Document:

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.	 

 

    	9SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of December 3, 2014, by and between Saleen Automotive,
Inc., a Nevada corporation, with headquarters located at 2375 Wardlow Road, Corona, CA 92882 (the “Company”), and
ROCK CAPITAL, LLC, a Washington limited liability company, with its address at 3820 East Mercer Way, Mercer Island WA 98040
(the “Buyer”).

 

WHEREAS:

 

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

 

B.Buyer
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement two 8%
convertible notes of the Company, in the forms attached hereto as Exhibit A and B in the aggregate principal amount of $61,000.00
(with the first note being in the amount of $30,500.00 and the second note being in the amount of $30,500.00 (together with any
note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms
thereof, the “Note”), convertible into shares of common stock, $0,001 par value per share, of the Company (the “Common
Stock”), upon the terms and subject to the limitations and conditions set forth in such Note. The Notes shall contain a 5%
original issue discount such that the purchase price of each Note shall be $28,975.00. The first of the two notes (the “First
Note”) shall be paid for by the Buyer as set forth herein. The second note (the “Second Note”) shall initially
be paid for by the issuance of an offsetting $30,500.00 secured note issued to the Company by the Buyer (“Buyer Note”),
provided that prior to conversion of the Second Note, the Buyer must have paid off the Buyer Note in cash such that the Second
Note may not be converted until it has been paid for in cash.

 

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

 

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

 

1.
Purchase and Sale of Note.

 

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

 

		 
	Company Initials	 

 

    	 

    	 

    

 

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

 

c.Closing
Date. The date and time of the first issuance and sale
of the Note pursuant to this Agreement (the “Closing Date”) shall be on or about December 3, 2014, or such other mutually
agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the
Closing Date at such location as may be agreed to by the parties. Subsequent Closings shall occur when the Buyer Note is repaid.
The Closing of the Second Note shall be on or before the dates specified in the Buyer Note.

 

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

 

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

 

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

 

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

 

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

 

    	2

    	 

    

 

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

 

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

 

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

 

    	3

    	 

    

 

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

 

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

 

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

 

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

 

    	4

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    	5

    	 

    

 

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

 

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

 

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

 

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

 

    	6

    	 

    

 

j.
Bad Actor. No officer or director of the Company would be disqualified under Rule
506(d) of the Securities Act as amended on the basis of being a “bad actor” as that term is established in the September
19, 2013 Small Entity Compliance Guide published by the Securities and Exchange Commission.

 

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

 

4. COVENANTS.

 

a.
Expenses. At the Closing, the Company shall reimburse Buyer for expenses incurred
by them in connection with the negotiation, preparation, execution, delivery and performance of this Agreement and the other agreements
to be executed in connection herewith (“Documents”), including, without limitation, reasonable attorneys’ and
consultants’ fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments
or modifications of the Documents or any consents or waivers of provisions in the Documents, fees for the preparation of opinions
of counsel, escrow fees, and costs of restructuring the transactions contemplated by the Documents. When possible, the Company
must pay these fees directly, otherwise the Company must make immediate payment for reimbursement to the Buyer for all fees and
expenses immediately upon written notice by the Buyer or the submission of an invoice by the Buyer. The Company’s obligation
with respect to this transaction is to reimburse Buyer’s expenses shall be $1,750 in legal fees (and similar amounts for
the Second Note) which shall be deduced from each Note when funded.

 

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

 

    	7

    	 

    

 

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

 

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

 

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

 

5. Governing
Law: Miscellaneous.

 

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

 

b.Counterparts:
Signatures by Facsimile. This Agreement may be executed
in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party. This Agreement,
once executed by a

 

    	8

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	9

    	 

    

 

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

 

	Saleen
    Automotive, Inc.	 
	 	 
	By:	/s/
    Steve Saleen	 
	 	Steve Saleen	 
	 	Chief Executive Officer	 

 

	ROCK CAPITAL, LLC.	 
	 	 
	By:	 	 
	Name:	Kenneth Lustig 	 
	Title:	Manager	 

 

AGGREGATE
SUBSCRIPTION AMOUNT:

 

	Aggregate Principal
    Amount of Note:	$61,000.00

 

Aggregate
Purchase Price:

 

Note 1:
$30,500.00 less $1,525 in OID, $1,750.00 in legal fees, and $2,225 in fees to Brighton Capital, Ltd.

 

Note 2:
$30,500.00 less $1,525 in OID, $1,750.00 in legal fees, and $2,225 in fees to Brighton Capital, Ltd.

 

    	10

    	 

    

 

EXHIBIT
A

144
NOTE - $30,500

 

    	11

    	 

    

 

EXHIBIT
B

BACK
END NOTE 1

$30,500

 

    	12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}]]