Document:

Unassociated Document

    
      STOCK
PURCHASE AGREEMENT

      

      THIS STOCK PURCHASE AGREEMENT
is entered into as of this 8th day of December, 2008 (this “Agreement”), by and
between Money Line Capital, Inc., a California corporation, (“MLCI”), on the one
hand, and the individuals listed on Exhibit A (the “Shareholders”), on the other
hand.  Each of MLCI and the Shareholders may be referred to as a
“Party” and collectively as the “Parties.”

      

      WHEREAS, the Shareholders own
the number of shares of Gateway International Holdings, Inc., a Nevada
corporation (“Gateway”) indicated on Exhibit A, which
constitutes a majority of the outstanding shares of Gateway common
stock;

      

      WHEREAS, Gateway is a
reporting company under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and, as such, is subject to the Exchange Act reporting
requirements;

      

      WHEREAS, in the future,
Gateway intends to file an application with FINRA to become re-listed on The OTC
Bulletin Board;

      

      WHEREAS, MLCI desires to
purchase from the Shareholders the number of shares of Gateway common stock
indicated on Exhibit
A (the “Shares”), which equals approximately 43% of the outstanding
shares of common stock of Gateway;

      

      WHEREAS, the Shareholders
desire to sell the Shares to MLCI in exchange for the Purchase Price listed in
Section 1.1, below;

      

      NOW, THEREFORE, in
consideration of the promises and the mutual agreements contained in this
Agreement, the Parties hereby agree as follows:

      

      ARTICLE
1

      SALE
OF THE SHARES

      

      Section
1.1       Sale of the
Shares.  Subject to the terms and conditions set forth in this
Agreement, the Shareholders agree to sell, transfer and assign to MLCI and MLCI
agrees to purchase from the Shareholders, the Shares, for an aggregate purchase
price of $2,211,750 (the “Purchase Price”).

      

      Section
1.2        Payment of the Purchase
Price.  The Purchase Price will be paid in three installments
as follows:

      

      
        
          
            	
                    Installment Amount

                  	
                    Due Date

                  
	 
      	 
      
	
                    $907,500

                  	
                    Closing
      Date

                  
	
                    $135,000

                  	
                    December
      15, 2008

                  
	
                    $619,250

                  	
                    January
      31, 2009

                  
	
                    $550,000

                  	
                    March
      31, 2009

                  

          

           

          
            
              
              

            

            
              1 of
16

              
                

              

            

            
              
              

            

          

        

      

      

      Section
1.3        Proceeds of the Purchase
Price.  The Purchase Price will be paid to the Shareholders and
will be divided among the Shareholders as set forth on Exhibit
A.  The Shares will be put in the name of MLCI at Closing, and
MLCI will have the right to vote the Shares for any matter that comes up before
a vote of the common stockholders of Gateway, but the certificates representing
the Shares in MLCI’s name will be held by The Lebrecht Group, APLC (the “Escrow
Agent”), until such time as the Purchase Price has been paid in full to the
Shareholders, as more fully set forth in that certain Escrow Agreement dated of
even date herewith.

      

      Section
1.4        Resignations of
Shareholders.  As further consideration for the purchase of the
Shares by MLCI, the Shareholders will terminate their current employment or
independent contractor agreements with Gateway and will resign from all officer
positions they hold with Gateway.  The Shareholders also agree to
resign from their Board of Director positions, effective upon the appointment of
new Directors by Gateway post-Closing.

      

      Section
1.5        Employment
Agreement.  As further consideration for selling the Shares,
MLCI and Gateway agree that Gateway will enter into an employment agreement with
Timothy D. Consalvi in the form attached hereto as Exhibit B immediately
after the Closing (the “Employment Agreement”).

      

      Section
1.6        Re-Listing on
OTCBB.  As further consideration for selling the Shares, MLCI
agrees to use its best efforts to have Gateway file an application with FINRA to
become re-listed on The OTC Bulletin Board, and agrees to take all actions
within its power so that Gateway gets re-listed on The OTC Bulletin Board as
soon as possible, unless such re-listing becomes impossible due to regulatory
issues with FINRA and/or the Securities Exchange Commission.

      

      Section
1.7        Voting
Proxies.  As further consideration for the purchase of the
Shares by MLCI, the Shareholders agree that the shares of Gateway common stock
they own after the Closing (the “Proxy Shares”) will be subject to the following
additional restrictions:

      

      (a)           At
Closing, the Shareholders immediately and irrevocable grant to MLCI a proxy to
vote the Proxy Shares in any way that MLCI deems fit.  The proxy
granted hereunder shall not be cancellable and shall be irrevocable until such
time as released in writing by MLCI.  The proxy shall be in the form
attached hereto as Exhibit
C.

      

      (b)           The
Shareholders further agree that they will not sell, assign, transfer,
hypothecate, or otherwise transfer or encumber the Proxy Shares without first
providing a written offer to MLCI to purchase the Proxy Shares at least ten (10)
days prior to any Shareholder selling their Proxy Shares.  MLCI shall
have three (3) business days to purchase the shares on the same terms as those
offered by any third party.

       

       

      
        
          
          

        

        
          2 of
16

          
            

          

        

        
          
          

        

      

      

      Section
1.8       Saputo/Frisco
Lawsuit.  As further consideration for selling the Shares, MLCI
agrees to indemnify and hold Gateway and the Shareholders harmless from any
damages, including damages for liability, attorney’s fees, and court costs, if
any, that Gateway and the Shareholders are ordered to pay to Plaintiffs as a
result from that certain lawsuit entitled Onofrio Saputo and Christopher
Frisco v. Gateway International Holdings, Inc., Lawrence Consalvi, Timothy
Consalvi and Joe Gledhill, Court of the State of California, County of
Orange, Case No. 30-2008-00110905, filed on August 21, 2008.

      

      Section
1.9        Indemnification for
Transaction.  As further consideration for selling the Shares,
MLCI agrees to indemnify and hold Gateway and the Shareholders harmless from any
damages, including damages for liability, attorney’s fees, and court costs, if
any, that Gateway and the Shareholders are ordered to pay to any third-party
plaintiffs (actions brought by individuals or entities that are not Parties to
this Agreement) as a result of the stock purchase transaction evidenced by this
Agreement.

      

      ARTICLE
2

      CLOSING
AND DELIVERY

      

      Section
2.1       Closing
Date.  Upon the terms and subject to the conditions set forth
herein, the consummation of the purchase and sale of the Shares (the “Closing”)
shall be held simultaneous with the execution of this Agreement, or at such
other time mutually agreed upon between the constituent parties (the “Closing
Date”).  The Closing shall take place at the offices of the
Shareholders set forth in Section 7.1 hereof, or by the exchange of documents
and instruments by mail, courier, facsimile and wire transfer to the extent
mutually acceptable to the parties hereto.

      

      Section
2.2        Delivery at Closing.
At the Closing:

      

      (a)           The
Shareholders shall deliver to the Escrow Agent:

       

      
        
          	
                   
      

                	
                  (1)

                	
                  the
      Shares, in the name of MLCI, subject to no liens, security interests,
      pledges, encumbrances, charges, restrictions, demands or claims in any
      other party whatsoever;

                

        

         

      

      (b)           The
Shareholders shall deliver to MLCI:

      

      
        
          	
                   
      

                	
                  (1)

                	
                  executed
      copies of their resignations in the form attached hereto as Exhibit D;
      and

                

        

        

        
          	
                   
      

                	
                  (2)

                	
                  executed
      copy of the Employment
Agreement.

                

        

      

       

      (c)           MLCI
shall deliver to the Shareholders:

       

      
        
          	
                   
      

                	
                  (1)

                	
                  the
      sum of $907,500, which is the first installment of the Purchase Price;
      and

                

        

        

        
          	
                   
      

                	
                  (2)

                	
                  a
      fully executed copy of the MLCI Board of Directors resolution approving
      this Agreement and the transactions contemplated
  hereby.

                

        

         

        
          
            
            

          

          
            3 of
16

            
              

            

          

          
            
            

          

        

         

      

      (d)           Gateway
shall deliver to the Shareholders:

       

      
        
          	
                   

                	
                  (1)

                	
                  a
      fully executed copy of the Gateway Board of Directors resolution approving
      the actions Gateway must take under this
  Agreement;

                

        

        

        
          	
                   

                	
                  (2)

                	
                  executed
      copies of the Employment Agreement;

                

        

        

        
          	
                   

                	
                  (3)

                	
                  and
      executed copy of the Gledhill Note;
and

                

        

        

        
          	
                   

                	
                  (4)

                	
                  a
      waiver or consent executed by Pacific Western Bank consenting to, or
      waiving its right to approve, the transactions contemplated by this
      Agreement, to the extent necessary under Gateway’s loan agreements with
      Pacific Western Bank dated September 29,
  2008.  

                

        

      

       

      ARTICLE
3

      REPRESENTATIONS
AND WARRANTIES OF THE SHAREHOLDERS

      

      The
Shareholders represent and warrant to MLCI that as of the date
hereof:

      

      Section
3.1        Authorization; No
Agreements.  The execution, delivery and performance by the
Shareholders of this Agreement, the performance of its obligations hereunder,
and the consummation of the transactions contemplated hereby are within the
Shareholders’ powers.  The Shareholders have full legal capacity to
execute and deliver this Agreement and perform its obligations
hereunder.  This Agreement has been duly and validly executed and
delivered by the Shareholders and is a legal, valid and binding obligation of
the Shareholders, enforceable against the Shareholders in accordance with its
terms.  The execution, delivery and performance by the Shareholders of
this Agreement do not violate any contractual restriction contained in any
agreement which binds or affects or purports to bind or affect the
Shareholders.  The Shareholders are not a party to any agreement,
written or oral, creating rights in respect of any of the Shares on the part of
any third party or relating to the voting of the Shares.  As of the
Closing, there will not be any outstanding or authorized options, warrants,
rights, calls, commitments, conversion rights, rights of exchange or other
agreements of any character, contingent or otherwise, providing for the
purchase, issuance or sale of any of the Shares, or any arrangements that
require or permit any of the Shares to be voted by or at the discretion of
anyone other than the lawful holder thereof, and there are no restrictions of
any kind on the transfer of any of the Shares other than (a) restrictions on
transfer imposed by the Securities Act of 1933, as amended (the “Securities
Act”) and (b) restrictions on transfer imposed by applicable state securities or
“blue sky” laws.

       

      
        
          
          

        

        
          4 of
16

          
            

          

        

        
          
          

        

      

       

      Section
3.2        Capitalization.

      

      (a)           The
authorized capital stock of the Gateway consists of One Hundred Million
(100,000,000) shares of common stock, par value $0.001 per share, of which
27,611,956 shares will be issued and outstanding as of the Closing; and Ten
Million (10,000,000) shares of preferred stock, none of which is issued or
outstanding.  All of the outstanding shares of capital stock of
Gateway have been duly authorized and validly issued and are fully paid and
nonassessable and were not issued in violation of any preemptive or similar
rights. All of the issued and outstanding shares of capital stock of Gateway has
been offered, issued and sold by Gateway in compliance with all applicable
federal and state securities laws.  No securities of Gateway are
entitled to preemptive or similar rights, and no person, natural or otherwise,
has any right of first refusal, preemptive right, right of participation, or any
similar right to participate in the transactions contemplated
hereby.  Other than Gateway’s agreement with Stephen Kasprisin, as of
the Closing there are no outstanding options, warrants, script, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exchangeable for, or
giving any Person any right to subscribe for or acquire, any shares of the
common stock, or contracts, commitments, understandings or arrangements by which
Gateway is or may become bound to issue additional shares of the common stock,
or securities or rights convertible or exchangeable into shares of the common
stock.  The sale of the Shares will not obligate Gateway to issue
shares of common stock or other securities to any Person and shall not result in
a right of any holder of Gateway securities to adjust the exercise, conversion,
exchange or reset price under such securities.

      

      (b)           There
are no stockholder agreements, voting trusts or other agreements or
understandings to which the Shareholders are a party or by which they are bound
relating to the voting of any the Shares.

      

      (c)           The
Shares, when delivered in accordance with the terms of this Agreement, shall be
validly issued, fully paid and non-assessable and the Shares shall not be
subject to any lien, charge, security interest or other encumbrance or
preemptive or other similar right.

      

      Section
3.3       Subsidiary.  “Subsidiary”
or “Subsidiaries” means all corporations, trusts, partnerships, associations,
joint ventures or other Persons, as defined below, of which a corporation or any
other Subsidiary of such corporation owns not less than twenty percent (20%) of
the voting securities or other equity or of which such corporation or any other
Subsidiary of such corporation possesses, directly or indirectly, the power to
direct or cause the direction of the management and policies, whether through
ownership of voting shares, management contracts or
otherwise.  “Person” means any individual, corporation, trust,
association, partnership, proprietorship, joint venture or other
entity.  As of the Closing, Gateway has three subsidiaries, All
American CNC Sales, Inc., E.M. Tool Company, Inc., and Eran Engineering,
Inc.  As of the Closing, Gateway owns 100% of the outstanding
securities of such Subsidiaries.

       

      
        
          
          

        

        
          5 of
16

          
            

          

        

        
          
          

        

      

       

      Section
3.4       Liabilities or
Debts.  As of the Closing, Gateway does not have any material
liabilities or debts, whether accrued, contingent or absolute, of the type
required to be disclosed in Gateway’s financial statements under generally
accepted accounting principles, other than those listed in Gateway’s periodic
filings filed with the Securities and Exchange Commission.  Gateway
has 85 employees.

      

      Section
3.5        Litigation.  Except
as listed in Gateway’s periodic Exchange Act filings filed with the Securities
and Exchange Commission, there is no (a) action, suit, investigation, audit or
proceeding pending against, or, to the best knowledge of the Shareholders,
threatened or contemplated against or affecting, Gateway or any of its assets or
properties before or by any court or arbitrator or any governmental body, agency
or official or (b) injunction, outstanding judgment, restraining order, decree
or other order of any nature to which Gateway is subject or to which the
business, assets or property of Gateway is subject.  Gateway is not in
default with respect to any order, writ, injunction, decree, ruling or decision
of any court, commission, board or any other government agency. The Securities
and Exchange Commission (the “Commission”) has not issued any stop order or
other order suspending the effectiveness of any registration statement filed by
Gateway under the Securities Exchange Act of 1934 (the “Exchange Act”) or the
Securities Act, except as set forth in Gateway’s Exchange Act and Securities Act
filings.

      

      Section
3.6        Taxes.  (a)
Gateway has (i) duly filed with the appropriate taxing authorities all tax
returns required to be filed by or with respect to its business, including with
respect to the Subsidiaries, and all such duly filed tax returns are true,
correct and complete in all material respects in relation to any and all
applicable taxes, fees, levies, duties, tariffs, imposts, and other charges of
any kind (together with any and all interest, penalties, additions to tax and
additional amounts imposed with respect thereto) imposed by any government or
taxing authority, including taxes or other charges on or with respect to income,
franchises, windfall or other profits, gross receipts, property, sales, use,
capital stock, payroll, employment, social security, workers’ compensation,
unemployment compensation, or net worth; taxes or other charges in the nature of
excise, withholding, ad valorem, stamp, transfer, value added, or gains taxes;
license, registration and documentation fees; and customs’ duties, tariffs, and
similar charges, and (ii) paid in full or made adequate provisions for on its
balance sheet (in accordance with generally accepted accounting principles) all
taxes shown to be due on such tax returns.  There are no liens for
taxes upon the assets of Gateway or any of its subsidiaries.  Gateway
and its subsidiaries have not received any notice of audit, is not undergoing
any audit of its tax returns, and has not received any notice of deficiency or
assessment from any taxing authority with respect to liability for taxes which
has not been fully paid or finally settled. There have been no waivers of
statutes of limitations by Gateway with respect to any tax
returns.  Gateway has not filed a request with the Internal Revenue
Service for changes in accounting methods within the last three years which
change would affect the accounting for tax purposes, directly or indirectly, of
its business.  Gateway has not executed an extension or waiver of any
statute of limitations on the assessment or collection of any taxes due
(excluding such statutes that relate to years currently under examination by the
Internal Revenue Service or other applicable taxing authorities) that is
currently in effect.

       

      
        
          
          

        

        
          6 of
16

          
            

          

        

        
          
          

        

      

       

      Section
3.7        No
Brokers.  No brokerage or finder’s fees or commissions are or
will be payable by the Shareholders to any broker, financial advisor or
consultant, finder, placement agent, investment banker, bank or other person
with respect to the transactions contemplated by this Agreement, and the
Shareholders have not taken any action that would cause MLCI to be liable for
any such fees or commissions.  The Shareholders agree that MLCI shall
have no obligation with respect to any fees or with respect to any claims made
by or on behalf of any Person, for fees of the type contemplated by this Section
and the Shareholders shall indemnify and hold MLCI harmless from any fees, costs
or liabilities of any kind incurred by MLCI in connection
therewith.

      

      Section
3.8        Disclosure.  All
disclosure provided to MLCI regarding Gateway, its business and the transactions
contemplated hereby, furnished by or on behalf of Gateway with respect to the
representations and warranties made herein, are true and correct in all material
respects with respect to such representations and warranties and do not contain
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading.

      

      Section
3.9       No Disagreements with
Accountants and Lawyers.  There are no disagreements of any
kind presently existing, or reasonably anticipated by the Shareholders to arise,
between the accountants and lawyers formerly or presently employed by Gateway
and Gateway is current with respect to any fees owed to its accountants and
lawyers.

      

      Section
3.10      No
Conflicts.  The execution, delivery and performance of this
Agreement and the transactions contemplated hereby do not and will not: (i)
conflict with or violate any provision of Gateway’s Certificate of
Incorporation, Bylaws or other organizational or charter documents; (ii)
conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice,
lapse of time or both) of any agreement, credit facility, debt or other
instrument (evidencing a Gateway debt or otherwise) or other understanding to
which Gateway is a party or by which any property or asset of Gateway is bound
or affected; and (iii) result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or
governmental authority to which Gateway is subject (including federal and state
securities laws and regulations), or by which any property or asset of Gateway
is bound or affected.

      

      Section
3.11      Filings, Consents and
Approvals.  Gateway is not required to obtain any consent,
waiver, authorization or order of any court or other federal, state, local or
other governmental authority or other Person in connection with the execution,
delivery and performance of this Agreement.

       

      
        
          
          

        

        
          7 of
16

          
            

          

        

        
          
          

        

      

      

      Section
3.12      Compliance.  Other
than as set forth in Gateway’s Exchange Act and Securities Act filings, Gateway:
(i) is not in default under or in violation of (and no event has occurred that
has not been waived that, with notice or lapse of time or both, would result in
a default by Gateway under), nor has Gateway received notice of a claim that it
is in default under or that it is in violation of, any indenture, loan or credit
agreement or any other material agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or
violation has been waived), (ii) is not in violation of any order of any court,
arbitrator or governmental body and (iii) is not and has not been in violation
of any statute, rule or regulation of any governmental authority.

      

      Section
3.13      Assets.  All
Gateway leases for real or personal property are valid and effective in
accordance with their respective terms (in each case, as against Gateway), and
there is not under any of such leases, to the knowledge of the Shareholders, any
existing material default or event of default (or event which with notice or
lapse of time, or both, would constitute a material default).

      

      Section
3.14      Change of
Control.  Other than this Agreement, the Shareholders and/or
Gateway are not a party to an agreement for, or involved in any discussions
concerning any transaction that would reasonably be expected to, result in any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act), becoming the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of 5% or more of the total voting
power of the outstanding common stock.

      

      Section
3.15      Notice of
Developments.  The Shareholders shall promptly notify MLCI in
writing of all events, circumstances, facts and occurrences arising subsequent
to the date of this Agreement which would reasonably be expected to result in
any breach of a representation or warranty or covenant of the Shareholders in
this Agreement or which would reasonably be expected to have the effect of
making any representation or warranty of the Shareholders in this Agreement
untrue or incorrect in any respect.  Such notification shall not
affect or otherwise limit MLCI’s right to enforce the terms of this Agreement
hereto as they existed on the date hereof, without taking into account such
notification.

      

      ARTICLE
4

      REPRESENTATIONS
OF MLCI

      

      MLCI
represents and warrants to the Shareholders, as follows:

      

      Section
4.1        Existence and
Power.  MLCI is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of California and has
all corporate powers and all governmental licenses, authorizations, permits,
consents and approvals required to carry on its business as now
conducted.

       

      
        
          
          

        

        
          8 of
16

          
            

          

        

        
          
          

        

      

       

      Section
4.2       Authorization; No
Agreements.  The execution, delivery and performance by MLCI of
this Agreement, the performance of its obligations hereunder, and the
consummation of the transactions contemplated hereby are within MLCI’s
powers.  MLCI has full legal capacity to execute and deliver this
Agreement and perform its obligations hereunder.  This Agreement has
been duly and validly executed and delivered by MLCI and is a legal, valid and
binding obligation of MLCI, enforceable against MLCI in accordance with its
terms.  The execution, delivery and performance by MLCI of this
Agreement do not violate any contractual restriction contained in any agreement
which binds or affects or purports to bind or affect MLCI.

      

      Section
4.3        Execution and
Delivery.  The execution, delivery and performance by MLCI of
this Agreement is within such MLCI’s powers and does not violate any contractual
restriction contained in any agreement which binds or affects or purports to
bind or affect MLCI.

      

      Section
4.4        Binding
Effect.  This Agreement, when executed and delivered by MLCI
shall be irrevocable and will constitute the legal, valid and binding obligation
of MLCI enforceable against MLCI in accordance with its terms, except as may be
limited by applicable bankruptcy, insolvency, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally or
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

      

      Section
4.5        Investment
Purpose.  MLCI represents that it is purchasing the Shares for
its own account, with the intention of holding the Shares, with no present
intention of dividing or allowing others to participate in this investment or of
reselling or otherwise participating, directly or indirectly, in a distribution
of the Shares, and shall not make any sale, transfer, or pledge thereof without
registration under the Securities Act and any applicable securities laws of any
state unless an exemption from registration is available under those
laws.

      

      Section
4.6        Investment
Experience.  MLCI has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of an investment in the Shares.

      

      Section
4.7       Further Limitations on
Disposition.  MLCI further acknowledges that the Shares are
restricted securities under Rule 144 of the Securities Act and that the Shares
(and any securities issuable upon conversion) must be held indefinitely unless
subsequently registered under the Securities Act or unless an exemption from
such registration is available, and, therefore, when transferred to MLCI will
contain a restrictive legend substantially similar to the
following:

       

      THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (“ACT”), AND MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, (II)
TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER SUCH
ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (III) AN OPINION OF COUNSEL,
LICENSED TO PRACTICE LAW WITHIN THE UNITED STATES, REASONABLY SATISFACTORY TO
COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
AVAILABLE.

       

      
        
          
          

        

        
          9 of
16

          
            

          

        

        
          
          

        

      

      

      

      Section
4.8       No Public
Market.  MLCI understands that no public market now exists for
any of the securities issued by Gateway and that the Shareholders have made no
assurances that a public market will ever exist for Gateway’s
securities.

      

      Section
4.9        Exchange Act Reporting
Company.  MLCI understands that Gateway is a reporting company
under the Exchange Act, and as such, has reporting obligations under the
Exchange Act.  MLCI is aware of, and has read, Gateway’s Exchange Act
filings, including its 10-Q for the period ended September 30, 2008, as filed
with the Securities and Exchange Commission on November 13, 2008.

      

      Section
4.10      Notice of
Developments.  MLCI shall promptly notify the Shareholders in
writing of all events, circumstances, facts and occurrences arising subsequent
to the date of this Agreement which would reasonably be expected to result in
any breach of a representation or warranty or covenant of MLCI in this Agreement
or which would reasonably be expected to have the effect of making any
representation or warranty of MLCI in this Agreement untrue or incorrect in any
respect.  Such notification shall not affect or otherwise limit the
Shareholders’ right to enforce the terms of this Agreement hereto as they
existed on the date hereof, without taking into account such
notification.

      

      ARTICLE
5

      COVENANTS
OF THE PARTIES

      

      The
parties hereto agree that:

      

      Section
5.1        Notices of Certain
Events.  In addition to any other notice required to be given
by the terms of this Agreement, each of the Parties shall promptly notify the
other party hereto of:

      

      (a)           any
notice or other communication from any Person alleging that the consent of such
Person is or may be required in connection with any of the transactions
contemplated by this Agreement;

      

      (b)           any
notice or other communication from any governmental or regulatory agency or
authority in connection with the transactions contemplated by this Agreement;
and

       

      
        
          
          

        

        
          10 of
16

          
            

          

        

        
          
          

        

      

      

      (c)           any
actions, suits, claims, investigations or proceedings commenced or, to such
party’s knowledge, threatened against, relating to or involving or otherwise
affecting such party that, if pending on the date of this Agreement, would have
been required to have been disclosed pursuant to Section 3 or Section 4 (as the
case may be) or that relate to the consummation of the transactions contemplated
by this Agreement.

      

      Section
5.2        Access to
Information.  The Shareholders will provide MLCI with any
relevant information related to Gateway that MLCI requests in writing, and
subject to that certain Confidentiality Agreement between the Parties dated
October 10, 2008.

      

      Section
5.3        Reasonable
Efforts.  Each Party agrees to use its reasonable best efforts
to take, or cause to be taken, all actions and to do, or cause to be done, all
things necessary or advisable to consummate and make effective as promptly as
practicable the transactions contemplated by this Agreement and to cooperate
with the other parties in connection with the foregoing.  Each Party
further agrees not to undertake any course of action inconsistent with the
satisfaction of the conditions to Closing set forth herein, and to do all such
acts and take all such measures as may be reasonable to comply, and be in
compliance, with the representations, warranties, covenants and agreements
contained in this Agreement.

      

      Section
5.4        Cooperation.  In
the event that any investigation, inquiry, lawsuit, administrative proceeding or
any other proceeding is commenced with respect to Gateway, the Shareholders
shall reasonably cooperate with and provide all applicable documents to MLCI
immediately upon request of MLCI.

      

      ARTICLE
6

      CONDITIONS
PRECEDENT

      

      Section
6.1        Conditions of Obligations of
MLCI.  The obligations of MLCI are subject to the satisfaction
of the following conditions, any or all of which may be waived in whole or in
part by MLCI:

      

      (a)           Representations and
Warranties.  Each of the representations and warranties of the
Shareholders set forth in this Agreement shall be true and correct in all
material respects as of the date of this Agreement (except to the extent such
representations and warranties speak as of an earlier date).

      

      (b)            Company
Minutes.  MLCI shall have received prior to the Closing Date
executed copies of all minutes, consents, resolutions of Gateway (for meetings
of or by stockholders and directors of Gateway).

      

      (c)            Board of Directors
Resolutions.  MLCI shall have received executed resolutions of
the Board of Directors of Gateway approving the transactions contemplated
herein, as applicable.

       

      
        
          
          

        

        
          11 of
16

          
            

          

        

        
          
          

        

      

       

      (d)            Performance. The
Shareholders shall have performed and complied with all agreements, obligations
and conditions contained in this Agreement that are required to be performed or
complied with by it on or before the Closing.

      

      (e)            Filings.  The
Shareholders shall have successfully filed Gateway’s quarterly report on Form
10-Q for the period ended September 30, 2008, and shall have received a “no
further comments” letter from the Commission regarding Gateway’s annual report
on Form 10-K for the year ended June 30, 2008.

      

      Section
6.2        Conditions of Obligations of
the Shareholders.  The obligations of the Shareholders to
consummate the sale of the Shares are subject to the following conditions, any
or all of which may be waived in whole or in part by the
Shareholders:

      

      (a)           Representations and
Warranties.  Each of the representations and warranties of MLCI
set forth in this Agreement shall be true and correct in all material respects
as of the date of this Agreement and (except to the extent such representations
and warranties speak as of an earlier date) as of the Closing Date as though
made on and as of the Closing Date.

      

      (b)            Performance. MLCI
shall have performed and complied with all agreements, obligations and
conditions contained in this Agreement that are required to be performed or
complied with by it or him on or before the Closing.

      

      (c)            Consent of Pacific Western
Bank.  Pacific Western Bank shall have consented, in writing,
to the transactions contemplated by this Agreement, to the extent necessary
under Gateway’s loan agreements with Pacific Western Bank dated September 29,
2008, or Pacific Western Bank shall have waived its right to approve the
transaction in writing.  

      

      (d)            Guaranties.  If
required by Pacific Western Bank, MLCI shall have provided signed personal
guaranties, acceptable to Pacific Western Bank, sufficient to replace Timothy D.
Consalvi and Joseph T. Gledhill as personal guarantors under Gateway’s loan
agreements with Pacific Western Bank.

      

      (e)            Gledhill
Loan.  Gateway shall have entered into a new promissory note in
favor of Joseph Gledhill in the principal amount of $650,000, with the terms set
forth on Exhibit E
(the “Gledhill Note”), and MLCI shall have entered into a personal
guaranty guarantying Gateway’s obligations under the Gledhill Note, with the
terms set forth on Exhibit F (the
“Guaranty”).

       

      
        
          
          

        

        
          12 of
16

          
            

          

        

        
          
          

        

      

      

      ARTICLE
7

      MISCELLANEOUS

      

      Section
7.1        Notices.  All
notices, requests and other communications to any party hereunder shall be in
writing and either delivered personally, faxed or sent by overnight courier
to:

       

      
        	
              	
                If to the
      Shareholders:     

              	
                Timothy D. Consalvi & Kathryn
      Consalvi

              

      

      c/o
Gateway International Holdings, Inc.

      2672 Dow Avenue

      Tustin,
CA  92780

      Facsimile No.:  (714)
619-2339

      

      Lawrence D. Consalvi & Lina R.
Consalvi

      c/o Gateway International Holdings,
Inc.

      2672 Dow Avenue

      Tustin,
CA  92780

      Facsimile No.:  (714)
619-2339

      

      Joseph Gledhill

      c/o Gateway International Holdings,
Inc.

      2672 Dow Avenue

      Tustin,
CA  92780

      Facsimile No.:  (714)
619-2339

      

      
        
          	
                	
                  If
      to MLCI:

                	
                   Money
      Line Capital, Inc.

                

        

      

      2183 Fairview Road, Suite
217

      Costa Mesa, CA 92627

      Attn:  Anthony L. Anish,
__________

      Facsimile No.:
________________

      

      With a
copy of

      
        	
                all
      notices to:

              	
                The
      Lebrecht Group, APLC

              

      

      9900
Research Drive

      Irvine,
CA  92618

      Attn:  Craig
V. Butler, Esq

      Facsimile:
(949) 635-1244

      

      or such
other address or fax number as such party may hereafter specify for the purpose
by notice to the other parties hereto.  All such notices, requests and
other communications shall be deemed received on the date delivered personally
or by overnight delivery service or confirmed facsimile transmission if received
prior to 5 p.m. in the place of receipt and such day is a business day in the
place of receipt.  Otherwise, any such notice, request or
communication shall be deemed not to have been received until the next
succeeding business day in the place of receipt.

      

      Section
7.2        Amendments; No
Waivers.

      

      (a)           Any
provision of this Agreement with respect to transactions contemplated hereby may
be amended or waived if, but only if, such amendment or waiver is in writing and
is signed, in the case of an amendment, by the Shareholders and MLCI; or in the
case of a waiver, by the party against whom the waiver is to be
effective.

       

      
        
          
          

        

        
          13 of
16

          
            

          

        

        
          
          

        

      

      

      (b)           No
failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.  The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

      

      Section
7.3        Fees and
Expenses.  Each of the Shareholders and MLCI shall bear their
own costs and expenses incurred by them in connection with this
Agreement.

      

      Section
7.4        Successors and
Assigns.  The provisions of this Agreement shall be binding
upon and inure to the benefit of the Parties hereto and their respective
successors and assigns; provided, that MLCI shall have the right to assign this
Agreement to an affiliate of MLCI and no other party hereto may assign, delegate
or otherwise transfer any of its rights or obligations under this Agreement
without the consent of each other party hereto, but any such transfer or
assignment will not relieve the appropriate Party of its obligations
hereunder.

      

      Section
7.5        Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of California, without giving effect to
the principles of conflicts of law thereof.

      

      Section
7.6       Jurisdiction.  Any
suit, action or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions
contemplated hereby may be brought in any federal or state court located in the
County of Orange, State of California, and each of the parties hereto consents
to the jurisdiction of such courts (and of the appropriate appellate courts
therefrom) in any such suit, action or proceeding and irrevocably waives, to the
fullest extent permitted by law, any objection which it may now or hereafter
have to the laying of the venue of any such suit, action or proceeding in any
such court or that any such suit, action or proceeding which is brought in any
such court has been brought in an inconvenient forum.  Process in any
such suit, action or proceeding may be served on any party anywhere in the
world, whether within or without the jurisdiction of any such
court.  Each party hereto (including its affiliates, agents, officers,
directors and employees) irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby.

      

      Section
7.7        Counterparts;
Effectiveness.  This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.  This
Agreement shall become effective when each party hereto has received
counterparts hereof signed by all of the other parties.  No provision
of this Agreement is intended to confer upon any Person other than the parties
hereto any rights or remedies under this Agreement.

       

      
        
          
          

        

        
          14 of
16

          
            

          

        

        
          
          

        

      

      

      Section
7.8       Entire
Agreement.  This Agreement, along with the schedules and
exhibits hereto, constitutes the entire agreement between the parties with
respect to the subject matter of this Agreement and supersedes and merges all
prior agreements and understandings, both oral and written, between the parties
with respect to the subject matter of this Agreement.

      

      Section
7.9        Captions.  The
captions are included for convenience of reference only and shall be ignored in
the construction or interpretation of this Agreement.

      

      Section
7.10      Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any parties.  Upon such a determination, the
parties shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in an acceptable
manner in order that the transactions contemplated hereby are consummated as
originally contemplated to the fullest extent possible.

      

      Section
7.11      Specific
Performance.  The parties hereto agree that irreparable damage
would occur in the event any provision of this Agreement was not performed in
accordance with the its terms and that the parties shall be entitled to specific
performance of the terms of this Agreement in addition to any other remedy to
which they are entitled at law or in equity.

      

      Section
7.12      Survival.  The
representations and warranties contained in this Agreement shall survive the
Closing and delivery of the Shares.

      

      Section
7.13      Representation.  The
Parties acknowledge that The Lebrecht Group, APLC represents Gateway, in
connection with the negotiation and drafting of this Agreement.  The
Lebrecht Group, APLC has not represented either MLCI or the Shareholders in
connection with the negotiation and drafting of this Agreement.

      

      [signature
page follows]

       

      
        
          
          

        

        
          15 of
16

          
            

          

        

        
          
          

        

      

       

      IN WITNESS WHEREOF, each of
the following individuals has caused this Agreement to be signed, and each Party
that is not an individual has caused this Agreement to be duly executed under
seal by its respective authorized officers, all as of the day and year first
above written.

      

      

      
        
          
            	
                    “MLCI”

                  	 	
                    “Shareholders”

                  
	 
      	 	 
      
	
                    Money
      Line Capital, Inc.,

                  	 	 
      
	
                    a
      California corporation

                  	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                    /s/
      Jitu Banker   

                  	 	
                    /s/
      Timothy D. Consalvi

                  
	
                    By:           Jitu
      Banker

                  	 	
                    Timothy
      D. Consalvi, an individual

                  
	
                    Its:           President

                  	 	 
      
	 
      	 	 
      
	 
      	 	
                    /s/
      Kathryn Consalvi

                  
	 
      	 	
                    Kathryn
      Consalvi, an individual

                  
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	
                    /s/
      Lawrence A. Consalvi

                  
	 
      	 	
                    Lawrence
      A. Consalvi, an individual

                  
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	
                    /s/
      Lina R. Consalvi

                  
	 
      	 	
                    Lina
      R. Consalvi, an individual

                  
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	
                    /s/
      Joseph T. Gledhill

                  
	 
      	 	
                    Joseph
      T. Gledhill, an
individual

                  

          

        

      

       

      As
acknowledgment and/or confirmation of Sections 1.7, 3.2 –
3.15,  only:

       

      
        
          
            
              
                
                  
                    	
                            “Gateway”

                          	 	 
	 
      	 	 
	
                            Gateway
      International Holdings, Inc.,

                          	 	 
	
                            a
      California corporation

                          	 	 
	 
      	 	 
	 
      	 	 
	
                            /s/
      Timothy D. Consalvi 

                          	 	 
	
                            By:           Timothy
      D. Consalvi

                          	 	 
	
                            Its:           Chief
      Executive Officer

                          	 	 

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          16 of
16

          
            

          

        

        
          
          

        

      

       

      Exhibit
A

      

      The
Shareholders

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Shareholder

                                    	 	
                                      No. of Gateway 

                                      Shares Owned 

                                      (Pre-Transaction)

                                    	 	 	
                                      No. of Gateway 

                                      Shares to be 

                                      Purchased by MLCI

                                    	 	 	
                                      Proceeds of the 

                                      Purchase
      Price (1)

                                    	 
	 
      	 	 	 	 	 	 	 	 	 
	
                                      Timothy
      & Kathryn Consalvi

                                    	 	 	1,500,000	 	 	 	1,350,000	 	 	$	270,000	 
	
                                      Lawrence
      & Lina Consalvi

                                    	 	 	5,480,000	 	 	 	5,000,000	 	 	$	841,750	 
	
                                      Joseph
      T. Gledhill

                                    	 	 	6,000,000	 	 	 	5,500,000	 	 	$	1,100,000	 
	
                                      Total:

                                    	 	 	12,980,000	 	 	 	11,850,000	 	 	$	2,211,750	 

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      (1)  Purchase
Price will be paid in four installments per Section 1.2.  Of the first
installment ($907,500), Timothy D. Consalvi will receive $135,000, Lawrence A.
Consalvi will receive $272,500, and Joseph T. Gledhill will receive
$500,000.  Of the second installment ($135,000) Timothy D. Consalvi
will receive all $135,000, Lawrence A. Consalvi will receive $0, and Joseph T.
Gledhill will receive $0.  Of the third installment ($550,000),
Lawrence A. Consalvi will receive $319,250 and Joseph T. Gledhill will receive
$300,000. Of the fourth installment ($550,000), Timothy D. Consalvi will receive
$0, Lawrence A. Consalvi will receive $250,000, and Joseph T. Gledhill will
receive $300,000.

       

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

      

      

      Exhibit
B

      

      Form
Stock Power

       

       

      
        
          
          

        

        
          B-1

          
            

          

        

        
          
          

        

      

      
 

      Exhibit
B

      

      Employment
Agreement

       

       

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

      

      Exhibit
C

      

      Form
of Proxy

       

       

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

       

      Exhibit
D

      

      Form
of Resignation

       

       

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

      

      Exhibit
E

      

      Gledhill
Note

       

       

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

       

      Exhibit
F

      

      Guaranty

       

       

      
        
          
          

        

        
          C-1Unassociated Document

    
      EMPLOYMENT
AGREEMENT

      

      This
EMPLOYMENT AGREEMENT (the “Agreement”) is dated December 8, 2008 (the “Effective
Date”), and is entered into by and between Gateway International Holdings, Inc.,
a Nevada corporation (“the Company”), and Timothy D. Consalvi, an individual
(“Executive”).

      

      RECITALS

      

                 
WHEREAS, Executive was previously employed as the Company’s Chief Executive
Officer pursuant to an employment agreement dated February 1, 2007;

      

      WHEREAS, this Agreement is meant to
replace the previous employment agreement in full;

      

      WHEREAS,
the Company desires to employ Executive as President of its wholly-owned
subsidiary, All American CNC Sales, Inc.; and

      

                 
WHEREAS, Executive wishes to accept employment by the Company as President of
All American CNC Sales, Inc. (“All American”);

      

                 
NOW, THEREFORE, the Company and Executive hereby agree as follows:

      

      AGREEMENT

      

      
        	
                1.

              	
                EMPLOYMENT.

              

      

      

      1.1.            General.  The
Company hereby employs Executive in the capacity of President of All American
commencing with the Effective Date (as defined below).  Executive hereby
accepts such employment, upon the terms and subject to the conditions herein
contained.

      

      1.2.            Duties.  During
Executive’s employment with the Company, Executive shall report directly to the
Company’s Chief Executive Officer and/or its Board of Directors and shall be
responsible for performing those duties for All American consistent with the
position of President of a company and as may from time to tome be reasonably
assigned to or requested of Executive by the Company’s Chief Executive Officer
or its Board of Directors.  Executive shall use his reasonable efforts to
perform faithfully and effectively such responsibilities.  Executive shall
conduct all of his activities in a manner so as to maintain and promote the
business and reputation of the Company.

      

      1.3.            Full-Time
Position.  Executive, during his employment with the Company, shall
devote all of his business time, attention and skills to the business and
affairs of the Company.  Executive shall not, during the term of this
Agreement, be engaged in any other business activity without the prior consent
of the Company’s Board of Directors, provided, however, that this restriction
shall not be construed as preventing Executive from investing his personal
assets in passive investments in business entities which are not in competition
with the Company or its affiliates.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      1.4.            Representations of
Executive.  To induce the Company to enter into this Agreement,
Executive represents and warrants to the Company that as of the Effective Date:
(a) Executive will not be a party or subject to any employment agreement or
arrangement with any other person, firm, company, corporation or other business
entity; (b) Executive will not be subject to restraint, limitation or
restriction by virtue of any agreement or arrangement, or by virtue of any law
or rule of law or otherwise which would impair Executive’s right or ability to:
(i) enter the employ of the Company, or (ii) perform fully his duties and
obligations pursuant to this Agreement; and (c) to the best of Executive’s
knowledge no material litigation is pending or threatened against Executive or
any business or business entity owned or controlled by Executive, except as set
forth in the Company’s periodic filings with the Securities and Exchange
Commission.

      

      1.5.            Location of
Employment.  Executive’s principal place of employment during his
employment with the Company shall be in Orange County, California.

      

      
        	
                2.

              	
                TERM
      AND RENEWAL.

              

      

      

      The term
of this Agreement shall commence on the Effective Date.  The initial term
of this Agreement (the “Initial Term”) shall be for a period commencing on the
Effective Date and shall continue for a period of one (1) year thereafter,
unless sooner terminated as provided in Section 4.1.  Thereafter, this
Agreement shall automatically renew for successive one (1) year terms unless
either party shall have given written notice to the other party not less than 90
days prior to the expiration of the Initial Term or any successive term of its
intent not to renew this Agreement (the “Initial Term,” together with any
subsequent employment period or periods, being referred to herein as the
“Term”).

      

      
        	
                3.

              	
                COMPENSATION
      AND BENEFITS.

              

      

      

      3.1.            Salary.  The
Company shall pay to Executive, the Executive shall accept, as full compensation
for any and all services rendered and to be rendered by him to the Company and
All American in all capacities during the Term of his employment under this
Agreement (including the continued performance of his obligations under Section
5), a base salary at the annual rate of $200,000 (“Base Salary”), payable in
biweekly installments of $7,692.30.

      

      3.2.            Employee
Benefits.  Executive shall be entitled to participate in
tax-qualified and nonqualified deferred compensation and retirement plans, group
term life insurance plans, short-term and long-term disability plans, employee
benefit plans, practices, and programs maintained by the Company and made
available to similarly situated executives generally, and as may be in effect
from time to time.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      3.3.            Vacation. 
Executive shall be entitled to paid vacation of three (3) weeks annually, with
such vacation to be scheduled and taken in accordance with the Company’s
standard vacation policies.

      

      3.4.            Business
Expenses.  The Company shall reimburse Executive for any and all
necessary, customary and usual business expenses, properly receipted in
accordance with the Company’s policies reasonably incurred by Executive on
behalf of the Company.  The Company shall provide Executive with an
appropriate automobile, shall pay all gasoline, maintenance and repair costs,
and shall replace the automobile with a new model not less often than every two
years.

      

      3.5.            Withholding. 
All compensation shall be subject to customary withholding tax and other
employment taxes as are required with respect to compensation paid by a
corporation to an employee.

      

      3.6.            Bonuses and Stock
Participation.  Executive shall be entitled to participate in any
executive and director bonuses and stock participation or option plans which may
be adopted by the Company from time to time as shall be determined by the Board
of Directors of the Company.

      

      3.7.            Medical
Benefits.  Executive will be covered without cost in the healthcare
plans maintained by the Company in which its executives participate.  The
Company currently has a health maintenance organization (“HMO”) and a preferred
provider plan (“PPO”). Executive’s family may be included on a contributory
basis in the Company’s HMO and PPO plans, and Executive and his family may be
included on a contributory basis in any other medical plans, including dental
and visual, which the Company may maintain at any time.

      

      
        	
                4.

              	
                TERMINATION
      OF EMPLOYMENT.

              

      

      

      4.1.            Events of
Termination.  Executive’s employment with the Company shall
terminate upon the occurrence of any one or more of the following
events:

      

      4.2.            Death.  In the
event of Executive’s death, Executive’s employment shall terminate on the date
of death.

      

       
4.2.1.    Disability.  In
the event of Executive’s Disability (as hereinafter defined), the Company shall
have the option to terminate Executive’s employment by giving a notice of
termination to Executive.  The notice of termination shall specify the date
of termination, which date shall not be earlier than thirty (30) days after the
notice of termination is given.  For purposes of this Agreement,
“Disability” shall mean a physical or mental impairment which renders Executive
unable to perform the essential functions of his position, even with reasonable
accommodation, and which continues for more than 120 consecutive days or more
than 180 days out of 365 consecutive days.  The Board of Directors shall
have the right, in good faith, to make the determination of Disability under
this Agreement based upon information supplied by Executive and/or his medical
personnel, as well as information from medical personnel (or others) selected by
the Company or its insurers.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      4.2.2.        Termination by the Company
for Cause.  The Company may, at its option, terminate Executive’s
employment for Cause (as hereinafter defined), based on objective factors
determined in good faith by a majority of the Board of Directors, by giving a
notice of termination to Executive specifying the reasons for termination and,
if Executive shall fail to cure such reasons within ten (10) days of receiving
the notice of termination, his Employment shall terminate at the end of such
10-day period, provided that in the event the Board of Directors in good faith
determines that the underlying reasons giving rise to such determination cannot
be cured, then such cure period shall not apply and Executive’s employment shall
terminate on the date of Executive’s receipt of the notice of termination. 
“Cause” shall mean (a) Executive’s conviction of, guilty or “no contest” plea
to, or confession of guilt of a felony, or (b) a willful act by Executive which
constitutes gross misconduct and which is materially injurious to the Company,
including, but not limited to, theft, fraud or other illegal
conduct.

      

      4.2.3.        Termination by Executive for
Good Reason.  Executive may terminate Executive’s employment at any
time for Good Reason.  As used herein, “Good Reason” shall mean either (a)
the failure of the Company to observe or comply with any of the material terms
or provisions of this Agreement after written notice from Executive to the
Company specifying the grounds for termination and the Company fails within ten
(10) days after receipt of such notice to cure such failure, (b) any actions
taken by the Company which prevent Executive from carrying out his duties as
President after written notice from Executive to Company specifying the grounds
for termination and the Company fails within ten (10) days after receipt of such
notice to cure such actions, or (c) a “Change of Control” (as defined in Exhibit
A hereto) pursuant to which Executive is not retained by the Company (or other
surviving or successor entity following such Change of Control) on substantially
the same terms as provided herein.

      

      4.2.4.        Termination by Executive
without Good Reason.  Executive may terminate Executive’s employment
for any reason whatsoever by giving written notice of termination to the
Company.  Executive’s employment shall terminate on the earlier of (a) the
date, following the date of the notice of termination, upon which a suitable
replacement for Executive is found by the Company or (b) thirty (30) days after
the date of receipt by the Company of the notice of termination.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      4.3.            Certain Obligations of the
Company Following Termination of Executive’s Employment.
  Following the termination of Executive’s employment under the
circumstances described below, the Company shall pay to Executive the following
compensation and provide the following benefits:

      

      4.3.1.        Obligations following
Death.  In the event that Executive’s employment is terminated by
reason of Executive’s death, Executive’s estate shall be entitled to the
following payments:

      

      
        	
                 
      

              	
                (a)

              	
                Base
      Salary through the date Executive’s employment is
    terminated;

              

      

      
        	
                 
      

              	
                (b)

              	
                Any
      additional compensation prorated to the date of death of Executive;
      and

              

      

      
        	
                 
      

              	
                (c)

              	
                The
      Company shall pay to Executive’s estate the amounts, and shall provide all
      benefits generally available under the employee benefit plans, policies
      and practices of the Company, determined in accordance with the applicable
      terms and provisions of such plans, policies and practices in each case,
      as accrued to the date of termination or otherwise payable as a
      consequence of Executive’s death.

              

      

      

      4.3.2.        Obligations following
Disability.  In the event that Executive’s employment is terminated
by reason of Executive’s Disability, Executive shall be entitled to the
following payments:

      

      
        	
                 
      

              	
                (a)

              	
                Base
      Salary through the date Executive’s employment is
    terminated;

              

      

      
        	
                 
      

              	
                (b)

              	
                Any
      additional compensation, prorated to the date of Executive’s termination
      due to Executive’s disability; and

              

      

      
        	
                 
      

              	
                (c)

              	
                The
      Company shall pay to Executive the amounts and shall provide all benefits
      generally available under the employee benefit plans, policies and
      practices of the Company, determined in accordance with the applicable
      terms and provisions of such plans, policies and practices in each case,
      as accrued to the date of termination or otherwise payable as a
      consequence of Executive’s
disability.

              

      

      

      4.3.3.        Obligations following
Termination by Executive without Stated Reason or by the Company for
Cause.  In the event Executive’s employment is terminated by
Executive pursuant to Section 4.1.5 hereof (“Termination by Executive without
Stated Reason”) or by the Company pursuant to Section 4.1.3 hereof (“Termination
by the Company for Cause”), Executive shall be entitled to no further
compensation or other benefits under this Agreement except as to that portion of
any unpaid Base Salary and other benefits accrued and earned by him hereunder,
up to and including the effective date of such termination.

      

      4.3.4.        Obligations following
Termination by the Company without Cause or by Executive for Good
Reason.  In the event this Agreement is terminated by the Company by
notice given pursuant to Section 2 hereof (“Term and Renewal”), or terminated by
the Company during a Term without Cause, or is terminated by Executive for Good
Reason pursuant to Section 4.1.4 hereof (“Termination by Executive for Good
Reason”), the Company shall pay to Executive in a lump sum at termination an
amount equal to 75% of his then current Base Salary (which shall include any
increases in the Base Salary of the Initial Term) and provide the medical
benefits set forth in Section 3.7 hereof during the period commencing on the
termination date and ending nine (9) months thereafter.  In the event of
termination prior to year-end, Executive shall be entitled to (i) payment of any
bonuses payable for such year pro rated to the effective date of termination and
(ii) any stock options which have been granted to Executive but have not vested
as of the termination date.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      4.4.            Nature of
Payments.  All amounts to be paid by the Company to Executive
pursuant to this Section 4 are considered by the parties to be severance
payments.  In the event such payments are treated as damages, it is
expressly acknowledged by the parties that damages to Executive for termination
of employment would be difficult to ascertain and the above amounts are
reasonable estimates thereof.

      

      4.5.            Duties Upon
Termination.  Upon termination of Executive’s employment with the
Company pursuant to Sections 4.1.1 through 4.1.5 hereof or upon expiration of
the Term, Executive shall be released from any duties and obligations hereunder
(except those duties and obligations set forth in Section 5).

      

      
        	
                5.

              	
                RESTRICTIVE
      COVENANTS.

              

      

      

      5.1.            Acknowledgment. 
Executive acknowledges that (i) he has a major responsibility for the operation,
administration, development and growth of the Company’s business, and that of
its subsidiaries, (ii) his work for the Company and its subsidiaries has brought
him and will continue to bring him into close contact with confidential
information of the Company and its customers, and those of its subsidiaries, and
(iii) the agreements and covenants contained in this Section 5 are essential to
protect the business interest of the Company and that the Company will not enter
into this Agreement but for such agreements and covenants.  Accordingly,
Executive covenants and agrees as follows:

      

      5.1.1.        Noncompetition. 
Except as otherwise provided for in this Agreement, during the Term of this
Agreement and for a period of twelve (12) months following the termination of
this Agreement (the “Termination Period”), Executive shall not, directly or
indirectly, compete with respect to any services or products of the Company
which are either offered or are being developed by the Company, or, without
limiting the generality of the foregoing, be or become, or agree to be or
become, interested in or associated with, in any capacity (whether as a partner,
shareholder, owner, officer, director, executive, principal, agent, creditor,
trustee, consultant, co-venturer or otherwise) with any individual, corporation,
firm association, partnership, joint venture or other business entity, which
competes with respect to any services or products of the Company which are
either offered or are being developed by the Company, provided, however, that
Executive may own, solely as an investment, not more than one percent (1%) of
any class of securities of any publicly held corporation in competition with the
Company whose securities are traded on any national securities exchange in the
United States of America.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      5.1.2.        Nonsolicitation. 
During the Term of this Agreement and during the Termination Period, Executive
shall not, directly or indirectly, (i) induce or attempt to influence any
employee of the Company to leave its employ, (ii) aid or agree to aid any
competitor, customer or supplier of the Company in any attempt to hire any
person who shall have been employed by the Company within the twelve (12) month
period preceding such requested aid, or (iii) induce or attempt to influence any
person or business entity who was a customer or supplier of the Company during
any portion of such period to transact business with a competitor of the
Company.

      

      5.1.3.        Nondisclosure. 
During the Term of this Agreement, the Termination Period, if applicable, and
thereafter, Executive shall not disclose to anyone, other than in the
performance of his duties, any information about the affairs of the Company,
including, without limitation, trade secrets, trade “know-how”, inventions,
customer lists, business plans, operational methods, pricing policies, marketing
plans, sales plans, identity of suppliers or customers, sales, profits or other
financial information, which is confidential to the Company or is not generally
known in the relevant trade, nor shall Executive make use of any such
information for his own benefit.  Any technique method, process or
technology used by the Company shall be considered a “trade secret” for the
purposes of this Agreement.

      

      5.1.4.        Confidentiality. 
Executive hereby agrees that all know-how, documents, reports, plans, proposals,
marketing and sales plans, client lists, client files and materials made by him
or by the Company are the property of the Company and shall not be used by him
in any way adverse to the Company’s interests.  Executive shall not
deliver, reproduce or in any way allow such documents or things to be delivered
or used by any third party without specific direction or consent of the Board of
Directors of the Company.  Executive hereby assigns to the Company any
rights that he may have in any such trade secret or proprietary
information.

      

      5.1.5.        Limitations on Restrictive
Covenants.  Executive is leaving his post as Chief Executive Officer
of Gateway International Holdings, Inc., and Chief Executive Officer of Eran
Engineering, and Chief Executive Officer of All American CNC Sales, Inc., and
Chief Executive Officer of EM Tool Co, Inc.  The Company agrees that
if Executive becomes Chief Executive Officer of All American after termination
of this Agreement the restrictive covenants provided for by Sections 5.1 will
not be interpreted or applied in any way that will interfere with the customary
and regular duties of Executive as the Chief Executive Officer of All
American.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      5.2.            Remedies for
Breach.  If Executive breaches, or threatens to commit a breach of
Section 5.1, the Company shall have the following rights and remedies, each of
which shall be enforceable, and each of which is in addition to, and not in lieu
of, any other rights and remedies available to the Company at law or in
equity.

      

      5.2.1.        Payments. 
Executive shall account for and pay over to the Company all compensation,
profits, and other benefits, after taxes, which inure to Executive’s benefit
which are derived or received by Executive or any person or business entity
controlled by Executive resulting from any action or transactions constituting a
breach of any of the Restrictive Covenants.

      

      5.2.2.        Injunctive
Relief.  Notwithstanding the provisions of subsection 5.2.1 above,
Executive acknowledges and agrees that in the event of a violation or threatened
violation of any of the provisions of Section 5, the Company shall have no
adequate remedy at law and shall therefore be entitled to enforce each such
provision by temporary or permanent injunctive or mandatory relief obtained in
any court of competent jurisdiction without the necessity of proving damages,
posting any bond or other security, and without prejudice to any other rights
and remedies which may be available at law or in equity.

      

      5.3.            Jurisdiction. 
The parties hereto intend to and hereby confer jurisdiction to enforce the
Restrictive Covenants upon the courts of any jurisdiction within the
geographical scope of such Restrictive Covenants.  In the event that the
courts of any one or more of such jurisdictions shall hold such Restrictive
Covenants wholly unenforceable by reason of the breadth of such scope or
otherwise, it is the intention of the parties hereto that such determination not
bar or in any way affect the Company’s right to the relief provided above in the
courts of any other jurisdictions within the geographical scope of such
Restrictive Covenants as to breaches of such covenants in such other respective
jurisdictions, the above covenants as they relate to each jurisdiction being,
for this purpose, severable into diverse and independent covenants.

      

      
        	
                6.

              	
                MISCELLANEOUS
      PROVISIONS.

              

      

      

      6.1.            Severability. 
If in any jurisdiction any term or provision hereof is determined to be invalid
or unenforceable, (a) the remaining terms and provisions hereof shall be
unimpaired, (b) any such invalidity or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction and (c) the invalid or unenforceable term or provision shall, for
purposes of such jurisdiction, be deemed replaced by a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision.

      

      6.2.            Execution in
Counterparts.  This Agreement may be executed in on or more
counterparts, and by the different parties hereto in separate counterparts, each
of which shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      

      6.3.            Notices.  All
notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed duly given when delivered by hand, or when delivered
via overnight mail or via facsimile (with written confirmation of receipt) as
follows:

       

      
        
          	
                	
                  If
      to Executive:

                	
                  Timothy
      D. Consalvi

                

        

      

      2642 East
Denise Avenue

      Orange,
CA 92867

      Facsimile
No. ________________

      

      

      
        
          	
                  
                  

                	
                  If
      to the Company: 

                	
                  Gateway
      International Holdings, Inc.

                

        

      

      3840 East
Eagle Drive

      Anaheim,
CA 92807

      Attn.
Chief Executive Officer

      Facsimile
No. _________________

      

      
        
          	
                	
                  with
      a copy to:

                	
                  The
      Lebrecht Group, APLC

                

        

      

      9900 Research Dr.

      Irvine,
CA  92618

      Attn.  Craig V. Butler,
Esq.

      Facsimile No. (949)
635-1244

      

      Or to
such other address as a party hereto shall have designated by like notice to the
other party hereto.

      

      6.4.            Amendment.  No
provision of this Agreement may be modified, amended, waived or discharged in
any manner except by a written instrument executed by the Company and
Executive.

      

      6.5.            Entire
Agreement.  This Agreement constitutes the entire agreement of the
parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings of the parties hereto, oral or written, with
respect to the subject matter hereof.

      

      6.6.            Applicable
Law/Venue.  This Agreement shall be governed by and construed in
accordance with the laws of the State of California applicable to employment
contracts made and to be wholly performed therein without regard to its
conflicts or choice of law provisions.  Any dispute under this
Agreement shall be under the jurisdiction of the federal and state courts having
jurisdiction over Orange County, California.

      

      6.7.            Headings.  The
headings contained herein are for the sole purpose of convenience of reference
and shall not in any way limit or affect the meaning or interpretation of any of
the terms or provisions of this Agreement.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

      6.8.            Binding Effect: Successors
and Assigns.  Executive may not delegate his duties or assign his
rights hereunder.  This Agreement shall inure to the benefit of, and be
binding upon, the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns.

      

      6.9.            Waiver.  The
failure of either of the parties hereto to at any time enforce any of the
provisions of this Agreement shall not be deemed or construed to be a waiver of
any such provision, nor to in any way affect the validity of this Agreement or
any provision hereof or the right of either of the parties hereto to thereafter
enforce each and every provision of this Agreement.  No waiver of any
breach of any of the provisions of this Agreement shall be effective unless set
forth in a written instrument executed by the party against whom or which
enforcement of such waiver is sought, and no waiver of any such breach shall be
construed or deemed to be a waiver of any other or subsequent
breach.

      

      6.10.           Representations and
Warranties.  Executive and the Company hereby represent and warrant
to the other that: (a) Executive has full power, authority and capacity to
execute and deliver this Agreement and to perform Executive’s obligations
hereunder, (b) such execution, delivery and performance will not (and with the
giving of notice or lapse of time or both would not) result in the breach of any
agreements or other obligations to which Executive is a party or Executive is
otherwise bound and (c) this Agreement is Executive’s valid and binding
obligation in accordance with its terms.

      

      6.11.           Enforcement. 
Except as otherwise provided herein, if any party institutes legal action or
other dispute resolution proceedings to enforce or interpret the terms and
conditions of this Agreement, the prevailing party shall be awarded reasonable
attorneys’ fees at all levels of the proceeding, and the expenses and costs
incurred by such prevailing party in connection therewith.

      

      6.12.           Arbitration. 
The parties agree to arbitrate any disputes arising under this Agreement (except
for requests for injunctive relief) through the commercial rules of the American
Arbitration Association in the County of Orange, California, or such other place
that is mutually agreed upon by the parties.  Further, the parties hereby
waive any objection based on personal jurisdiction, venue or forum nonconveniens in any
arbitration or action brought under this Agreement.  The decision and award
rendered by the arbitrators shall be final and binding.  Judgment upon the
award may be entered in any court having jurisdiction thereof.

      

      6.13.           Continuing
Effect.  Where the context of this Agreement requires, the
respective rights and obligations of the parties shall survive any termination
or expiration of the term of this Agreement.

      

      6.14.           Construction. 
Both parties have cooperated in the drafting and preparation of this
Agreement.  Hence, in any construction to be made of this Agreement, the
same shall not be construed against any party on the basis that the party was
the drafter.

      

      6.15.           Expenses.  Each
party to this Agreement agrees to bear his or its own expenses in connection
with the negotiation and execution of this Agreement.

      

      

      [signature
page follows]

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

      IN
WITNESS WHEREOF, this Agreement has been executed and delivered by the parties
hereto.

      

      

      
        
          
            
              
                	
                        Gateway
      International Holdings, Inc.,

                      	 	
                        Timothy
      D. Consalvi,

                      
	
                        a
      Nevada corporation

                      	 	
                        an
      individual

                      
	 
      	 	 
      
	 
      	 	 
      
	
                        /s/
      George Colin

                      	 	
                        /s/
      Timothy D. Consalvi 

                      
	
                        By:           George
      Colin

                      	 	
                        Timothy
      D. Consalvi

                      
	
                        Its:           Chief
      Executive Officer

                      	 	 
      

              

            

          

        

      

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      Exhibit A to Employment
Agreement between

      Gateway Holdings
International, Inc. and Timothy D. Consalvi

      

      As used
in the Agreement, the phrase “Change in Control” shall mean:

      

      
        	
                 
      

              	
                (a)

              	
                Except
      as provided by subparagraph (b) hereof, the acquisition by any person,
      entity or “group”, within the meaning of Section 13(d) (3) or 14(d) of the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”) of
      beneficial ownership (within the meaning of Rule 13d-3) promulgated under
      the Exchange Act) of 50% or more of the combined voting power of the then
      outstanding securities entitled to vote generally in the election of
      directors of the Company, or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                Approval
      by the Board of a reorganization, merger or consolidation of the Company
      with any other person, entity or corporation, other
  than:

              

      

      

      
        	
                 
      

              	
                (i)

              	
                a
      merger or consolidation which would result in the voting securities of the
      Company immediately prior thereto continuing to represent (either by
      remaining outstanding or by being converted into voting securities of
      another entity) more than 50% of the combined voting power of the
      securities entitled to vote generally in the election of directors of the
      Company or such other entity outstanding immediately after such merger or
      consolidation; or

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                a
      merger or consolidation effected to implement a recapitalization of the
      Company or similar transaction in which no person, entity or group
      acquires beneficial ownership of 50% or more of the combined voting power
      of the securities entitled to vote generally in the election of directors
      of the Company outstanding immediately after such merger or consolidation;
      or

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                Approval
      by the Board of a plan of complete liquidation of the Company or an
      agreement for the sale or other disposition by the Company of all or
      substantially all of the Company’s assets (other than a liquidation or
      sale pursuant to which all or substantially all of the Company’s assets
      continue to be owned by an affiliate of the
  Company).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}]]