Document:

Unassociated Document

    ASSIGNMENT
OF PROMISSORY NOTE

    AND
CONSENT THERETO

    

    This Assignment of Promissory Note and
Consent Thereto (this “Assignment”) is entered into effective as of March 24,
2009, by and among Gateway International Holdings, Inc., a Nevada corporation
(“Assignor”) and Money Line Capital, Inc., a California corporation (the
“Assignee”), and consented to by Joseph Gledhill and/or Joyce Gledhill,
individuals, (“Noteholders”), in connection with the proposed assignment (the
“Assignment”) by Assignor to Assignees of that certain Gateway International
Holdings, Inc.. Promissory Note dated December 8, 2008 in the original principal
amount of $650,000, a copy of which is attached hereto as Exhibit A (the
“Note”).

    

    RECITALS

    

    WHEREAS, the Assignor executed the Note
effective December 8, 2008 for the benefit of the Noteholders, in the principal
amount of $650,000;

    

    WHEREAS, the Assignor, the Assignee and
the Noteholders all agree there is $650,000 due under the Note as of the date of
this Assignment;

    

    WHEREAS, the Assignor and the Assignee
have requested to assign the Note to the Assignee in exchange for the Assignor
issuing 3,250,000 shares of its common stock to the Assignee in consideration of
assuming the Assignor’s obligations under the Note;

    

    WHEREAS, the Noteholders are willing to
consent to the assignment as set forth herein.

    

    NOW, THEREFORE, for good and valuable
consideration, the receipt of which is hereby acknowledged, Assignor, Assignee
and Noteholders hereby agree as follows:

    

    1.           In
consideration of the terms set forth above, Assignor hereby assigns to Assignee,
its successors and assigns, and Noteholders consent to this assignment WITHOUT
RECOURSE against the Assignor or to the financial ability of the Assignee to pay
the Note, together with all of Assignor’s right, title and interest in the Note,
and all of Assignor’s rights and remedies thereunder and under any guaranty or
endorsement thereof, and to take, any and all actions Assignor might otherwise
take.

    

    2.           In
exchange for this assignment, the Assignee agrees to accept 3,250,000 shares of
common stock of the Assignor, to be issued to the Assignee in conjunction with
this Assignment (the “Common Stock”).

    

    3.           Assignor
warrants that (i) the Note and any accompanying notes, guaranties, waivers
and/or other instruments (collectively “Contracts”) are true, valid and genuine
and represent existing valid and enforceable obligations in accordance with
their terms; (ii) all signatures, names, addresses, amounts and other statements
and facts contained therein are true and correct; (iii) the Contracts (including
their form and substance and the computation of all charges) and the
transactions underlying the obligations (including any sale and delivery)
conform to all applicable laws, rules, regulations, ordinances and orders; (iv)
the present unpaid balance shown on the Note as set forth in the Recitals is
correct, the Contracts are not and will not at any time be subject to any
defense, claim, counterclaim or set-off, and Assignor will comply with all its
obligations under the Contracts; (v) the Common Stock is not subject to any
liens, security interests, pledges, encumbrances, charges, restrictions, demands
or claims in any other party whatsoever; and (vi) the undersigned is acting in
the capacity indicated below, has full authority from the Assignor to act in
such capacity, and to bind the Assignor to the terms of this
Assignment.  In addition, Assignor shall indemnify and save Assignee
harmless from any loss, damage or expense, including attorneys’ fees, incurred
by Assignee as a result of Assignor’s breach of any of the terms of this
assignment or any of the warranties, obligations or undertakings described
herein.

    

    
      
         

      

      
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    4.           Assignor
agrees that Assignee may at any time, without consent of Assignor, without
notice to Assignor and without affecting or impairing the obligations of
Assignor hereunder, do any of the following: (a) renew, extend, modify, release
or discharge any obligation of the Noteholders or any persons obligated under
the Note, (“the Note Obligations”); and (b) settle, release (by operation of law
or otherwise), compound, compromise, collect or liquidate any of the Note
Obligations and the security therefor in any manner.

    

    5.           Assignee
agrees to the assignment and agrees to be bound by the terms of the Note,
including any and all extensions or amendments as attached with Exhibit
A.

    

    6.           Assignee
represents and warrants that the undersigned is acting in the capacity indicated
below, has full authority from the Assignee to act in such capacity, and to bind
the Assignee to the terms of this Assignment.

    

    7.           Noteholders
warrant and agree that: (i) Noteholders hereby consent to the Assignment by
Assignor to Assignee of the Note; (ii) nothing in this Assignment shall be
construed to modify, waive, release, or otherwise affect, as between Assignor
and Noteholders (prior to the date of this Assignment) or Assignee and
Noteholders (following the date of this Assignment), any of the provisions of
the Note; (iii) in the event of any conflict between the Assignment and the
Note, this Assignment shall prevail; (iv) following the date of this Assignment,
Assignor shall not be liable for any of the obligations under the Note; (v)
following the date of this Assignment, Noteholders shall remain fully liable for
all of its obligations under the Contracts; (vi) this Assignment shall not be
construed as a consent by Noteholders to any further assignment by Assignee; and
(vii) to the best of Noteholders’ knowledge, the Contracts are in full force and
effect, there are no uncured defaults on the part of any party to the Contracts,
and there are no existing offsets or defenses which either party has against
enforcement of the Contracts.

    

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    IN WITNESS WHEREOF, the undersigned
parties have duly executed this Assignment as of the date first written
above.

    

    
      
        
          
            
              	
                      “Assignor”

                    	 	
                      “Assignee”

                    
	 
      	 	 
      
	
                      Gateway
      International Holdings, Inc.

                    	 	
                      Money
      Line Capital, Inc.

                    
	
                      a
      Nevada corporation

                    	 	
                      a
      California corporation

                    
	 
      	 	 
      
	 
      	 	 
      
	
                      /s/
      George Colin

                    	 	
                      /s/
      Jitu Banker

                    
	
                      By:           George
      Colin

                    	 	
                      By:           Jitu
      Banker

                    
	
                      Its:           Chief
      Executive Officer

                    	 	
                      Its:           President

                    
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                      “Noteholders”

                    	 	 
      
	 
      	 	 
      
	
                      Joseph
      Gledhill

                    	 	 
      
	
                      an
      individual

                    	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                      /s/ Joseph Gledhill

                    	 	 
      
	
                       Joseph
      Gledhill

                    	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                      Joyce
      Gledhill

                    	 	 
      
	
                      an
      individual

                    	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                      /s/ Joyce Gledhill

                    	 	 
      
	
                      By:  Joyce
      Gledhill

                    	 	 
      

            

          

        

      

    

    

    
      
         

      

      
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    Exhibit
A

    

    Original
Note

    

    
 

     

     

    Page 4 of
4Unassociated Document

    M LINE HOLDINGS,
INC.

    DEMAND PROMISSORY
NOTE

     

    
      	Up to
      $500,000.00 	
              March 25,
      2009

            

    

     

    FOR VALUE
RECEIVED, M Line Holdings, Inc., a Nevada corporation, its assigns and
successors (the “Company”), hereby promises to pay to Money Line Capital, Inc.,
a California corporation, or its successors or assigns (the “Holder”), in
immediately available funds, the total principal sum of up to Five Hundred
Thousand Dollars ($500,000.00), in accordance with the terms of this
Note.  The principal hereof and any unpaid accrued interest thereon
shall be due and payable upon demand by Holder in accordance with Section 1,
below (unless such payment date is accelerated as provided in Section 4
hereof).  Payment of all amounts due hereunder shall be made at the
address of the Holder provided for in Section 5 hereof.  Interest
shall accrue at the rate of ten percent (10%) per annum on the unpaid principal
balance of this Note from the date funds have been advanced and shall continue
to accrue until all unpaid principal and interest is paid in full.

     

    1.           DEMAND
LOAN.  At such times as the Company and Holder shall agree, and
in amounts as the Company and Holder shall agree, Holder will loan the Company
up to $500,000 for its operating expenses.  Each such loan by the
Holder to the Company shall be referred to as a “Loan Advance.”  The
date and amount of each Loan Advance, and the total of all Loan Advances, will
be recorded and updated on Exhibit A, which is
attached hereto and incorporated herein.  The parties acknowledge and
agree that Holder has advanced funds to the Company prior to the date hereof,
and that such advances shall be entered on Exhibit
A.  Both the Company and the Holder must initial each Loan
Advance for it to become an obligation of the Company, and any loans or other
advances made by Holder to the Company which are not recorded in Exhibit A will not be
considered a part of this Note.  Holder may demand repayment of all
amounts loaned to the Company through the date of its repayment request, plus
interest, at any time upon thirty (30) days written notice to the
Company.  This Note does not obligate the Holder to loan any money to
the Company, but is meant to govern the terms of any money the Holder does loan
the Company.

     

    2.           PREPAYMENT.  The
Company may, at its option, at any time and from time to time, prepay all or any
part of the principal balance of this Note, without penalty or premium, provided
that concurrently with each such prepayment the Company shall pay accrued
interest on the principal, if any, so prepaid to the date of such
prepayment.

     

    3.           TRANSFERABILITY.  This
Note shall not be transferred, pledged, hypothecated, or assigned by the Company
without the express written consent of the Holder. In the event any third party
acquires a controlling interest in the Company or acquires substantially all of
the assets of the Company (a “Reorganization Event”), this Note will survive and
become an obligation of the party that acquires such controlling interest or
assets.  In the event of a Reorganization Event the Company agrees to
make the party that acquires such controlling interest or assets, aware of the
terms of this Section and this Note.  This Note may be transferred,
pledged, hypothecated, or assigned by the Holder in its sole
discretion.

     

    
      
         

      

      
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    4.           DEFAULT.  The
occurrence of any one of the following events shall constitute an Event of
Default:

     

    (a)           The
non-payment, when due, of any principal or interest pursuant to this
Note;

    

    (b)           The
material breach of any representation or warranty in this Note.  In
the event the Holder becomes aware of a breach of this Section 4(b), the Holder
shall notify the Company in writing of such breach and the Company shall have
five business days after notice to cure such breach;

    

    (c)           The
breach of any covenant or undertaking, not otherwise provided for in this
Section 4;

    

    (d)           The
commencement by the Company of any voluntary proceeding under any bankruptcy,
reorganization, arrangement, insolvency, readjustment of debt, receivership,
dissolution, or liquidation law or statute of any jurisdiction, whether now or
hereafter in effect; or the adjudication of the Company as insolvent or bankrupt
by a decree of a court of competent jurisdiction; or the petition or application
by the Company for, acquiescence in, or consent by the Company to, the
appointment of any receiver or trustee for the Company or for all or a
substantial part of the property of the Company; or the assignment by the
Company for the benefit of creditors; or the written admission of the Company of
its inability to pay its debts as they mature; or

     

    (e)           The
commencement against the Company of any proceeding relating to the Company under
any bankruptcy, reorganization, arrangement, insolvency, adjustment of debt,
receivership, dissolution or liquidation law or statute of any jurisdiction,
whether now or hereafter in effect, provided, however, that the commencement of
such a proceeding shall not constitute an Event of Default unless the Company
consents to the same or admits in writing the material allegations of same, or
said proceeding shall remain undismissed for 20 days; or the issuance of any
order, judgment or decree for the appointment of a receiver or trustee for the
Company or for all or a substantial part of the property of the Company, which
order, judgment or decree remains undismissed for 20 days; or a warrant of
attachment, execution, or similar process shall be issued against any
substantial part of the property of the Company.

    

    Upon the
occurrence of any Default or Event of Default, the Holder, may, by written
notice to the Company, declare all or any portion of the unpaid principal amount
due to Holder, together with all accrued interest thereon, immediately due and
payable (the thirty (30) day notice period in Section 1, above, will not be
applicable in the case of an Event of Default), in which event it shall
immediately be and become due and payable; provided that upon the occurrence of
an Event of Default as set forth in paragraph (d) or paragraph (e) hereof, all
or any portion of the unpaid principal amount due to Holder, together with all
accrued interest thereon, shall immediately become due and payable without any
such notice.

    

    
      
         

      

      
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    5.           NOTICES.  All
notices required or permitted hereunder shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the Party to be notified,
(b) when sent by confirmed facsimile if sent during normal business hours
of the recipient, if not, then on the next business day, or (c) one (1) day
after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt.  All
communications shall be sent as follows:

     

    Notices to the Company shall be sent
to:                        M
Line Holdings, Inc.

    2672 Dow Avenue

    Tustin,
CA  92780

    Attn. Chief Executive
Officer

    Facsimile No.:  (714)
619-2339

    

    Notices to the Holder shall be sent
to:                             Money
Line Capital, Inc.

    ______________________

    ___________________

    Attn.
____________________

    Facsimile No.:
______________

     

    6.           REPRESENTATIONS
AND WARRANTIES.  The Company hereby makes the following
representations and warranties to the Holder:

     

    (a)           Organization, Good Standing
and Power.  The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Nevada and
has the requisite corporate power to own, lease and operate its properties and
assets and to conduct its business as it is now being conducted.

     

    (b)           Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and perform this Note and to issue and sell this
Note.  The execution, delivery and performance of this Note by the
Company, and the consummation by it of the Transactions contemplated hereby,
have been duly and validly authorized by all necessary corporate
action.  This Note, when executed and delivered, will constitute a
valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditor’s rights and remedies or by other
equitable principles of general application.

     

    (c)           Disclosure.  Neither
this Note nor any other document, certificate or instrument furnished to the
Holder by or on behalf of the Company in connection with the transactions
contemplated by this Note contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements made
herein or therein, in the light of the circumstances under which they were made
herein or therein, not misleading.

     

    
      
         

      

      
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    7.           GOVERNING LAW;
VENUE.  The terms of this Note shall be construed in accordance
with the laws of the State of California, as applied to contracts entered into
by California residents within the State of California, and to be performed
entirely within the State of California.  The parties agree that any
action brought to enforce the terms of this Note will be brought in the
appropriate federal or state court having jurisdiction over Orange County,
California.

     

    8.           ATTORNEY’S
FEES.  In the event the Holder hereof shall refer this Note to
an attorney to enforce the terms hereof, the Company agrees to pay all the costs
and expenses incurred in attempting or effecting the enforcement of the Holder’s
rights, including reasonable attorney’s fees, whether or not suit is
instituted.

     

    9.           CONFORMITY WITH
LAW.  It is the intention of the Company and of the Holder to
conform strictly to applicable usury and similar laws.  Accordingly,
notwithstanding anything to the contrary in this Note, it is agreed that the
aggregate of all charges which constitute interest under applicable usury and
similar laws that are contracted for, chargeable or receivable under or in
respect of this Note, shall under no circumstances exceed the maximum amount of
interest permitted by such laws, and any excess, whether occasioned by
acceleration or maturity of this Note or otherwise, shall be canceled
automatically, and if theretofore paid, shall be either refunded to the Company
or credited on the principal amount of this Note.

     

    10.           MODIFICATION;
WAIVER.  No modification or waiver of any provision of this
Note or consent to departure therefrom shall be effective unless in writing and
approved by the Company and the Holder.

    

    IN
WITNESS WHEREOF, the below parties signed and sealed this Note as of date
written above.

    

    
      
        
          	
                  “Company”

                	 	
                  “Holder”

                
	 
      	 	 
      
	
                  M
      Line Holdings, Inc.,

                	 	
                  Money
      Line Capital, Inc.,

                
	
                  a
      Nevada corporation

                	 	
                  a
      California corporation

                
	 
      	 	 
      
	 
      	 	 
      
	
                  /s/
      George Colin

                	 	
                  /s/
      Jitu Banker

                
	
                  By:           George
      Colin

                	 	
                  By:           Jitu
      Banker

                
	
                  Its:           Chief
      Executive Officer

                	 	
                  Its:           President

                
	 
      	 	 
      

        

      

    

    

    
      
         

      

      
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    Exhibit
A

    

    M Line
Holdings, Inc.

    Money
Line Capital, Inc.

    

    Schedule
of Loan Advances (Additional Sheets may be Attached if Necessary)

    

    
      	
              Date
      of Loan Advance

            	
              Amount
      of Loan Advance

            	
              Total
      of all Loan Advances Owed by Company (Excluding Interest)

            	
               

              Initials
      of Authorized Company Representative

            	
               

              Initials
      of Authorized Holder Representative

            
	
               
      

               

               

               

            	 
      	 
      	 
      	 
      
	
               
      

               

               

               

            	 
      	 
      	 
      	 
      
	
               

               

               

               
      

            	 
      	 
      	 
      	 
      
	
               

               

               

               
      

            	 
      	 
      	 
      	 
      
	
               

               

               

               
      

            	 
      	 
      	 
      	 
      
	
               

               

               

               
      

            	 
      	 
      	 
      	 
      
	
               

               

               

               
      

            	 
      	 
      	 
      	 
      
	
               

               

               

               
      

            	 
      	 
      	 
      	 
      
	
               

              Total:

            	 
      	 
      	 
      	 
      

    

    

    
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