
and directors of each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls
such Holder or underwriter within the meaning of the Securities Act or the Securities Exchange Act of 1934 (the “Exchange
Act”), against any losses, claims, damages or liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions
in respect of such losses, claims, damages, or liabilities) arise out of or are based upon any of the following statements, omissions
or violations (collectively, “Violations” and, individually, a “Violation”):

 

(i)          any
untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary
prospectus or final prospectus contained in such registration statement or any amendments or supplements to such registration statement;

 

(ii)         the
omission or alleged omission to state in any such registration statement a material fact required to be stated in such registration
statement or necessary to make the statements in such registration statement not misleading; or

 

(iii)        any
violation or alleged violation by the Company of the Securities Act, the Exchange Act, any federal or state securities law, or
any rule or regulation promulgated under the Securities Act, the Exchange Act or any federal or state securities law in connection
with the offering covered by such registration statement;

 

and the Company shall reimburse each such
Holder, partner, officer, director, underwriter or controlling person for any legal or other expenses reasonably incurred by them,
as incurred, in connection with investigating or defending any such loss, claim, damage, liability or action; provided,
that the indemnity agreement contained in this Section 1.7(a) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent
shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability
or action to the extent (and only to the extent) that it arises out of or is based upon a Violation which occurs in reliance upon
and in conformity with written information furnished expressly for use in connection with such registration by such Holder, partner,
officer, director, underwriter or controlling person of such Holder.

 

    	5

    	 

    

 

(b)          By
Selling Holders. To the extent permitted by law, each selling Holder shall indemnify and hold harmless the Company, each of
its directors, each of its officers who have signed the registration statement, each person, if any, who controls the Company within
the meaning of the Securities Act, any underwriter and any other Holder selling securities under such registration statement or
any of such other Holder’s partners, directors or officers or any person who controls such Holder within the meaning of the
Securities Act or the Exchange Act, against any losses, claims, damages or liabilities (joint or several) to which the Company
or any such director, officer, controlling person, underwriter or other such Holder, partner, director, officer or controlling
person of such other Holder may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar
as such losses, claims, damages or liabilities (or actions in respect to such losses, claims, damages or liabilities) arise out
of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance
upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration;
and each such Holder shall reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer,
controlling person, underwriter or other Holder, partner, officer, director or controlling person of such other Holder in connection
with investigating or defending any such loss, claim, damage, liability or action; provided, that the indemnity agreement
contained in this Section 1.7(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability
or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld, nor
shall the total amounts payable in indemnity by a Holder under this Section 1.7(b) in respect of any Violation exceed
the net proceeds received by such Holder in the registered offering out of which such Violation arises.

 

(c)          Notice.
Promptly after receipt by an indemnified party under this Section 1.7 of notice of the commencement of any action (including
any governmental action), such indemnified party shall, if a claim in respect of such action is to be made against any indemnifying
party under this Section 1.7, deliver to the indemnifying party a written notice of the commencement of such action
and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense of such action with counsel mutually satisfactory to
the parties; provided, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses
to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party
would be inappropriate due to actual or potential conflict of interests between such indemnified party and any other party represented
by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action, if prejudicial to the indemnifying party’s ability to defend such action, shall relieve
such indemnifying party of any liability to the indemnified party under this Section 1.7, but the omission so to deliver
written notice to the indemnifying party shall not relieve the indemnifying party of any liability that it may have to any indemnified
party otherwise than under this Section 1.7.

 

(d)          Defect
Eliminated in Final Prospectus. The foregoing indemnity agreements of the Company and Holders are subject to the condition
that, insofar as they relate to any Violation made in a preliminary prospectus but eliminated or remedied in the amended prospectus
on file with the SEC at the time the registration statement in question becomes effective or the amended prospectus filed with
the SEC pursuant to SEC Rule 424(b) (the “Final Prospectus”), such indemnity agreement shall not inure
to the benefit of any person if a copy of the Final Prospectus was furnished to the indemnified party and was not furnished to
the person asserting the loss, liability, claim or damage at or prior to the time such action is required by the Securities Act.

 

    	6

    	 

    

 

(e)          Contribution.
In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either
(i) any Holder exercising rights under this Agreement, or any controlling person of any such Holder, makes a claim for indemnification
pursuant to this Section 1.7 but it is judicially determined (by the entry of a final judgment or decree by a court
of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification
may not be enforced in such case notwithstanding the fact that this Section 1.7 provides for indemnification in such
case or (ii) contribution under the Securities Act may be required on the part of any such selling Holder or any such controlling
person in circumstances for which indemnification is provided under this Section 1.7, then, and in each such case,
the Company and such Holder shall contribute to the aggregate losses, claims, damages or liabilities to which they may be subject
(after contribution from others) in such proportion so that such Holder is responsible for the portion represented by the percentage
that the public offering price of its Registrable Securities offered by and sold under the registration statement bears to the
public offering price of all securities offered by and sold under such registration statement, and the Company and other selling
Holders are responsible for the remaining portion; provided, that, in any such case, (A) no such Holder shall be required
to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder
pursuant to such registration statement and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any person or entity who was not guilty of
such fraudulent misrepresentation.

 

(f)          Survival.
Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with any underwritten public offering are in conflict with the foregoing provisions, the provisions
in the underwriting agreement shall control. Unless otherwise superceded by an underwriting agreement entered into in connection
with any underwritten public offering, the obligations of the Company and Holders under this Section 1.7 shall survive
the completion of any offering of Registrable Securities in a registration statement and shall survive the termination of this
Agreement.

 

1.8           “Market
Stand-Off” Agreement. Each Holder hereby agrees that it shall not, to the extent requested by the Company or an underwriter
of securities of the Company, for up to 180 days following the effective date of a registration statement of the Company filed
under the Securities Act for the Company’s IPO or for any offering in which such Holder is selling Registrable Securities
(a) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract
to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares
of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock held immediately prior to the
effectiveness of the registration statement for such offering or (b) enter into any swap or other arrangement that transfers
to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction
described in clause (a) or (b) above is to be settled by delivery of Common Stock or other securities, in cash
or otherwise; provided, that:

 

(i)          such
agreement shall not apply to (y) transactions with donees or partners of the Holder who agree to be similarly bound or (z) the
sale of shares to an underwriter pursuant to an underwriting agreement;

 

(ii)         all
executive officers and directors of the Company and holders of at least 1% of the Company’s voting securities are bound by
and have entered into similar agreements; and

 

(iii)        any
release or waiver by the Company or any underwriter of any party mentioned in Section 1.8(ii) from the above restrictions
(or similar restrictions contained in any agreement) shall have no effect unless each Holder is released from such restrictions
to the same extent.

 

    	7

    	 

    

 

The obligations described
in this Section 1.8 shall not apply to a registration relating solely to employee benefit plans on Form S-1 or
Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a transaction on Form S-4
or similar forms that may be promulgated in the future.

 

In order to enforce
the foregoing covenant, the Company shall have the right to place restrictive legends on the certificates representing the shares
subject to this Section 1.8 and to impose stop transfer instructions with respect to the Registrable Securities and
such other securities of each Holder (and the shares or securities of every other person subject to the foregoing restriction)
until the end of such period. The underwriters of any such offering are intended third party beneficiaries of this Section 1.8
and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder
further agrees to execute such agreements as may be reasonably requested by the underwriters of any such offering that are consistent
with this Section 1.8 or that are necessary to give further effect hereto.

 

1.9           Limitations
on Subsequent Registration Rights. Except as otherwise provided in Section 5.2 below, from and after the date of
this Agreement, the Company shall not, without the prior written consent of the Majority-in-Interest, enter into any agreement
with any holder or prospective holder of any securities of the Company which would allow such holder or prospective holder to include
securities in any registration unless such holder or prospective holder may include such securities only to the extent that the
inclusion of such securities shall not reduce the number of Registrable Securities which are included.

 

1.10         Rule 144
Reporting. With a view to making available the benefits of certain rules and regulations of the Commission which may at
any time permit the sale of the Registrable Securities to the public without registration:

 

(a)          Make
and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at
all times after the effective date of the first registration under the Securities Act filed by the Company for an offering of its
securities to the general public;

 

(b)          Use
reasonable efforts to file with the Commission in a timely manner all reports and other documents required of the Company under
the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements); and

 

(c)          So
long as a Holder owns any Registrable Securities, to furnish to the Holder immediately upon request (i) a written statement
by the Company as to its compliance with the reporting requirements of said Rule 144 (at any time after 90 days after
the effective date of the first registration statement filed by the Company for an offering of its securities to the general public)
and of the Securities Act and the Exchange Act (at any time after it has become subject to the reporting requirements of the Exchange
Act); (ii) a copy of the most recent annual or quarterly report of the Company; and (iii) such other reports and documents
of the Company as a Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing a Holder
to sell any such securities without registration (at any time after the Company has become subject to the reporting requirements
of the Exchange Act).

 

Section 2.          APPLICATION
OF AGREEMENT TO ADDITIONAL SHARES. All of the provisions of this Agreement shall apply to all of the Registrable Securities
held by any Rights Holder, whether issued before, on or after the Closing, and all securities issued as a replacement for the Registrable
Securities or with respect to the Registrable Securities as a result of any conversion, split, dividend, recapitalization, combination
or similar transaction.

 

    	8

    	 

    

 

Section 3.          RESTRICTIVE
LEGEND. Each Rights Holder understands and agrees that the Company shall cause a legend substantially equivalent to the legend
set forth below, to be placed upon any certificate(s) or other documents or instruments evidencing ownership of the shares subject
to Section 1.8 above:

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN TRANSFER RESTRICTIONS, INCLUDING A LOCK-UP PERIOD IN THE EVENT
OF A PUBLIC OFFERING AS SET FORTH IN A RIGHTS AGREEMENT, ENTERED INTO BY THE HOLDER OF THESE UNITS, THE COMPANY, AND CERTAIN
OTHER RIGHTS HOLDERS OF THE COMPANY. A COPY OF SUCH AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S
PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.”

 

The Company agrees that, during the term
of this Agreement, it shall not remove, and it shall not permit to be removed (upon registration of transfer, reissuance, or otherwise),
the above legend from any such certificate and shall place or cause to be placed such legend on any new certificate issued to represent
the shares subject to Section 1.8 above.

 

Section 4.          COVENANTS
OF THE COMPANY. The Company agrees to use all reasonable efforts to ensure that the rights granted under this Agreement are
effective and that the parties to this Agreement enjoy the benefits of such rights. The Company shall not, by any voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be performed under this Agreement by the Company, but
shall at all times in good faith assist in the carrying out of all of the provisions of this Agreement and in the taking of all
such actions as may be necessary, appropriate, or reasonably requested in order to protect the rights of the parties under this
Agreement against impairment.

 

Section 5.          GENERAL
PROVISIONS

 

5.1        Termination.
This Agreement shall terminate on the earlier of (a) the sale of the Company (through a merger, consolidation, sale of all
or substantially all of its assets or equity interests, or similar transaction); (b) the written agreement of the Company
and of the Majority-in-Interest; (c) the acquisition by a single purchaser of all of the issued and outstanding Shares; or
(d) the effective time of any liquidation, winding up, or dissolution of the Company.

 

5.2        Amendment;
Waiver; Additional Parties. This Agreement may be amended, and the observance of or compliance with any provision of this
Agreement by any party to this Agreement may be waived, only by the written agreement of the Company and the Majority-in-Interest;
provided, however, any amendment that adversely and materially affects the obligations of a Rights Holder shall,
in addition to the foregoing, require the separate consent of such Rights Holder. In the event the Company issues pursuant to the
Note Purchase Agreement any additional Notes and Warrants subsequent to the Effective Date, such purchasers may become a party
to this Agreement, without the need to amend this Agreement, and be entitled to all the rights and subject to all of the obligations
set forth herein of a “Rights Holder” upon the Company’s receipt from such purchaser of an executed counterpart
signature page to this Agreement.

 

    	9

    	 

    

 

5.3           Successors
and Assigns. Except as otherwise provided in this Agreement, the provisions of this Agreement shall inure to the benefit
of and be binding upon the respective successors and permitted assigns of the parties to this Agreement (including transferees
of any Notes, Shares and Warrants).

 

5.4           Third
Parties. Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the parties to
this Agreement and their respective successors and assigns, any rights, remedies, obligations, or liabilities under or by reason
of this Agreement except as expressly provided in this Agreement.

 

5.5           Governing
Law. This Agreement shall be governed by and construed exclusively in accordance with the internal laws of the Commonwealth
of Virginia as applied to agreements among Virginia residents entered into and to be performed entirely within Virginia, excluding
that body of law relating to conflict of laws.

 

5.6           Counterparts.
This Agreement may be executed in two or more counterparts (including, without limitation, facsimile counterparts), each of which
shall be deemed an original, but all of which together shall constitute one and the same agreement.

 

5.7           Headings.
The headings and captions used in this Agreement are used for convenience only and are not to be considered in construing or interpreting
this Agreement. All references in this Agreement to sections, paragraphs, exhibits, and schedules shall, unless otherwise provided,
refer to sections and paragraphs of this Agreement and exhibits and schedules attached to this Agreement, all of which exhibits
and schedules are incorporated in this Agreement by this reference.

 

5.8           Notices.
All notices, requests, consents, and other communications under this Agreement shall be in writing and shall be delivered personally
or by facsimile transmission or by nationally recognized overnight delivery service or by first class certified or registered mail,
return receipt requested, postage prepaid:

 

 If to the Company,
at its principal office, Attention: Executive Chairman or Chief Executive Officer, or at such other address or addresses as may
have been furnished by giving five days advance written notice to all other parties.

 

 If to a Rights Holder,
at its address set forth on Exhibit A, or at such other address or addresses as may have been furnished to the Company
by giving five days advance written notice.

 

 Notices provided in
accordance with this Section 5.8 shall be deemed delivered upon personal delivery or three business days after deposit
in the mail.

 

5.9           Costs
And Attorneys’ Fees. If any action, suit, or other proceeding is instituted concerning or arising out of this Agreement
or any transaction contemplated under this Agreement, the prevailing party shall recover all of such party’s costs and attorneys’
fees incurred in each such action, suit, or other proceeding, including any and all appeals or petitions from any such action,
suit, or other proceeding.

 

5.10         Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, then such provision(s) shall be
excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision(s) were so excluded and
shall be enforceable in accordance with its terms.

 

    	10

    	 

    

 

5.11         Entire
Agreement. This Agreement, together with all exhibits and schedules to this Agreement, constitutes the entire agreement
and understanding of the parties with respect to the subject matter of this Agreement and supersedes any and all prior negotiations,
correspondence, agreements, understandings, duties, or obligations between the parties with respect to the subject matter of this
Agreement.

 

5.12         Further
Assurances. From and after the date of this Agreement, upon the request of the Majority-in-Interest, the Company shall
execute and deliver such instruments, documents, or other writings as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of this Agreement.

 

5.13         Delays
or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party, upon any breach or default
of the Company or a Rights Holder under this Agreement shall impair any such right, power, or remedy of such party nor shall it
be construed to be a waiver of any such breach or default, or an acquiescence in any such breach or default, or of or in any similar
breach or default occurring after such breach or default; nor shall any waiver of any single breach or default be deemed a waiver
of any other breach or default occurring before or after any such breach or default. Any waiver, permit, consent, or approval of
any kind or character on the part of any party of any breach or default under this Agreement or any waiver on the part of any party
of any provisions or conditions of this Agreement must be made in writing and shall be effective only to the extent specifically
set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative
and not alternative.

 

5.14         Specific
Enforcement. It is agreed and understood that monetary damages would not adequately compensate an injured party for the
breach of this Agreement by any other party to this Agreement, that this Agreement shall be specifically enforceable, and that
any breach or threatened breach of this Agreement shall be the proper subject of a temporary or permanent injunction or restraining
order. Further, each of the Company and the Rights Holders waives any claim or defense that there is an adequate remedy at law
for such breach or threatened breach.

 

[Signature Pages Follow]

 

    	11

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Rights Agreement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	INNOLOG HOLDINGS CORPORATION
	 	 
	 	By:	/s/ William
    P. Danielczyk 
	 	Name:	William P. Danielczyk
	 	Title:	Executive Chairman

 

Signature
Page to

Rights Agreement

 

    	 

    	 

    

 

	 	RIGHTS HOLDERS:
	 	 
	 	Glen
    Hill InvestmentS LLC
	 	 
	 	 
	 	By:	/s/ Harry
    R. Jacobson
	 	Name:	Harry R. Jacobson
	 	Title:	Manager

 

Signature
Page to

Rights Agreement

 

    	 

    	 

    

 

EXHIBIT A

 

RIGHTS HOLDERS

 

Glen Hill Investments LLC

836 Glen Leven Drive

Nashville, TN 37204

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00204-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00204-of-00352.parquet"}]]