Document:

Exhibit 10.1

 

 

 

FOR IMMEDIATE RELEASE

 

	CONTACTS:	 
	Joel Bennett	Anne-Marie Feliciano
	JAKKS Pacific, Inc.	JAKKS Pacific, Inc.
	(310) 455-6210	(310) 455-6245

  

JAKKS Pacific®
Announces Acquisition of Maui Toys

 

JAKKS adds popular
Wave Hoop®, Sky BallTM and other toys to enhance portfolio

 

MALIBU, Calif., July 26, 2012 -- JAKKS
Pacific, Inc. (NASDAQ:JAKK) announced today that it has acquired Ohio-based Maui, Inc. (“Maui”), a manufacturer and
distributor of spring and summer activity toys, outdoor sports related toys, impulse toys including the popular Wave Hoop®
and Sky BallTM products under the Maui Toys brand.

 

JAKKS Pacific
has acquired all of the shares of stock of Maui, a 24-year-old, privately held company, and its Hong Kong based affiliate A.S.
Design Limited.  The business is comprised of proprietary non-licensed brands that are complementary to JAKKS Pacific’s
wide-ranging product portfolio.  

 

Stephen Berman, CEO and President, JAKKS
Pacific, Inc. stated, “The Maui Toys acquisition complements our growing portfolio of non-licensed, proprietary brands. We
expect that it will enhance our product portfolio, diversify our distribution, and offer great products to our consumers around
the world. We anticipate expanding the Maui Toys product line through our strong distribution channels in key international markets.”

 

“We look forward to joining the Jakks
Pacific family and having the support of such a dynamic consumer products company,” said Brian Kessler, CEO, Maui. “With
Jakks’ strength at retail globally, innovative leadership, superior business
practices and depth of creative products, we are confident we will successfully grow our business at retail.”

 

The Company expects that the Maui acquisition
will be accretive to earnings in 2013. The determination of the impact to 2012 is subject to completion of the purchase price allocation
for 2012 which has not yet been completed.

 

For more information on Maui Toys, please
visit www.mauitoys.com.

 

    	 

    	 	

    
 

About JAKKS Pacific, Inc.

JAKKS Pacific, Inc. (NASDAQ: JAKK) is a
leading designer and marketer of toys and consumer products with a wide range of products that feature popular brands and children's
toy licenses.  JAKKS’ diverse portfolio includes Action Figures, Electronics, Dolls, Dress-Up, Role Play, Halloween
Costumes, Kids Furniture, Vehicles, Plush, Art Activity Kits, Seasonal Products, Infant/Pre-School, Construction Toys, Ride-On
Vehicles, Wagons, Inflatable Environments and Tents, and Pet Toys sold under various proprietary brands including JAKKS Pacific®,
Creative Designs InternationalTM, Road Champs®, Funnoodle®, JAKKS PetsTM, Plug It In & Play TV GamesTM,
Kids Only!TM, Tollytots®, Disguise® and Moose Mountain®. JAKKS is an award-winning licensee of several hundred
nationally and internationally known trademarks including Nickelodeon®, Warner Bros.®, Ultimate Fighting Championship®,
Hello Kitty®, Graco®, Cabbage Patch Kids® and Pokémon®. JAKKS’ MonsunoTM toy line is based
on the new MonsunoTM animated television series. www.jakks.com

 

This press release may contain forward-looking
statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations,
estimates and projections about JAKKS Pacific's business based partly on assumptions made by its management. These statements are
not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors,
including, but not limited to, those described above, changes in demand for JAKKS' products, product mix, the timing of customer
orders and deliveries, the impact of competitive products and pricing, and difficulties with integrating acquired businesses. The
forward-looking statements contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation
to update any of them to reflect events or circumstances after the date of this release. © 2011 JAKKS Pacific, Inc. All
rights reserved.INVESTMENT AGREEMENT

 

INVESTMENT AGREEMENT (this “AGREEMENT”),
dated as of July 25, 2012 by and between INNOLOG HOLDINGS CORPORATION a Nevada corporation (the “Company”), and Dutchess
Opportunity Fund, II, LP, a Delaware Limited Partnership (the “Investor”).

 

WHEREAS, the parties desire that, upon
the terms and subject to the conditions contained herein, the Investor shall invest up to five million dollars ($5,000,000) to
purchase the Company's Common Stock with $.001 par value per share (the “Common Stock”);

 

WHEREAS, such investments will be made
in reliance upon the provisions of Section 4(2) under the Securities Act of 1933, as amended (the “1933 Act”), Rule
506 of Regulation D, and the rules and regulations promulgated thereunder, and/or upon such other exemption from the registration
requirements of the 1933 Act as may be available with respect to any or all of the investments in Common Stock to be made hereunder;
and

 

WHEREAS, contemporaneously with the execution
and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement substantially in
the form attached hereto (the “Registration Rights Agreement”) pursuant to which the Company has agreed to provide
certain registration rights under the 1933 Act, and the rules and regulations promulgated thereunder, and applicable state securities
laws.

 

NOW THEREFORE, in consideration of the
foregoing recitals, which shall be considered an integral part of this Agreement, the covenants and agreements set forth hereafter,
and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Investor
hereby agree as follows:

 

SECTION
1.          DEFINITIONS.

 

As used in this Agreement,
the following terms shall have the following meanings specified or indicated below, and such meanings shall be equally applicable
to the singular and plural forms of such defined terms.

 

“1933 Act”
shall have the meaning set forth in the recitals of this Agreement.

 

“1934 Act”
shall mean the Securities Exchange Act of 1934, as it may be amended.

 

“AAA”
shall have the meaning specified in Section 12.

 

“Affiliate”
shall have the meaning specified in Section 5(H).

 

“Agreement”
shall mean this Investment Agreement.

 

“Articles
of Incorporation” shall have the meaning specified in Section 4(C).

 

“By-laws”
shall have the meaning specified in Section 4(C).

 

“Closing”
shall have the meaning specified in Section 2(F).

 

“Closing Date”
shall have the meaning specified in Section 2(F).

 

“Common Stock”
shall have the meaning set forth in the recitals of this Agreement.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012

    	 

    

 

“Company”
shall have the meaning set forth in the preamble of this Agreement.

 

“Control”
or “Controls” shall have the meaning specified in Section 5(H).

 

“DTC”
shall have the meaning specified in Section 2(F).

 

“DWAC”
shall have the meaning specified in Section 2(F).

 

“Effective
Date” shall mean the date the SEC declares effective under the 1933 Act the Registration Statement covering the Securities.

 

“Equity Line
Transaction Documents” shall mean this Agreement and the Registration Rights Agreement.

 

“FAST”
shall have the meaning specified in Section 2(F).

 

“Indemnities”
shall have the meaning specified in Section 11.

 

“Indemnified
Liabilities” shall have the meaning specified in Section 11.

 

“Indemnitor”
shall have the meaning specified in Section 11.

 

“Investor”
shall have the meaning indicated in the preamble of this Agreement.

 

“Material
Adverse Effect” shall have the meaning specified in Section 4(A).

 

“Maximum Common
Stock Issuance” shall have the meaning specified in Section 2(G).

 

“Open Market
Adjustment Amount” shall have the meaning specified in Section 2(H).

 

“Open Market
Share Purchase” shall have the meaning specified in Section 2(H).

 

“Open Period”
shall mean the period beginning on and including the Trading Day immediately following the Effective Date and ending on the earlier
to occur of (i) the date which is thirty-six (36) months from the Effective Date; or (ii) termination of the Agreement in accordance
with Section 9, below.

 

“Pricing Period”
shall mean the five (5) consecutive Trading Days beginning on the Put Notice Date and ending on and including the date that is
four (4) Trading Days after such Put Notice Date.

 

“Principal
Market” shall mean the Nasdaq Capital Market, the NYSE Amex, the New York Stock Exchange, the Nasdaq Global Market, the
Nasdaq Global Select Market, the OTC Bulletin Board or the OTC Markets, whichever is the principal market on which the Common Stock
is listed or quoted.

 

“Prospectus”
shall mean the prospectus, preliminary prospectus and supplemental prospectus used in connection with the Registration Statement.

 

“Purchase
Amount” shall mean the total amount being paid by the Investor on a particular Closing Date to purchase the Securities.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	2	 

    	 

    

 

“Purchase
Price” shall mean ninety-five percent (95%) of the lowest daily VWAP (as defined herein) of the Common Stock during the
Pricing Period.

 

“Put”
shall have the meaning set forth in Section 2(B) hereof.

 

“Put Amount”
shall have the meaning set forth in Section 2(B) hereof.

 

“Put Notice”
shall mean a written notice in the form attached hereto as Exhibit C, sent to the Investor by the Company stating the Put Amount
in U.S. dollars the Company intends to sell to the Investor pursuant to the terms of the Agreement and stating the current number
of Shares issued and outstanding on such date.

 

“Put Notice
Date” shall mean the Trading Day, as set forth below, immediately following the day on which the Investor receives a
Put Notice, however a Put Notice shall be deemed delivered on (a) the Trading Day it is received by facsimile or email by the Investor
if such notice is received prior to noon Eastern Time, or (b) the immediately succeeding Trading Day if it is received by facsimile
or otherwise after noon Eastern Time on a Trading Day. No Put Notice may be deemed delivered on a day that is not a Trading Day.

 

“Put Restriction”
shall mean the days during the Pricing Period. During this time, the Company shall not be entitled to deliver another Put Notice.

 

“Put Shares
Due” shall have the meaning specified in Section 2(H).

 

“Registration
Rights Agreement” shall have the meaning set forth in the recitals of this Agreement.

 

“Registration
Statement” means the registration statement of the Company filed under the 1933 Act covering the resale by the Investor
of the Common Stock issuable hereunder.

 

“Related Party”
shall have the meaning specified in Section 5(H).

 

“Resolutions”
shall have the meaning specified in Section 8(E).

 

“SEC”
shall mean the U.S. Securities & Exchange Commission.

 

“SEC Documents”
shall have the meaning specified in Section 4(G).

 

“Securities”
shall mean the shares of Common Stock issued pursuant to the terms of the Agreement.

 

“Shares”
shall mean the shares of the Company’s Common Stock.

 

“Subsequent
Purchasers” shall have the meaning specified in Section 2(I).

 

“Subsidiaries”
shall have the meaning specified in Section 4(A).

 

“Suspension
Price” with respect to any Put Notice Date shall be the price defined by the Company in the applicable Put Notice.

 

“Trading Day”
shall mean any day on which the Principal Market for the Common Stock is open for trading, from the hours of 9:30 am until 4:00
pm Boston Time.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	3	 

    	 

    

 

“VWAP”
shall mean the volume weighted average price during a Trading Day.

 

SECTION
2.          PURCHASE AND SALE OF COMMON STOCK.

 

(A)         PURCHASE
AND SALE OF COMMON STOCK. Subject to the terms and conditions set forth herein, the Company may issue and sell to the Investor,
and the Investor shall purchase from the Company, up to that number of Shares having an aggregate Purchase Price of five million
dollars ($5,000,000).

 

(B)         DELIVERY
OF PUT NOTICES. Subject to the terms and conditions of the Equity Line Transaction Documents, and from time to time during the
Open Period, the Company may, in its sole discretion, deliver a Put Notice to the Investor which states the dollar amount (designated
in U.S. Dollars) (the “Put Amount”) of Shares which the Company intends to sell to the Investor on a Closing Date (the
“Put”). The Put Amount shall not exceed either 1) two hundred percent (200%) of the average
daily volume (U.S. market only) of the Common Stock for the three (3) Trading Days prior to the applicable Put Notice Date, multiplied
by the average of the three (3) daily closing prices immediately preceding the Put Date or 2) one hundred thousand dollars ($100,000).
During the Open Period, the Company shall not be entitled to submit a Put Notice until the Pricing Period for the prior Put
has been completed. The Common Stock identified in the Put Notice shall be purchased for a price equal to the Purchase Price.

 

(C)         COMPANY’S
RIGHT TO SUSPEND. On each Put Notice submitted to the Investor by the Company, the Company shall have the option to specify a Suspension
Price for that Put. In the event the Common Stock falls below the Suspension Price, the Put shall be temporarily suspended. The
Put shall resume at such time as the Common Stock is above the Suspension Price, provided the dates for the Pricing Period for
that particular Put are still valid. In the event the Pricing Period has been complete, any shares above the Suspension Price due
to the Investor shall be sold to the Investor by the Company at the Suspension Price under the terms of this Agreement. The Suspension
Price for a Put may not be changed by the Company once submitted to the Investor.

 

(D)         CONDITIONS
TO INVESTOR'S OBLIGATION TO PURCHASE SHARES. Notwithstanding anything to the contrary in this Agreement, the Company shall not
be entitled to deliver a Put Notice and the Investor shall not be obligated to purchase any Shares at a Closing unless each of
the following conditions are satisfied:

 

(1)         a
Registration Statement shall have been declared effective and shall remain effective and available for the resale of all the Registrable
Securities (as defined in the Registration Rights Agreement) at all times until the Closing with respect to the subject Put Notice;

 

(2)         at
all times during the period beginning on the related Put Notice Date and ending on and including the related Closing Date, the
Common Stock shall have been listed on the Principal Market and shall not have been suspended from trading thereon for a period
of two (2) consecutive Trading Days during the Open Period and the Company shall not have been notified of any pending or threatened
proceeding or other action to suspend the trading of the Common Stock;

 

(3)         the
Company has complied with its obligations and is otherwise not in breach of or in default under this Agreement, the Registration
Rights Agreement or any other agreement executed in connection herewith which has not been cured prior to delivery of the Put Notice;

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	4	 

    	 

    

 

(4)         no
injunction shall have been issued and remain in force, or action commenced by a governmental authority which has not been stayed
or abandoned, prohibiting the purchase or the issuance of the Securities; and

 

(5)         the
issuance of the Securities pursuant to this Agreement will not violate any shareholder approval requirements of the Principal Market.

 

If any of the events described in clauses
(1) through (5) above occurs during a Pricing Period, then the Investor shall have no obligation to purchase the Common Stock subject
to the applicable Put Notice.

 

(E)         INTENTIONALLY
OMITTED.

 

(F)         MECHANICS
OF PURCHASE OF SHARES BY INVESTOR. The closing of the purchase by the Investor of Shares (a “Closing”) shall occur
on the date which is no later than ten (10) Trading Days following the applicable Put Notice Date (each a “Closing Date”).
On each Closing Date, (I) the Company shall deliver to the Investor pursuant to this Agreement, certificates representing the Shares
to be issued to the Investor on such date and registered in the name of the Investor; and (II) the Investor shall deliver to the
Company the Purchase Price to be paid for such Shares, based on the Put Amount set forth in Section 2(B). In lieu of delivering
physical certificates representing the Securities and provided that the Company's transfer agent then is participating in The Depository
Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Investor,
the Company shall use all commercially reasonable efforts to cause its transfer agent to electronically transmit the Securities
by crediting the account of the Investor's prime broker (as specified by the Investor within a reasonable period in advance of
the Investor's notice) with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

 

The Company understands
that a delay in the issuance of Securities beyond the Closing Date could result in economic damage to the Investor. After the Effective
Date, as compensation to the Investor for such loss, the Company agrees to make payments to the Investor for late issuance of Securities
(delivery of Securities after the applicable Closing Date) in accordance with the following schedule (where “No. of Days
Late” is defined as the number of trading days beyond the Closing Date, with the Amounts being cumulative.):

 

	LATE PAYMENT FOR EACH NO. OF DAYS LATE
	1	$100
	2	$200
	3	$300
	4	$400
	5	$500
	6	$600
	7	$700
	8	$800
	9	$900
	10	$1000
	Over 10	$1,000 + $200 for each Business

Day late beyond 10 days

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	5	 

    	 

    

 

The Company shall make
any payments incurred under this Section in immediately available funds upon demand by the Investor. Nothing herein shall limit
the Investor's right to pursue actual damages for the Company's failure to issue and deliver the Securities to the Investor, except
that such late payments shall offset any such actual damages incurred by the Investor, and any Open Market Adjustment Amount, as
set forth below.

 

(G)         OVERALL
LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the contrary, if during the Open Period the Company
becomes listed on an exchange that limits the number of shares of Common Stock that may be issued without shareholder approval,
then the number of Shares issuable by the Company and purchasable by the Investor, shall not exceed that number of the shares of
Common Stock that may be issuable without shareholder approval (the “Maximum Common Stock Issuance”). If such issuance
of shares of Common Stock could cause a delisting on the Principal Market, then the Maximum Common Stock Issuance shall first be
approved by the Company's shareholders in accordance with applicable law and the By-laws and Articles of Incorporation of the Company,
as amended. The parties understand and agree that the Company's failure to seek or obtain such shareholder approval shall in no
way adversely affect the validity and due authorization of the issuance and sale of Securities or the Investor's obligation in
accordance with the terms and conditions hereof to purchase a number of Shares in the aggregate up to the Maximum Common Stock
Issuance limitation, and that such approval pertains only to the applicability of the Maximum Common Stock Issuance limitation
provided in this Section 2(H).

 

(H)         OPEN
MARKET ADJUSTMENT. If, by the third (3rd) business day after a Closing Date, the Company fails to deliver any portion of the Securities
subject to a Put Notice to the Investor (the “Put Shares Due”) and the Investor purchases, in an open market transaction
or otherwise, shares of Common Stock necessary to make delivery by the Investor of shares in respect of sales to subsequent purchasers,
pursuant to transactions entered into before the Closing Date (“Subsequent Purchasers”), which such shares of Common
Stock would have been delivered to the Investor by the Company but for the Company’s failure to so deliver (the “Open
Market Share Purchase”), then the Company shall pay to the Investor, in addition to any other amounts due to Investor pursuant
to the Put, and not in lieu thereof, the Open Market Adjustment Amount (as defined below). The “Open Market Adjustment Amount”
is the amount equal to the excess, if any, of (x) the Investor's total purchase price (including brokerage commissions, if any)
for the Open Market Share Purchase minus (y) the net proceeds (after brokerage commissions, if any) received by the Investor from
the sale of the Put Shares Due to such Subsequent Purchasers. The Company shall pay the Open Market Adjustment Amount to the Investor
in immediately available funds within five (5) business days of written demand by the Investor. By way of illustration and not
in limitation of the foregoing, if the Investor purchases shares of Common Stock having a total purchase price (including brokerage
commissions) of $11,000 to cover an Open Market Share Purchase with respect to shares of Common Stock it sold to Subsequent Purchasers
for net proceeds of $10,000, the Open Market Adjustment Amount which the Company will be required to pay to the Investor will be
$1,000.

 

(I)         LIMITATION
ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement, in no event shall the Investor be entitled
to purchase that number of Shares, which when added to the sum of the number of shares of Common Stock beneficially owned (as such
term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the Investor, would exceed 4.99% of the number of shares
of Common Stock outstanding on the Closing Date, as determined in accordance with Rule 13d-1(j) of the 1934 Act.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	6	 

    	 

    

 

SECTION
3.          INVESTOR'S REPRESENTATIONS, WARRANTIES AND COVENANTS. The
Investor represents and warrants to the Company, and covenants, that:

 

(A)         SOPHISTICATED
INVESTOR. The Investor has, by reason of its business and financial experience, such knowledge, sophistication and experience in
financial and business matters and in making investment decisions of this type that it is capable of (1) evaluating the merits
and risks of an investment in the Securities and making an informed investment decision; (2) protecting its own interest; and (3)
bearing the economic risk of such investment for an indefinite period of time.

 

(B)         AUTHORIZATION;
ENFORCEMENT. The Investor has the requisite power and authority to enter into and perform this Agreement and the Registration Rights
Agreement. The execution and delivery of the Equity Line Transaction Documents by the Investor and the consummation by it of the
transactions contemplated hereby and thereby have been duly and validly authorized by the Investor's general partners and no further
consent or authorization is required by its partners. This Agreement has been duly and validly authorized, executed and delivered
on behalf of the Investor and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with
its terms, subject as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights
and remedies.

 

(C)         SECTION
9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the provisions of Section 9 of the 1934 Act,
and the rules promulgated thereunder, with respect to transactions involving the Common Stock. The Investor agrees not to sell
the Company's stock short, either directly or indirectly through its affiliates, principals or advisors, the Company's common stock
during the term of this Agreement.

 

(D)         ACCREDITED
INVESTOR. Investor is an “Accredited Investor” as that term is defined in Rule 501(a) of Regulation D of the 1933 Act.

 

(E)         NO
CONFLICTS. The execution, delivery and performance of the Transaction Documents by the Investor and the consummation by the Investor
of the transactions contemplated hereby and thereby will not (1) result in a violation of the partnership agreement or other organizational
documents of the Investor, (2) conflict with, or constitute a material default (or an event which with notice or lapse of time
or both would become a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any material agreement, contract, indenture mortgage, indebtedness or instrument to which the Investor is a party, or to the
Investor’s knowledge result in a violation of any law, rule, regulation, order, judgment or decree (including United States
federal and state securities laws and regulations) applicable to the Investor or by which any property or asset of the Investor
is bound or affected.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	7	 

    	 

    

 

(F)         NO
VIOLATIONS. Except as disclosed in Schedule 3(f), the Investor is not in violation of any term of, or in default under, the partnership
agreement or other organizational documents of the Investor or any material contract, agreement, mortgage, indebtedness, indenture,
instrument, judgment, decree or order or any statute, rule or regulation applicable to the Investor, except for conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations that would not, individually or in the aggregate, constitute
or reasonably be expected to constitute a material adverse effect on the Investor. The business of the Investor is not being conducted,
and shall not be conducted, in violation of any law, statute, ordinance, rule, order or regulation of any governmental authority
or agency, regulatory or self-regulatory agency, or court, except for violations the sanctions for which either, individually or
in the aggregate, would not have or reasonably be expected to have a material adverse effect on the Investor. Except as specifically
contemplated by this Agreement and as required under the 1933 Act or any securities laws of any states, to the Investor’s
knowledge, the Investor is not required to obtain any consent, authorization, permit or order of, or make any filing or registration
(except the filing of a registration statement as outlined in the Registration Rights Agreement) with, any court, governmental
authority or agency, regulatory or self-regulatory agency or other third party in order for it to execute, deliver or perform any
of its obligations under, or contemplated by, the Equity Line Transaction Documents in accordance with the terms hereof or thereof
except for those consents, authorizations, permits, orders or filings as have been obtained or effected on or prior to the date
hereof and are in full force and effect as of the date hereof. Except as disclosed in Schedule 3(f), the Investor is unaware of
any facts or circumstances which could reasonably be expected give rise to any violation or default set forth in this Section 3(F).

 

(G)         OPPORTUNITY
TO DISCUSS. The Investor has received all materials relating to the Company's business, finance and operations which it has requested.
The Investor has had an opportunity to discuss the business, management and financial affairs of the Company with the Company's
management.

 

(H)         INVESTMENT
PURPOSES. The Investor is purchasing the Securities for its own account for investment purposes and not with a view towards distribution
and agrees to resell or otherwise dispose of the Securities solely in accordance with the registration provisions of the 1933 Act
(or pursuant to an exemption from such registration provisions).

 

(I)         NO
REGISTRATION AS A DEALER. The Investor is not and will not be required to be registered as a “dealer” under the 1934
Act, either as a result of its execution and performance of its obligations under this Agreement or otherwise.

 

(J)         GOOD
STANDING. The Investor is a Limited Partnership, duly organized, validly existing and in good standing in the state of Delaware.

 

(K)         TAX
LIABILITIES. The Investor understands that it is liable for its own tax liabilities.

 

(L)         REGULATION
M. The Investor will comply with Regulation M under the 1934 Act, if applicable.

 

SECTION
4.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY. Except as set
forth in the Schedules attached hereto, or as disclosed in the Company's SEC Documents, the Company represents and warrants to
the Investor that:

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	8	 

    	 

    

 

(A)         ORGANIZATION
AND QUALIFICATION. The Company is a corporation duly organized and validly existing in good standing under the laws of the State
of Nevada, USA and has the requisite corporate power and authorization to own its properties and to carry on its business as now
being conducted. Both the Company and the companies it owns or controls (“Subsidiaries”) are duly qualified to do business
and are in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it
makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have
a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse effect on
(1) the properties, assets, operations, results of operations, or financial condition of the Company and its Subsidiaries, if any,
taken as a whole, (2) the transactions contemplated hereby or by the agreements and instruments to be entered into in connection
herewith, or (3) the authority or ability of the Company to perform its obligations under the Equity Line Transaction Documents
other than as a result of (a) changes adversely affecting the United States economy (so long as the Company is not disproportionately
affected thereby), (b) changes adversely affecting the industry in which the Company operates (so long as the Company is not disproportionately
affected thereby), (c) the announcement or consummation of the transactions contemplated by this Agreement, and (d) changes in
the market price of the Common Stock.

 

(B)         AUTHORIZATION;
ENFORCEMENT; COMPLIANCE WITH
OTHER INSTRUMENTS

 

(1)         The
Company has the requisite corporate power and authority to enter into and perform the Equity Line Transaction Documents, and to
perform its obligations contemplated hereby and thereby.

 

(2)         The
execution and delivery of the Equity Line Transaction Documents by the Company and the consummation by it of the transactions contemplated
hereby and thereby, including without limitation the reservation for issuance and the issuance of the Securities pursuant to this
Agreement, have been duly and validly authorized by the Company's Board of Directors and no further consent or authorization is
required by the Company, its Board of Directors, or its shareholders.

 

(3)         The
Equity Line Transaction Documents have been duly and validly executed and delivered by the Company.

 

(4)         The
Equity Line Transaction Documents constitute the valid and binding obligations of the Company enforceable against the Company in
accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors'
rights and remedies.

 

(C)         CAPITALIZATION.
As of the date hereof, the authorized capital stock of the Company consists of 200,000,000 shares of Common Stock with $0.001 par
value per share, of as of June 15, 2012, 15,129,973 shares were issued and outstanding. Except as disclosed in the SEC Documents:
(1) no shares of the Company's capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances
suffered or permitted by the Company; (2) there are no outstanding debt securities; (3) there are no outstanding shares of capital
stock, options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock
of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries;
(4) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale
of any of their securities under the 1933 Act (except the Registration Rights Agreement); (5) there are no outstanding securities
of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments,
understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the
Company or any of its Subsidiaries; (6) there are no securities or instruments containing anti-dilution or similar provisions that
will be triggered by the issuance of the Securities as described in this Agreement; (7) the Company does not have any stock appreciation
rights or “phantom stock” plans or agreements or any similar plan or agreement; and (8) there is no dispute as to the
classification of any shares of the Company's capital stock.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	9	 

    	 

    

 

The Company has furnished
to the Investor, or the Investor has had access through the SEC’s EDGAR website to, true and correct copies of the Company's
Articles of Incorporation, as amended and in effect on the date hereof (the “Articles of Incorporation”), and the Company's
By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable
for Common Stock and the material rights of the holders thereof in respect thereto.

 

(D)         ISSUANCE
OF SHARES. The Company has reserved 5,000,000 Shares for issuance pursuant to this Agreement, which have been duly authorized and
reserved for issuance (subject to adjustment pursuant to the Company's covenant set forth in Section 5(F) below) pursuant to this
Agreement. Upon issuance in accordance with this Agreement, the Securities will be validly issued, fully paid for and non-assessable
and free from all taxes, liens and charges with respect to the issue thereof. In the event the Company cannot register a sufficient
number of Shares for issuance pursuant to this Agreement, the Company will use its best efforts to authorize and reserve for issuance
the number of Shares required for the Company to perform its obligations hereunder as soon as reasonably practicable.

 

(E) NO CONFLICTS.
The execution, delivery and performance of the Equity Line Transaction Documents by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby will not (I) result in a violation of the Articles of Incorporation, any Certificate
of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws; or (II) conflict
with, or constitute a material default (or an event which with notice or lapse of time or both would become a material default)
under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material agreement, contract,
indenture mortgage, indebtedness or instrument to which the Company or any of its Subsidiaries is a party, or to the Company's
knowledge result in a violation of any law, rule, regulation, order, judgment or decree (including United States federal and state
securities laws and regulations and the rules and regulations of the Principal Market or principal securities exchange or trading
market on which the Common Stock is traded or listed) applicable to the Company or any of its Subsidiaries or by which any property
or asset of the Company or any of its Subsidiaries is bound or affected. Except as disclosed in Schedule 4(e), neither the Company
nor its Subsidiaries is in violation of any term of, or in default under, the Articles of Incorporation, any Certificate of Designations,
Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws or their organizational charter
or by-laws, respectively, or any contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order
or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations,
amendments, accelerations, cancellations and violations that would not individually or in the aggregate have or constitute a Material
Adverse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation
of any law, statute, ordinance, rule, order or regulation of any governmental authority or agency, regulatory or self-regulatory
agency, or court, except for possible violations the sanctions for which either individually or in the aggregate would not have
a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the 1933 Act or any securities
laws of any states, to the Company's knowledge, the Company is not required to obtain any consent, authorization, permit or order
of, or make any filing or registration (except the filing of a registration statement as outlined in the Registration Rights Agreement
between the Parties) with, any court, governmental authority or agency, regulatory or self-regulatory agency or other third party
in order for it to execute, deliver or perform any of its obligations under, or contemplated by, the Equity Line Transaction Documents
in accordance with the terms hereof or thereof. All consents, authorizations, permits, orders, filings and registrations which
the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof
and are in full force and effect as of the date hereof. Except as disclosed in Schedule 4(e), the Company and its Subsidiaries
are unaware of any facts or circumstances which might give rise to any violation or default of any of the foregoing. The Company
is not, and will not be, in violation of the listing requirements of the Principal Market as in effect on the date hereof and on
each of the Closing Dates and is not aware of any facts which would reasonably lead to delisting of the Common Stock by the Principal
Market in the foreseeable future.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	10	 

    	 

    

 

(F) SEC DOCUMENTS;
FINANCIAL STATEMENTS. As of the date hereof, except as disclosed in the Company’s SEC Documents, the Company has filed all
reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements
of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements
and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the "SEC Documents").
The Company has delivered to the Investor or its representatives, or they have had access through the SEC’s EDGAR website
to, true and complete copies of the SEC Documents. As of their respective filing dates, the SEC Documents complied in all material
respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the
SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company
included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with generally
accepted accounting principles, and audited by a firm that is a member of the Public Companies Accounting Oversight Board ("PCAOB")
consistently applied, during the periods involved (except (I) as may be otherwise indicated in such financial statements or the
notes thereto, or (II) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed
or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof
and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments). No other written information provided by or on behalf of the Company to the Investor which is not
included in the SEC Documents, including, without limitation, information referred to in Section 4(D) of this Agreement, contains
any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein, in the light
of the circumstance under which they are or were made, not misleading. Neither the Company nor any of its Subsidiaries or any of
their officers, directors, employees or agents have provided the Investor with any material, nonpublic information which was not
publicly disclosed prior to the date hereof and any material, nonpublic information provided to the Investor by the Company or
its Subsidiaries or to the Company’s knowledge any of their respective officers, directors, employees or agents prior to
any Closing Date shall be publicly disclosed by the Company prior to such Closing Date.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	11	 

    	 

    

 

(G) ABSENCE OF CERTAIN
CHANGES. Except as otherwise set forth in the SEC Documents, the Company does not intend to change the business operations of the
Company in any material way. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection
pursuant to any bankruptcy law nor does the Company or its Subsidiaries have any knowledge or reason to believe that its creditors
intend to initiate involuntary bankruptcy proceedings.

 

(H) ABSENCE OF LITIGATION
AND/OR REGULATORY PROCEEDINGS. Except as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the
executive officers of Company or any of its Subsidiaries, threatened against or affecting the Company, the Common Stock or any
of the Company's Subsidiaries or any of the Company's or the Company's Subsidiaries' officers or directors in their capacities
as such, in which an adverse decision could reasonably be expected to have a Material Adverse Effect.

 

(I) ACKNOWLEDGMENT
REGARDING INVESTOR'S PURCHASE OF SHARES. The Company acknowledges and agrees that the Investor is acting solely in the capacity
of an arm's length purchaser with respect to the Equity Line Transaction Documents and the transactions contemplated hereby and
thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or
in any similar capacity) with respect to the Equity Line Transaction Documents and the transactions contemplated hereby and thereby
and any advice given by the Investor or any of its respective representatives or agents in connection with the Equity Line Transaction
Documents and the transactions contemplated hereby and thereby is merely incidental to the Investor's purchase of the Securities,
and is not being relied on by the Company. The Company further represents to the Investor that the Company's decision to enter
into the Equity Line Transaction Documents has been based solely on the independent evaluation by the Company and its representatives.

 

(J) NO UNDISCLOSED
EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as set forth in the SEC Documents, as of the date hereof, no event,
liability, development or circumstance has occurred or exists, or to the Company's knowledge is contemplated to occur, with respect
to the Company or its Subsidiaries or their respective business, properties, assets, prospects, operations or financial condition,
that would be required to be disclosed by the Company under applicable securities laws on a registration statement filed with the
SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced.

 

(K) EMPLOYEE RELATIONS.
Neither the Company nor any of its Subsidiaries is involved in any union labor dispute nor, to the knowledge of the Company or
any of its Subsidiaries, is any such dispute threatened. Neither the Company nor any of its Subsidiaries is a party to a collective
bargaining agreement, and the Company and its Subsidiaries believe that relations with their employees are good. No executive officer
(as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to leave the Company's employ or
otherwise terminate such officer's employment with the Company.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	12	 

    	 

    

 

(L)
INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted.
Except as set forth in the SEC Documents, none of the Company's trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or
other intellectual property rights necessary to conduct its business as now or as proposed to be conducted have expired or terminated,
or are expected to expire or terminate within two (2) years from the date of this Agreement. The Company and its Subsidiaries do
not have any knowledge of any infringement by the Company or its Subsidiaries of trademark, trade name rights, patents, patent
rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret or other similar
rights of others, or of any such development of similar or identical trade secrets or technical information by others and, except
as set forth in the SEC Documents, there is no claim, action or proceeding being made or brought against, or to the Company's knowledge,
being threatened against, the Company or its Subsidiaries regarding trademark, trade name,
patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or
other infringement; and the Company and its Subsidiaries are unaware of any facts or circumstances which could reasonably give
rise to any of the foregoing. The Company and its Subsidiaries have taken commercially reasonable security measures to protect
the secrecy, confidentiality and value of all of their intellectual properties. 

 

(M) ENVIRONMENTAL LAWS.
The Company and its Subsidiaries (I) are, to the knowledge of the Company and its Subsidiaries, in compliance with any and all
applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment
or hazardous or toxic substances or wastes, pollutants or contaminants ("Environmental Laws"); (II) have, to the knowledge
of the Company, received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses; and (III) are in compliance, to the knowledge of the Company, with all terms and conditions of any
such permit, license or approval where, in each of the three (3) foregoing cases, the failure to so comply would have, individually
or in the aggregate, a Material Adverse Effect.

 

(N) TITLE. The Company
and its Subsidiaries have good and marketable title to all personal property owned by them which is material to the business of
the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described
in the SEC Documents or such as do not materially affect the value of such property and do not interfere with the use made and
proposed to be made of such property by the Company or any of its Subsidiaries. Any real property and facilities held under lease
by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions
as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company
and its Subsidiaries.

 

(O) INSURANCE. Each
of the Company's Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as management of the Company reasonably believes to be prudent and customary in the businesses in which the Company
and its Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries has been refused any insurance coverage sought
or applied for and neither the Company nor its Subsidiaries has any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business at a cost that would not have a Material Adverse Effect.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	13	 

    	 

    

 

(P) REGULATORY PERMITS.
The Company and its Subsidiaries have in full force and effect all certificates, approvals, authorizations and permits from the
appropriate federal, state, local or foreign regulatory authorities and comparable foreign regulatory agencies, necessary to own,
lease or operate their respective properties and assets and conduct their respective businesses, and neither the Company nor any
such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, approval,
authorization or permit, except for such certificates, approvals, authorizations or permits which if not obtained, or such revocations
or modifications which, would not have a Material Adverse Effect.

 

(Q)
INTERNAL ACCOUNTING CONTROLS. Except as disclosed in the SEC Documents, the Company and each
of its Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (I) transactions
are executed in accordance with management's general or specific authorizations; (II) transactions are recorded as necessary to
permit preparation of financial statements in conformity with generally accepted accounting principles by a firm with membership
to the PCAOB and to maintain asset accountability; (III) reasonable controls to safeguard assets are in place; and (IV) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect
to any differences. 

 

(R) NO MATERIALLY ADVERSE
CONTRACTS, ETC. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate or other legal restriction,
or any judgment, decree or order which in the judgment of the Company's officers has or could reasonably be expected in the future
to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party to any contract or agreement which
in the judgment of the Company's officers has or could reasonably be expected to have a Material Adverse Effect.

 

(S) TAX STATUS. Except
for the Company’s tax returns for the year ended December 31, 2010, which the Company is in the process of filing, the Company
and each of its Subsidiaries has made or filed all United States federal and state income and all other tax returns, reports and
declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its
Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and
has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on
such returns, reports and declarations, except those being contested in good faith and has set aside on its books provision reasonably
adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply.
Except as disclosed in the SEC Documents, there are no unpaid taxes in any material amount claimed to be due by the taxing authority
of any jurisdiction, and the officers of the Company know of no basis for any such claim.

 

(T) CERTAIN TRANSACTIONS.
Except as set forth in the SEC Documents filed at least ten (10) days prior to the date hereof and except for arm's length transactions
pursuant to which the Company makes payments in the ordinary course of business upon terms no less favorable than the Company could
obtain from disinterested third parties and other than the grant of stock options disclosed in the SEC Documents or stock options
granted in the future as contemplated by current compensation agreements or plans disclosed in the SEC Documents, none of the officers,
directors, or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other
than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other
entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	14	 

    	 

    

 

(U) DILUTIVE EFFECT.
The Company understands and acknowledges that the number of shares of Common Stock issuable upon purchases pursuant to this Agreement
will increase in certain circumstances including, but not necessarily limited to, the circumstance wherein the trading price of
the Common Stock declines during the period between the Effective Date and the end of the Open Period. The Company's executive
officers and directors have studied and reasonably understand the nature of the transactions contemplated by this Agreement and
recognize that they have a potential dilutive effect on the shareholders of the Company. The Board of Directors of the Company
has concluded, in its good faith business judgment, and with reasonable understanding of the implications, that such issuance is
in the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as are expressly
set forth in the Equity Line Transaction Documents, its obligation to issue shares of Common Stock upon purchases pursuant to this
Agreement is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests
of other shareholders of the Company.

 

(V) LOCK-UP. The Company
shall cause its officers and directors to refrain from selling Common Stock during each Pricing Period.

 

(W) NO GENERAL SOLICITATION.
Neither the Company, nor any of its affiliates, nor any person acting on its behalf, has engaged in any form of general solicitation
or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Common Stock to be offered
as set forth in this Agreement.

 

(X) NO BROKERS, FINDERS
OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders or financial advisory fees or commissions will be payable by the
Company, its agents or Subsidiaries, with respect to the transactions contemplated by this Agreement, except as otherwise disclosed
in this Agreement.

 

SECTION
5.        COVENANTS OF THE COMPANY

 

(A)         EFFORTS.
The Company shall use all commercially reasonable efforts to timely satisfy each of the conditions set forth in Section 8 of this
Agreement.

 

(B)         BLUE
SKY. The Company shall, at its sole cost and expense, on or before each of the Closing Dates, take such action as the Company shall
reasonably determine is necessary to qualify the Securities for, or obtain exemption for the Securities for, sale to the Investor
at each of the Closings pursuant to this Agreement under applicable securities or “Blue Sky” laws of such states of
the United States, as reasonably specified by the Investor, and shall provide evidence of any such action so taken to the Investor
on or prior to the Closing Date.

 

(C)         REPORTING
STATUS. Until one of the following occurs, the Company shall file all reports required to be filed with the SEC pursuant to the
1934 Act, and the Company shall not terminate its status, or take an action or fail to take any action, which would terminate its
status as a reporting company under the 1934 Act: (1) this Agreement terminates pursuant to Section 9, or (2) the date on which
the Investor has sold all the Securities; provided that the Investor shall promptly notify the Company after the Investor has sold
all the Securities.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	15	 

    	 

    

 

(D)         USE
OF PROCEEDS. The Company will use the proceeds from the sale of the Securities (excluding amounts paid by the Company for fees
as set forth in the Equity Line Transaction Documents) for general corporate and working capital purposes and acquisitions or assets,
businesses or operations or for other purposes that the Board of Directors, in its good faith, deems to be in the best interest
of the Company.

 

(E)         FINANCIAL
INFORMATION. During the Open Period, the Company agrees to make available to the Investor via the SEC’s EDGAR website or
other electronic means the following documents and information on the forms set forth: (1) within five (5) Trading Days after the
filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports
on Form 8-K and any Registration Statements or amendments filed pursuant to the 1933 Act; (2) copies of any notices and other information
made available or given to the shareholders of the Company generally, contemporaneously with the making available or giving thereof
to the shareholders; and (3) within two (2) calendar days of filing or delivery thereof, copies of all documents filed with, and
all correspondence sent to, the Principal Market, any securities exchange or market, or the Financial Industry Regulatory Authority,
unless such information is material nonpublic information.

 

(F)         RESERVATION
OF SHARES. The Company shall reserve 5,000,000 Shares for the issuance of the Securities to the Investor as required hereunder.
In the event that the Company determines that it does not have a sufficient number of authorized shares of Common Stock to reserve
and keep available for issuance as described in this Section 5(F), the Company shall use all commercially reasonable efforts to
increase the number of authorized shares of Common Stock by seeking shareholder approval for the authorization of such additional
shares.

 

(G)         LISTING.
The Company shall promptly secure and maintain the listing of all of the Registrable Securities (as defined in the Registration
Rights Agreement) on the Principal Market and each other national securities exchange and automated quotation system, if any, upon
which shares of Common Stock are then listed (subject to official notice of issuance) and shall maintain, such listing of all Registrable
Securities from time to time issuable under the terms of the Equity Line Transaction Documents. Neither the Company nor any of
its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Common
Stock on the Principal Market (excluding suspensions of not more than one (1) trading day resulting from business announcements
by the Company). The Company shall promptly provide to the Investor copies of any notices it receives from the Principal Market
regarding the continued eligibility of the Common Stock for listing on such automated quotation system or securities exchange.
The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 5(G).

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	16	 

    	 

    

 

(H)        TRANSACTIONS
WITH AFFILIATES. The Company shall not, and shall cause each of its Subsidiaries not to, enter into, amend, modify or supplement,
or permit any Subsidiary to enter into, amend, modify or supplement, any agreement, transaction, commitment or arrangement with
any of its or any Subsidiary's officers, directors, persons who were officers or directors at any time during the previous two
(2) years, shareholders who beneficially own 5% or more of the Common Stock, or Affiliates or with any individual related by blood,
marriage or adoption to any such individual or with any entity in which any such entity or individual owns a 5% or more beneficial
interest (each a “Related Party”), except for (1) customary employment arrangements and benefit programs on reasonable
terms, (2) any agreement, transaction, commitment or arrangement on an arms-length basis on terms no less favorable than terms
which would have been obtainable from a disinterested third party other than such Related Party,(3) any agreement, transaction,
commitment or arrangement which is approved by a majority of the disinterested directors of the Company, or (4) extensions or amendments
of any existing employment agreement. For purposes hereof, any director who is also an officer of the Company or any Subsidiary
of the Company shall not be a disinterested director with respect to any such agreement, transaction, commitment or arrangement.
“Affiliate” for purposes hereof means, with respect to any person or entity, another person or entity that, directly
or indirectly, (1) has a 5% or more equity interest in that person or entity, (2) has 5% or more common ownership with that person
or entity, (3) controls that person or entity, or (4) is under common control with that person or entity. “Control”
or “Controls” for purposes hereof means that a person or entity has the power, directly or indirectly, to conduct or
govern the policies of another person or entity.

 

(I)         FILING
OF FORM 8-K. On or before the date which is four (4) Trading Days after the date of execution of this Agreement, the Company shall
file a Current Report on Form 8-K with the SEC describing the terms of the transaction contemplated by the Equity Line Transaction
Documents in the form required by the 1934 Act, if such filing is required.

 

(J)         CORPORATE
EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and continue the corporate existence of the Company.

 

(K)     
 NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A PUT. The Company shall promptly
notify the Investor upon the occurrence of any of the following events in respect of a Registration Statement or related
prospectus in respect of an offering of the Securities: (1) receipt of any request for additional information by the SEC or
any other federal or state governmental authority during the period of effectiveness of the Registration Statement for
amendments or supplements to the Registration Statement or related prospectus; (2) the issuance by the SEC or any other
federal or state governmental authority of any stop order suspending the effectiveness of any Registration Statement or the
initiation of any proceedings for that purpose; (3) receipt of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Securities for sale in any jurisdiction or the initiation or
notice of any proceeding for such purpose; (4) the happening of any event that makes any statement made in such Registration
Statement or related prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires the making of any changes in the Registration Statement, related prospectus or documents so
that, in the case of a Registration Statement, it will not contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the
case of the related prospectus, it will not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading; and (5) the Company's reasonable determination that a post-effective amendment to the
Registration Statement would be appropriate, and the Company shall promptly make available to Investor any such supplement or
amendment to the related prospectus. The Company shall not deliver to the Investor any Put Notice during the continuation of
any of the foregoing events in this Section 5(K).

 

(L)        RESERVED

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	17	 

    	 

    

 

(M)         TRANSFER
AGENT. Upon effectiveness of the Registration Statement, and for so long as the Registration Statement is effective, the Company
shall deliver instructions to its transfer agent to issue Shares to the Investor that are covered for resale by the Registration
Statement free of restrictive legends.

 

(N)         ACKNOWLEDGEMENT
OF TERMS. The Company hereby represents and warrants to the Investor that: (1) it is voluntarily entering into this Agreement of
its own freewill, (2) it is not entering this Agreement under economic duress, (3) the terms of this Agreement are reasonable and
fair to the Company, and (4) the Company has had independent legal counsel of its own choosing review this Agreement, advise the
Company with respect to this Agreement, and represent the Company in connection with this Agreement.

 

SECTION
6.        INTENTIONALLY OMITTED.

 

SECTION
7.       CONDITIONS OF THE COMPANY'S OBLIGATION TO SELL. The obligation
hereunder of the Company to issue and sell the Securities to the Investor is further subject to the satisfaction, at or before
each Closing Date, of each of the following conditions set forth below. These conditions are for the Company's sole benefit and
may be waived by the Company at any time in its sole discretion.

 

(A)         The
Investor shall have executed this Agreement and the Registration Rights Agreement and delivered the same to the Company.

 

(B)         The
Investor shall have delivered to the Company the Purchase Price for the Securities being purchased by the Investor between the
end of the Pricing Period and the Closing Date via a Put Settlement Sheet (hereto attached as Exhibit D). Immediately after receipt
of confirmation of delivery of such Securities to the Investor, the Investor, by wire transfer of immediately available funds pursuant
to the wire instructions provided by the Company, will disburse the funds constituting the Purchase Amount.

 

(C)         The
representations and warranties of the Investor shall be true and correct in all material respects as of the date when made and
as of the applicable Closing Date as though made at that time and the Investor shall have performed, satisfied and complied in
all material respects with the covenants, agreements and conditions required by the Equity Line Transaction Documents to be performed,
satisfied or complied with by the Investor on or before such Closing Date.

 

(D)         No
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

SECTION
8.        FURTHER CONDITIONS OF THE INVESTOR'S OBLIGATION TO PURCHASE.
The obligation of the Investor hereunder to purchase Shares is subject to the satisfaction, on or before each Closing Date, of
each of the following conditions set forth below.

 

(A)         The
Company shall have executed the Equity Line Transaction Documents and delivered the same to the Investor.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	18	 

    	 

    

 

(B)         The
Common Stock shall be authorized for quotation on the Principal Market and trading in the Common Stock shall not have been suspended
by the Principal Market or the SEC, at any time beginning on the date hereof and through and including the respective Closing Date
(excluding suspensions of not more than one (1) Trading Day resulting from business announcements by the Company, provided that
such suspensions occur prior to the Company's delivery of the Put Notice related to such Closing).

 

(C)         The
representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as
of the applicable Closing Date as though made at that time and the Company shall have performed, satisfied and complied in all
material respects with the covenants, agreements and conditions required by the Equity Line Transaction Documents to be performed,
satisfied or complied with by the Company on or before such Closing Date. The Investor may request an update as of such Closing
Date regarding the representation contained in Section 4(C) above.

 

(D)         The
Company shall have executed and delivered to the Investor the certificates representing, or have executed electronic book-entry
transfer of, the Securities (in such denominations as the Investor shall request) being purchased by the Investor at such Closing.

 

(E)         The
Board of Directors of the Company shall have adopted resolutions consistent with Section 4(B)(2) above (the “Resolutions”)
and such Resolutions shall not have been amended or rescinded prior to such Closing Date.

 

(F)         INTENTIONALLY
OMITTED.

 

(G)         No
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

(H)         The
Registration Statement shall be effective on each Closing Date and no stop order suspending the effectiveness of the Registration
statement shall be in effect or to the Company's knowledge shall be pending or threatened. Furthermore, on each Closing Date (1)
neither the Company nor the Investor shall have received notice that the SEC has issued or intends to issue a stop order with respect
to such Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of such Registration Statement,
either temporarily or permanently, or intends or has threatened to do so (unless the SEC's concerns have been addressed and Investor
is reasonably satisfied that the SEC no longer is considering or intends to take such action), and (2) no other suspension of the
use or withdrawal of the effectiveness of such Registration Statement or related prospectus shall exist.

 

(I)         At
the time of each Closing, the Registration Statement (including information or documents incorporated by reference therein) and
any amendments or supplements thereto shall not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading or which would require public disclosure
or an update supplement to the prospectus.

 

(J)         The
Company shall have certified to the Investor the number of Shares of Common Stock outstanding when a Put Notice is given to the
Investor. The Company's delivery of a Put Notice to the Investor constitutes the Company's certification of the reservation for
issuance of the necessary number of shares of Common Stock subject to a Put Notice.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	19	 

    	 

    

 

SECTION
9.        TERMINATION. This Agreement shall terminate upon any of the
following events:

 

(A)         when
the Investor has purchased an aggregate of five million dollars ($5,000,000) in the Common Stock of the Company pursuant to this
Agreement; or,

 

(B)         on
the date which is thirty-six (36) months after the Effective Date; or,

 

(C)         upon
written notice of the Company to the Investor. Any and all shares, or penalties, if any, due under this Agreement shall be immediately
payable and due upon termination of this Agreement.

 

SECTION
10.     SUSPENSION. The Company’s right to cause the Investor to
purchase Shares pursuant to a Put Notice, and the Investor’s obligation to purchase Shares under this Agreement shall be
suspended upon any of the following events, and shall remain suspended until such event is rectified:

 

(A)         The
trading of the Common Stock is suspended by the SEC, the Principal Market or FINRA or ceases to be listed or traded on a Principal
Market for a period of two (2) consecutive Trading Days during the Open Period; or,

 

(B)         The
Common Stock ceases to be registered under the 1934 Act. Immediately upon the occurrence of one of the above-described events,
the Company shall send written notice of such event to the Investor.

 

SECTION
11.     INDEMNIFICATION. In consideration of the parties’ mutual
obligations set forth in the Transaction Documents, each of the parties (in such capacity, an “Indemnitor”) shall defend,
protect, indemnify and hold harmless the other and all of the other party's shareholders, officers, directors, employees, counsel,
and direct or indirect investors and any of the foregoing person's agents or other representatives (including, without limitation,
those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages,
and reasonable expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys' fees and disbursements (the “Indemnified Liabilities”),
incurred by any Indemnitee as a result of, or arising out of, or relating to (A) any material misrepresentation or breach of any
representation or warranty made by the Indemnitor in the Equity Line Transaction Documents or any other certificate, instrument
or document contemplated hereby or thereby; (B) any material breach of any covenant, agreement or obligation of the Indemnitor
contained in the Equity Line Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby;
or (C) any cause of action, suit or claim brought or made against such Indemnitee by a third party and arising out of or resulting
from the execution, delivery, performance or enforcement of the Equity Line Transaction Documents or any other certificate, instrument
or document contemplated hereby or thereby, except insofar as (Y) any such misrepresentation, breach or any untrue statement, alleged
untrue statement, omission or alleged omission is made in reliance upon and in conformity with information furnished to Indemnitor
which is specifically intended for use in the preparation of any such Registration Statement, preliminary prospectus, prospectus
or amendments to the prospectus, (Z) any such Indemnified Liabilities resulted or arose from the breach by the Indemnitee party
hereto of any representation, warranty, covenant or agreement of such Indemnitee contained in the Equity Line Transaction Documents
or the negligence, recklessness, willful misconduct or bad faith of such Indemnitee. To the extent that the foregoing undertaking
by the Indemnitor may be unenforceable for any reason, the Indemnitor shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities which is permissible under applicable law. The indemnity provisions contained herein shall
be in addition to any cause of action or similar rights Indemnitor may have, and any liabilities the Indemnitor or the Indemnitees
may be subject to.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	20	 

    	 

    

 

SECTION
12.      GOVERNING LAW; DISPUTES SUBMITTED TO ARBITRATION. All disputes
arising under this agreement shall be governed by and interpreted in accordance with the laws of the State of New York, without
regard to principles of conflict of laws. The parties to this agreement will submit all disputes arising under this agreement to
arbitration in Boston, MA before a single arbitrator of the American Arbitration Association (“AAA”). The arbitrator
shall be selected by application of the rules of the AAA, or by mutual agreement of the parties, except that such arbitrator shall
be an attorney admitted to practice law in Commonwealth of Massachusetts. No party to this Agreement will challenge the jurisdiction
or venue provisions as provided in this section. No party to this agreement will challenge the jurisdiction or venue provisions
as provided in this section. Nothing contained herein shall prevent the party from obtaining an injunction.

 

SECTION
13.      LEGAL EXPENSES; AND MISCELLANEOUS EXPENSES. Except as otherwise
set forth in the Equity Line Transaction Documents, each party shall pay the fees and expenses of its advisers, counsel, the accountants
and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery
and performance of this Agreement. Any attorneys' fees and expenses incurred by either the Company or the Investor in connection
with the preparation, negotiation, execution and delivery of any amendments to this Agreement or relating to the enforcement of
the rights of any party, after the occurrence of any breach of the terms of this Agreement by another party or any default by another
party in respect of the transactions contemplated hereunder, shall be paid on demand by the party which breached the Agreement
and/or defaulted, as the case may be. The Company shall pay all stamp and other taxes and duties levied in connection with the
issuance of any Securities. The Company has paid $7,500 toward the preparation of the Equity Line Transaction Document and the
remaining $7,500 will be immediately due upon signing of final documentation. If the Company is not DWAC eligible at the time of
a Put Closing, there will be a $2,000 charge on each Closing Date to cover costs associated with, but not limited to: deposit costs,
legal review fees and wire fees. If the Company is DWAC eligible at the time of a Put Closing, there will be a $250 charge on each
Closing Date.

 

SECTION
14.      COUNTERPARTS. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party; provided that a facsimile signature shall be considered due execution and
shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.

 

SECTION
15.      HEADINGS; SINGULAR/PLURAL. The headings of this Agreement are for
convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. Whenever required by the
context of this Agreement, the singular shall include the plural and masculine shall include the feminine.

 

SECTION
16.      SEVERABILITY. If any provision of this Agreement shall be invalid
or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other
jurisdiction.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	21	 

    	 

    

 

SECTION
17.      ENTIRE AGREEMENT; AMENDMENTS. This Agreement is the FINAL AGREEMENT
between the Company and the Investor with respect to the terms and conditions set forth herein, and, the terms of this Agreement
may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the Parties. No provision of this
Agreement may be amended other than by an instrument in writing signed by the Company and the Investor, and no provision hereof
may be waived other than by an instrument in writing signed by the party against whom enforcement is sought. The execution and
delivery of the Equity Line Transaction Documents shall not alter the force and effect of any other agreements between the Parties,
and the obligations under those agreements.

 

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

 

If to the Company:

 

INNOLOG HOLDINGS CORPORATION

4000 Legato Road, Suite 830

Fairfax, Virginia 22033

Telephone: (703) 766-1412

 

with a copy to:

 

Richardson & Patel LLP

750 Thrid Avenue, 9th Floor

New York, NY 10017

Telephone: (212) 869-7000

  

If to the Investor:

 

Dutchess Opportunity Fund, II, LP

50 Commonwealth Avenue, Suite 2

Boston, MA 02116

Telephone: (617) 301-4700

 

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

 

SECTION
19.      NO ASSIGNMENT. This Agreement and any rights, agreements or obligations
hereunder may not be assigned, by operation of law, merger or otherwise, without the prior written consent of the other party hereto,
and any purported assignment by a party without prior written consent of the other party will be null and void and not binding
on such other party. Subject to the preceding sentence, all of the terms, agreements, covenants, representations, warranties and
conditions of this Agreement are binding upon, and inure to the benefit of and are enforceable by, the parties and their respective
successors and assigns.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	22	 

    	 

    

 

SECTION
20.      NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the
benefit of the parties hereto and is not for the benefit of, nor may any provision hereof be enforced by, any other person, except
that the Company acknowledges that the rights of the Investor may be enforced by its general partner.

 

SECTION
21.      SURVIVAL. The indemnification provisions set forth in Section 11,
shall survive each of the Closings and the termination of this Agreement.

 

SECTION
22.      PUBLICITY. The Company and the Investor shall consult with each
other in issuing any press releases or otherwise making public statements with respect to the transactions contemplated hereby
and no party shall issue any such press release or otherwise make any such public statement without the prior consent of the other
party, which consent shall not be unreasonably withheld or delayed, except that no prior consent shall be required if such disclosure
is required by law, in which such case the disclosing party shall provide the other party with prior notice of such public statement.
The Investor acknowledges that this Agreement and all or part of the Equity Line Transaction Documents may be deemed to be “material
contracts” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to
file such documents as exhibits to reports or registration statements filed under the 1933 Act or the 1934 Act. The Investor further
agrees that the status of such documents and materials as material contracts shall be determined solely by the Company, in consultation
with its counsel.

 

SECTION
23.      FURTHER ASSURANCES. Each party shall do and perform, or cause to
be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates,
instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby.

 

SECTION
24.      INTENTIONALLY OMITTED.

 

SECTION
25.      NO STRICT CONSTRUCTION. The language used in this Agreement will
be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be
applied against any party, as the parties mutually agree that each has had a full and fair opportunity to review this Agreement
and seek the advice of counsel on it.

 

SECTION
26.      REMEDIES. Each of the Company and the Investor shall have all of
their respective rights and remedies set forth in this Agreement and the Registration Rights Agreement and all rights and remedies
which each has been granted at any time under any other agreement or contract between the parties hereto and all of the rights
which such person has by law. Any person having any rights under any provision of this Agreement shall be entitled to enforce such
rights specifically (without posting a bond or other security), to recover damages by reason of any default or breach of any provision
of this Agreement, including the recovery of reasonable attorneys fees and costs, and to exercise all other rights granted by law.

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	23	 

    	 

    

 

SECTION
27.     PAYMENT SET ASIDE. To the extent that the Company makes a payment
or payments to the Investor hereunder or under the Registration Rights Agreement or the Investor enforces or exercises its rights
hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded,
repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without limitation,
any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if
such payment had not been made or such enforcement or setoff had not occurred.

 

SECTION
28.     PRICING OF COMMON STOCK. For purposes of this Agreement, the VWAP
of the Common Stock shall be as reported on a direct feed service.

 

SECTION
29.     NON-DISCLOSURE OF NON-PUBLIC INFORMATION.

 

(A)        The
Company shall not disclose non-public information concerning the Company to the Investor, its advisors, or its representatives.

 

(B)         Nothing
herein shall require the Company to disclose non-public information to the Investor or its employees, advisors or representatives,
provided, however, that notwithstanding anything herein to the contrary, the Company will, as hereinabove provided, immediately
notify the advisors and representatives of the Investor and, if any, underwriters, of any event or the existence of any circumstance
(without any obligation to disclose the specific event or circumstance) of which it becomes aware, constituting non-public information
(whether or not requested of the Company specifically or generally during the course of due diligence by such persons or entities),
which, if not disclosed in the prospectus included in the Registration Statement would cause such prospectus to include a material
misstatement or to omit a material fact required to be stated therein in order to make the statements, therein, in light of the
circumstances in which they were made, not misleading. Nothing contained in this Section 29 shall be construed to mean that such
persons or entities other than the Investor (without the written consent of the Investor prior to disclosure of such information)
may not obtain non-public information in the course of conducting due diligence in accordance with the terms of this Agreement
and nothing herein shall prevent any such persons or entities from notifying the Company of their opinion that based on such due
diligence by such persons or entities, that the Registration Statement contains an untrue statement of material fact or omits a
material fact required to be stated in the Registration Statement or necessary to make the statements contained therein, in light
of the circumstances in which they were made, not misleading.

 

SECTION
30.       ACKNOWLEDGEMENTS OF THE PARTIES. Notwithstanding anything in this
Agreement to the contrary, the parties hereto hereby acknowledge and agree to the following: (A) subject to Section 3(C) hereof,
the Investor makes no representations or covenants that it will not engage in trading in the securities of the Company, other than
the Investor will not sell any of the Company's common stock at any time during a Pricing Period; (B) the Company shall, by 8:30
a.m. Boston Time on the fourth Trading Day following the date hereof, file a current report on Form 8-K disclosing the material
terms of the transactions contemplated hereby and in the other Equity Line Transaction Documents; (C) the Company has not and shall
not provide material non-public information to the Investor unless prior thereto the Investor shall have executed a written agreement
regarding the confidentiality and use of such information; and (D) the Company understands and confirms that the Investor will
be relying on the acknowledgements set forth in clauses (A) through (C) above if the Investor effects any transactions in the securities
of the Company.

 

[Signature Page Follows]

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	24	 

    	 

    

 

SIGNATURE PAGE OF INVESTMENT AGREEMENT

 

Your signature on this
Signature Page evidences your agreement to be bound by the terms and conditions of the Investment Agreement and the Registration
Rights Agreement as of the date first written above.

 

The undersigned signatory
hereby certifies that he has read and understands the Investment Agreement, and the representations made by the undersigned in
this Investment Agreement are true and accurate, and agrees to be bound by its terms.

 

	 	DUTCHESS OPPORTUNITY FUND, II, LP	 
	 	 	 	 
	 	By: 	 	 
	 	 	Douglas H. Leighton	 
	 	 	Managing Member of:	 
	 	 	Dutchess Capital Management, II, LLC	 
	 	 	General Partner to:	 
	 	 	Dutchess Opportunity Fund, II, LP	 

 

	 	INNOLOG HOLDINGS CORPORATION	 
	 	 	 	 
	 	By:	 	 
	 	William P. Danielczyk	 
	 	Executive Chairman of the Board	 
	 	Principal Executive Officer	 
	 	 	 	 
	 	By:	 	 
	 	Eric Wagner	 
	 	Chief Financial Officer	 

 

Signature Page to Investment
Agreement

 

    	 

    	 

    

 

LIST OF EXHIBITS 

 

	EXHIBIT A	 	Registration Rights Agreement
	EXHIBIT B	 	Opinion of Company's Counsel
	EXHIBIT C	 	Put Notice
	EXHIBIT D	 	Put Settlement Sheet

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	26	 

    	 

    

 

EXHIBIT A

 

REGISTRATION RIGHTS AGREEMENT

 

(Attached)

 

    	A-1

    	 

    

 

EXHIBIT B

 

OPINION OF COMPANY’S COUNSEL

 

(Attached)

 

    	B-1

    	 

    

 

EXHIBIT C

 

FORM OF PUT NOTICE

 

Date:_________________

 

RE: Put Notice Number
_______

 

Dear Mr. Leighton:

 

This is to inform you that as of today,
[Company Name]. an XXXXX corporation (the "Company"), hereby elects to exercise its right pursuant to the
Investment Agreement entered into with Dutchess Opportunity Fund II, LP (“Dutchess”) to require Dutchess
to purchase shares of its common stock. The Company hereby certifies that:

 

1. The undersigned is the duly elected
______________ of the Company.

 

2. There are no fundamental changes to
the information set forth in the Registration Statement which would require the Company to file a post effective amendment to the
Registration Statement.

 

3. The Company has performed in all material
respects all covenants and agreements to be performed by the Company and has complied in all material respects with all obligations
and conditions contained in this Agreement on or prior to the Put Notice Date, and shall continue to perform in all material respects
all covenants and agreements to be performed by the Company through the applicable Put Date. All conditions to the delivery of
this Put Notice are satisfied as of the date hereof.

 

4. The undersigned hereby represents, warrants
and covenants that it has made all filings (“SEC Filings”) required to be made by it pursuant to applicable
securities laws (including, without limitation, all filings required under the Securities Exchange Act of 1934, which include Forms
10-Q, 10-K, 8-K, etc.). All SEC Filings and other public disclosures made by the Company, including, without limitation, all press
releases, analysts meetings and calls, etc. (collectively, the “Public Disclosures”), have been reviewed and
approved for release by the Company’s attorneys and, if containing financial information, the Company’s independent
certified public accountants. None of the Company’s Public Disclosures contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

 

5. The amount of this put is up to _______________
shares.

 

6. The Pricing Period runs from ______________
until _____________.

 

7. The Suspension Price is $_______________.

 

8. The current number of shares issued
and outstanding as of the Company are: ______________

 

9. The number of shares currently available
for resale pursuant to the Registration Statement on Form S-1 for the Equity Line are:________________.

 

	 	[Company Name]	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	 

    	 

    

 

EXHIBIT D

 

FORM OF PUT SETTLEMENT SHEET

 

Date:_______________

 

RE:  INNOLOG
HOLDINGS CORPORATION

 

Dear _____________:

 

Pursuant to the Put given by INNOLOG HOLDINGS
CORPORATION to Dutchess Opportunity Fund, II, LP on ______________________ 20__, we are now submitting the amount of common shares for
you to issue to Dutchess.

 

Please deliver __________ shares without
restrictive legend via book entry to Dutchess Opportunity Fund, II, LP immediately and send via DWAC to the following account:

 

XXXXXX

 

Once these shares are received by us, we
will have the funds wired to the Company.

 

Regards,

 

Douglas H. Leighton

 

    	 

    	 

    

 

	DATE	 	PRICE
	Date of Day 1	 	VWAP of Day 1
	Date of Day 2	 	VWAP of Day 2
	Date of Day 3	 	VWAP of Day 3
	Date of Day 4	 	VWAP of Day 4
	Date of Day 5	 	VWAP of Day 5

 

	LOWEST VWAP IN PRICING PERIOD	 	 
	 	 	 
	PUT AMOUNT	 	 
	 	 	 
	PURCHASE PRICE (NINETY-FIVE PERCENT (95%))	 	 
	 	 	 
	AMOUNT OF SHARES DUE	 	 

 

The undersigned has completed
this Put as of this ___th day of _________, 20__.

 

	 	INNOLOG HOLDINGS CORPORATION	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	INHC.INVESTMENT AGREEMENT.JUNE.2012	4

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