Document:

Exhibit 10.6

 

Employment Agreement

 

THIS IS AN AGREEMENT,
effective as of January 1, 2015 by and between M Line Holdings, Inc. (“M Line”) (the “Company”) and Jitu Banker
(the “Executive”). As used herein, the term “Agreement” shall mean this Employment Agreement and all schedules
and exhibits thereto (as supplemented and amended from time to time).

 

WHEREAS, the Company
desires to employ the Executive, and the Executive desires to be employed by the Company;

 

NOW, THEREFORE, in
consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which consideration is hereby acknowledged, and the continued employment of Executive, the parties agree as follows:

 

1.   Definition
of Terms. The following terms referred to in this Agreement shall have the following meanings for purposes of this Agreement:

 

(a)   Cause.
“Cause” is defined as (i) a material act of dishonesty made by Executive in connection with Executive’s responsibilities
as an Executive that leads to material harm to the Company, (ii) Executive’s conviction of, or plea of guilty or nolo contendere
to, a felony, (iii) an act by Executive which constitutes gross misconduct or fraud and which is materially injurious to the Company.

 

(b)   Change of
Control. “Change of Control” of the Company is defined as: (i) a merger or consolidation of the Company in
which the stockholders of the Company immediately prior to such transaction would own, in the aggregate, less than 50% of the
total combined voting power of all classes of capital stock of the surviving entity normally entitled to vote for the
election of directors of the surviving entity or (ii) the sale by the Company of all or substantially all the Company’s
assets in one transaction or in a series of related transactions.

 

2.   Employment.

 

The Company hereby
employs the Executive, and the Executive hereby accepts employment with the Company, upon the terms and conditions hereinafter
set forth.

 

During the Term, Executive
shall serve as a Director and Chief Financial Officer (“CFO”) or a position agreed to by the Company’s Board of Directors
(“Board”). In such capacity, Executive will perform such duties on behalf of the Company consistent with his position
as CFO and as may be assigned to him from time to time by the Company’s Board.

 

Executive agrees to
abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes therein which may
be adopted from time to time by the Company

 

    	 

    	 

    

 

1.          Term.

 

The term
of the Executive’s employment under this Agreement will commence on January 1, 2015 will continue for a period of three (3) years
unless earlier terminated pursuant to Section 6 of this Agreement (“Term”).

 

2.          Extent
of Services.

 

During the
Term, the Executive will devote his full time and best efforts to the performance of his duties under this Agreement. Executive
shall at all times endeavor to act in good faith and in a manner consistent with the best interests of the Company. Without limiting
the foregoing, the Executive agrees not to accept or perform full or part-time employment or consulting services, or other “free
lance” activities, for any other business or non-profit entity, unless otherwise agreed to in writing by the Board. Furthermore,
the Executive may only serve on the board of directors or other board of a for-profit and/or charitable corporation during the
term of his employment with the Company if such service is specifically approved in writing by the Board and so long as such position
does not violate any other provisions of this Agreement or interfere with the Executive’s ability to perform his job duties hereunder.
A list of the organization(s) of which Executive serves as a director, a description of each such organization’s activities, and
the time commitment required by Executive in the service of each such organization(s).

 

3.          Compensation
and Benefits.

 

4.1           For
services rendered by Executive as COO of the Company, the Company shall pay Executive a base salary of $8,100 bi-weekly, which
annualizes to $210,600. This salary will be paid 75% in cash and 25% in shares of the Company at the then market value less 30%
discount from market value.

 

4.2           Quarterly
Bonus.

 

Executive
shall be entitled to a quarterly bonus due within three weeks of the end of each quarter. This bonus is based on the gross profit
of the business and is payable as follows:

 

First            $2,000,000
gross profit, 0% commission

 

Thereafter                                          2%
commission

 

The quarterly bonus is paid
on revenues of the M Line Holdings group of companies and will be reviewed every six months to reflect any acquisitions.

 

4.3           Annual
Bonus. Executive shall also be eligible to be considered a discretionary annual bonus after the completion of the audited
financial statements of the Company for each completed calendar year of employment, the granting of which and the amount of which,
if any, is to be determined in the sole discretion of the Board. If the Board decides to grant Executive an annual bonus, then
such granted annual bonus payable within sixty (60) days after completion of the audited financial statements of the Company for
the applicable year (the “Discretionary Bonus”);

 

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4.4.           Benefits. The Executive
will be entitled to receive or participate in such retirement, medical, dental, life, supplemental life and other benefit programs
or plans as are available to other senior executives of the Company.

 

4.5           Company
Vehicle. Company will pay the car payment on executive’s vehicle and will provide a car allowance of $750 per month. Executive
will be responsible for insurance, and maintenance on the car

 

4.6           Change
of Control.

 

(a) Termination Following
A Change of Control. If, within twelve (12) months following a Change of Control, the Company terminates Executive other than
for Cause or Executive voluntarily terminates as a result of a Constructive Termination, then, provided Executive also executes
and a general release in a form determined by the Company at the time of termination:

 

(i)      Executive
will be entitled to receive a severance payment equal to nine (9) months of Employee’s base salary as in effect as of the date
of such termination, less applicable withholding, payable in a lump sum within thirty (30) days of the termination;

 

(ii)     The
vesting of shares subject to all stock options granted by the Company to Executive prior to the Change of Control which, assuming
Executive’s continued employment with the Company, would have become vested and exercisable within eighteen (18) months following
the date of termination or Constructive Termination shall accelerate and become vested and exercisable as of the date of termination;
and

 

(iii)    if
(1) Executive constitutes a qualified beneficiary, as defined in Section 4980B(g)(1) of the Internal Revenue Code of 1986, as amended,
and (2) Employee elects continuation coverage pursuant to Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”),
within the time period prescribed pursuant to COBRA, reimbursement for health care coverage under COBRA, until the earlier of (x)
the date Employee is no longer eligible to receive continuation coverage pursuant to COBRA, (y) six (6) months following such termination,
or (z) for such shorter period until Employee obtains new employment offering health insurance coverage.

 

(b) Accrued Wages and Vacation;
Expenses. Without regard to the reason for, or the timing of, Executive’s termination of employment: (i) the Company shall
pay Executive any unpaid base salary due for periods prior to the date of termination; (ii) the Company shall pay Executive all
of Executive’s accrued and unused PTO through the date of (not deferred) termination; and (iii) following submission of proper
expense reports by Executive, the Company shall reimburse Executive for all expenses reasonably and necessarily incurred by Executive
in connection with the business of the Company prior to the date of termination. These payments shall be made promptly upon termination
and within the period of time mandated by law.

 

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4.7.    Limitation on Payments. In the
event that the benefits provided for in this Agreement or otherwise payable to Employee (i) constitute “parachute payments”
within the meaning of Section 280G of the Code, and (ii) would be subject to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then Executive’s benefits under this Agreement shall be either

 

(a)    delivered
in full, or

 

(b)    delivered
as to such lesser extent which would result in no portion of such benefits being subject to the Excise Tax,

 

whichever of the foregoing amounts, taking into account the
applicable federal, state and local income taxes and the Excise Tax, results in the receipt by Executive on an after-tax basis,
of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999
of the Code.

 

Unless the Company and Executive otherwise
agree in writing, any determination required under this Section shall be made in writing by the Company’s independent public accountants
(the “Accountants”), whose determination shall be conclusive and binding upon Executive and the Company for all purposes.
For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G and
4999 of the Code. The Company and Executive shall furnish to the Accountants such information and documents as the Accountants
may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may
reasonably incur in connection with any calculations contemplated by this Section.

 

4.8           No
Duty to Mitigate. Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor
shall any such payment be reduced by any earnings that Employee may receive from any other source.

 

4.9           Vacation.
The Executive shall be entitled to accrue a total of four (4) weeks of paid vacation annually, at a rate of 1.75 days per month.
Such vacation shall be taken with reasonable notice to the Board and at such time and in such intervals as are mutually acceptable
to the Executive and the Company. Any accrued vacation must be taken in the year it accrued. Any accrued unused vacation at the
end of the calendar year will be carried over into subsequent years. Executive agrees not to take more than two (2) weeks vacation
at the same time.

 

4.10         Expenses.
The Company will, upon substantiation thereof, promptly reimburse the Executive for all reasonable expenses of types authorized
in the ordinary course of business and incurred by the Executive in connection with the Company’s business affairs. The Executive
must submit a statement of these expenses with supporting documentation in accordance with accounting and reporting requirements
as the Company may from time to time establish.

 

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4.11         Termination.
A termination of the Executive’s employment with the Company for any reason by either party or for non-renewal by either party
will be deemed a termination of this Agreement and the Executive shall be deemed to have resigned from any Board or other positions
held with the Company. Either party may terminate this Agreement prior to the end of the Term by giving ninety (90) days prior
written notice of such termination, provided that if Executive gives notice of termination, the Company may, in its sole discretion,
accelerate his last day of employment without waiting for the end of the notice period and if the Company chooses to accelerate
the Executive’s last day of employment, the Executive will be entitled to pay for the notice period remaining after the Executive’s
last day of employment and if terminated by the company will also be entitled to the severance payment described in section 4 6
(a) (i).

 

5.1           Non-Disclosure.

 

(a)          The
Executive agrees that all information and know-how, whether or not in writing, of a proprietary, secret or confidential nature
concerning the Company’s business or financial affairs (collectively, “Proprietary Information”) learned by him during
the Employment Period or at any time prior to the Employment Period by virtue of Executive’s prior relationship with the Company,
is and will be the exclusive property of the Company. By way of illustration, but not limitation, Proprietary Information includes
creative ideas and concepts; contemplated or planned business ventures, projects, developments, media or marketing plans, research
data, financial data, personnel data, computer programs, and client, customer and supplier lists, whether or not copyrightable,
trademarkable or licensable. As applied to any actual past or present client of the Company, Proprietary Information shall include
all of the foregoing. With respect to any potential client of the Company, Proprietary Information shall be limited to such of
the foregoing as may be received by the Company or developed by or for the Company in connection with any actual or proposed solicitation
of business from such potential client, whether initiated by the Company, the potential client or otherwise. At all times during
and after the Employment Period, Executive will not, directly or indirectly, disclose any Proprietary Information to others outside
the Company or, directly or indirectly, use the Proprietary Information for any unauthorized purposes or for his own benefit or
the benefit of a third party without written approval by the Board, either during or after his employment, except: (i) as required
in the course of performing her duties hereunder; (ii) if such Proprietary Information has become public knowledge without the
fault of the Executive; or (iii) as authorized or required to be released by a court of competent jurisdiction or governmental
agency.

 

(b)          The
Executive agrees that all files, letters, memoranda, reports, records, data, sketches, drawings, notebooks, program listings, or
other written, photographic, or other tangible material, whether created by the Executive or by or with others to which Executive
has access by virtue of his employment by the Company or which he creates or comes into his custody or possession during the Employment
Period, is the exclusive property of the Company, to be used by the Executive only in the performance of his duties for the Company.

 

(c)          The
Executive agrees that his obligation not to disclose or use information, know-how and records of the types set forth in paragraphs
(a) and (b) above also extends to such types of information, know-how, records and tangible property of customers of the Company
or suppliers to the Company or other third parties who may have disclosed or entrusted the same to the Company or to the Executive
in the course of the Company’s business.

 

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5.2           Ownership
of Developments.

 

(a)          The
Executive will make full and prompt disclosure to the Company of all inventions, improvements, ideas, concepts, approaches, discoveries,
methods, developments, software and works of authorship, whether or not copyrightable, trademarkable, patentable or licensable,
which are created, made, conceived or reduced to practice by the Executive or under his direction or jointly with others during
his employment by the Company, whether or not during normal working hours or on the premises of the Company (all of which are collectively
referred to in this Agreement as “Developments”). All Developments are considered “works made for hire” to
the extent permitted under the copyright laws of the United States.

 

(b)          The
Executive agrees to assign and does hereby assign to the Company (or any person or entity designated by the Company) all his right,
title and interest in and to all Developments and all related patents, patent applications, copyrights, copyright applications,
goodwill, and any works described above that are not considered “works made for hire” under the copyright laws of the
United States. This Section 7.2(b) shall not apply to Developments which: (i) do not relate to the present or planned business,
or research and development, of the Company; (ii) and which are not made and conceived by the Executive (xx) during the course
of his job duties for the Company, (yy) on the Company’s or its affiliates’ premises, or (zz) using the Company’s tools, devices,
equipment, financial resources, Proprietary Information or any other Company property or resources.

 

(c)          The
Executive agrees to cooperate fully with the Company both during and after his employment with the Company, with respect to the
procurement, maintenance and enforcement of copyrights, patents and trademarks (both in the United States and foreign countries)
relating to Developments. The Executive further agrees to promptly disclose all Developments to the Company, and, upon request,
promptly take all reasonable actions and execute and deliver, without further consideration, such assignments and other good and
sufficient instruments of transfer and conveyance, and all other such documents as, in the opinion of the Company, shall be effective
to vest in the Company full title thereto, or to secure for the Company the full benefit thereof, including, without limitation,
the execution of all documents and the doing of all acts necessary and proper to file, obtain, maintain and enforce patent applications,
patents copyrights and all other available forms of protection in the United States and all other countries of the world. To protect
the Company in case Executive fails to do so, Executive hereby irrevocably appoints the President of the Company as my attorney-in-fact,
empowered solely to execute in my name and deliver such documents.

 

5.3           Non-Solicitation.

 

(a)          Executive
acknowledges that, prior to and during the course of his employment with the Company, Executive has been and will be exposed to,
provided with, given access to the Company’s Proprietary Information and has had and will have contacts with the Company’s customers,
potential customers, vendors and distribution network. Executive also acknowledges that the Company invests substantial time, money
and other resources in hiring, educating and training employees and developing in its employees skills and knowledge specific to
the Company and its business. As a result, Executive agrees to the restrictions set forth in this Section 7.3 for a period of six
months only following termination or if the Executive leaves for any reason and acknowledges that such restrictions are tailored,
reasonable and necessary to protect the legitimate business interests, including Proprietary Information, goodwill and employee
relationships, of the Company.

 

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(b)          During
the term and for a period of six months after the Executive’s employment with the Company is terminated, for any reason, by the
Company or the Executive, the Executive will not, without the Board’s prior written approval, directly or indirectly, on behalf
of himself or any other person or entity, in any geographic location in which the Company conducts business:

 

(i)          recruit,
solicit or induce, or attempt to induce, or assist any individual or entity to recruit, solicit or induce, or attempt to induce,
any employee or consultant of the Company to terminate his or her employment or consulting relationship with or otherwise cease
or diminish his or her relationship with the Company or otherwise interfere with the relationship between any employee or consultant
of the Company and the Company; or

 

(ii)         solicit,
divert or take away, or attempt to divert or to take away, or assist any individual or entity to solicit, divert or take away,
or attempt to divert or to take away, the business or patronage of any of the clients, customers or accounts, or prospective clients,
customers or accounts, of the Company. For purposes of this Section 7.3, a prospective client, customer or account is any individual
or entity whose business is solicited by the Company, proposed to be solicited by the Company or who approaches the Company with
respect to possibly becoming a client, customer, or account at any time during the Employment Period.

 

5.4           Enforcement,
Remedies.

 

(a)          If
any restriction set forth in this entire Section 5 is found by any court of competent jurisdiction to be unenforceable because
it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be
interpreted to extend only over the maximum period of time, range of activities or geographic areas to which it may be enforceable.

 

(b)          The
restrictions contained in this Section 5 are necessary for the protection of the business and goodwill of the Company and are considered
by the Executive to be reasonable for this purpose. The Executive agrees that any breach of this Section 5 will cause the Company
substantial and irreparable harm for which monetary damages are not adequate and, therefore, in the event of any such breach, in
addition to such other remedies which may be available, the Executive agrees to the award of specific performance and grant of
injunctive relief to the Company requiring compliance with the provisions of Section 5 and the Company shall not be required to
post a bond or provide any other security in connection with such award or grant of injunctive relief.

 

5.5           Survival
of Obligation. The obligations of the Executive under this Section 7 will survive the termination of this Agreement.

 

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6.          Notices.
All notices under this Agreement must be in writing and must be delivered by hand or mailed by certified or registered mail, postage
prepaid, return receipt requested, to the parties as follows:

 

	If to the Company:	M Line Holdings, Inc.
	 	2320 E Orangethorpe Avenue
	 	Anaheim, CA 92806
	 	 
	If to the Executive:	To the address set forth below the signature of the Executive

 

or to such other address as is specified in a notice
complying with this Section 8. Any such notice is deemed given on the date delivered by hand or three days after the date of mailing.

 

7.          Modification
or Amendment. No provisions of this Agreement may be modified, waived, or discharged except by a written document signed by
a Company officer duly authorized by the Board or a member of the Board, on the one hand, and the Executive, on the other hand.

 

10.         Waiver.
A waiver of any conditions or provisions of this Agreement in a given instance shall not be deemed a waiver of such conditions
or provisions at any other time in the future. No failure or delay by the Company in exercising any right, power, or remedy under
this Agreement shall operate as a waiver of any such right power or remedy.

 

11.         Choice
of Law. The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws of the
State of California without regard to its conflicts of laws principles.

 

12.         Successors.
This Agreement shall be binding upon, and shall inure to the benefit of, the Employee and his estate, but the Executive may not
assign or pledge this Agreement or any rights arising under it. Without the Executive’s consent, the Company may assign this Agreement
to any affiliate or to a successor to substantially all the business and assets of the Company.

 

13.         Survival.
The provisions of Section 7 hereof shall survive termination of this Agreement or termination of the Executive’s employment with
the Company or any successor or assign regardless of the reason for such termination.

 

14.         Validity
and Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect.

 

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17.         Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together
shall constitute the same instrument.

 

18.         Entire
Agreement. The Executive acknowledges that, with respect to the subject matter hereof, this Agreement contains the entire understanding
and agreement between the Executive and the Company, superseding any previous oral or written communication, representation, understanding
or agreement with the Company or any representative thereof.

 

	Jitu Banker	 	M Line Holdings, inc.
	 	 	 
	/s/ Jitu Banker	 	/s/ Bruce
    W. Barren
	Date: January 1, 2015.	 	By: Bruce Barren
	Address:	 	Its: CEO
	36 Rimani Drive	 	Date: January 1, 2015
	Mission Viejo, CA 92692	 	 

 

    	9Exhibit 10.7(1)

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

This SECOND
AMENDMENT TO CREDIT AGREEMENT (the “Amendment”) is dated effective as of the 15th day of
January, 2015, by and between M LINE HOLDINGS, INC., a Nevada corporation (the “Issuing Borrower”),
E.M. TOOL COMPANY, INC., a California corporation, and PRECISION AEROSPACE AND TECHNOLOGIES, INC., a Nevada corporation
(each of the foregoing, including the Issuing Borrower, hereinafter sometimes individually referred to as a “Borrower”
and all such entities sometimes hereinafter collectively referred to as “Borrowers”), JITENDRA BANKER,
an individual, and ANTHONY ANISH, an individual (collectively, the “Guarantors”), and TCA
GLOBAL CREDIT MASTER FUND, LP, a Cayman Islands limited partnership (the “Lender”).

 

RECITALS

 

WHEREAS,
the Borrowers and the Lender executed that certain Credit Agreement dated as of March 31, 2013, but made effective as of April
30, 2013 (the “Original Credit Agreement”), together with First Amendment to Credit Agreement dated
as of September 27, 2013 (the “First Amendment”) (the Original Credit Agreement and First Amendment,
together with all other renewals, extensions, future advances, amendments, modifications, substitutions, or replacements thereof,
sometimes collectively referred to as the “Credit Agreement”); and

 

WHEREAS,
pursuant to the Credit Agreement, the Borrowers executed and delivered to Lender that certain Revolving Note dated as of as of
March 31, 2013, but made effective as of April 30, 2013, evidencing a Revolving Loan under the Credit Agreement in the amount
of One Million Seven Hundred Thousand Dollars ($1,700,000) (the “Revolving Note”); and

 

WHEREAS,
in connection with the Credit Agreement and the Revolving Note, the Borrowers and the Guarantors executed and delivered to the
Lender various ancillary documents referred to in the Credit Agreement as the Loan Documents; and

 

WHEREAS, the Borrowers’
obligations under the Credit Agreement and the Revolving Note are secured by the following, all of which are included within the
Loan Documents: (i) a Security Agreement dated as of March 31, 2013, but made effective as of April 30, 2013, from the Borrowers
in favor of the Lender (the “Security Agreement”), pursuant to which the Lender has a continuing, perfected,
first-priority security interest encumbering all of the “Collateral” (as such term is defined in the Security Agreement)
of each of the Borrowers; (ii) a Validity Guaranty dated as of March 31, 2013, but made effective as of April 30, 2013, from Guarantors
in favor of Lender (the “Validity Guaranty”); and (iii) UCC-1 Financing Statements naming the
Borrowers, as debtor, and Lender, as secured party, one filed with the Secretary of State of the State of Nevada under filing
No. 2013011251-3, and one filed with the Secretary of State of the State of California under filing No. 13-7359071723 (collectively,
the “UCC-1’s”), among other Loan Documents; and

 

WHEREAS, the Borrowers,
the Guarantors, and Lender entered into that certain Settlement Agreement dated as of September 8, 2014 (the “Settlement
Agreement”) in connection with the obligations of the Borrowers under the Credit Agreement and Revolving Note; and

 

WHEREAS, the Borrowers
and Guarantors are currently in default of their respective obligations under the Credit Agreement, Settlement Agreement, and
other Loan Documents (the “Existing Default”); and

 

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WHEREAS,
the Borrowers, the Guarantors, and Lender desire to enter into certain agreements with respect to the Credit Agreement and the
other Loan Documents, all as more specifically set forth in this Amendment;

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants of the parties hereinafter expressed and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto, each intending to be legally bound, agree as follows:

 

1.             Recitals.
The recitations set forth in the preamble of this Amendment are true and correct and incorporated herein by this reference.

 

2.             Capitalized
Terms. All capitalized terms used in this Amendment shall have the same meaning ascribed to them in the Credit Agreement, except
as otherwise specifically set forth herein. In addition, the other definitional and interpretation provisions of Sections 1.2,
1.3 and 1.4 of the Credit Agreement shall be deemed to apply to all terms and provisions of this Amendment, unless the express
context otherwise requires.

 

3.             Conflicts.
In the event of any conflict or ambiguity by and between the terms and provisions of this Amendment and the terms and provisions
of the Credit Agreement, the terms and provisions of this Amendment shall control, but only to the extent of any such conflict
or ambiguity.

 

4.             Modification
of Note. From and after the date hereof, the Revolving Note shall be and is hereby severed, split, divided and apportioned
into two (2) separate and distinct notes, as follows:

 

(a)        Replacement
Revolving Note A evidencing a principal indebtedness of One Hundred Thousand and No/100 Dollars ($100,000.00), and which is
being executed and delivered by Borrowers to Lender simultaneously herewith (the “Replacement Note
A”). Replacement Note A shall be and remain secured by the Security Agreement, the Validity Guaranty, the UCC-1’s, and all other applicable Loan Documents.

 

(b)        Replacement
Revolving Note B evidencing a principal indebtedness of Two Million Three Hundred Sixty-Eight Thousand Three Hundred Ninety-Five
and 90/100 Dollars ($2,368,395.90), and which is being executed and delivered by Borrowers to Lender simultaneously herewith (the
“Replacement Note B”, and together with Replacement Note A, collectively, the “Replacement
Notes”). Replacement Note B shall be and remain secured by the Security Agreement, the Validity Guaranty, the UCC-1’s,
and all other applicable Loan Documents.

 

(c)        The
Replacement Notes are being executed and delivered simultaneously herewith in substitution for and to supersede the Revolving Note
in its entirety. It is the intention of the Borrowers and Lender that while the Replacement Notes replace and supersede the Revolving
Note, in its entirety, it is not in payment or satisfaction of the Revolving Note, but rather is the substitute of one evidence
of debt for another without any intent to extinguish the old. Nothing contained in this Amendment or in the Replacement Notes shall
be deemed to extinguish the indebtedness and obligations evidenced by the Revolving Note or constitute a novation of the indebtedness
evidenced by the Revolving Note.

 

(d)        Notwithstanding
the splitting of the Revolving Note into the Replacement Notes in the principal amounts as contemplated by this Amendment, Borrowers
understand and acknowledge  that all sums received by Lender in payment of the Replacement Notes, or either one of them, shall
be applied by Lender in accordance with the terms of the Credit Agreement, first to outstanding fees, charges and other costs due
and payable under the Credit Agreement and other Loan Documents, second to accrued and unpaid interest, and last to outstanding
principal. By way of example, and not in limitation, if Replacement Note A is sold as contemplated under the Debt Purchase Agreement,
upon Lender’s receipt of the purchase price therefor, such amounts received by Lender shall be applied to the total indebtedness
evidenced by the Replacement Notes in the order described above.

 

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(e)        Borrowers
understand and acknowledge that in connection with the Debt Purchase Agreement, it may necessary or desirable, in Lender’s
sole and absolute discretion, to have the Borrowers further sever, split, divide and apportion the Replacement Notes further to
accomplish the sale of the Outstanding Claims to Purchaser in various tranches, as more specifically set forth in the Debt Purchase
Agreement. In that regard, within no later than three (3) Business Days after request therefor is made by Lender to Borrowers from
time to time, the Borrowers agree to further sever, split, divide and apportion the Replacement Notes, or any of them (or any replacement
notes issued in replacement thereof from time to time), and to execute and deliver such replacement notes to Lender within such
time frames as required or requested by Lender from time to time.

 

5.             Sale
of Replacement Notes. 

 

(a)        The
parties acknowledge that Lender is entering into this Amendment in connection with the contemplated sale of the indebtedness represented
by the Replacement Notes to Iconic Holdings I, LLC (“Purchaser”) under the terms of a Debt Purchase Agreement
(the “Debt Purchase Agreement”) to be entered into promptly after the execution of this Amendment. In
that regard, the Borrowers and Guarantors hereby represent and warrant to Lender as follows, which representations and warranties
shall be true and correct as of the date hereof, and which representations and warranties shall be deemed re-made and be true and
correct as of each sale of the Replacement Notes:

 

(i)        All
amounts of any nature or kind due and owing by the Borrowers and Guarantors to Lender under the Credit Agreement and the other
Loan Documents, and represented by the Replacement Notes or any other Loan Documents (collectively, the “Outstanding
Claims”) are bona fide Outstanding Claims against the Borrowers and Guarantors, respectively and as applicable, and
are enforceable obligations of the Borrowers and Guarantors, respectively and as applicable, arising in the ordinary course of
business, for services and financial accommodations rendered to the Borrowers by Lender in good faith. The Outstanding Claims are
currently due and owing and are payable in full.

 

(ii)        The
amount of the Replacement Notes, respectively and as applicable, is the amount due to Lender with respect thereto as of the date
hereof, and neither the Borrowers, nor the Guarantors are entitled to any discounts, allowances or other deductions with respect
thereto. The aggregate amount of the indebtedness evidenced by the Replacement Notes was funded by Lender to Borrowers at least
x six months preceding
the date hereof, or  ̈
one year preceding the date hereof.

 

(iii)        The
Outstanding Claims are not subject to dispute by the Borrowers or Guarantors, and the Borrowers and Guarantors are unconditionally
obligated to pay the full amount of all Outstanding Claims without defense, counterclaim or offset.

 

(iv)        Except
for the Credit Agreement and other Loan Documents, including this Amendment and the Settlement Agreement, there has been no modification,
compromise, forbearance, or waiver (written or oral) entered into or given by Lender to Borrowers or Guarantors with respect to
the Outstanding Claims.

 

    	3

    	 

    

 

(v)             Intentionally
left blank.

 

(vi)           That
the Credit Agreement and each of the Loan Documents executed by the Borrowers and Guarantors, including the Settlement Agreement,
respectively and as applicable, and all obligations due and owing thereunder, are valid and binding obligations of the Borrowers
and Guarantors, respectively and as applicable, enforceable against the Borrowers and Guarantors in accordance with their respective
terms.

 

(b)         The
Borrowers and Guarantors acknowledge that the Outstanding Claims are being sold by Lender to Purchaser in accordance with the Debt
Purchase Agreement, and that payment of the purchase price by Purchaser to Lender for such Outstanding Claims is conditioned upon
the Borrowers’ strict compliance with the terms of certain agreements to be entered into between the Borrowers and Purchaser
(the “Iconic Agreements”). Borrowers hereby covenant and agree to strictly comply with each and every
term and provision of the Iconic Agreements, including, without limitation, timely issuance and delivery of Common Stock to Purchaser
upon conversion by Purchaser of any convertible notes then in Purchaser’s possession. In addition, Borrowers and Guarantors
hereby acknowledge that if the Issuing Borrower fails to issue and deliver its Common Stock to Purchaser in strict accordance with
the terms of the Iconic Agreements, then the Outstanding Claims (or any portion thereof for which the purchase price therefor remains
unpaid) shall be and remain a valid and effective debt of the Borrowers and Guarantors, respectively and as applicable, to Lender,
enforceable in accordance with its terms, and such Outstanding Claims, and all collateral and security rights related thereto (except
with respect to any portion of the Outstanding Claims sold to Purchaser and for which the purchase price therefor was paid to Lender),
shall not be deemed or construed as having been compromised, settled, exchanged, extinguished, modified, or otherwise impaired
in any manner whatsoever.

 

(c)         The
Borrowers and Guarantors understand and acknowledge that Lender is relying on the representations, warranties and covenants of
the Borrowers and Guarantors set forth in this Amendment in order to enter into the Debt Purchase Agreement, and the foregoing
representations, warranties and acknowledgements by the Borrowers and Guarantors are a material inducement for Lender to agree
to a sale of the Outstanding Claims to Purchaser, and without this acknowledgement, Lender would not have sold the Outstanding
Claims to Purchaser.

 

6.             Ratification.
The Borrowers and Guarantors each hereby acknowledge, represent, warrant and confirm to Lender that: (i) each of the Loan Documents
executed by the Borrowers and Guarantors, including the Settlement Agreement, are valid and binding obligations of the Borrowers
and Guarantors, respectively and as applicable, enforceable against the Borrowers and Guarantors in accordance with their respective
terms; (ii) all Obligations of the Borrowers and Guarantors under the Credit Agreement, all other Loan Documents and this Amendment,
including the Settlement Agreement, shall be and continue to be and remain (after execution of this Amendment and the Debt Purchase
Agreement) secured by and under the Loan Documents, including the Security Agreement, the Validity Guaranty, and the UCC-1’s;
(iii) there are no defenses, setoffs, counterclaims, cross-actions or equities in favor of the Borrowers or Guarantors, to or against
the enforcement of any of the Loan Documents, and to the extent any of the Borrowers or Guarantors have any defenses, setoffs,
counterclaims, cross-actions or equities against Lender and/or against the enforceability of any of the Loan Documents, the Borrowers
and Guarantors each acknowledge and agree that same are hereby fully and unconditionally waived by the Borrowers and Guarantors;
and (iv) no oral representations, statements, or inducements have been made by Lender, or any agent or representative of Lender,
with respect to the Credit Agreement, this Amendment, the Settlement Agreement, or any other Loan Documents, or the Debt Purchase
Agreement.

 

    	4

    	 

    

 

7.              Additional
Confirmations. The Borrowers hereby represent, warrant and covenant as follows: (i) that the Lender’s Liens and security
interests in all of the “Collateral” (as such term is defined in the Credit Agreement and the Security Agreement) are
and remain valid, perfected, first-priority security interests in such Collateral, subject only to Permitted Liens and as otherwise
released in accordance with the terms of the Settlement Agreement and the Debt Purchase Agreement, and the Borrowers have not granted
any other Liens or security interests of any nature or kind in favor of any other Person affecting any of such Collateral.

 

8.              Lender’s
Conduct. As of the date of this Amendment, the Borrowers and Guarantors hereby acknowledge and admit that: (i) the Lender has
acted in good faith and has fulfilled and fully performed all of its obligations under or in connection with the Credit Agreement
or any other Loan Documents; and (ii) that there are no other promises, obligations, understandings or agreements with respect
to the Credit Agreement or the Loan Documents, except as expressly set forth herein, or in the Credit Agreement and other Loan
Documents.

 

9.              Redefined
Terms. The term “Loan Documents,” as defined in the Credit Agreement and as used in this Amendment, shall be deemed
to refer to and include this Amendment, the Replacement Notes, the Settlement Agreement, and all other documents or instruments
executed in connection with this Amendment.

 

10.           Affirmation
of Validity Guaranty. The Guarantors do hereby acknowledge and agree as follows: (i) Guarantors acknowledge having reviewed
the terms of this Amendment, and agree to the terms thereof; (ii) that the Validity Guaranty, and all representations, warranties,
covenants, agreements and guaranties made by Guarantors thereunder, and any other Loan Documents by which the Guarantors may be
bound, shall and do hereby remain, are effective and continue to apply to the Loan Documents, and with respect to all obligations
of the Borrowers under the Loan Documents, as amended by this Amendment; (iii) that this Amendment shall not in any way adversely
affect or impair the obligations of the Guarantors to Lender under any of the Loan Documents; and (iv) the Validity Guaranty is
hereby ratified, confirmed and continued, all as of the date of this Amendment.

 

11.           Representations
and Warranties of the Borrowers. The Borrowers hereby make the following representations and warranties to the Lender:

 

(a)             Authority
and Approval of Agreement; Binding Effect. The execution and delivery by the Borrowers of this Amendment, the Replacement Notes,
and all other documents executed and delivered in connection herewith and therewith, and the performance by Borrowers of all of
their Obligations hereunder and thereunder, have been duly and validly authorized and approved by the Borrowers and their respective
board of directors pursuant to all applicable laws and no other corporate action or consent on the pail of the Borrowers, their
board of directors, stockholders or any other Person is necessary or required by the Borrowers to execute this Amendment, the Replacement
Notes, and the documents executed and delivered in connection herewith and therewith, to consummate the transactions contemplated
herein or therein, or perform all of the Borrowers’ Obligations hereunder or thereunder. This Amendment, the Replacement
Notes, and each of the documents executed and delivered in connection herewith and therewith have been duly and validly executed
by the Borrowers (and the officer executing this Amendment and all such other documents for each Borrower is duly authorized to
act and execute same on behalf of each Borrower) and constitute the valid and legally binding agreements of the Borrowers, enforceable
against the Borrowers in accordance with their respective terms.

 

    	5

    	 

    

 

12.           Indemnification.
Each Borrower and Guarantors, jointly and severally, hereby indemnifies and holds the Lender Indemnitees, their successors
and assigns, and each of them, harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, claims, costs, expenses and distributions of any kind or nature, payable by any of the Lender Indemnitees to
any Person, including reasonable attorneys’ and paralegals’ fees and expenses, court costs, settlement amounts, costs
of investigation and interest thereon from the time such amounts are due at the highest non-usurious rate of interest permitted
by applicable law (collectively, the “Claims”), through all negotiations, mediations, arbitrations,
trial and appellate levels, as a result of, or arising out of, or relating to any matters relating to this Amendment, the Credit
Agreement or any other Loan Documents, including the assertion of a claim or ruling by a Governmental Authority that documentary
stamp tax, intangible tax or any penalties or interest associated therewith must be paid by reason of the execution and delivery
of any of the Replacement Notes. The foregoing indemnification obligations shall survive the termination of the Credit Agreement
or any of the Loan Documents, repayment of the Obligations, and the sale of any portion of the Outstanding Claims.

 

13.           Release.
As a material inducement for Lender to enter into this Amendment, each of the Borrowers and Guarantors does hereby release, waive,
discharge, covenant not to sue, acquit, satisfy and forever discharges each of the Lender Indemnitees and their respective successors
and assigns, from any and all Claims whatsoever in law or in equity which the Borrowers or Guarantors ever had, now have, or which
any successor or assign of the Borrowers or Guarantors hereafter can, shall or may have against any of the Lender Indemnitees or
their successors and assigns, for, upon or by reason of any matter, cause or thing whatsoever related to the Credit Agreement,
this Amendment or any other Loan Documents, through the date hereof. The Borrowers and Guarantors further expressly agree that
the foregoing release and waiver agreement is intended to be as broad and inclusive as permitted by the laws governing the Credit
Agreement. In addition to, and without limiting the generality of foregoing, the Borrowers and Guarantors further covenant with
and warrant unto the Lender and each of the other Lender Indemnitees, that as of the date hereof, there exists no claims, counterclaims,
defenses, objections, offsets or other Claims against Lender or any other Lender Indemnitees, or the obligation of the Borrowers
and Guarantors to comply with the terms and provisions of the Credit Agreement, this Amendment and all other Loan Documents. The
foregoing release shall survive the termination of the Credit Agreement or any of the Loan Documents, repayment of the Obligations,
and the sale of any portion of the Outstanding Claims.

 

14.           Effect
on Agreement and Loan Documents. Except as expressly amended by this Amendment, all of the terms and provisions of the Credit
Agreement and the Loan Documents shall remain and continue in full force and effect after the execution of this Amendment, are
hereby ratified and confirmed, and incorporated herein by this reference.

 

15.           Waiver.
This Amendment shall not be deemed or construed in any manner as a waiver by the Lender of any Claims, defaults, Events of Default,
breaches or misrepresentations by the Borrowers or Guarantors under the Credit Agreement, any other Loan Documents, or any of Lender’s
rights or remedies in connection therewith.

 

    	6

    	 

    

 

16.             Execution.
This Amendment may be executed in one or more counterparts, all of which taken together shall be deemed and considered one and
the same Amendment, and same shall become effective when counterparts have been signed by each party and each party has delivered
its signed counterpart to the other party. In the event that any signature is delivered by facsimile transmission or by e-mail
delivery of a “.pdf” format file or other similar format file, such signature shall be deemed an original for all purposes
and shall create a valid and binding obligation of the party executing same with the same force and effect as if such facsimile
or “.pdf” signature page was an original thereof.

 

17.             Fees
and Expenses.

 

(a)            Document
Review and Legal Fees; Due Diligence. The Borrowers hereby agree to pay to the Lender or its counsel a legal fee equal to
Three Thousand Five Hundred and No/100 Dollars ($3,500.00) for the preparation, negotiation and execution of this Amendment and
all other documents in connection herewith. Borrowers and Lender agree and acknowledge that the foregoing fees and costs contemplated
hereby have been paid and received by Lender’s counsel.

 

18.             Additional
Agreements. Not later than five (5) Business Days after the execution of this Amendment by Borrowers and Guarantors, Borrowers
and Guarantors shall cause their legal counsel to withdraw and file the appropriate notice of withdrawal, with prejudice, of that
certain Motion to Vacate Entry of Sister-State Judgment filed by Borrowers, Guarantors, and others, with the Superior Court of
California, County of Orange — Central Justice Center, in Case No. 30-2014-00761998-CU-EN-CJC. Failure of the Borrowers
and Guarantors to withdraw such motion as hereby required shall be an additional and immediate Event of Default under the Credit
Agreement and all other Loan Documents. In addition, not later than five (5) Business Days after the execution of this Amendment
by Borrowers and Guarantors, Borrowers and Guarantors shall cause their legal counsel to file a notice of withdrawal, with prejudice,
of all objections and alleged grounds to vacate TCA’s Sister-State Judgment entered against them in the District Court of
Nevada, County of Clark, in Case No. A-15-711963-F Dept. No. XXV.

 

[Signatures on
the following page]

 

    	7

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have duly executed this Amendment as of the day and year first above written.

 

	BORROWERS:
	 
	M LINE HOLDINGS, INC.,
	a Nevada corporation

 

	By:	/s/ Anthony L. Anish	 	 
	Name:	ANTHONY L. ANISH	 	 
	Title:	COO	 	 

 

	E.M. TOOL COMPANY, INC.,	 	PRECISION AEROSPACE AND 	 
	a California corporation	 	TECHNOLOGIES, INC.,	 
	 	 	a Nevada corporation	 
	 	 	 	 
	By:	/s/ Anthony L. Anish	 	By:	/s/ Anthony L. Anish	 
	Name:	ANTHONY L. ANISH	 	Name:	ANTHONY L. ANISH	 
	Title:	PRES	 	Title:	PRES	 
	 	 	 	 	 	 
	JITENDRA BANKER,	 	ANTHONY ANISH	 
	an Individual	 	an Individual	 
	 	 	 	 	 
	By:	/s/ J. Banker	 	By:	/s/ Anthony L. Anish	 
	Name:	J. BANKER	 	Name:	ANTHONY L. ANISH	 

 

	LENDER:	 	 
	 	 	 
	TCA GLOBAL CREDIT MASTER FUND, LP	 
	 	 	 
	By:	TCA Global Credit Fund GP, Ltd.	 
	Its:	General Partner	 
	 	 	 
	By:	/s/ Robert
    Press	 
	 	Robert Press, Director	 

 

    	8

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