NEITHER
THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE BORROWER UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”)
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED: (i) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE
SECURITIES LAWS; OR (ii) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT
REQUIRED UNDER THE 1933 ACT OR; (iii) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.



10%
CONVERTIBLE NOTE



Maturity
Date of June 2,2015



$50,000
December 2,2014 *the “Issuance Date”



FOR
VALUE RECEIVED, Saleen Automotive Inc., a Nevada Corporation (the “Company”) doing business in Corona, CA hereby promises
to pay to the order of JSJ Investments Inc., an accredited investor and Texas Corporation, or its assigns (the “Holder”)
the principal amount of Fifty Thousand Dollars ($50,000), on demand of the Holder at any time on or after June 2, 2015 (the “Maturity
Date”), and to pay interest on the unpaid principal balance hereof at the rate of Ten Percent (10%) per annum (the “Interest
Rate”) from the date hereof (the “Issuance Date”) until the same becomes due and payable, whether at maturity
or upon acceleration or by prepayment or otherwise; provided, that any amount of principal or interest on this Note which is not
paid when due shall bear interest at such rate on the unpaid principal balance hereof plus Default Interest from the due date
thereof until the same is paid in full. Interest shall commence accruing on the Issuance Date, shall be computed on the basis
of a 365-day year and the actual number of days elapsed and shall accrue daily and, after the Maturity Date, compound quarterly.



| | 1. | Payments
    of Principal and Interest.
| | -- | ---------------------------------------



| | a. | Payment
    of Principal. Until the 120th day after the Issuance Date, the Note will have a 135% cash redemption premium, and may be paid
    without consent of the Holder. Thereafter, up to and upon the Maturity Date, this note has a cash redemption premium of 150%
    of the principal amount only upon approval and acceptance by JSJ Investments Inc. This provision only may be exercised if
    the consent of the Holder is obtained. The principal balance of this Note shall be paid to the Holder hereof on demand.                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | b. | Default
    Interest. Any amount of principal on this Note which is not paid when due shall bear Ten Percent (10%) interest per annum
    from the date thereof until the same is paid (“Default Interest”) and the Holder, at the Holder’s sole discretion,
    may include any accrued but unpaid Default Interest in the Conversion Amount.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | c. | General
    Payment Provisions. This Note shall be made in lawful money of the United States of America by check to such account as the
    Holder may from time to time designate by written notice to the Company in accordance with the provisions of this Note. 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 and, in the case of any interest payment
    date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into
    account for purposes of determining the amount of interest due on such date. For purposes of this Note, “Business Day”
    shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State of Texas are authorized or
    required by law or executive order to remain closed.



| | 2. | Conversion
    of Note. At any time prior to the Maturity Date, or after the Maturity Date, the Conversion Amount of this Note shall be convertible
    into shares of the Company’s common stock, share (the “Common Stock”), on the terms and conditions set forth
    in this Paragraph 2.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a. | Certain
    Defined Terms. For purposes of this Note, the following terms shall have the following meanings:
| | -- | ------------------------------------------------------------------------------------------------------------



1











| | i.   | “Conversion
    Amount” means the sum of (A) the principal amount of this Note to be converted with respect to which this determination
    is being made, (B) Interest; and (C) Default Interest, if any, on unpaid interest and principal, if so included at the Holder’s
    sole discretion.                                                                                   
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                    
| | ii.  | “Conversion
    Price” means the lower of: (i) a 42% discount to the lowest trading price during the previous twenty (20) trading days
    to the date of Conversion; or (ii) a 42% discount to the lowest trading price during the previous twenty (20) trading days
    before the date that this note was executed. At no time will the Conversion Price be lower than $0.00001.
| |      |                                                                                                                                                                                                                                                                                                                                                                                    
| | iii. | “Person”
    means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
    organization and a government or any department or agency thereof.                                                                                                                                                                    
| |      |                                                                                                                                                                                                                                                                                                                                                                                    
| | iv.  | “Shares”
    means the Shares of the Company into which any balance on this Note may be converted upon submission of a Conversion Notice.                                                                                                                                                                                                                                          



| | b. | Holder’s
    Conversion Rights. At any time or times on or after the Issuance Date, the Holder shall be entitled to convert all of the
    outstanding and unpaid principal amount of this Note into fully paid and nonassessable shares of Common Stock in accordance
    with the stated Conversion Price.   
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                
| | c. | Fractional
    Shares. The Company shall not issue any fraction of a share of Common Stock upon any conversion; if such issuance would result
    in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock
    up to the nearest whole share.
| |    |                                                                                                                                                                                                                                                                                                                
| | d. | Conversion
    Amount. The Conversion Amount shall be converted pursuant to Rule 144(b)(i)(ii) and Rule 144(d)(1)(ii) as promulgated by the
    Securities and Exchange Commission under the Securities Act of 1933, as amended, into free trading shares at the Conversion
    Price.                         
| |    |                                                                                                                                                                                                                                                                                                                
| | e. | Mechanics
    of Conversion. The conversion of this Note shall be conducted in the following manner:                                                                                                                                                                                                           



| | i.   | Holder’s
    Conversion Requirements. To convert this Note into shares of Common Stock on any date set forth in the Conversion Notice by
    the Holder (the “Conversion Date”), the Holder hereof shall transmit by email, facsimile or otherwise deliver,
    for receipt on or prior to 11:59 p.m., Eastern Time on such date or on the next business day, a copy of a fully executed notice
    of conversion in the form attached hereto as Exhibit 1 (the “Conversion Date”) to the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ii.  | Company’s
    Response. Upon receipt by the Company of a copy of a Conversion Notice, the Company shall as soon as practicable, but in no
    event later than one (1) Business Day after receipt of such Conversion Notice, send, via email, facsimile or overnight courier,
    a confirmation of receipt of such Conversion Notice to such Holder indicating that the Company will process such Conversion
    Notice in accordance with the terms herein. Within two (2) Business Days after the date of the Conversion Confirmation, the
    Company shall have issued and electronically transferred the shares to the Broker indicated in the Conversion Notice; should
    the Company be unable to transfer the shares electronically, it shall, within two (2) Business Days after the date of the
    Conversion Confirmation, have surrendered to FedEx for delivery the next day to the address as specified in the Conversion
    Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which the Holder
    shall be entitled.
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | iii. | Record
    Holder. The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall
    be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | iv.  | Timely
    Response by Company. Upon receipt by Company of a Conversion Notice, Company shall respond in a timely manner to Holder by
    provision within two business days of the Shares requested in the Conversion Notice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | v.   | Penalty
    for Delinquent Response. If Company fails to deliver for whatever reason (including any neglect or failure by, e.g., the Company,
    its counsel or the transfer agent) to Holder the Shares as requested in a Conversion Notice and within three business days
    of the receipt thereof, there shall accrue a penalty of Additional Shares due to Holder equal to 25% of the number stated
    in the Conversion Notice beginning on the Fourth business day after the date of the Notice. The Additional Shares shall be
    issued and the amount of the Note retired will not be reduced beyond that stated in the Conversion Notice. Each additional
    5 business days beyond the Fourth business day after the date of this Notice shall accrue an additional 25% penalty for delinquency,
    without any corresponding reduction in the amount due under the Note, for so long as Company fails to provide the Shares so
    demanded.                                                                                                                                 



2













| | vi.  | Conversion
    Right Unconditional. If the Holder shall provide a Notice of Conversion as provided herein, the Company’s obligations
    to deliver Common Stock shall be absolute and unconditional, irrespective of any claim of setoff, counterclaim, recoupment,
    or alleged breach by the Holder of any obligation to the Company.                                                                                                                                                                                                                                                                                                      
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | vii. | Transfer
    Agent Fees and Legal Fees. The issuance of the certificates shall be without charge or expense to the Holder. The Company
    shall pay any and all Transfer Agent fees, legal fees, and advisory fees required for execution of this Convertible Note and
    processing of any Notice of Conversion, including but not limited to the cost of obtaining a legal opinion with regard to
    the conversion. The Holder will deduct legal fees in the amount of $1,000 from the principal payment of the Convertible Note.
    The Holder will deduct 3rd party due diligence fees in the amount of $5,000 due Carter, Terry, & Co.



| | 3. | Other
    Rights of Holders: Reorganization, Reclassification, Consolidation, Merger or Sale. Any recapitalization, reorganization,
    reclassification, consolidation, merger, sale of all or substantially all of the Company’s assets to another Person
    or other transaction which is effected in such a way that holders of Common Stock are entitled to receive (either directly
    or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock is referred to
    herein as “Organic Change.” Prior to the consummation of any (i) Organic Change or (ii) other Organic Change following
    which the Company is not a surviving entity, the Company will secure from the Person purchasing such assets or the successor
    resulting from such Organic Change (in each case, the “Acquiring Entity”) a written agreement (in form and substance
    reasonably satisfactory to the Holder) to deliver to Holder in exchange for this Note, a security of the Acquiring Entity
    evidenced by a written instrument substantially similar in form and substance to this Note, and reasonably satisfactory to
    the Holder. Prior to the consummation of any other Organic Change, the Company shall make appropriate provision (in form and
    substance reasonably satisfactory to the Holders of a majority of the Conversion Amount of the Notes then outstanding) to
    ensure that each of the Holders will thereafter have the right to acquire and receive in lieu of or in addition to (as the
    case may be) the shares of Common Stock immediately theretofore acquirable and receivable upon the conversion of such Holder’s
    Note, such shares of stock, securities or assets that would have been issued or payable in such Organic Change with respect
    to or in exchange for the number of shares of Common Stock which would have been acquirable and receivable upon the conversion
    of such Holder’s Note as of the date of such Organic Change (without taking into account any limitations or restrictions
    on the convertibility of the Note). All provisions of this Note must be included to the satisfaction of Holder in any new
    Note created pursuant to this section.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 4. | Representations
    and Warranties of the Company. In connection with the transactions provided for herein, the Company hereby represents and
    warrants to the Holders the following.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             



| | a. | Organization,
    Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
    the laws of the state of its incorporation and has all requisite corporate power and authority to carry on its business as
    now conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the
    failure to so qualify would have a material adverse effect on its business or properties.                                                           
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | b. | Authorization.
    All corporate action has been taken on the part of the Company, its officers, directors and stockholders necessary for the
    authorization, execution and delivery of this Agreement. The Company has taken all corporate action required to make all of
    the obligations of the Company reflected in the provisions of this Agreement, valid and enforceable obligations. The shares
    of capital stock issuable upon conversion of the Notes have been authorized or will be authorized prior to the issuance of
    such shares.      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | c. | Fiduciary
    Obligations. The Company hereby represents that it intends to use the proceeds of the Notes primarily for the operations of
    its business and not for any personal, family, or household purpose. The Company hereby represents that its board of directors,
    in the exercise of its fiduciary duty, has approved the execution of this Agreement based upon a reasonable belief that the
    loan provided for herein is appropriate for the Company after reasonable inquiry concerning its financial objectives and financial
    situation.



| | 5. | Covenants
    of the Company. So long as the Company shall have any obligations under this Note, the Company shall not without the Holder’s
    written consent pay, declare or set apart for such payment any dividend or other distribution (whether in cash, property,
    or other securities) on share of capital stock solely in the form of additional shares of Common Stock, except as contemplated
    under the Company’s existing Omnibus Stock Option Plan.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



3













| | a. | So
    long as the Company shall have any obligations under this Note, the Company shall not without the Holder’s written consent
    redeem, repurchase, or otherwise acquire (whether for cash or in exchange for property or other securities) in any one transaction
    or series of transactions any shares of capital stock of the Company or any warrants, rights, or options to acquire any such
    shares.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                      
| | b. | So
    long as the Company shall have any obligations under this Note, the Company shall not without the Holder’s written consent
    sell, lease, or otherwise dispose of a significant portion of its assets outside the ordinary course of business. Any consent
    to the disposition of any assets may be conditioned upon a specified use of the proceeds thereof.                                            



| | 6. | Reservation
    of Shares. The Company shall at all times, so long as any principal amount of the Note is outstanding, reserve and keep available
    out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of the Note, such number
    of shares of Common Stock as shall at all times be sufficient to effect the conversion of all of the principal amount of the
    Note then outstanding. The initial number of shares of Common Stock reserved for conversions of the Notes shall be calculated
    as three times the number of shares necessary to convert the entire value of the Note on the day it was executed, and each
    increase in the number of shares so reserved shall be allocated pro rata among the Holders of the Note based on the principal
    and interest amount of the Notes held by each Holder at the time of issuance of the Notes or increase in the number of reserved
    shares, as the case may be. In the event a Holder shall sell or otherwise transfer any of such Holder’s Note, each transferee
    shall be allocated a pro rata portion of the number of reserved shares of Common Stock reserved for such transferor. Any shares
    of Common Stock reserved and allocated to any Person which ceases to hold any Note shall be allocated to the remaining Holders,
    pro rata based on the principal amount of the Note then held by such Holders.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | 7. | Voting
    Rights. Holders of this Note shall have no voting rights, except as required by law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | 8. | Reissuance
    of Note. In the event of a conversion or redemption pursuant to this Note of less than all of the Conversion Amount represented
    by this Note, the Company shall promptly cause to be issued and delivered to the Holder, upon tender by the Holder of the
    Note converted or redeemed, a new note of like tenor representing the remaining principal amount of this Note which has not
    been so converted or redeemed and which is in substantially the same form as this Note, as set forth above.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          



| | 9. | Default
    and Remedies.
| | -- | -------------------------



| | a. | Event
    of Default. An “Event of Default” is: (i) default for ten (10) days in payment of interest or Default Interest
    on this Note; (ii) default in payment of the principal amount of this Note when due; (iii) failure by the Company for thirty
    (30) days after notice to it to comply with any other material provision of this Note; (iv) breach of any covenants, warranties,
    or representations by the Company herein; (v) cessation of operations by the Company or a material subsidiary; (vi) if the
    Company pursuant to or within the meaning of any Bankruptcy Law; (A) commences a voluntary case; (B) consents to the entry
    of an order for relief against it in an involuntary case; (C) consents to the appointment of a Custodian of it or for all
    or substantially all of its property; (D) makes a general assignment for the benefit of its creditors; or (E) admits in writing
    that it is generally unable to pay its debts as the same become due; or (vi) a court of competent jurisdiction enters an order
    or decree under any Bankruptcy Law that: (1) is for relief against the Company in an involuntary case; (2) appoints a Custodian
    of the Company or for all or substantially all of its property; or (3) orders the liquidation of the Company or any subsidiary,
    and the order or decree remains unstayed and in effect for thirty (30) days. The Term “Bankruptcy Law” means Title
    11, U.S. Code, or any similar Federal or State Law for the relief of debtors. The term “Custodian” means any receiver,
    trustee, assignee, liquidator or similar official under any Bankruptcy Law.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | b. | Remedies.
    If an Event of Default occurs and is continuing, the Holder of this Note may declare all of this Note, including any interest
    and Default Interest and other amounts due, to be due and payable immediately.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             



4













| | 10. | Vote
    to Change the Terms of this Note. This Note and any provision hereof may only be amended by an instrument in writing signed
    by the Company and holders of a majority of the aggregate Conversion Amount of the Notes then outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 11. | Lost
    or Stolen Note. Upon receipt by the Company of evidence satisfactory to the Company of the loss, theft, destruction or mutilation
    of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking by the Holder to the Company
    in a form reasonably acceptable to the Company and, in the case of mutilation, upon surrender and cancellation of the Notes,
    the Company shall execute and deliver a new Note of like tenor and date and in substantially the same form as this Note; provided,
    however, the Company shall not be obligated to re-issue a Note if the Holder contemporaneously requests the Company to convert
    such remaining principal amount into Common Stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 12. | Payment
    of Collection, Enforcement and Other Costs. If: (i) this Note is placed in the hands of an attorney for collection or enforcement
    or is collected or enforced through any legal proceeding; or (ii) an attorney is retained to represent the Holder of this
    Note in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’ rights and involving
    a claim under this Note, then the Company shall pay to the Holder all reasonable attorneys’ fees, costs and expenses
    incurred in connection therewith, in addition to all other amounts due hereunder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 13. | Cancellation.
    After all principal and accrued interest at any time owed on this Note has been paid in full, this Note shall automatically
    be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 14. | Waiver
    of Notice. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices
    in connection with the delivery, acceptance, performance, default or enforcement of this Note.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 15. | Governing
    Law. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
    interpretation and performance of this Note shall be governed by, the laws of the State of Texas, without giving effect to
    provisions thereof regarding conflict of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction of
    the state and federal courts sitting in Texas for the adjudication of any dispute hereunder or in connection herewith or with
    any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
    action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
    or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party
    hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
    by sending by certified mail or overnight courier a copy thereof to such party at the address for such 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 manner permitted by law. EACH PARTY
    HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
    HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 16. | Remedies,
    Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative
    and in addition to all other remedies available under this Note, at law or in equity (including a decree of specific performance
    and/or other injunctive relief), and no remedy contained herein shall be deemed a waiver of compliance with the provisions
    giving rise to such remedy and nothing herein shall limit a Holder’s right to pursue actual damages for any failure
    by the Company to comply with the terms of this Note. The Company covenants to each Holder of Notes that there shall be no
    characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein
    with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the
    Holder thereof and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the
    performance thereof).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          



5











| | 17. | Specific
    Shall Not Limit General; Construction. No specific provision contained in this Note shall limit or modify any more general
    provision contained herein. This Note shall be deemed to be jointly drafted by the Company and all Holders and shall not be
    construed against any person as the drafter hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 18. | Failure
    or Indulgence Not Waiver. No failure or delay on the part of this Note in the exercise of any power, right or privilege hereunder
    shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
    other or further exercise thereof or of any other right, power or privilege.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 19. | Partial
    Payment. In the event of partial payment by the Holder, the principal sum due to the Holder shall be prorated based on the
    consideration actually paid by lender such that the company is only required to repay the amount funded and the company is
    not required to repay any unfunded portion of this note.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 20. | Entire
    Agreement. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the
    subjects herein. None of the terms of this Agreement can be waived or modified, except by an express agreement signed by the
    Parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 21. | Representations
    and Warranties. The Company expressly acknowledges that the Holder, including but not limited to its officer, directors, employees,
    agents, and affiliates, have not made any representation or warranty to it outside the terms of this Agreement. The Company
    further acknowledges that there have been no representations or warranties about future financing or subsequent transactions
    between the parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 22. | Notices.
                                         All notices and other communications given or made to the Company pursuant hereto shall
                                         be in writing (including facsimile or similar electronic transmissions) and shall be
                                         deemed effectively given: (i) upon personal delivery, (ii) when sent by electronic mail
                                         or facsimile, as deemed received by the close of business on the date sent, (iii) five
                                         (5) days after having been sent by registered or certified mail, return receipt requested,
                                         postage prepaid or (iv) one (1) day after deposit with a nationally recognized overnight
                                         courier, specifying next day delivery. All communications shall be sent either by email,
                                         or fax, or to the address specified on the signature page. The physical address, email
                                         address, and phone number provided on the signature page shall be considered valid pursuant
                                         to the above stipulations; should the Company’s contact information change from
                                         that listed on the signature page, it is incumbent on the Company to inform the Holder.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 23. | Severability.
    If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
    from this Agreement and the rest of the Agreement shall be enforceable in accordance with its terms.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 24. | Usury.
    If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing
    usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest
    permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it will not seek to
    claim or take advantage of any law that would prohibit or forgive the Company from paying all or a portion of the principal
    or interest on this Note.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 25. | Successors
    and Assigns. This Agreement shall be binding upon successors and assigns.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       



—
SIGNATURE PAGE TO FOLLOW—



6











IN
WITNESS WHEREOF, the Company has caused this Note to be signed by its CEO, on and as of the Issuance Date.



|COMPANY:             | 
|-------------------- | 
|                     | 
|/s/
    Steve Saleen | 
|Signature:           | 



|By:      | Steve Saleen     | 
|-------- | ---------------- | 
|         |                  | 
|Title:   | CEO              | 
|         |                  | 
|Address: | 2735 Ward Low    | 
|         |                  | 
|         | Corona, CA 92882 | 
|         |                  | 
|         |                  | 
|         |                  | 
|Email:   | steve@saleen.com | 
|         |                  | 
|Phone:   | 714.400.2121     | 



|HOLDER:                               | 
|------------------------------------- | 
|                                      | 
|Signature:                            | 
|                                      | 
|/s/ Sameer
    Hirji                  | 
|Sameer
    Hirji, President           | 
|JSJ
    Investments Inc.              | 
|2665
    Villa Creek Drive, Suite 214 | 
|Dallas
    TX 75234                   | 
|888-503-2599                          | 



7











Exhibit
1



Conversion
Notice



Reference
is made to the Convertible Note issued by Saleen Automotive Inc. (the “Note”), dated December 2, 2014 in the principal
amount of $50,000 with 10% interest. This note currently holds a principal balance of $50,000 and accrued interest in the amount
of $ . The features of conversion stipulate a Conversion Price the lower of (i) a 42% discount to the lowest trading price
during the previous twenty (20) trading days to the date of Conversion; or (ii) a 42% discount to the lowest trading price during
the previous twenty (20) trading days before the date that this note was executed, pursuant to the provisions of Section 2(a)(2)
in the Note.



In
accordance with and pursuant to the Note, the undersigned hereby elects to convert $_________________ of the PRINCIPAL/INTEREST
balance of the Note, indicated below into shares of Common Stock (the “Common Stock”), of the Company, by tendering
the Note specified as of the date specified below.



|Date
    of Conversion: _______________                                                                                                                      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                             
|Please
    confirm the following information:                                                                                                                
|                                                                                                                                                             
|Conversion
    Amount: $ _________________________                                                                                                           
|                                                                                                                                                             
|Conversion
    Price: $ ____________________ ( ______% discount from $ ____________________)                                                                 
|                                                                                                                                                             
|Number
    of Common Stock to be issued: ________________________________________________________________                                                    
|                                                                                                                                                             
|Current
    Issued/Outstandina: ________________________________________________________________________                                                     
|                                                                                                                                                             
|PLEASE
    ISSUE THE COMMON STOCK INTO WHICH THE NOTE IS BEING CONVERTED IN THE NAME OF THE HOLDER OF THE NOTE AND TRANSFER THE SHARES
    ELECTRONICALLY TO:
|                                                                                                                                                             
|[BROKER
    INFORMATION]                                                                                                                                     
|                                                                                                                                                             
|HOLDER
    AUTHORIZATION:                                                                                                                                    
|JSJ
    INVESTMENTS INC.                                                                                                                                     
|2665
    VILLA CREEK DRIVE, SUITE 214                                                                                                                        
|DALLAS,
    TX 75234                                                                                                                                         
|888-503-2599                                                                                                                                                 
|                                                                                                                                                             
|Tax
    ID: 20-2122354                                                                                                                                       
|                                                                                                                                                             
|Sameer
    Hirji, President                                                                                                                                  
|                                                                                                                                                             
|Date:                                                                                                                                                        
|                                                                                                                                                             
|[Continued
    on Next Page]                                                                                                                                 



8











PLEASE
BE ADVISED, pursuant to Section 2(e)(2) of the Note, “Upon receipt by the Company of a copy of the Conversion Notice, the
Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion Notice,
SEND, VIA EMAIL, FACSIMILE OR OVERNIGHT COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO SUCH HOLDER INDICATING
THAT THE COMPANY WILL PROCESS SUCH CONVERSION NOTICE in accordance with the terms herein. Within two (2) Business Days after
the date of the Conversion Confirmation, the Company shall have issued and electronically transferred the shares to the Broker
indicated in the Conversion Notice; should the Company be unable to transfer the shares electronically, they shall, within two
(2) Business Days after the date of the Conversion Confirmation, have surrendered to FedEx for delivery the next day to the address
as specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common
Stock to which the Holder shall be entitled.”



|Signature:                 | 
|-------------------------- | 
|                           | 
|/s/ Steve Saleen           | 
|Steve
    Saleen           | 
|CEO                        | 
|Saleen
    Automotive Inc. | 



9