Document:

Exhibit 10.23

 

THE SECURITIES OFFERED HEREBY
HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 3(b) OF THE SECURITIES ACT OF 1933, AS AMENDED, AND
THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE “1933 ACT)

 

US $50,000.00

 

M LINE HOLDINGS, INC

8% CONVERTIBLE REDEEMABLE NOTE

DUE FEBRUARY 12, 2015

 

FOR VALUE RECEIVED,
M Line Holdings, Inc. (the “Company”) promises to pay to the order of COVENTRY ENTERPRISES, LLC and its authorized
successors and permitted assigns (“Holder”), the aggregate principal face amount of Fifty Thousand dollars exactly
(U.S. $50,000.00) on February 12, 2015 (“Maturity Date”) and to pay interest on the principal amount outstanding
hereunder at the rate of 8% per annum commencing on February 12, 2014. The interest will be paid to the Holder in whose name this
Note is registered on the records of the Company regarding registration and transfers of this Note. The principal of, and interest
on, this Note are payable at 80 S.W. 8th Street, Suite 200 Miami, FL 33130, initially, and if changed, last appearing on the records
of the Company as designated in writing by the Holder hereof from time to time. The Company will pay each interest payment and
the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or
withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing on the records
of the Company. The forwarding of such check or wire transfer shall constitute a payment of outstanding principal hereunder and
shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire
transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

 

This Note is subject to the following additional
provisions:

 

1.          This
Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the
Holder surrendering the same. No service charge will be made for such registration or transfer or exchange, except that Holder
shall pay any tax or other governmental charges payable in connection therewith.

 

	/s/ Anthony L. Anish	 
	Initials	 

  

    	 

    	 

    

 

2.          The
Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

 

3.          This
Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended (“Act”)
and applicable state securities laws. Any attempted transfer to a non-qualifying party shall be treated by the Company as void.
Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name
this Note is duly registered on the Company’s records as the owner hereof for all other purposes, whether or not this Note
be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this
Note electing to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in
Section 4(a), and any prospective transferee of this Note, also is required to give the Company written confirmation that this
Note is being converted (“Notice of Conversion”) in the form annexed hereto as Exhibit A. The date of
receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date.

 

4.          (a)          The
Holder of this Note is entitled, at its option, at any time after 180 days, and after full cash payment for the shares convertible
hereunder, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company’s
common stock (the “Common Stock”) without restrictive legend of any nature, at a price (“Conversion
Price”) for each share of Common Stock equal to 55% of the lowest closing bid price of the Common Stock
as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon
which the Common Stock may be traded in the future (“Exchange”), for the seven
prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion
is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings
Time if the Holder wishes to included the same day closing price). If the shares have not been delivered within 3 business days,
the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common
Stock to the Holder within 3 business days of receipt by the Company of the Notice of Conversion. Once the Holder has received
such shares of Common Stock, the Holder shall surrender this Note to the Company, executed by the Holder evidencing such Holder’s
intention to convert this Note or a specified portion hereof, and accompanied by proper assignment hereof in blank. Accrued but
unpaid interest shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued
on conversion, but the number of shares issuable shall be rounded to the nearest whole share. In the event the Company experiences
a DTC “Chill” on its shares, the conversion price shall be decreased to 45% instead of 55% while that “Chill”
is in effect.

 

(b)          Interest
on any unpaid principal balance of this Note shall be paid at the rate of 8% per annum. Interest shall be paid by the Company in
Common Stock (“Interest Shares”). Holder may, at any time, send in a Notice of Conversion to the Company for Interest
Shares based on the formula provided in Section 4(a) above. The dollar amount converted into Interest Shares shall be all or a
portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	2

    	 

    

 

(c)          During
the first six months this Note is in effect, the Company may redeem this Note by paying to the Holder an amount as follows: (i)
if the redemption is within the first 90 days this Note is in effect, then for an amount equal to 125% of the unpaid principal
amount of this Note along with any interest that would have accrued during them term, (ii) if the redemption is after the 91st
day this Note is in effect but less than the 150th day this Note is in effect, then for an amount equal to 140% of the
unpaid principal amount of this Note along with any prepaid and earned interest, (iii) if the redemption is after the 151st day
this Note is in effect but less than the 180th day this Note is in effect, then for an amount equal to 150% of the unpaid
principal amount of this Note along with any prepaid and earned interest. This Note may not be redeemed after 180 days. The redemption
must be closed and paid for within 3 business days of the Company sending the redemption demand or the redemption will be invalid
and the Company may not redeem this Note

 

(d)          Upon
(i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related
transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock,
or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving
entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in
a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items
(i), (ii) and (iii) being referred to as a “Sale Event”), then, in each case, the Company shall, upon request of the
Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption,
or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of
accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.

 

(e)          In
case of any Sale Event in connection with which this Note is not redeemed or converted, the Company shall cause effective provision
to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this
Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification,
capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could
have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such
Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders
of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person
or entity acting in good faith.

 

5.          No
provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal
of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	3

    	 

    

 

6.          The
Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of
dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder
and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

 

7.          The
Company agrees to pay all costs and expenses, including reasonable attorneys’ fees and expenses, which may be incurred by
the Holder in collecting any amount due under this Note.

 

8.          If
one or more of the following described “Events of Default” shall occur:

 

(a)          The
Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company;
or

 

(b)          Any
of the representations or warranties made by the Company herein or in any certificate or financial or other written statements
heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or
the Securities Purchase Agreement under which this note was issued shall be false or misleading in any respect; or

 

(c)          The
Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of
the Company under this Note or any other note issued to the Holder; or

 

(d)          The
Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment
for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee,
liquidator or receiver for its or for a substantial part of its property or business; (5) file a petition for bankruptcy relief,
consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal
or state laws as applicable; or

 

(e)          A
trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without
its consent and shall not be discharged within thirty (30) days after such appointment; or

 

(f)          Any
governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control
of the whole or any substantial portion of the properties or assets of the Company; or

 

(g)          One
or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in
the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid,
unvacated, unbonded or unstayed for a period of fifteen (15) days or in any event later than five (5) days prior to the date of
any proposed sale thereunder; or

 

(h)          defaulted
on or breached any term of any other note of similar debt instrument into which the Company has entered and failed to cure such
default within the appropriate grace period; or

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	4

    	 

    

 

(i)          The
Company shall have its Common Stock delisted from an exchange (including the OTCBB exchange) or, if the Common Stock trades on
an exchange, then trading in the Common Stock shall be suspended for more than 10 consecutive days;

 

(j)          If
a majority of the members of the Board of Directors of the Company on the date hereof are no longer serving as members of the Board;

 

(k)          The
Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business
days of its receipt of a Notice of Conversion; or

 

(1)         The
Company shall not replenish the reserve set forth in Section 12, within 3 business days of the request of the Holder.

 

Then, or at any time thereafter, unless
cured, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver
shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder’s sole discretion,
the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any
kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments
contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce
any and all of the Holder’s rights and remedies provided herein or any other rights or remedies afforded by law. Upon an
Event of Default, interest shall be accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted
by current law, then at the highest rate of interest permitted by law. In the event of a breach of 8(k) the penalty shall be $250
per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Company.
This penalty shall increase to $500 per day beginning on the 10th day.

 

If the Holder shall commence an action
or proceeding to enforce any provisions of this Note, including without limitation engaging an attorney, then the Holder shall
be reimbursed by the Company for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation
and prosecution of such action or proceeding.

 

9.          In
case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and
the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

 

10.         Neither
this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the
Company and the Holder.

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	5

    	 

    

 

11.         The
Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it previously
has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10 type information
indicating it is no longer a “shell issuer. Further. The Company will instruct its counsel to either (i) write a 144- 3(a)(9)
opinion to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel.

 

12.         The
Company shall issue irrevocable transfer agent instructions reserving 16,000,000 shares of its Common Stock for conversions under
this Note (the “Share Reserve”). The reserve shall be replenished as needed to allow for conversions of this Note.
Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all costs
associated with issuing and delivering the shares.

 

13.         The
Company will give the Holder direct notice of any corporate actions including but not limited to name changes, stock splits, recapitalizations
etc. This notice shall be given to the Holder as soon as possible under law.

 

14.         This
Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed
within the State of New York and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company
hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York. This
Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be
effective as an original.

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	6

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Note to be duly executed by an officer thereunto duly authorized.

 

Dated: 2/12/2014

 

	 	M LINE HOLDINGS, INC
	 	 
	 	By:	/s/ Anthony L. Anish
	 	 	 
	 	Title:	 COO

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	7

    	 

    

 

EXHIBIT A

 

NOTICE OF CONVERSION

 

(To be Executed by the Registered Holder
in order to Convert the Note)

 

The undersigned hereby
irrevocably elects to convert $ _______ of the above Note into ______ Shares of Common Stock of M Line Holdings, Inc (“Shares”)
according to the conditions set forth in such Note, as of the date written below.

 

If Shares are to be issued
in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with
respect thereto.

 

	Date of Conversion: 	 

	Applicable Conversion Price:	 

	Signature: 	 
	 	[Print Name of Holder and Title of Signer]

	Address:	 
		 

 

	SSN or EIN: 	 

	Shares are to be registered in the following name: 	 

 

	Name:	 

	Address:	 

	Tel: 	 

	Fax:	 

	SSN or EIN: 	 

 

Shares are to be sent or delivered to the following account:

 

	Account Name: 	 

	Address:	 

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	8

    	 

    

 

THE SECURITIES OFFERED HEREBY
HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 3(b) OF THE SECURITIES ACT OF 1933, AS AMENDED, AND
THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE “1933 ACT)

 

US $60,750.68

 

M LINE HOLDINGS, INC

8% CONVERTIBLE REDEEMABLE NOTE

DUE FEBRUARY 12, 2015

 

REPLACEMENT NOTE- ORIGINALLY ISSUED MAY
31, 2011

IN THE AMOUNT OF $150,000.00

 

FOR VALUE RECEIVED,
M Line Holdings, Inc. (the “Company”) promises to pay to the order of COVENTRY ENTERPRISES, LLC and its authorized
successors and permitted assigns (“Holder”), the aggregate principal face amount of Sixty Thousand Seven Hundred
Fifty dollars and 68/100 cents (U.S. $60,750.68) on February 12, 2015 (“Maturity Date”) and to pay interest
on the principal amount outstanding hereunder at the rate of 8% per annum commencing on February 12, 2015. The interest will be
paid to the Holder in whose name this Note is registered on the records of the Company regarding registration and transfers of
this Note. The principal of, and interest on, this Note are payable at 80 S.W. 8th Street, Suite 200 Miami, FL 33130, initially,
and if changed, last appearing on the records of the Company as designated in writing by the Holder hereof from time to time.
The Company will pay each interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less
any amounts required by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such
Holder at the last address appearing on the records of the Company. The forwarding of such check or wire transfer shall constitute
a payment of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent
of the sum represented by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to
paragraph 4(b) herein.

 

This Note is subject to the following additional
provisions:

 

1.          This
Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the
Holder surrendering the same. No service charge will be made for such registration or transfer or exchange, except that Holder
shall pay any tax or other governmental charges payable in connection therewith.

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	 

    	 

    

 

2.          The
Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

 

3.          This
Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended (“Act”)
and applicable state securities laws. Any attempted transfer to a non-qualifying party shall be treated by the Company as void.
Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name
this Note is duly registered on the Company’s records as the owner hereof for all other purposes, whether or not this Note
be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this
Note electing to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth
in Section 4(a), and any prospective transferee of this Note, also is required to give the Company written confirmation that this
Note is being converted (“Notice of Conversion”) in the form annexed hereto as Exhibit A. The date of
receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date.

 

4.          (a)          The
Holder of this Note is entitled, at its option, at any time after 180 days, and after full cash payment for the shares convertible
hereunder, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company’s
common stock (the “Common Stock”) without restrictive legend of any nature, at a price (“Conversion
Price”) for each share of Common Stock equal to 55% of the lowest closing bid price of the Common Stock
as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon
which the Common Stock may be traded in the future (“Exchange”), for the seven prior trading
days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered
by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the
Holder wishes to included the same day closing price). If the shares have not been delivered within 3 business days, the Notice
of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common Stock to the
Holder within 3 business days of receipt by the Company of the Notice of Conversion. Once the Holder has received such shares
of Common Stock, the Holder shall surrender this Note to the Company, executed by the Holder evidencing such Holder’s intention
to convert this Note or a specified portion hereof, and accompanied by proper assignment hereof in blank. Accrued but unpaid interest
shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued on conversion, but
the number of shares issuable shall be rounded to the nearest whole share. In the event the Company experiences a DTC “Chill”
on its shares, the conversion price shall be decreased to 45% instead of 55% while that “Chill” is in effect.

 

(b)          Interest
on any unpaid principal balance of this Note shall be paid at the rate of 8% per annum. Interest shall be paid by the Company in
Common Stock (“Interest Shares”). The Holder may, at any time, send in a Notice of Conversion to the Company for Interest
Shares based on the formula provided in Section 4(a) above. The dollar amount converted into Interest Shares shall be all or a
portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	2

    	 

    

 

(c)          This
Note may not be prepaid.

 

(d)          Upon
(i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related
transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock,
or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving
entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in
a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items
(i), (ii) and (iii) being referred to as a “Sale Event”), then, in each case, the Company shall, upon request of the
Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption,
or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of
accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.

 

(e)          In
case of any Sale Event in connection with which this Note is not redeemed or converted, the Company shall cause effective provision
to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this
Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification,
capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could
have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such
Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders
of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person
or entity acting in good faith.

 

5.          No
provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal
of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

 

6.          The
Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of
dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder
and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

 

7.          The
Company agrees to pay all costs and expenses, including reasonable attorneys’ fees and expenses, which may be incurred by
the Holder in collecting any amount due under this Note.

 

8.          If
one or more of the following described “Events of Default” shall occur:

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	3

    	 

    

 

(a)          The
Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company;
or

 

(b)          Any
of the representations or warranties made by the Company herein or in any certificate or financial or other written statements
heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or
the Securities Purchase Agreement under which this note was issued shall be false or misleading in any respect; or

 

(c)          The
Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of
the Company under this Note or any other note issued to the Holder; or

 

(d)          The
Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment
for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee,
liquidator or receiver for its or for a substantial part of its property or business; (5) file a petition for bankruptcy relief,
consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal
or state laws as applicable; or

 

(e)          A
trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without
its consent and shall not be discharged within thirty (30) days after such appointment; or

 

(f)          Any
governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control
of the whole or any substantial portion of the properties or assets of the Company; or

 

(g)          One
or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in
the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid,
unvacated, unbonded or unstayed for a period of fifteen (15) days or in any event later than five (5) days prior to the date of
any proposed sale thereunder; or

 

(h)          defaulted
on or breached any term of any other note of similar debt instrument into which the Company has entered and failed to cure such
default within the appropriate grace period; or

 

(i)          The
Company shall have its Common Stock delisted from an exchange (including the OTCBB exchange) or, if the Common Stock trades on
an exchange, then trading in the Common Stock shall be suspended for more than 10 consecutive days;

 

(i)          If
a majority of the members of the Board of Directors of the Company on the date hereof are no longer serving as members of the Board;

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	4

    	 

    

 

(k)          The
Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business
days of its receipt of a Notice of Conversion; or

 

(1)         The
Company shall not replenish the reserve set forth in Section 12, within 3 business days of the request of the Holder.

 

Then, or at any time thereafter, unless
cured, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver
shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder’s sole discretion,
the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any
kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments
contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce
any and all of the Holder’s rights and remedies provided herein or any other rights or remedies afforded by law. Upon an
Event of Default, interest shall be accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted
by current law, then at the highest rate of interest permitted by law. In the event of a breach of 8(k) the penalty shall be $250
per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Company.
This penalty shall increase to $500 per day beginning on the 10th day.

 

If the Holder shall commence an action
or proceeding to enforce any provisions of this Note, including without limitation engaging an attorney, then the Holder shall
be reimbursed by the Company for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation
and prosecution of such action or proceeding.

 

9.          In
case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and
the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

 

10.         Neither
this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the
Company and the Holder.

 

11.         The
Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it
previously has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10
type information indicating it is no longer a “shell issuer. Further. The Company will instruct its counsel to either
(i) write a 144- 3(a)(9) opinion to allow for salability of the conversion shares or (ii) accept such opinion from
Holder’s counsel.

 

12.         The
Company shall issue irrevocable transfer agent instructions reserving 16,000,000 shares of its Common Stock for conversions under
this Note (the “Share Reserve”). The reserve shall be replenished as needed to allow for conversions of this Note.
Upon full conversion of this Note, the any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all
costs associated with issuing and delivering the shares.

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	5

    	 

    

 

13.         The
Company will give the Holder direct notice of any corporate actions including but not limited to name changes, stock splits, recapitalizations
etc. This notice shall be given to the Holder as soon as possible under law.

 

14.         This
Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed
within the State of New York and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company
hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York. This
Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be
effective as an original.

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	6

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Note to be duly executed by an officer thereunto duly authorized.

 

Dated: 2/12/2014

 

	 	M LINE HOLDING, INC
	 	 
	 	By: 	/s/ Anthony L. Anish
	 	 	 
	 	Title: 	COO

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	7

    	 

    

 

EXHIBIT A

 

NOTICE OF CONVERSION

 

(To be Executed by the Registered Holder
in order to Convert the Note)

 

The undersigned hereby
irrevocably elects to convert $ _______ of the above Note into ______ Shares of Common Stock of M Line Holdings, Inc (“Shares”)
according to the conditions set forth in such Note, as of the date written below.

 

If Shares are to be issued
in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with
respect thereto.

 

	Date of Conversion: 	 

	Applicable Conversion Price:	 

	Signature: 	 
	 	[Print Name of Holder and Title of Signer]

	Address:	 
		 

 

	SSN or EIN: 	 

	Shares are to be registered in the following name: 	 

 

	Name:	 

	Address:	 

	Tel: 	 

	Fax:	 

	SSN or EIN: 	 

 

Shares are to be sent or delivered to the following account:

 

	Account Name: 	 

	Address:	 

 

	/s/ Anthony L. Anish	 
	Initials	 

 

    	8

    	 

    

 

DISBURSEMENT AUTHORIZATION

(MEMORANDUM)

 

TO: COVENTRY ENTERPRISES, LLC.

 

FROM: M LINE HOLDINGS, INC.

 

DATE: February 12, 2014

 

RE: Disbursement of Funds

 

In connection with
the funding of an aggregate of $50,000 pursuant to that certain Convertible Redeemable Note dated as of February 12, 2014 (the
“Agreement”), you are hereby directed to disburse such funds as follows:

 

		1.	$2,500.00 to New Venture Attorneys, P.C. in accordance
with the wires transfer instructions attached as Schedule A, hereto;

 

		2.	$4,750.00 to Anubis Capital Partners in accordance with
the wire transfer instructions attached as Schedule B, hereto; and

 

		3.	$42,750 to M Line Holdings Inc., in accordance with the
wire transfer instructions attached as Schedule C, hereto;

 

	 	/s/ Anthony L. Anish
	 	 
	 	Title: COO

 

	 	 
	Company Initials	 

 

    	 

    	 

    

 

EXHIBIT A

NEW VENTURE ATTORNEYS

WIRING INFORMATION

 

Please wire funds to:

 

Bank of America

 

Routing No: 026009593

Acct No.: 164109387780

 

		Beneficiary:	New Venture Attorneys, PC, IOLTA account

 

		Attorney info:	New Venture Attorneys, P.C.

900 E. Hamilton Ave, Suite 100

Campbell, CA 95008

 

	/s/ Anthony L. Anish	 
	Company Initials	 

 

    	 

    	 

    

 

EXHIBIT B

ANUBIS CAPITAL PARTNERS WIRING INFO

 

Capital One, N.A.

8989 Preston Road

Frisco, TX 75034

 

Routing No:  111901014

Acct No.:      3622044799

 

Beneficiary:  Anubis Capital Partners

2550 Midway Road Suite 198

Carrolton, TX 75006

 

	/s/ Anthony L. Anish	 
	Company Initials	 

 

    	 

    	 

    

 

EXHIBIT C

[WIRING INFO FOR ISSUER]

 

Bank of America

14222 Culver Drive

Irvine, CA 92620

 

Routing 121000358

Account Number: 23414 69572

 

Beneficiary:

M Line Holdings, Inc.

2672 Dow Avenue

Tustin, CA 92780

 

	/s/ Anthony L. Anish	 
	Company Initials	 

 

    	 

    	 

    

 

DEBT PURCHASE AGREEMENT

 

This Debt Purchase
Agreement (the “Agreement”) made as of this 12th day of February, 2014, by and between Coventry Enterprises,
LLC (the “Buyer”) and Spagus Capital Partners, LLC (the “Seller”).

 

1.     PURCHASE
AND SALE OF THE CONVERTIBLE NOTE

 

Upon the terms and
conditions herein contained, at the Closing (as hereinafter defined), the Seller hereby sells, assigns and transfers to the Buyer
and the Buyer agrees to purchase from the Seller the “Transferred Rights” of the Seller and all rights thereto. Transferred
Rights shall mean all rights with respect to $50,000 in principal and proportional accrued interest (the “Assigned Portion”)
under that promissory note in the amount of $150,000 issued by M Line Holdings, Inc. (“Borrower” or “Company”)
on May 31, 2011, a true and correct copy which has been provided to New Venture Attorneys, P.C. (the “Note”). By its
signatures hereto the Borrower accepts the assignment of the Transferred Rights to Buyer and agrees that Buyer may convert the
Transferred Rights into shares of the Company’s common stock.

 

2.     CONSIDERATION

 

The purchase price
for the Assigned Portion of the Note shall be the Buyer’s payment of Fifty Thousand Dollars ($50,000.00) to the Seller, for
the Assigned Portion (the “Purchase Price”).

 

3.     CLOSING

 

The closing of the
transactions contemplated by this Agreement (the “Closing”) shall take place simultaneously with the delivery of the
Purchase Price via wire transfer of immediately available funds against the assignment of the Note. The funds will be wired as
set forth in Exhibit A.

 

4.     REPRESENTATIONS
AND WARRANTIES OF SELLER The Seller hereby represents and warrants to the Buyer as follows:

 

4.1          Status
of the Seller and the Note. The Seller is the beneficial owner of the Note. The Note is currently outstanding and Seller is
informed by Company that the Note represents a bona fide debt obligation of the Company.

 

4.2          Authorization;
Enforcement. (i) Seller has all requisite corporate power and authority to enter into and perform the Agreement and to consummate
the transactions contemplated hereby and to sell each Note, in accordance with the terms hereof, (ii) the execution and delivery
of this Agreement by the Seller and the consummation by it of the transactions contemplated hereby (including, without limitation,
the sale of the Note to the Buyer) have been duly authorized by the Seller and no further consent or authorization of the Seller
or its members is required, (iii) this Agreement has been duly executed and delivered by the Seller, and (iv) this Agreement constitutes
a legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally, the enforcement of creditors’ rights and remedies or by other equitable principles of general
application.

 

    	1

    	 

    

 

4.3           No
Conflicts. The execution, delivery and performance of this Agreement by the Seller and the consummation by the Seller of the
transactions contemplated hereby (including, without limitation, the sale of the Note to the Buyer) will not (i) conflict with
or result in a violation of any provision of its certificate of formation or other organizational documents, or (ii) violate or
conflict with or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time
or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of,
any agreement, note, bond, indenture or other instrument to which Seller are a party, or (iii) result in a violation of any law,
rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any
self-regulatory organizations to which Seller are subject) applicable to Seller or the Note is bound or affected. The Seller is
not required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental
agency, regulatory agency, self-regulatory organization or stock market or any third party in order for it to execute, deliver
or perform any of its obligations under this Agreement in accordance with the terms hereof.

 

4.4           Title;
Rule 144 Matters. Seller has good and marketable title to the Note. Seller is not an “Affiliate” of the Company,
as that term is defined in Rule 144 of the Securities Act of 1933, as amended (the “1933 Act”), as such Buyer will
be able to track the holding period of the Seller.

 

4.5           Consent
of the Company.

 

(i)          The
Company, as evidence by its signature at the foot of this Agreement, hereby represents and warrants that, upon delivery to the
Company of the Note, the Company shall promptly cause to be issued to and in the name of Buyer one of more new executed Notes in
the aggregate amount of $50,000.00 plus accrued interest, but otherwise having the sale terms (including, but not necessarily limited
to, referring to the original issue date) as in the Note. The Note may contain the same restrictive legend as provided in the original
Note, but no stop transfer order. The Note is currently outstanding and represents a bona fide debt obligation of the Company.

 

(ii)         The
signature by the Company also represents the Company’s agreement to treat Buyer as a party to, and having all the rights
of the Seller with respect to the Transferred Rights.

 

5.     REPRESENTATIONS,
WARRANTIES AND ACKNOWLEDGEMENTS OF THE BUYER. The Buyer hereby represents warrants and acknowledges to the Seller as follows:

 

5.1 Sophisticated
Investor. The Buyer has sufficient knowledge and experience of financial and business matters, is able to evaluate the merits
and risks of the partial purchase of the Note and has had substantial experience in previous private and public purchases of securities.

 

    	2

    	 

    

 

5.2 Authorization;
Enforcement. (i) Buyer has all requisite corporate power and authority to enter into and perform the Agreement and to consummate
the transactions contemplated hereby and to purchase each Note, in accordance with the terms hereof, (ii) the execution and delivery
of this Agreement by the Buyer and the consummation by it of the transactions contemplated hereby (including, without limitation,
the purchase of the Note by the Buyer) have been duly authorized by the Buyer and no further consent or authorization of the Buyer
or its members is required, (iii) this Agreement has been duly executed and delivered by the Buyer, and (iv) this Agreement constitutes
a legal, valid and binding obligation of the Buyer enforceable against the Buyer in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
generally, the enforcement of creditors’ rights and remedies or by other equitable principles of general application.

 

5.3 No Conflicts.
The execution, delivery and performance of this Agreement by the Buyer and the consummation by the Buyer of the transactions contemplated
hereby will not (i) conflict with or result in a violation of any provision of its certificate of formation or other organizational
documents, or (ii) violate or conflict with or result in a breach of any provision of, or constitute a default (or an event which
with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, note, bond, indenture or other instrument to which Buyer is a party, or (iii) result in a violation
of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations
of any self-regulatory organizations to which Buyer is subject) applicable to Seller or the Note is bound or affected. The Buyer
is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental
agency, regulatory agency, self-regulatory organization or stock market or any third party in order for it to execute, deliver
or perform any of its obligations under this Agreement in accordance with the terms hereof.

 

6.     MISCELLANEOUS

 

6.1           Binding
Effect; Benefits. This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective
successors and permitted assigns. Except as otherwise set forth herein, this Agreement may not be assigned by any party hereto
without the prior written consent of the other party hereto. Except as otherwise set forth herein, nothing in this Agreement, expressed
or implied, is intended to confer on any person other than the parties hereto or their respective successors and permitted assigns
any rights, remedies, obligations or liabilities under or by any reason of this Agreement.

 

6.2           Notices.
All notices, requests, demands and other communications which are required to be or may be given under this Agreement shall be
in writing and shall be deemed to have been duly given when delivered in person, or transmitted by telecopy or telex, or upon receipt
after dispatch by certified or registered first class mail, postage prepaid, return receipt requested, to the party to whom the
same is so given or made, at the following addresses (or such others as shall be provided in writing hereafter):

 

    	3

    	 

    

 

(a)   If
to the Buyer to:

Coventry Enterprises, LLC

80 S.W. 8th Street,
Suite 200

Miami, FL 33130

Attn: Jack Bodenstein

 

(b)   If
to the Seller to:

Spagus Capital Partners, LLC

250 F. Centerville Road

Warwick, RI 02886

 

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

 

6.4           Further
Assurances. After the Closing, at the request of either party, the other party shall execute, acknowledge and deliver, without
further consideration, all such further assignments, conveyances, endorsements, deeds, powers of attorney, consents and other documents
and take such other action as may be reasonably requested to consummate the transactions contemplated by this Agreement.

 

6.5           Headings.
The section and other headings contained in this Agreement are for reference purposes only and shall not be deemed to be part of
this Agreement or to affect the meaning or interpretation of this Agreement.

 

6.6           Counterparts.
This Agreement may be executed in any number of counterparts and by facsimile, each of which, when executed, shall be deemed to
be an original and all of which together shall be deemed to be one and the same instrument.

 

6.7           Governing
Law. This Agreement shall be construed as to both validity and performance and enforced in accordance with and governed by
the laws of the State of New York, without giving effect to the conflicts of law principles thereof.

 

6.8           Severability.
If any term or provision of this Agreement shall to any extent be invalid or unenforceable, the remainder of this Agreement shall
not be affected thereby, and each term and provision of the Agreement shall be valid and enforced to the fullest extent permitted
by law.

 

6.9           Amendments.
This Agreement may not be modified or changed except by an instrument or instruments in writing executed by the parties hereto.

 

    	4

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed as of the date first above written.

 

	 	BUYER:
	 	COVENTRY ENTERPRISES, LLC
	 	 	 
	 	By:	/s/ Jack Bodenstein
	 	Jack Bodenstein, Managing Member
	 	 	 
	 	SELLER:
	 	 	 
	 	SPAGUS CAPITAL PARTNERS, LLC
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

	ACCEPTED AND AGREED:	 
	 	 	 
	M LINE HOLDINGS, INC	 
	 	 	 
	By:	/s/ Anthony L. Anish	 
	 	 	 
	Title:	COO	 

 

    	5

    	 

    

 

EXHIBIT A

WIRE INSTRUCTIONS FOR SELLER

 

PLEASE WIRE YOUR FUNDS TO THE FOLLOWING

 

PLEASE INSERT COMPLETE BANK WIRING INFO INCLUDING BANK ADDRESS
AS WELL AS ADDRESS

 

    	6

    	 

    

 

NON-AFFILIATION LETTER

 

February 12, 2014

 

Counsel to M LINE HOLDINGS, INC.

 

Counsel to Coventry Enterprises, LLC

 

Gentlemen:

 

Please let this letter serve as confirmation
that Spagus Capital Partners, LLC is not now, and has not been during the preceding 90 days, an officer, director, 10% or more
shareholder of M LINE HOLDINGS, INC. or in any other way an “affiliate” of (as that term is defined in Rule 144(a)(1)
adopted pursuant to the Securities Act of 1933, as amended), of such issuer.

 

Very Truly yours,

 

SPAGUS CAPITAL PARTNERS, LLC

 

	By:	 	 
	 	 	 
	Title:	 	 

 

    	7

    	 

    

 

UNANIMOUS CONSENT IN LIEU OF A SPECIAL

MEETING OF DIRECTORS OF

M LINE HOLDINGS, INC.

 

The undersigned, being all of the directors
of M Line Holdings, Inc., a corporation of the State of Nevada, (the “Corporation”), do hereby authorize and approve
the actions set forth in the following resolutions without the formally of convening a meeting, and do hereby consent to the following
actions of this Corporation, which actions are hereby deemed affective as of the date hereof:

 

RESOLVED: That officers of this
Corporation are authorized and directed to amend and restate a $50,000 portion of a $150,000.00 note issued to Spagus Capital
Partners, LLC on May 31, 2011 into a new promissory note to Coventry Enterprises, LLC, in the amount of $60,750.68 (which includes
accrued interest) to provide conversion features equal to 55% of the lowest closing bid price of the last day of 7 trading days
prior to conversion, as well as 8% interest and become due and payable on February 12, 2015; and

 

RESOLVED: That the officers of this
corporation are authorized and directed to issue a $50,000 promissory note to Coventry Enterprises, LLC, which provides
conversion features equal to 55% of the lowest closing bid price of the last day of 7 trading days prior to conversion, as well
as 8% interest and become due and payable on February 12, 2015; and

 

RESOLVED FURTHER: That the officers
of this corporation are authorized to corporation and directed to execute transfer agent instructions with the Company’s
transfer agent to irrevocably reserve 32,000,000 shares of the Company’s Common Stock with the transfer agent for the benefit
of Coventry Enterprises, LLC for conversion of the above aforementioned notes and

 

RESOLVED FURTHER, that each of the
officers of the Corporation be, and they hereby are authorized and empowered to execute and deliver such documents, instruments
and papers and to take any and all other action as they or any of them may deem necessary or appropriate of the purpose of carrying
out the intent of the foregoing resolutions and the transactions contemplated thereby; and that the authority of such officers
to execute and deliver any such documents, instruments and papers and to take any such other action shall be conclusively evidenced
by their execution and delivery thereof or their taking thereof.

 

    	 

    	 

    

 

The undersigned, by affixing their signatures
hereto, do hereby consent to, authorize and approve the foregoing actions in their capacity as a majority of the direction of M
Line Holdings, Inc.

 

Dated: February 6, 2014

 

	/s/ Bruce W. Barren	 	/s/ Anthony L. Anish
	 	 	 
	 	 	 
	[/s/ Illegible]	 	[/s/ Illegible]

 

    	 

    	 

    

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated as of February 12, 2014, by and between M Line Holdings, Inc.,
a Nevada corporation, with headquarters located at 2672 Dow Avenue, Tustin, CA 92780 (the “Company”), and COVENTRY
ENTERPRISES, LLC, a limited liability company, with its address at 80 S.W. 8th Street, Suite 200 Miami, FL
33130 (the “Buyer”).

 

WHEREAS:

 

A.           The
Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under
the Securities Act of 1933, as amended (the “1933 Act”);

 

B.           Buyer
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement an 8%
convertible note of the Company, in the form attached hereto as Exhibit A in the aggregate principal amount of $50,000.00 (together
with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the
terms thereof, the “Note”), convertible into shares of common stock, $0.001 par value per share, of the Company (the
“Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note.

 

C.           The
Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set forth
immediately below its name on the signature pages hereto; and

 

NOW THEREFORE, the
Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.          Purchase
and Sale of Note. 

 

a.           Purchase
of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase
from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages
hereto.

 

b.           Form
of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and
sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds
to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the principal
amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto, and
(ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase
Price.

 

	/s/ Anthony L. Anish	 
	Company Initials	 

 

    	 

    	 

    

 

c.           Closing
Date. The date and time of the first issuance and sale of the Note pursuant to this Agreement (the “Closing Date”)
shall be on or about February 12, 2014, or such other mutually agreed upon time. The closing of the transactions contemplated
by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.

 

2.          Buyer’s
Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a.           Investment
Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of
or otherwise pursuant to the Note, such shares of Common Stock being collectively referred to herein as the “Conversion
Shares” and, collectively with the Note, the “Securities”) for its own account and not with a present view towards
the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act;
provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum
or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration
statement or an exemption under the 1933 Act.

 

b.           Accredited
Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D
(an “Accredited Investor”).

 

c.           Reliance
on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying upon the
truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of
the Buyer to acquire the Securities.

 

d.           Information.
The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, furnished with
all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of
the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any, have been, and for
so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the Company. Notwithstanding
the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information
unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer. Neither such inquiries
nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or
affect Buyer’s right to rely on the Company’s representations and warranties contained in Section 3 below. The Buyer
understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware of any facts that
may constitute a breach of any of the Company’s representations and warranties made herein.

 

	/s/ Anthony L. Anish	 

 

    	2

    	 

    

 

e.           Governmental
Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Securities.

 

f.            Transfer
or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being registered
under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities
are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company,
at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in
comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an
exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to
an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”))
of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited
Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the
1933 Act (or a successor rule) (“Regulation 5”), and the Buyer shall have delivered to the Company, at the cost of
the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions,
which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only
in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances
in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined
in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder;
and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any
state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the
foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a
bona fide margin account or other lending arrangement.

 

g.           Legends.
The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act may
be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that
can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of the certificates for such Securities):

 

“NEITHER THE ISSUANCE
AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

	/s/ Anthony L. Anish	 

 

    	3

    	 

    

 

The legend set forth
above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it
is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an
effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without
any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides
the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions,
to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion
shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those
represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements,
if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer
of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within 2 business days, it will be
considered an Event of Default under the Note.

 

h.           Authorization;
Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf
of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

i.            Residency.
The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature pages hereto.

 

3.          Representations
and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a.           Organization
and Qualification. The Company and each of its subsidiaries, if any, is a corporation duly organized, validly existing and
in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and
other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated
and conducted.

 

	/s/ Anthony L. Anish	 

 

    	4

    	 

    

 

b.           Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the
Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms
hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the
transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation
for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s
Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required,
(iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized
representative is the true and official representative with authority to sign this Agreement and the other documents executed
in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery
by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms.

 

c.           Issuance
of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance
with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances
with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the
Company and will not impose personal liability upon the holder thereof.

 

d.           Acknowledgment
of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance
of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to issue Conversion
Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional regardless of the
dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

e.           No
Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance
of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation
or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event
which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of
its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or
its securities are subject) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company
or any of its subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations as would not, individually or in the aggregate, have a material adverse effect). All consents, authorizations,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained
or effected on or prior to the date hereof. The Company is not in violation of the listing requirements of the Over-the-Counter
Quotations Bureau (the “OTCQB”) and does not reasonably anticipate that the Common Stock will be delisted by the OTCQB
in the foreseeable future, nor are the Company’s securities “chilled” by FINRA. The Company and its subsidiaries
are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

	/s/ Anthony L. Anish	 

 

    	5

    	 

    

 

f.            Absence
of Litigation. Except as disclosed in the Company’s public filings, there is no action, suit, claim, proceeding, inquiry
or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to
the knowledge of the Company or any of its subsidiaries, threatened against or affecting the Company or any of its subsidiaries,
or their officers or directors in their capacity as such, that could have a material adverse effect. Schedule 3(f) contains a
complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting
the Company or any of its subsidiaries, without regard to whether it would have a material adverse effect. The Company and its
subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

g.           Acknowledgment
Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the
capacity of aim’s length purchasers with respect to this Agreement and the transactions contemplated hereby. The Company
further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective
representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation
and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents to the Buyer that the
Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its
representatives.

 

h.           No
Integrated Offering. Neither the Company, nor any of its affiliates, nor ay person acting on its or their behalf, has directly
or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would
require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the
Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes
of any shareholder approval provisions applicable to the Company or its securities.

 

i.            Title
to Property. The Company and its subsidiaries have good and marketable title in fee simple to all real property and good and
marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries,
in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(i) or such as would
not have a material adverse effect. Any real property and facilities held under lease by the Company and its subsidiaries are
held by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

 

j.            Breach
of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth
in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered
an Event of default under the Note.

 

	/s/ Anthony L. Anish	 

 

    	6

    	 

    

 

4.          COVENANTS.

 

a.           Expenses.
At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation, preparation,
execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith (“Documents”),
including, without limitation, reasonable attorneys’ and consultants’ fees and expenses, transfer agent fees, fees
for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of
provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions
contemplated by the Documents. When possible, the Company must pay these fees directly, otherwise the Company must make immediate
payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission
of an invoice by the Buyer. The Company’s obligation with respect to this transaction is to reimburse Buyer’ expenses
shall be $2500 in legal fees which shall be deduced from the Note when funded.

 

b.           Listing.
The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation
system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the
Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing
of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long as the Buyer
owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCQB or any equivalent replacement exchange,
the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq SmallCap”), the New York Stock
Exchange (“NYSE”), or the American Stock Exchange (“AMEX”) and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”)
and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any notices it receives from the
OTCQB and any other exchanges or quotation systems on which the Common Stock is then listed regarding the continued eligibility
of the Common Stock for listing on such exchanges and quotation systems.

 

c.           Corporate
Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not
sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or sale of all or
substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i) assumes the Company’s
obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii) is a publicly traded
corporation whose Common Stock is listed for trading on the OTCQB, Nasdaq, Nasdaq SmallCap, NYSE or AMEX.

 

	/s/ Anthony L. Anish	 

 

    	7

    	 

    

 

d.           No
Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of
the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval
provision applicable to the Company or its securities.

 

e.           Breach
of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies
available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Note.

 

5.          Governing
Law; Miscellaneous. 

 

a.           Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard
to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county
of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The
Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s
fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

b.           Counterparts;
Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to the other party hereto
by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

c.           Headings.
The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation
of, this Agreement.

 

d.           Severability.
In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision hereof.

 

	/s/ Anthony L. Anish	 

 

    	8

    	 

    

 

e.           Entire
Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company
nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

 

f.            Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be:

 

If to the Company, to:

M Line Holdings, Inc.

2672 Dow Avenue

Tustin, CA 92780

Attn: Anthony Anish

 

If to the Buyer:

COVENTRY ENTERPRISES, LLC

80 S.W. 8th Street, Suite 200

Miami, FL 33130

Attn: Jack Bodenstein

 

Each party shall provide notice to the other
party of any change in address.

 

g.           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that purchases Securities
in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act,
without the consent of the Company.

 

	/s/ Anthony L. Anish	 

 

    	9

    	 

    

 

h.           Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.            Survival.
The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the
closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to
indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a
result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set
forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they
are incurred.

 

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

 

k.          No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

1.          Remedies.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

	/s/ Anthony L. Anish	 

 

    	10

    	 

    

 

IN WITNESS WHEREOF, the undersigned Buyer
and the Company have caused this Agreement to be duly executed as of the date first above written.

 

	 	M Line Holdings, Inc.	 
	 	 	 
	By:	/s/ Anthony L. Anish	 
	 	Anthony L. Anish	 
	 	Chief Operating Officer	 

 

	COVENTRY ENTERPRISES, LLC.	 
	 	 
	By:		 
	Name: Jack Bodenstein	 
	Title:   Manager	 
	 	 	 

	AGGREGATE SUBSCRIPTION AMOUNT:	 
	 	 
	Aggregate Principal Amount of Note:	$50,000.00

 

Aggregate Purchase Price:

 

$50,000.00 less $2,500.00 in legal fees and $4,750.00 in third
party due diligence fees.

 

	/s/ Anthony L. Anish	 

 

    	11

    	 

    

 

EXHIBIT A

144 NOTE - $50K

 

	/s/ Anthony L. Anish	 

 

    	12Exhibit 10.24

 

NOTARIZED CERTIFICATE OF CORPORATE SECRETARY

 

OF

 

M LINE HOLDINGS, INC

 

(Two Pages)

 

The undersigned, ANTHONY L. ANISH is the
duly elected Corporate Secretary of M Line Holdings, Inc, a Nevada corporation (the “Company”).

 

I hereby warrant and
represent that I have undertaken a complete and thorough review of the Company’s corporate and financial books and records
including, but not limited to, the Company’s records relating to the following:

 

		(A)	that certain issuance of that certain
                                         convertible promissory note dated March 4, 2014 (the “Note Issuance Date”)
                                         issued to Iconic Holdings, LLC (the “Holder”) in the stated original principal
                                         amount of two hundred twenty thousand dollars ($220,000) (the “Note”);

 

		(B)	the Company’s Board of Directors duly approved the issuance of the Note to the Holder.

 

		(C)	The Company has not received and does not contemplate receiving any new consideration from any
persons in connection with any later conversion of the Note and the issuance of the Company’s Common Stock upon any said
conversion.

 

		(D)	To my best knowledge and after completing the aforementioned review of the Company’s shareholder
and corporate records, I am able to certify that the Holder (and the persons affiliated with the Holder) are not officers, directors,
or directly or indirectly, ten percent (10.00%) or more stockholders of the Company and none of said persons have had any such
status in the one hundred (100) days immediately preceding the date of this Certificate.

 

		(E)	The Company’s Board of Directors have approved duly adopted resolutions approving the Irrevocable
Instructions to the Company’s Stock Transfer Agent attached to the Note Purchase Agreement, dated March 4, 2014.

 

M Line Holdings, Inc

Notarized Certificate of Corporate Secretary

March 4, 2014

 

    	1

    	 

    

 

		(F)	The Company is not, nor has it been, a “shell company” as described in Rule 144(i)(1)(i)
of the Securities Act of 1933, as amended.

 

		(G)	I understand the constraints imposed under Rule 144 on those persons who are or may be deemed to
be “affiliates,” as that term is defined in Rule 144(a)(1) of the Securities Act of 1933.

 

		(H)	I understand that all of the representations set forth in this Certificate will be relied upon
by counsel to Iconic Holdings, LLC in connection with the preparation of a legal opinion.

 

I hereby affix my signature to this Notarized
Certificate and hereby confirm the accuracy of the statements made herein.

 

	Signed:	/s/ Anthony L. Anish	 	Date:	3/4/2014
	 	 	 	 	 
	Name:	ANTHONY L. ANISH	 	Title:	CO SECRETARY

 

SUBSCRIBED AND SWORN TO BEFORE ME ON
THIS _________ DAY OF _____________________ 2014.

 

Commission Expires: ____________

 

	  SEE ATTACHED	 
	Notary Public	 

 

M Line Holdings, Inc

Notarized Certificate of Corporate Secretary

March 4, 2014

 

    	2

    	 

    

 

JURAT

 

 

 

	State of California
	County of 	ORANGE	} ss.

 

Subscribed and sworn to (or affirmed) before
me on this 28th day of Feb., 2014, by Anthony Leon Anish, proved to me on the basis of satisfactory evidence to be the
person(s) who appeared before me.

 

		 	/s/ kevin cannon
	 	 	Signature of Notary
	(seal)	 	

 

 

 

OPTIONAL INFORMATION

 

	Date of Document	2/28/2014	 	Thumbprint of Signer
	 	 	 	 
	Type or Title of Document	Notarized Certificate of Corporate Secretary 	 	 
	 	 	 	 
	Number of Pages in Document	2 pages + Jurat	 	 
	 	 	 	 
	Document in a Foreign Language	 	 	 

 

	Type of Satisfactory Evidence:	 
	 ̈	Personally Known with Paper Identification	 
	x	Paper Identification CA.D.L.	 
	 ̈	Credible Witness(es) 	 

 

 

	Capacity of Signer:	 	 ̈	Check here if 
	 ̈	Trustee	 	 	no thumbprint 
	 ̈	Power of Attorney	 	 	or fingerprint 
	 ̈	CEO / CFO / COO	 	 	is available.
	 ̈	President /  Vice-President / Secretary / Treasurer	 	 	 
	 ̈	Other: _______________________________	 	 	 

 

	Other Information:	 
	 

 

    	 

    	 

    

  

NOTE PURCHASE AGREEMENT

 

This Note Purchase
Agreement (the “Agreement”) is made as of March 4, 2014 by and between M Line Holdings, Inc. a Nevada corporation
with principal offices at 2672 Dow Avenue, Tustin, CA 92780 (the “Company”) and Iconic Holdings, LLC, a Delaware
LLC with principal offices at 7200 Wisconsin Ave. Suite 206, Bethesda, MD 20814 (the “Purchaser”). As used herein,
the term “Parties” shall be used to refer to the Company and Purchaser jointly.

 

WHEREAS:

 

		A.	The Parties jointly warrant and represent that they have
a pre-existing relationship prior to the date of this Agreement.

 

		B.	Purchaser warrants and represents that it is sophisticated
and experienced in acquiring the debt instruments issued by small early-stage companies that have not achieve profitability, positive
cash flow or both.

 

		C.	Purchaser warrants and represents that it
                                         is an “accredited investor,” as that term is defined in Rule 501 of the Securities
                                         Act of 1933, as amended (the “1933 Act”).

 

		D.	Purchaser warrants and represents that prior
to entering into this Agreement that it has received and completed its review of the Company’s corporate and financial statements
as included in the filings and disclosures as listed for the Company with the Securities and Exchange Commission which has allowed
Purchaser to make an informed investment decision with respect to purchase of that certain Convertible Promissory Note in the
stated original principal amount of Two Hundred Twenty Thousand Dollars ($220,000.00) (the “Note”) attached in
Exhibit A and dated March 4, 2014.

 

		E.	The Purchaser acknowledges and agrees that it is acquiring
the Note for investment purposes only and not with a view to a distribution.

 

		F.	The Purchaser acknowledges and agrees that: (i) the Note
is a “restricted security,” as that term is defined in the 1933 Act and (ii) no registration rights have been granted
to Purchaser to register the Note.

 

NOW THEREFORE THE PARTIES AGREE AS FOLLOWS:

 

Section 1.       SALE
AND ISSUANCE OF THE NOTE. In consideration of the Company’s receipt of the initial sum of One Hundred
Ten Thousand Dollars ($110,000.00) at Closing (as defined in Section 2.1), the Company shall sell to the Purchaser, and the Purchaser
shall purchase from the Company (the “Issuance”) the Note upon the terms set forth in this Agreement. In addition,
a copy of that certain Action of the Board of Directors, dated March 4, 2014 (the “Action of the Board of Directors”)
is attached in Exhibit A, attached hereto.

 

M Line Holdings, Inc.

$220,000 Note Purchase Agreement

March 4, 2014

 

    	1

    	 

    

  

Section 2.       THE CLOSING.

 

2.1.       PLACE
OF CLOSING AND PROCEDURE AT CLOSING. The closing of the issuance of the Note to the Purchaser (the “Closing”)
shall take place simultaneously with and upon the satisfaction of the following conditions:

 

(1)       the Company’s execution and
delivery to the Purchaser of the following: (a) an executed copy of this Agreement; (b) an executed copy of the Note; (c) a signed
copy of the Irrevocable Instructions to the Transfer Agent; and (d) the signed Action of the Board of Directors.

 

(2)       the Purchaser’s execution of
a wire transfer to the Company no later than one (1) business day following the Closing as follows: the sum of one hundred thousand
dollars ($100,000.00) in cash shall be remitted and delivered to the Company and ten thousand dollars ($10,000.00) shall be retained
by the Purchaser through an original issue discount for due diligence and legal bills related to this transaction.

 

(3)       the Purchaser reserves the right
to pay additional consideration at any time and in any amount it desires, at its sole discretion.

 

Section 3.      REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The Company hereby represents and warrants to the
Purchaser as follows:

 

3.1.    
ORGANIZATION. The Company is duly organized, validly existing and in good standing under the laws of the State of Nevada and is
qualified to conduct its business as a foreign corporation in each jurisdiction where the failure to be so qualified would have
a material adverse effect on the Company.

 

3.2.     AUTHORIZATION
OF AGREEMENT, ETC. The execution, delivery and performance by the Company of this Agreement, the Note, and each other document
or instrument contemplated hereby or thereby (collectively, the “Financing Documents”) have been duly authorized
by all requisite corporate action by the Company and delivered by the Company. Each of the Financing Documents, when executed
and delivered by the Company, constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar
laws affecting creditors’ rights and remedies generally, and subject as to enforceability to general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity).

 

M Line Holdings, Inc.

$220,000 Note Purchase Agreement

March 4, 2014

 

    	2

    	 

    

  

Section 4.      REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER.

 

The Purchaser hereby represents and warrants to the
Company as follows:

 

4.1.          AUTHORIZATION OF THE DOCUMENTS. Purchaser
has all requisite power and authority (corporate or otherwise) to execute, deliver and perform the Financing Documents to which
it is a party and the transactions contemplated thereby, and the execution, delivery and performance by such Purchaser of the Financing
Documents to which it is a party have been duly authorized by all requisite action by such Purchaser and each such Financing Document,
when executed and delivered by the Purchaser, constitutes a valid and binding obligation of such Purchaser, enforceable against
such Purchaser in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or other similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to
general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

4.2.                INVESTMENT
REPRESENTATIONS. The Purchaser warrants and represents that:

 

		(a)	the Purchaser is an accredited investor (as that term is defined in Rule 501(a)(1) of Regulation D of the 1933 Act;

 

		(b)	the Purchaser is sophisticated and experienced in acquiring the securities of small public companies;

 

		(c)	the Purchaser has reviewed the Company’s Annual and Quarterly Reports together with the audited financial statements
contained therein;

 

		(d)	the Purchaser has had sufficient opportunity to review and evaluate the risks and uncertainties associated with the purchase
of the Company’s securities;

 

		(e)	the Purchaser is acquiring the Note from the Company for investment purposes only and not with a view to a distribution.

 

4.3                 RESTRICTED
SECURITY. Purchaser understands and acknowledges that the Note has not been, and when issued will not be, registered with the Securities
and Exchange Commission. Purchaser warrants and represents that it has fully reviewed the restricted securities legend and the
terms thereof with its financial, legal, investment, and business advisors and that it has not relied upon the Company or any other
person for any advice in connection with the purchase of the Note, this Agreement, or both of them.

 

4.4                 LEGAL COUNSEL.
Purchaser has consulted with its own independent legal, tax, investment, and other advisors of its own choosing prior to entering
into this Agreement.

 

4.5                 ABSENCE
OF REGISTRATION RIGHTS. Purchaser understands and agrees that it is not acquiring and has not been granted any registration rights
with respect to the Note. The Note is a restricted security and the Purchaser understands that there is no trading market for the
Note and no such market will likely ever develop.

 

M Line Holdings, Inc.

$220,000 Note Purchase Agreement

March 4, 2014

 

    	3

    	 

    

 

Section 5.          BROKERS AND FINDERS.

 

The Company shall
not be obligated, unless previously detailed in Section 2.1(2), to pay any commission, brokerage fee or finder’s fee based
on any alleged agreement or understanding between the Purchaser and a third person in respect of the transactions contemplated
hereby. The Purchaser hereby agrees to indemnify the Company against any claim by any third person for any commission, brokerage
or finder’s fee or other payment with respect to this Agreement or the transactions contemplated hereby based on any alleged
agreement or understanding between the Purchaser and such third person, whether express or implied from the actions of the Purchaser.

 

Section 6.           SUCCESSORS AND ASSIGNS.

 

This Agreement shall bind and
inure to the benefit of the Company, the Purchaser and their respective successors and assigns.

 

Section 7.           ENTIRE AGREEMENT.

 

This Agreement
and the other writings and agreements referred to in this Agreement or delivered pursuant to this Agreement contain the entire
understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings among
the parties with respect thereto.

 

Section 8.           NOTICES.

 

All notices,
demands and requests of any kind to be delivered to any party in connection with this Agreement shall be personally served, sent
via facsimile or e-mail, or sent in writing via an internationally recognized overnight courier or by registered or certified mail,
return receipt requested and postage prepaid to the address of each party listed on the first page of this Agreement or to such
other address as the party to whom notice is to be given may have furnished to the other parties to this Agreement in writing in
accordance with the provisions of this Section 8. Any such notice or communication shall be deemed to have been received (i) in
the case of personal delivery, on the date of such delivery, (ii) in the case of facsimile or e-mail, immediately (iii) in the
case of an internationally-recognized overnight courier, on the next business day after the date when sent and (iv) in the case
of mailing, on the third business day following that on which the piece of mail containing such communication is posted.

 

Section 9.           AMENDMENTS.

 

This Agreement may not be modified
or amended, or any of the provisions of this Agreement waived, except by written agreement of the Company and the Purchaser.

 

Section 10.         ATTORNEYS’ FEES.

 

In the event of a dispute between
the parties concerning the enforcement or interpretation of this Agreement, the prevailing party in such dispute, whether by legal
proceedings or otherwise, shall be reimbursed immediately for the reasonably incurred attorneys’ fees and other costs and
expenses by the other parties to the dispute.

 

M Line Holdings, Inc.

$220,000 Note Purchase Agreement

March 4, 2014

 

    	4

    	 

    

 

Section 11.           GOVERNING LAW AND ARBITRATION.

 

(A) All questions
concerning the construction, interpretation and validity of this Agreement shall be governed by and construed and enforced in accordance
with the domestic laws of the State of California without giving effect to any choice or conflict of law provision or rule (whether
in the State of California or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than
the State of California. In furtherance of the foregoing, the internal law of the State of California will control the interpretation
and construction of this Agreement, even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive
law of some other jurisdiction would ordinarily or necessarily apply.

 

Section 12.           CAPTIONS AND EXHIBIT A.

 

The captions by which
the sections and subsections of this Agreement are identified are for convenience only, and shall have no effect whatsoever upon
its interpretation. Exhibit A is attached hereto and each of the attachments listed in Exhibit A are each with Exhibit A incorporated
by reference herein.

 

Section 13.           SEVERANCE.

 

If any provision of
this Agreement is held to be illegal or invalid by a court of competent jurisdiction, such provision shall be deemed to be severed
and deleted; and neither such provision, nor its severance and deletion, shall affect the validity of the remaining provisions.

 

Section 14.           COUNTERPARTS.

 

This Agreement may
be executed in any number of counterparts, and each such counterpart of this Agreement shall be deemed to be an original instrument,
but all such counterparts together shall constitute but one agreement. Facsimile counterpart signatures to this Agreement shall
be acceptable and binding.

 

[The remainder of this page has been left
intentionally blank.]

 

M Line Holdings, Inc.

$220,000 Note Purchase Agreement

March 4, 2014

 

    	5

    	 

    

 

IN WITNESS WHEREOF, each of the
undersigned has duly executed this Note Purchase Agreement as of the date first written above.

 

	 	FOR THE COMPANY:	 
	 	 	 
	 	M Line Holdings, Inc.	 
	 	 	 	 
	 	By:	/s/ Anthony L. Anish	 
	 	Name:	ANTHONY L. ANISH	 
	 	Its:	COO / CO SEC	 

 

	 	FOR THE PURCHASER:	 
	 	 	 
	 	Iconic Holdings, LLC	 
	 	 	 
	 	By:	        	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title: Managing Member	 

 

[SIGNATURE PAGE TO NOTE PURCHASE AGREEMENT]

 

[The remainder of this page has been left
intentionally blank.]

 

M Line Holdings, Inc.

$220,000 Note Purchase Agreement

March 4, 2014

 

    	6

    	 

    

 

EXHIBIT A

 

(Copy of Convertible Promissory Note,
Board Resolution, and Irrevocable Instructions to 

Stock Transfer Agent, are each attached hereto.)

 

		1.	Copy of Convertible Promissory Note

 

		2.	Copy of the Board Resolution of the Borrower

 

		3.	Copy of Irrevocable Instructions to Stock Transfer Agent

 

[The remainder of this page has been left
intentionally blank.]

 

M Line Holdings, Inc.

$220,000 Note Purchase Agreement

March 4, 2014

 

    	7

    	 

    

 

ATTACHED TO NOTE PURCHASE AGREEMENT

 

Irrevocable Transfer Agent Instructions

 

DATE: March 4, 2014

 

V Stock Transfer

77 Spruce Street, Suite 201

Cedarhurst NY 11516

 

Ladies and Gentlemen:

 

On behalf
of M Line Holdings, Inc., a Nevada corporation (the “Company”), reference is made to that certain
Note Purchase Agreement, dated as of March 4, 2014, and the Convertible Promissory Note with principle value of S220,000 (the
“Note”), dated March 4, 2014 (both of which are jointly referred to as the “Agreement”),
by and between the Company and Iconic Holdings, LLC, a Delaware limited liability company (the
“Holder”). A copy of each of the above are attached hereto. Pursuant to the terms of the Note the holder
is given the right to convert all or any portion of the Note into shares of common stock (the “Shares”) of
the Company, par value $0.001 per share (the “Common Stock” or “Subject Shares”). We ask
that you familiarize yourself with your issuance and delivery obligations as Transfer Agent, contained herein.

 

You are hereby
irrevocably authorized and instructed to reserve a sufficient number of shares of common stock (“Common Stock”) of
the Company (initially 55,000,000 shares) for issuance upon partial or full conversion of the Note in accordance with the
terms thereof (the “Reserve Shares”). Following the submission of any conversion notice for the Note
by the Holder, this reserve amount shall automatically be increased back to 55,000,000 shares until the Note has
been fully retired, at which point this reserve will be extinguished. In the event that the amount of Reserve Shares are exhausted
prior to the full conversion of the Note, for any reason, you are authorized and instructed to immediately issue, upon receipt
of a Conversion Notice for any remaining portion of the Note such additional shares of Common Stock due and owing to Holder and
arising out of said conversion from the remaining authorized and unissued common stock of the company.

 

The ability to convert
the Note in a timely manner is a material obligation of the Company pursuant to the Note. Your firm is hereby irrevocably authorized
and instructed to issue shares of Common Stock of the Company (without any restrictive legend) to the Investor without any
further action or confirmation by the Company upon your receipt from the Investor of (a) a notice of conversion (“Conversion
Notice”) executed by the Investor; and (b) an opinion of counsel of the Investor, in form, substance and scope customary
for opinions of counsel in comparable transactions (and satisfactory to the transfer agent), to the effect that the shares of
Common Stock of the Company issued to the Investor pursuant to the Conversion Notice are not “restricted securities”
as defined in Rule 144 and should be issued to the Investor without any restrictive legend.

 

    	1

    	 

    

 

The Company
hereby requests that your firm act immediately, without delay and without the need for any action or confirmation by the Company
with respect to the issuance of Common Stock pursuant to any Conversion Notices received from the Investor. Your firm will not
delay in processing any Conversion Notices owing to the fact that the Company is in arrears of its fees and other monies owed to
your firm, provided that the Investor agrees that each time a Conversion Notice is delivered to your firm, the Investor agrees
to pay the cost of processing the Conversion Notice a sum not to exceed $150.00 for each such transaction.

 

The Company
hereby directs you, upon request by the Investor or Investor’s broker dealer, to immediately provide any capitalization structure
information pertaining to the number of common shares of the Company that are issued and outstanding, authorized, reserved, or
in the public float without any further action or confirmation by the Company.

 

The Company
shall indemnify you and your officers, directors, principals, partners, agents and representatives, and hold each of them harmless
from and against any and all loss, liability, damage, claim or expense (including the reasonable fees and disbursements of its
attorneys) incurred by or asserted against you or any of them arising out of or in connection with the instructions set forth herein,
the performance of your duties hereunder and otherwise in respect hereof, including the costs and expenses of defending yourself
or themselves against any claim or liability hereunder, except that the Company shall not be liable hereunder as to matters in
respect of which it is determined that you have acted with gross negligence or in bad faith (which gross negligence, bad faith
or willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction).
You shall have no liability to the Company in respect to any action taken or any failure to act in respect of this if such action
was taken or omitted to be taken in good faith, and you shall be entitled to rely in this regard on the advice of counsel.

 

The Board
of Directors of the Company has approved the foregoing (irrevocable instructions) and does hereby extend the Company’s irrevocable
agreement to indemnify your firm for all loss, liability or expense in carrying out the authority and direction herein contained
on the terms herein set forth.

 

The Company agrees that in the event that
the Transfer Agent resigns as the Company’s transfer agent, the Company shall engage a suitable replacement transfer agent
that will agree to serve as transfer agent for the Company and be bound by the terms and conditions of these Irrevocable Instructions
within five (5) business days.

 

The Investor is intended to be and are
third party beneficiaries hereof, and no amendment or modification to the instructions set forth herein may be made without the
consent of the Investor.

 

    	2

    	 

    

 

Please execute
this letter in the space indicated to acknowledge your agreement to act in accordance with these instructions and return a copy
of this agreement to the Company and to the Holder.

 

Very truly yours,

 

M LINE HOLDINGS, INC

 

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

 

Acknowledged and Agreed:

 

V STOCK TRANSFER

 

	By:	 	 	Date:	 	 
	 	 	 	 	 	 
	Name:	 	 	 	 	 
	 	 	 	 	 	 
	Title:	 	 	 	 	 

 

    	3

    	 

    

 

Note: March 4, 2014

 

NEITHER THESE SECURITIES
NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

THIS NOTE
DOES NOT REQUIRE PHYSICAL SURRENDER OF THE NOTE IN THE EVENT OF A PARTIAL REDEMPTION OR CONVERSION. AS A RESULT, FOLLOWING ANY
REDEMPTION OR CONVERSION OF ANY PORTION OF THIS NOTE, THE OUTSTANDING PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE MAY BE LESS THAN
THE PRINCIPAL AMOUNT AND ACCRUED INTEREST SET FORTH BELOW.

 

5% CONVERTIBLE PROMISSORY NOTE

 

OF

 

M LINE HOLDINGS, INC

 

Issuance Date: March 4, 2014

Total Face Value of Note: $220,000

Original Issue Discount: $22,000

 

This
Note (“Note” or “Note”)
is a duly authorized Convertible Promissory Note of M LINE HOLDINGS, INC, a corporation duly
organized and existing under the laws of the State of Nevada (the “Company”), designated as the Company’s
5% Convertible Promissory Note Due March 4, 2015 (“Maturity Date”) in the principal amount of Two Hundred Twenty
Thousand Dollars ($220,000) (the “Note”).

 

For
Value Received, the Company hereby promises to pay to the order of
Iconic Holdings, LLC or its registered assigns or successors-in-interest
(“Holder”) the principal sum of Two Hundred Twenty Thousand Dollars ($220,000) together with
all accrued but unpaid interest, if any, on the Maturity Date, to the extent such principal amount and interest has not been repaid
or converted into the Company’s Common Stock, $0.001 par value per share (the “Common Stock”), in
accordance with the terms hereof.

 

The initial Purchase
Price will be one hundred ten thousand dollars ($110,000) of consideration upon execution of the Note Purchase Agreement and all
supporting documentation. The Purchase Price shall be paid according to Section 2.1 of the Note Purchase Agreement. The Holder
reserves the right to pay additional consideration at any time and in any amount it desires, at its sole discretion. The principle
sum owed by the Company shall be prorated to the amount of consideration paid by the Holder and only the consideration received
by the Company, plus prorated interest, fees and original issue discount, shall be deemed owed by the Company. The original issue
discount is set at ten percent (10%) of any consideration paid. The Company is not responsible to repay any unfunded portion of
this Note.

 

$220,000.00 Convertible Note

M Line Holdings, Inc.

Iconic Holdings, LLC

 

    	1

    	 

    

 

Any consideration
paid to the Company shall incur a one-time interest charge of five percent (5%) at the time of investment. In the Event of Default
pursuant to Section 2.00(e), additional interest will accrue at the rate equal to the lower of fifteen percent (15%) per annum
or the highest rate permitted by law (the “Default Rate”).

 

This Note may be prepaid in whole or in
part according to the following schedule:

 

Within 90 days, this
Note may be prepaid at a 20% premium plus interest. Within 91 to 120 days, this Note may be prepaid at a 30% premium plus interest.
Within 121 to 150 days, this Note may be prepaid at a 35% premium plus interest. Within 151 to 180 days, this Note may be prepaid
at a 40% premium plus intererst. After 180 days this Note may not be prepaid without prior written consent of the Holder. Whenever
any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day (as defined below), the
same shall instead be due on the next succeeding day which is a Business Day.

 

For purposes hereof the following terms
shall have the meanings ascribed to them below:

 

“Business
Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the City
of New York are authorized or required by law or executive order to remain closed.

 

“Conversion
Price” shall be equal to a forty five percent (45%) discount to the lowest price of the Company’s
common stock during the twenty (20) consecutive trading days prior to the date on which Holder elects to convert all or part of
the Note. If the Company is placed on “chilled” status with the Depository Trust Company (“DTC”),
the discount will be increased by ten percent (10%) until such chill is remedied.

 

“Principal
Amount” shall refer to the sum of (i) the original principal amount of this Note, (ii) all accrued
but unpaid interest hereunder, and (iii) any default payments owing under the Agreements but not previously paid or added to the
Principal Amount.

 

“Trading Day”
shall mean a day on which there is trading on the Principal Market.

 

“Underlying
Shares” means the shares of common stock into which the Note is convertible (including interest or
principal payments in common stock as set forth herein) in accordance with the terms hereof.

 

The following terms and conditions shall
apply to this Note:

 

$220,000.00 Convertible Note

M Line Holdings, Inc.

Iconic Holdings, LLC

 

    	2

    	 

    

 

Section 1.00 Conversion.

 

(a)         Conversion Right. Subject to
the terms hereof and restrictions and limitations contained herein, the Holder shall have the right, at the Holder’s option,
at any time to convert the outstanding Principal Amount and Interest under this Note in whole or in part.

 

(b)        The
date of any Conversion Notice hereunder and any Payment Date shall be referred to herein as the “Conversion Date”.

 

(i)          Stock
Certificates or DWAC. The Company will deliver to the Holder, or Holder’s authorized designee, no later than two (2)
Trading Days after the Conversion Date, a certificate or certificates (which certificate(s) shall be free of restrictive legends
and trading restrictions) representing the number of shares of Common Stock being acquired upon the conversion of this Note. In
lieu of delivering physical certificates representing the shares of Common Stock issuable upon conversion of this Note, provided
the Company’s transfer agent is participating in the DTC Fast Automated Securities Transfer (“FAST”)
program, upon request of the Holder, the Company shall use commercially reasonable efforts to cause its transfer agent to electronically
transmit such shares issuable upon conversion to the Holder (or its designee), by crediting the account of the Holder’s
(or such designee’s) prime broker with DTC through its Deposits and Withdrawal at Custodian (DWAC) program (provided that
the same time periods herein as for stock certificates shall apply).

 

If the Company fails
to deliver to the Holder such certificate or certificates (or shares through DTC) pursuant to this Section (free of any restrictions
on transfer or legends) prior to the third Trading Day after the Conversion Date, the Company shall pay to the Holder as liquidated
damages, in cash, an amount equal to Two Thousand Dollars ($2,000) per day, until such certificate or certificates are delivered.
The Company acknowledges that it would be extremely difficult or impracticable to determine the Holder’s actual damages and
costs resulting from a failure to deliver the Common stock and the inclusion herein of any such additional amounts are the agreed
upon liquidated damages representing a reasonable estimate of those damages and costs. Such liquidated damages will be added to
the principal value of the Note.

 

(c)       Reservation
and Issuance of Underlying Securities. The Company covenants that it will at all times reserve and keep available out of its
authorized and unissued Common Stock solely for the purpose of issuance upon conversion of this Note (including repayments in stock),
free from preemptive rights or any other actual contingent purchase rights of persons other than the Holder, not less than three
times (3x) the number of shares of Common Stock as shall be issuable (taking into account the adjustments under this
Section 1 but without regard to any ownership limitations contained herein) upon the conversion of this Note in Common Stock. These
shares shall be reserved in proportion with the Consideration actually received by the Company and the total reserve will be increased
with future payments of consideration by Holder. The Company covenants that all shares of Common Stock that shall be issuable will,
upon issue, be duly authorized, validly issued, fully-paid, non-assessable and freely-tradable. The Company agrees that this is
a material term of this Note.

 

$220,000.00 Convertible Note

M Line Holdings, Inc.

Iconic Holdings, LLC

 

    	3

    	 

    

 

(d)         Conversion Limitation. The holder will not submit
a conversion to the Company that would result in the Holder owning more than 9.99% of the total outstanding shares of the Company.

 

Section 2.00                        Defaults
and Remedies.

 

(e) Events of Default.
An “Event of Default” is: (i) a default in payment of any amount due hereunder which default continues for more
than five (5) business days after the due date; (ii) a default in the timely issuance of underlying shares upon and in accordance
with terms hereof, which default continues for three (3) Business Days after the Company has received notice informing the Company
that it has failed to issue shares or deliver stock certificates within the third (3rd)
day following the Conversion Date; (iii) failure by the Company for three (3) days after notice has been received by the Company
to comply with any material provision of the Purchase Agreement (including without limitation the failure to issue the requisite
number of shares of Common Stock upon conversion hereof; (iv) a material breach by the Company of its representations or warranties
in the Exchange Agreement; (v) any default after any cure period under, or acceleration prior to maturity of, any mortgage, indenture
or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed
by the Company in excess of $50,000 or for money borrowed the repayment of which is guaranteed by the Company in excess of $50,000,
whether such indebtedness or guarantee now exists or shall be created hereafter; (vi) any failure of the Company to satisfy its
“filing” obligations under the rules and guidelines issued by OTC Markets News Service, OTC Markets.com
and their affiliates; (vii) Any failure of the Company to provide the Holder with information
related to the corporate structure including, but not limited to, the number of authorized and outstanding shares, public float,
etc. within one (1) day of request by Holder; (viii) failure to have sufficient number of authorized but unissued shares of the
Company’s Common Stock available for any conversion; (ix) failure of Company’s stock to maintain a bid price in its
trading market which occurs for at least three (3) consecutive days; (x) any delisting for any reason; (xi) failure by Company
to pay any of its Transfer Agent fees or to maintain a Transfer Agent of record; (xii) any trading suspension imposed by the Securities
and Exchange Commission under Sections 12(j) or 12(k) of the 1934 Act; (xiii) if the Company is subject to any Bankruptcy Event;
(xiv) failure of the Company to remain compliant with DTC, thus incurring a “chilled” status with DTC; or (xv) failure
of the Company to abide by the terms of the right of first refusal contained in Section 3.00 (i).

 

Remedies. If an
Event of Default occurs and is continuing with respect to the Note, the Holder may declare all of the then outstanding Principal
Amount of this Note, including any interest due thereon, to be due and payable immediately without further action or notice. In
the event of such acceleration, the amount due and owing to the Holder shall be increased to one hundred and fifty percent (150%)
of the outstanding Principal Amount of the Note held by the Holder plus all accrued and unpaid interest, fees, and liquidated damages,
if any. Additionally, this Note shall bear interest on any unpaid principal from and after the occurrence and during the continuance
of an Event of Default at a rate of twenty percent (20%). Finally, the Note will accrue liquidated damages of one thousand dollars
($1,000) per day from and after the occurrence and during the continuance of an Event of Default. The Company acknowledges that
it would be extremely difficult or impracticable to determine the Holder’s actual damages and costs resulting from an Event
of Default and any such additional amounts are the agreed upon liquidated damages representing a reasonable estimate of those damages
and costs. The remedies under this Note shall be cumulative and added to the principal value of the Note.

 

$220,000.00 Convertible Note

M Line Holdings, Inc.

Iconic Holdings, LLC

 

    	4

    	 

    

 

Section 3.00 General.

 

(f) Payment of Expenses.
The Company agrees to pay all reasonable charges and expenses, including attorneys’ fees and expenses, which may be incurred
by the Holder in successfully enforcing this Note and/or collecting any amount due under this Note.

 

(g) Assignment, Etc.
The Holder may assign or transfer this Note to any transferee at its sole discretion. This Note shall be binding upon the Company
and its successors and shall inure to the benefit of the Holder and its successors and permitted assigns.

 

(h) Governing Law; Jurisdiction.

 

(i)     Governing
Law. This note will be governed by and construed in accordance with the laws of the state of California without regard to any
conflicts of laws or provisions thereof that would otherwise require the application of the law of any other jurisdiction.

 

(ii)     Jurisdiction.
Any dispute or claim arising to or in any way related to this Note or the rights and obligations of each of the parties hereto
shall be settled by binding arbitration in San Diego, California. All arbitration shall be conducted in accordance with the rules
and regulations of the American Arbitration Association (“AAA”). AAA shall designate an arbitrator from an
approved list of arbitrators following both parties’ review and deletion of those arbitrators on the approved list having
a conflict of interest with either party. The Company agrees that a final non-appealable judgment in any such suit or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other lawful manner.

 

(ii)     No Jury
Trial. The Company hereto knowingly and voluntarily waives any and all rights it may have to a trial by jury with respect to
any litigation based on, or arising out of, under, or in connection with, this note.

 

(i)    Right of First
Refusal. From and after the date of this Note and at all times hereafter while the Note is outstanding, the Parties agree that
in the event that the Company receives any written or oral proposal (the “Proposal”) containing one or more
offers to provide additional capital or financing in an amount equal to or exceeding an aggregate of fifty thousand dollars ($50,000.00)
(the “Financing Amount”), the Company agrees that it shall provide a copy of all documents received relating
to the Proposal together with a complete and accurate description of the Proposal to the Holder and all amendments, revisions,
and supplements thereto (the “Proposal Documents”) no later than three (3) business days from the receipt of
the Proposal Documents. Following receipt of the Proposal Documents from the Company, the Holder shall have the right (the “Right
of First Refusal”), for a period of five (5) business days thereafter (the “Exercise Period”), to
invest, at similar or better terms to the Company, in an amount equal to or greater than the Financing Amount, upon written notice
to the Company that the Holder is exercising the Right of First Refusal provided hereby. In furtherance of the Right of First Refusal,
the Company agrees that it will cooperate and assist Holder in conducting a due diligence investigation of the Company and its
corporate and financial affairs and provide Holder with information and documents that Holder may reasonably request so as to allow
the Holder to make an informed investment decision. However, the Company and Holder agree that Holder shall have no more than five
(5) calendar days from and after the expiration of the Exercise Period to exercise its Right of First Refusal hereunder. This Right
of First Refusal shall extend to all purchases of debt held by current shareholders, vendors, or creditors.

 

$220,000.00 Convertible Note

M Line Holdings, Inc.

Iconic Holdings, LLC

 

    	5

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Convertible Promissory Note to be duly executed on the day and in the year first above written.

  

	 	M LINE HOLDINGS, INC.
	 	 	 
	 	By:	Anthony L. Anish
	 	 	 
	 	Name:	ANTHONY L. ANISH
	 	 	 
	 	Title:	COO / CO SEC
	 	 	 
	 	Date:	3/4/14

 

	This Note is acknowledged as:	Note of March 4, 2014

 

$220,000.00 Convertible Note

M Line Holdings, Inc.

Iconic Holdings, LLC

 

    	6

    	 

    

 

EXHIBIT A

 

FORM OF CONVERSION NOTICE

 

(To be executed by the Holder in order to convert that certain
$220,000 Convertible Promissory Note identified as the Note)

 

	DATE:	 	 
	 	 
	FROM:	Iconic Holdings, LLC

  

	 	Re:	$220,000 Convertible Promissory Note (this “Note”) originally issued by M LINE HOLDINGS, INC., a Nevada corporation, to Iconic Holdings, LLC on March 4, 2014.

 

The undersigned on behalf of Iconic
Holdings, LLC, hereby elects to convert $ ________________________ of the aggregate outstanding Principal Amount (as defined
in the Note) indicated below of this Note into shares of Common Stock, $0.001 par value per share, of M LINE HOLDINGS, INC. (the
“Company”) according to the conditions hereof, as of the date written below. If shares are to be issued in the name
of a person other than undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering
herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged
to the holder for any conversion, except for such transfer taxes, if any. The undersigned represents as of the date hereof that,
after giving effect to the conversion of this Note pursuant to this Conversion Notice, the undersigned will not exceed the “Restricted
Ownership Percentage” contained in this Note.

 

Conversion information:

 

	 	 
	 	Date to Effect Conversion
	 	 
	 	 
	 	Aggregate Principal Amount of Note Being Converted
	 	 
	 	 
	 	Aggregate Interest on Amount Being Converted
	 	 
	 	 
	 	Number of Shares of Common Stock to be Issued
	 	 
	 	 
	 	Applicable Conversion Price
	 	 
	 	 
	 	Signature
	 	 
	 	 
	 	Name
	 	 
	 	 
	 	Address

 

$220,000.00 Convertible Note

M Line Holdings, Inc.

Iconic Holdings, LLC

 

    	7

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