Document:

$500,000.00October
8, 2013

Corona, California

SALEEN
AUTOMOTIVE, inc.

SECURED
PROMISSORY NOTE

FOR VALUE RECEIVED,
the undersigned, SALEEN AUTOMOTIVE, INC., a Nevada corporation (the “Borrower”), promises to pay to the
order of W-NET FUND I, L.P., a Delaware limited partnership (hereafter, together with any holder hereof, called “Lender”),
at such place as Lender may designate in writing to Borrower, in lawful money of the United States of America, and in immediately
available funds, the aggregate principal amount of Five Hundred Thousand U.S. Dollars ($500,000.00) (the “Principal
Amount”), plus interest as hereinafter provided. The aggregate Principal Amount under this Secured Promissory Note
(this “Note”), and all accrued and unpaid interest thereon, shall be due and payable to Lender on October
7, 2014 (the “Maturity Date”).

		1.	From and after the date first set forth above (until maturity or default as hereinafter provided),
interest shall accrue on the principal amount of this Note that is outstanding from time to time at a rate per annum equal to eight
percent (8%). If, however, an interest rate of eight percent (8%) exceeds the allowable rate of interest under California law,
then interest shall accrue on the principal amount of this Note from time to time at a rate per annum equal to the highest maximum
allowable percentage rate under California law. Interest shall be computed on the daily outstanding principal balance hereunder
on the basis of a three hundred sixty (360) day year, as the case may, counting the number of actual days elapsed. The aggregate
Principal Amount then outstanding, together with all accrued but unpaid interest thereon shall be due and payable on the Maturity
Date or on such earlier date on which the maturity hereof is accelerated pursuant to the provisions hereof.

		2.	From and after the occurrence of an Event of Default, interest shall accrue on any amounts past
due hereunder (whether by acceleration, maturity or otherwise) at a rate of five percent (5%) per annum in excess of the interest
rate otherwise payable hereunder. All such interest accruing on amounts past due hereunder shall be due and payable on demand.

		3.	Borrower, at its option, may repay or prepay all or any portion of the outstanding Principal Amount,
together with all accrued and unpaid interest, at any time without penalty by giving Lender at least one (1) business day’s
prior written notice of any such prepayment. All payments received by Lender shall be applied first, to fees, costs and
expenses that may be due to Lender, second, to accrued and unpaid interest, and third, to the outstanding Principal
Amount.

		4.	Notwithstanding any provision to the contrary contained in this Note, Borrower shall not be required
to pay, and Lender shall not be permitted to collect any amount of interest in excess of the maximum amount of interest permitted
by law (“Excess Interest”). If any Excess Interest is provided for or determined by a court of competent
jurisdiction to have been provided for in this Note, then in such event: (a) the provisions of this paragraph shall govern and
control; (b) Borrower shall not be obligated to pay any Excess Interest; (c) any Excess Interest that Lender may have received
hereunder shall be, at Lender’s option, applied as a credit against the outstanding principal balance of this Note or the
accrued and unpaid interest (not to exceed the maximum amount permitted by law), or refunded to the payor thereof, or any combination
of the foregoing; (d) the interest rate provided for herein shall be automatically reduced to the maximum lawful rate allowed from
time to time under applicable law (the “Maximum Rate”), and this Note shall be deemed to have been and
shall be, reformed and modified to reflect such reduction; and (e) Borrower shall not have any action against Lender for any damages
arising out of the payment or collection of any Excess Interest. Notwithstanding the foregoing, if, for any period of time, interest
on this Note is calculated at the Maximum Rate rather than the applicable rate under this Note, and thereafter the Maximum Rate
exceeds the applicable rate, the rate of interest payable on this Note shall become the Maximum Rate until Lender shall have received
the amount of interest which Lender would have received during such period on this Note had the rate of interest not been limited
to the Maximum Rate during such period.

		5.	Each of the following events shall constitute an “Event of Default” under
this Note: (a) failure of Borrower to pay any principal, interest or other amount due hereunder within five (5) business days of
the date due, or Borrower shall in any way fail to comply with the other terms, covenants or conditions contained in this Note,
when such failure continues for a period of five (5) days following notice thereof from Lender; (b) Borrower shall (i) commence
a voluntary case under the Bankruptcy Code of 1978, as amended or other federal bankruptcy law (as now or hereafter in effect);
(ii) file a petition seeking to take advantage of any other laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization,
winding up or composition for adjustment of debts; (iii) consent to or fail to contest in a timely and appropriate manner any petition
filed against it in an involuntary case under such bankruptcy laws or other laws; (iv) apply for or consent to, or fail to contest
in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator
of Borrower or of a substantial part of Borrower’s property, domestic or foreign; (v) admit in writing its inability to pay
its debts as they become due; (vi) make a general assignment for the benefit of creditors; or (vii) make a conveyance fraudulent
as to creditors under any state or federal law; or (c) a case or other proceeding shall be commenced against Borrower in any court
of competent jurisdiction seeking (i) relief under the Bankruptcy Code of 1978, as amended or other federal bankruptcy law (as
now or hereafter in effect) or under any other laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding
up or adjustment of debts or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like for Borrower of all
or any substantial part of its assets, domestic or foreign, and such proceeding shall not have been stayed or dismissed within
sixty (60) days.

		6.	Upon the occurrence of an Event of Default described in clause (a) of the definition thereof, any
and all of the obligations hereunder, at the option of Lender, exercisable in its sole discretion, and without demand or notice
of any kind, may be immediately declared, and thereupon shall immediately be in default and due and payable and Lender may exercise
any and all rights and remedies available to it at law, in equity or otherwise. Upon the occurrence of an Event of Default described
in clause (b) or (c) of the definition thereof, any and all of the obligations hereunder, without demand or notice of any kind,
shall immediately be in default and due and payable and Lender may exercise any and all rights and remedies available to it at
law, in equity or otherwise. Nothing in this paragraph shall limit the right of Lender to make demand, at any time, with or without
the occurrence of an Event of Default, for payment in full of all amounts due hereunder.

		7.	Borrower agrees to pay all costs and expenses (including, without limitation, attorneys’
fees) incurred by Lender in connection with or related to this Note, or its enforcement, whether or not suit be brought.

		8.	All payments of principal, interest and other amounts to be made by Borrower under this Note shall
be made without any deduction, set-off or counterclaim whatsoever. The receipt of any check or other item of payment by Lender
shall not be considered a payment on this Note until such check or other item of payment is honored at the drawee bank. Lender
may delay the credit of such payment until the funds become available and interest under this Note shall accrue until the funds
are in fact collected.

		9.	(a)As security for the full and final payment of all obligations of the Borrower pursuant to
this Note, Borrower hereby grants to Lender (i) a continuing second priority security interest and general lien in and to any and
all, right, title and interest of Borrower in and to the Collateral, whether now owned or hereafter acquired, and (ii) a continuing
first priority security interest and general in and to any and all right, title and interest of Borrower in and to the Specific
Collateral.

(b)Lender
agrees that the security interest in the Collateral shall be subordinate to the security interest held by the lenders under those
certain 3% Senior Secured Convertible Notes and the transaction documents entered into in connection therewith (the “Senior
Notes”).

(c)For
purposes of this Note, (i) “Collateral” means all property and other assets of Borrower, wherever located
and whether now owned or hereafter acquired, including, but not limited to, all Inventory, General Intangibles (including but not
limited to copyrights), Accounts, Accounts Receivable, Chattel Paper, Contracts, Equipment, Investment Property, Commercial Tort
Claims, Letter-of-Credit Rights, Accounts and Deposits in banks and other financial institutions, Fixtures, and Profits (in each
case as the same may be defined from time to time in the Uniform Commercial Code of California), but expressly excluding the Specific
Collateral, and (ii) “Specific Collateral” means a red 2003 Saleen S7, VIN 1S9SB181X35000027.

(d)Borrower
hereby represents and warrants that the Specific Collateral is, as of the date hereof, free and clear of all liens, and hereafter
until this Note and all Principal Amount and accrued interest thereon is fully repaid, will not be encumbered by any liens, and
the parties hereby agree that the original title thereto shall be held in escrow by Stubbs Alderton & Markiles, LLP, as escrow
agent and pursuant to that certain Escrow Agreement entered into on and as of the date hereof. Until the earlier of (i) repayment
of all Principal Amount and accrued interest thereon under this Note in full by Borrower and (ii) an Event of Default, Lender agrees
to keep the Specific Collateral locked in a secure location with the keys to be held by Lender, and the parties agree that Lender
will not drive, or allow others to drive, the Specific Collateral.

(e)Upon
the failure of the Borrower to pay any amounts hereunder when due, Lender shall, in addition to any other rights and remedies available
at law or equity and subject to the last sentence of this Section 9(e), be entitled to exercise all rights and remedies
of a secured party under the Uniform Commercial Code. Without limiting the foregoing, on the occurrence of any Event of Default,
and at any later time, Lender may declare all obligations under this Note due and payable immediately and may proceed to enforce
payment and exercise any and all of the rights and remedies provided by the Uniform Commercial Code in effect in the State of California
as well as other rights and remedies either at law or in equity possessed by Lender. Subject to the rights held by the holders
of the Senior Notes, Lender may require Borrower to assemble the Collateral and make it available to Lender at any place to be
designated by Lender that is reasonably convenient to Lender. Unless the Collateral is perishable, threatens to decline speedily
in value, or is of a type customarily sold on a recognized market, Lender will give Borrower reasonable notice of the time and
place of any public sale or of the time after which any private sale or any other intended deposition of the Collateral or Special
Collateral is to be made. The requirements of reasonable notice will be met if the notice is mailed, postage prepaid, to the address
of Borrower shown below Borrower’s signature to this Agreement at least ten (10) days before the time of the sale or disposition.
Additionally, upon the occurrence of an Event of Default, Lender may first sell, at either a public or private sale, or both, by
way of one or more contracts or transactions, for cash or on commercially reasonable terms, the Specific Collateral and apply the
proceeds in the manner provided for herein. In the event the proceeds from the sale of the Specific Collateral are insufficient
to satisfy the amount then due and payable, Lender shall provide Borrower with written notice of the deficiency, at which point
Borrower will have 30 days to satisfy such amount, together with any accrued interest. If Borrower remits funds sufficient to satisfy
the deficiency and accrued interest, then Lender’s lien and security interest in the Collateral and Specific Collateral will
terminate, and all such Collateral and Specific Collateral will be immediately returned to Borrower. If Borrower fails to remit
funds sufficient to satisfy the deficiency and accrued interest within 30 days, then Lender will be permitted to foreclose and
sell, at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on commercially
reasonable terms, the remainder of the Collateral and apply the proceeds in the manner provided for herein.

(f)Expenses
of retaking, holding, preparing for sale, selling, or the like will include Lender’s reasonable attorneys’ fees and
legal expenses, and all will be included as part of the obligations under this Note and added to the Principal Amount hereunder
and will be secured by this Note. All rights and remedies granted Lender hereunder, or otherwise available at law or in equity,
shall be deemed concurrent and cumulative, and not alternative remedies, and Lender may proceed with any number of remedies at
the same time until all obligations are indefeasibly satisfied in full. The exercise of any one right or remedy shall not be deemed
a waiver or release of any other right or remedy, and Lender, upon or at any time after the occurrence of an Event of Default,
may proceed against Borrower, at any time, under any agreement, with any available remedy and in any order.

(g)Lender
is hereby authorized to file any and all financing statements in appropriate jurisdictions to reflect the security interest granted
herein. Nothing herein shall be deemed to limit any of the terms or provisions of this Note or any other present or future document,
instrument or agreement, between Borrower and Lender, and all of Lender’s rights and remedies hereunder and thereunder are
cumulative.

(h)Notwithstanding
the foregoing, until the security interest in the Collateral under the Senior Notes is terminated, Lender shall not take any action,
or exercise any remedy with respect to the Collateral without the prior written consent of the applicable holders of the Senior
Notes, provided that, no portion of the foregoing shall limit Lender’s rights and remedies as to the Specific Collateral.

		10.	Time is of the essence of this Note.

		11.	No delay or failure on the part of Lender in the exercise of any right or remedy shall operate
as a waiver thereof, and no single or partial exercise by Lender of any right or remedy shall preclude other or further exercise
thereof or the exercise of any other right or remedy.

		12.	All amendments to this Note, and any waiver or consent of Lender, must be in writing and signed
by Lender and Borrower.

		13.	Borrower hereby waives notice of default, presentment or demand for payment, protest or notice
of nonpayment or dishonor, and all other notices or demands of any kind or character, and to the fullest extent permitted by law,
the right to invoke any statute of limitations as a defense to any demand hereunder. No delay or failure on the part of Lender
in the exercise of any right or remedy shall operate as a waiver thereof and no single or partial exercise of any right or remedy
shall preclude other or further exercise thereof or the exercise of any other right or remedy. Borrower acknowledges that this
Note is executed as part of a commercial transaction and that the proceeds of this Note will not be used for any personal or consumer
purpose.

		14.	THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO
THE CONFLICTS OF LAW PROVISIONS) OF THE STATE OF CALIFORNIA, AS THE SAME MAY FROM TIME TO TIME BE IN EFFECT. BORROWER HEREBY (a)
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY FEDERAL COURT, OR AT THE OPTION OF LENDER, ANY STATE COURT, LOCATED IN LOS ANGELES,
CALIFORNIA OVER ANY CLAIMS OR DISPUTES BETWEEN BORROWER AND LENDER, PERTAINING DIRECTLY OR INDIRECTLY TO THIS NOTE OR TO ANY MATTER
ARISING THEREFROM OR RELATING THERETO; (b) WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON BORROWER, AND CONSENTS SO THAT ALL
SUCH SERVICE OF PROCESS MAY BE MADE BY MESSENGER, CERTIFIED MAIL OR REGISTERED MAIL AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED
UPON THE EARLIER OF ACTUAL RECEIPT OR THREE (3) DAYS AFTER THE SAME SHALL HAVE BEEN POSTED TO BORROWER’S ADDRESS; (c) IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT BORROWER MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH
ACTION OR PROCEEDING; (d) AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED
IN ANY OTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; AND (e) AGREES NOT TO INSTITUTE ANY LEGAL
ACTION OR PROCEEDING AGAINST LENDER OR ANY OF LENDER’S EMPLOYEES, AGENTS OR PROPERTY, CONCERNING ANY MATTER ARISING OUT OF
OR RELATING TO THIS NOTE IN ANY COURT OTHER THAN ONE LOCATED IN LOS ANGELES, CALIFORNIA. NOTHING IN THIS PARAGRAPH SHALL AFFECT
OR IMPAIR LENDER’S RIGHT TO SERVE LEGAL PROCESS IN ANY MANNER PERMITTED BY LAW OR LENDER’S RIGHT TO BRING ANY ACTION
OR PROCEEDING AGAINST BORROWER OR BORROWER’S PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION.

		15.	THE FOREGOING WAIVERS HAVE BEEN MADE WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF
THE LEGAL CONSEQUENCES THEREOF.

		16.	In the event any one or more of the provisions of this Note shall for any reason be held to be
invalid, illegal or unenforceable, the same shall not affect any other provision of this Note and the remaining provisions of this
Note shall remain in full force and effect.

		17.	This Note inures to and binds the heirs, successors and assigns of Borrower and Lender. Lender
may assign its rights under this Note. However, Borrower may not assign any rights or obligations under this Note without Lender’s
prior written consent.

		18.	All notices and other communications provided for hereunder shall be in writing and shall be sent
to Lender’s principal place of business or Borrower’s address set forth below its signature hereto, as the case may
be. All such notices and other communications shall be effective when received.

[Signature Page
Follows]

    	 

    	 

    

IN WITNESS WHEREOF,
Borrower has executed and delivered this Secured Promissory Note as of the date first written above.

BORROWER:

SALEEN AUTOMOTIVE,
INC.

 

By: ___/s/ Steve Saleen_______________________

Name: Steve Saleen

Title: Chief Executive Officer

 

Address for notices:

 

2735 Wardlow Road

Corona, California 92882

Attn:Board of Directors

Fax:(949) 630-0633

 

 

 

Acknowledged and Agreed as

of the date first written above:

 

LENDER:

W-NET FUND I, L.P.

By: W-Net Fund GP I LLC

Its: General Partner

 

By: /s/ David Weiner

Name: David Weiner

Title: Manager

Address for notices:

 

12400 Ventura Boulevard

Ste. 327

Studio City, CA 91604

Attn: David Weiner

Fax:To subscribe for shares of Common Stock in
the private offering of

Saleen Automotive, Inc.

 

		1.	Complete and sign the Signature Page included at the end of the Subscription Agreement as
either an individual or an entity, as applicable, and fill in the number of shares of Common Stock being subscribed
for and the aggregate purchase price for such shares on the bottom of the Signature Page included at the end of the Subscription
Agreement.

 

		2.	Fax an executed copy of your completed and signed Signature Page to the Subscription
Agreement to Mr. Robert Miranda, the Company’s Chief Financial Officer, at (949) 630-0633.

 

		3.	Mail the original executed copy of your completed and signed Subscription Agreement,
along with a certified or cashier’s check (if you are paying the purchase price by check) endorsed in the name of
“Saleen Automotive, Inc.” to:

 

Saleen Automotive,
Inc.

2735 Wardlow Road

Corona, California
92882

Attention: Mr. Robert Miranda

 

		4.	If you are paying the purchase price by wire transfer, please transmit to the Company per
the instructions below, immediately available funds in the amount of the purchase price (net of wire transfer fees) for the aggregate
number of shares of Common Stock for which you have subscribed, as set forth on the Signature Page to the Subscription Agreement:

 

Bank name:Chase Bank

Bank Address: 3152 W. Balboa, Newport Beach, CA 92663

Routing #:       322271627

Account #:         233281606

Beneficiary:Saleen Automotive, Inc.

 

		5.	Upon the Company’s acceptance of your subscription, which subscription may be accepted
in whole or in part at the Company’s sole discretion, you will receive, promptly thereafter, a countersigned copy of
your original completed and signed Subscription Agreement, along with a stock certificate representing the shares of Common Stock
purchased by that portion of your subscription accepted by the Company. In the event that the Company rejects any portion
of your subscription, the Company will return to you promptly after such rejection, without interest, the rejected portion
of your subscription, provided that the Company has actually received such funds.

 

Please feel free to contact Mr. Robert Miranda
at (949) 630-0630 should you have questions regarding the foregoing.

 

    	 

    	 

    

SUBSCRIPTION
AGREEMENT

THIS SUBSCRIPTION
AGREEMENT (this “Agreement”) is made and entered into as of __________ __, 2013, between Saleen Automotive,
Inc., a Nevada corporation (the “Company”), and
the investor identified on the signature page to this Agreement (the “Investor”).

RECITALS

A.             
Subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act (as defined
below), and Rule 506 promulgated thereunder, the Company proposes to issue and sell up to 4,000,000 shares of Common Stock of the
Company, par value $0.0001 per share (the “Common Stock”), at a purchase price per share equal to $0.15
(the “Offering Price”), pursuant to an offering (the “Offering”) to one
or more potential investors, including the Investor.

B.             
The Company desires to sell to the Investor, and the Investor desires to buy from the Company, in the Offering the number
of shares of Common Stock (the “Shares”) set
forth on the signature page of this Agreement upon the terms and conditions and subject to the provisions hereinafter set forth.

Agreement

NOW, THEREFORE,
for and in consideration of the mutual premises contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.              
Purchase and Sale of Shares. Subject to the terms and conditions of this Agreement, the Investor subscribes for and
agrees to purchase and acquire from the Company, and the Company agrees to sell and issue to the Investor, the Shares in the manner
set forth in Section 2 hereof, at the Offering Price and for the aggregate consideration set forth on the signature page
of this Agreement (the “Purchase Price”).

2.              
Terms of Purchase and Sale of Shares. The closing of the transactions contemplated hereby (the “Closing”)
shall take place at such time and on such date as is determined by the Company as soon as practicable following satisfaction of
the closing conditions set forth in Section 6. Contemporaneously with the execution and delivery of this Agreement, the
Investor shall deliver to the Company, in addition to an executed signature page to this Agreement, the Purchase Price by (a) certified
or cashier’s check or (b) wire transfer of immediately available funds per the following instructions:

Bank name:Chase Bank

Bank Address: 3152 W. Balboa, Newport Beach, CA 92663

Routing #:       322271627

Account #:         233281606

Beneficiary:Saleen Automotive, Inc.

 

The Purchase Price
will be held and released to the Company at the Closing against delivery to the Investor, promptly after the closing, of a stock
certificate representing the Shares. Notwithstanding that the offer and sale of the Shares pursuant to this Agreement is part of
the larger Offering, the obligations of the Company and the Investor hereunder are independent of, and not subject to the terms
and conditions of, any other agreement between the Company and any other investor in the Offering, and the Closing may occur separate
and apart from, and irrespective of, the closing, if any, of any other purchase and sale of shares of Common Stock in the Offering.

3.              
Representations and Warranties of the Company. In order to induce the Investor to enter into this Agreement and consummate
the transactions contemplated hereby, the Company represents and warrants to the Investor as follows:

3.1 
Incorporation. The Company is a corporation validly existing and in good standing under the laws of the State of
Nevada and is qualified to do business in each jurisdiction in which the character of its properties or the nature of its
business requires such qualification, except where the failure to so qualify would not have a material adverse effect on the business,
condition (financial or otherwise) or prospects of the Company (a “Material Adverse Effect”). The Company
has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement and to carry
on its business as now conducted.

3.2 
Valid Issuance of the Shares. The Shares being purchased by the Investor hereunder will, upon issuance pursuant to
the terms hereof, be duly authorized and validly issued, fully paid and nonassessable. No preemptive rights or other rights to
subscribe for or purchase the Company’s capital stock exist with respect to the issuance and sale of the Shares by the Company
pursuant to this Agreement.

3.3 
Enforceability. The execution, delivery, and performance of this Agreement by the Company have been duly authorized
by all requisite corporate action. This Agreement, upon its execution by the Investor and the Company, shall constitute the legal,
valid, and binding obligation of the Company, enforceable in accordance with its terms, except to the extent that its enforceability
is limited by bankruptcy, insolvency, reorganization, or other laws relating to or affecting the enforcement of creditors’
rights generally and by general principles of equity.

3.4 
No Violations. The execution, delivery, and performance of this Agreement by the Company do not and will not violate
or conflict with any provision of the certificate of incorporation as amended and in effect on the date hereof (the “Certificate
of Incorporation”) and bylaws as amended and in effect on the date hereof (the “Bylaws”)
of the Company, and do not and will not, with or without the passage of time or the giving of notice, result in the breach of,
or constitute a default, cause the acceleration of performance, or require any consent under (except such consents as have been
obtained as of the date hereof), or result in the creation of any lien, charge or encumbrance upon any property or assets of the
Company pursuant to, any material instrument or agreement to which the Company is a party or by which the Company or its properties
are bound, except such consents as have been obtained as of the date hereof. The Company is not otherwise in violation of its Certificate
of Incorporation, Bylaws or other organizational documents, nor is the Company, to its knowledge, in violation of any law, administrative
regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to the Company, which
violation, individually or in the aggregate, would be reasonably expected to have a Material Adverse Effect. The Company is not
in default (and there exists no condition which, with the passage of time or otherwise, would constitute a default) in the performance
of any material bond, debenture, note or any other evidence of indebtedness in any indenture, mortgage, deed of trust or any other
material agreement or instrument to which the Company is a party or by which the Company is bound or by which the property of the
Company is bound, which would be reasonably expected to have a Material Adverse Effect.

3.5 
SEC Documents. The Company has made available to Investor true and complete copies of all reports or registration
statements the Company has filed with the Securities Exchange Commission (“SEC”) under the Securities
Act of 1933 (“Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”),
for all periods subsequent to March 31, 2013, all in the form so filed (collectively the “SEC Documents”).
To the Company’s knowledge, the Company has filed all documents that the Company was required to file under the Exchange
Act during the 3 months preceding the date of this Agreement. To the Company’s knowledge, as of their respective filing dates,
the SEC Documents complied as to form in all material respects with the requirements of the Securities Act or the Exchange Act,
as applicable, and none of the SEC Documents filed under the Exchange Act contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the
circumstances in which they were made, not misleading, except to the extent corrected by a subsequently filed document with the
SEC. To the Company’s knowledge, none of the SEC Documents filed under the Securities Act contained an untrue statement of
material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not
misleading at the time such SEC Documents became effective under the Securities Act.

3.6 
Financial Statements. To the Company’s knowledge, the Company’s financial statements, including the notes
thereto, included in the SEC Documents (the “Financial Statements”) comply as to form in all material
respects with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto,
have been prepared in accordance with United States generally accepted accounting principles (“GAAP”)
consistently applied (except as may be indicated in the notes thereto) and present fairly the Company’s consolidated financial
position at the dates thereof and of its operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal audit adjustments). The Company has implemented and maintains a system of internal controls meeting the requirements
of the SEC and the Sarbanes-Oxley Act of 2002 as applicable to the Company on the date hereof.

4.              
Representations and Warranties of the Investor. In order to induce the Company to enter into this Agreement and consummate
the transactions contemplated hereby, the Investor represents and warrants to the Company as follows:

4.1 
Authority. If a corporation, partnership, limited partnership, limited liability company, or other form of entity,
the Investor is duly organized or formed, as the case may be, validly existing, and in good standing under the laws of its jurisdiction
of organization or formation, as the case may be. The Investor has all requisite individual or entity right, power, and authority
to execute, deliver, and perform this Agreement.

4.2 
Enforceability. The execution, delivery, and performance by the Investor of this Agreement have been duly authorized
by all requisite partnership or corporate action, as the case may be. This Agreement has been duly executed and delivered by the
Investor, and, upon its execution by the Company, shall constitute the legal, valid, and binding obligation of the Investor, enforceable
in accordance with its terms, except to the extent that its enforceability is limited by bankruptcy, insolvency, reorganization,
moratorium, or other laws relating to or affecting the enforcement of creditors’ rights generally and by general principles
of equity.

4.3 
No Violations. The execution, delivery, and performance by the Investor of this Agreement do not and will not, with
or without the passage of time or the giving of notice, result in the breach of, or constitute a default, cause the acceleration
of performance, or require any consent under, or result in the creation of any lien, charge or encumbrance upon any property or
assets of the Investor pursuant to, any material instrument or agreement to which the Investor is a party or by which the Investor
or its properties may be bound or affected, and, do not or will not violate or conflict with any provision of the certificate of
incorporation or bylaws, partnership agreement, operating agreement, trust agreement, or similar organizational or governing document
of the Investor, as applicable.

4.4 
Knowledge of Investment and its Risks. The Investor has sufficient knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of Investor’s investment in the Shares. The Investor understands
that an investment in the Company represents a high degree of risk and there is no assurance that the Company’s business
or operations will be successful. The Investor has considered carefully the risks attendant to an investment in the Company, and
that, as a consequence of such risks, the Investor could lose the Investor’s entire investment in the Company.

4.5 
Investment Intent. The Shares are being acquired for investment for the Investor’s own account, and not as
a nominee or agent and not with a view to the resale or distribution of all or any part of the Shares, and the Investor has no
present intention of selling, granting any participation in, or otherwise distributing any of the Shares within the meaning of
and in violation of the Securities Act. Further, the Investor does not have any contracts, understandings, agreements, or arrangements,
directly or indirectly, with any person and/or entity to distribute, sell, transfer, or grant participations to such person and/or
entity with respect to, any of the Shares. The Investor is not purchasing the Shares as a result of any advertisement, article,
notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or any other general solicitation or general advertisement.

4.6 
Investor Status. The Investor is an “accredited investor” as that term is defined by Rule 501 of Regulation
D promulgated under the Securities Act.

4.7 
No Registration. The Investor understands that the Investor may be required to bear the economic risk of the Investor’s
investment in the Company for an indefinite period of time. The Investor further understands that (i) neither the offering
nor the sale of the Shares has been registered under the Securities Act or any applicable state securities laws (“State
Acts”) in reliance upon exemptions from the registration requirements of such laws, (ii) the Shares must be
held by him, her or it indefinitely unless the sale or transfer thereof is subsequently registered under the Securities Act and
any applicable State Acts, or an exemption from such registration requirements is available, (iii) except as set forth in Section
7 below, the Company is under no obligation to register any of the Shares on the Investor’s behalf or to assist the Investor
in complying with any exemption from registration, and (iv) the Company will rely upon the representations and warranties
made by the Investor in this Agreement in order to establish such exemptions from the registration requirements of the Securities
Act and any applicable State Acts.

4.8 
Transfer Restrictions. The Investor will not transfer any of the Shares unless such transfer is registered or exempt
from registration under the Securities Act and applicable State Acts, and, if requested by the Company in the case of an exempt
transaction, the Investor has furnished an opinion of counsel reasonably satisfactory to the Company that such transfer is so exempt.
The Investor understands and agrees that (i) the Company shall have no obligation to honor transfers of any of the Shares in violation
of such transfer restrictions, (ii) the Company shall be entitled to instruct any transfer agent or agents for the securities of
the Company to refuse to honor such transfers and (iii) the certificate and other documents evidencing the Shares will bear the
following legend:

“THE SHARES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF
ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR
APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY
TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

5.              
Independent Nature of Investor’s Obligations and Rights. The obligations of the Investor under this Agreement
are several and not joint with the obligations of any other purchaser of shares of Common Stock, and the Investor shall not be
responsible in any way for the performance of the obligations of any other purchaser of shares of Common Stock under any other
agreement executed in connection with the Offering. The decision of the Investor to purchase Shares pursuant to this Agreement
has been made by the Investor independently of any other purchaser of shares of Common Stock in the Offering. Nothing contained
herein or in any other agreement executed in connection with the Offering, and no action taken by any purchaser of shares of Common
Stock pursuant thereto, shall be deemed to constitute such purchasers as a partnership, an association, a joint venture, or any
other kind of entity, or create a presumption that the purchasers of shares of Common Stock in the Offering are in any way acting
in concert or as a group with respect to such obligations or the transactions contemplated by any other agreement executed in connection
with the Offering. The Investor acknowledges that no other purchaser of shares of Common Stock in the Offering has acted as agent
for the Investor in connection with making its investment hereunder and that no other purchaser of shares of Common Stock in the
Offering will be acting as agent of the Investor in connection with monitoring its investment in the Shares or enforcing its rights
under this Agreement. The Investor shall be entitled to independently protect and enforce its rights, including without limitation
the rights arising out of this Agreement, and it shall not be necessary for any other purchaser of shares of Common Stock to be
joined as an additional party in any proceeding for such purpose.

6.              
Conditions Precedent.

6.1 
Conditions to the Obligation of the Investor to Consummate the Closing. The obligation of the Investor to consummate
the Closing and to purchase and pay for the Shares being purchased by it pursuant to this Agreement is subject to the satisfaction
of the following conditions precedent:

(a)            
The representations and warranties of the Company contained herein shall be true and correct in all material respects on
and as of the Closing Date with the same force and effect as though made on and as of the Closing Date.

(b)           
The Company shall have performed all obligations and conditions required to be performed or observed by the Company under
this Agreement on or prior to the Closing Date.

6.2 
Conditions to the Obligation of the Company to Consummate the Closing. The obligation of the Company to consummate
the Closing and to issue and sell to the Investor the Shares to be purchased by it at the Closing is subject to the satisfaction
of the following conditions precedent:

(a)            
The representations and warranties of the Investor contained herein shall be true and correct in all material respects on
and as of the Closing Date with the same force and effect as though made on and as of the Closing Date.

(b)           
The Investor shall have performed all obligations and conditions required to be performed or observed by the Investor under
this Agreement on or prior to the Closing Date.

(c)The
Company shall have accepted the subscription hereunder, in whole or in part, as determined by the Company in its sole discretion.

7.              
Piggyback Registration.

7.1.1      
Right to Include Shares. In connection with the proposed Registration Statement on Form S-1 that the Company intends
to file with respect to the Debt Financing (as defined below) and the shares of Common Stock convertible thereunder (the “Proposed
Registration”), pursuant to which the Company intends to register the resale of its Common Stock under the Securities
Act for the account of the investors in the Debt Financing (the “Debt Investors”) and certain other holders
(together with the Debt Investors, the “Original Investors”), the Company shall promptly give written
notice of such Proposed Registration to all of the Investors (which notice shall be given in no event less than three (3) days
prior to the expected filing date of the Proposed Registration) and shall offer such Investors the right to request inclusion of
any of such Investor’s Shares in the Proposed Registration, subject to the provisions of this Section 7. The rights
to piggyback registration hereunder may only be exercised in connection with the Proposed Registration and no other registration
statements proposed to be filed by the Company. For purposes of this Agreement, the “Debt Financing”
means the financing consummated on June 26, 2013 pursuant to that certain Securities Purchase Agreement
by and among the Company and the lenders set forth therein, whereby the lenders purchased from the Company 3.0% Senior Secured
Convertible Notes having an aggregate principal amount of $3,000,000.00.

7.1.2      
Piggyback Procedure. Each Investor shall have one (1) day from the date of delivery of the Company’s notice
referred to in Section 7.1.1 above to deliver to the Company a written request specifying the number of Shares such Investor
intends to sell and such Investor’s intended method of disposition (which in all events will be required to conform to the
intended methods of disposition set forth by the Original Investors). Any Investor shall have the right to withdraw such Investor’s
request for inclusion of such Investor’s Shares in any Proposed Registration pursuant to this Section 7 by giving
written notice to the Company of such withdrawal; provided, however, that the Company may ignore a notice of withdrawal
made within less than one full business day prior to the date the Proposed Registration is scheduled to become effective. Subject
to Section 7.1.3 below, the Company shall use its reasonable efforts to include in such Proposed Registration as
many Shares requested to be included therein as practicable; provided, however, that the Company may at any time
withdraw or cease proceeding with any such Proposed Registration if it shall at the same time withdraw or cease proceeding with
the registration of all other shares of Common Stock originally proposed to be registered.

7.1.3      
Priority for Piggyback Registration. The Company will be obligated to include in such Proposed Registration, as to
each Investor, only a portion of the Shares such Investor has requested to be registered equal to a fraction, the numerator of
which is the total number of shares of Common Stock held by the Original Investors, on an as converted to Common Stock basis, that
the Company proposes to include in the Proposed Registration, and the denominator of which is the total number of shares of Common
Stock held by all Original Investors, on as converted to Common Stock basis. The securities to be included in a Proposed Registration
initiated by the Company shall be allocated: first, to the Original Investors; and second, pari passu to the Investors.
Notwithstanding any other provision of this Section 7, if the Company determines and advises the Investors in writing that
the inclusion of all Shares proposed to be included by the Investors in the Proposed Registration would materially and adversely
interfere with the potential effectiveness of the Proposed Registration, whether as a result of the interpretation of Rule 415
promulgated under the Securities Act, or otherwise, then the Investors shall not be permitted to include any Shares in excess of
the amount, if any, of Shares which the Company shall reasonably and in good faith agree in writing to include in such offering.

 

8.              
Further Assurances. The parties hereto will, upon reasonable request, execute and deliver all such further assignments,
endorsements and other documents as may be necessary in order to perfect the purchase by the Investor of the Shares.

9.              
Entire Agreement; No Oral Modification. This Agreement contains the entire agreement among the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements and understandings with respect thereto and may not be
amended or modified except in a writing signed by both of the parties hereto.

10.           
Binding Effect; Benefits. This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective heirs, successors and assigns; however, nothing in this Agreement, expressed or implied, is intended to
confer on any other person other than the parties hereto, or their respective heirs, successors or assigns, any rights, remedies,
obligations or liabilities under or by reason of this Agreement.

11.           
Counterparts. This Agreement may be executed in any number of counterparts (including via facsimile or digital image
format), each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.

12.           
Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the
United States of America and the State of California (without giving effect to conflicts of laws principles), both substantive
and remedial.

13.           
Prevailing Parties. In any action or proceeding brought to enforce any provision of this Agreement, or where any
provision hereof is validly asserted as a defense, the prevailing party shall be entitled to receive and the nonprevailing party
shall pay upon demand reasonable attorneys’ fees in addition to any other remedy.

14.           
Notices. All communication hereunder shall be in writing and, if sent to the Investor shall be mailed, delivered,
telegraphed or sent by facsimile or electronic mail, and confirmed to the Investor at the address set forth on the signature page
of this Agreement, or if sent to the Company, shall be mailed, delivered, telegraphed or sent by facsimile or electronic mail and
confirmed to the Company at Saleen Automotive, Inc., 2735
Wardlow Road, Corona, California 92882, Attention: Robert Miranda, Chief Financial Officer, facsimile number (949) 630-0633.

15.           
Headings. The section headings herein are included for convenience only and are not to be deemed a part of this Agreement.

 

 

[Signature Pages
Follow]

    	 

    	 

    

IN WITNESS WHEREOF,
the parties hereto have executed this Subscription Agreement as of the date first above written.

COMPANY:

SALEEN AUTOMOTIVE, INC.,

a Nevada corporation

By:

Name:

Title:

    	 

    	 

    

INVESTOR SIGNATURE PAGE TO

SALEEN AUTOMOTIVE, INC.

SUBSCRIPTION AGREEMENT

	
         

        If an individual:

         

         

	
         

         
	
         

        (Signature)

	
         

         
	
         

         

	
         

         
	
         

        (Type or print name as it should appear on
        certificate)

	
         

        Social Security Number:

         

        Address:

        

        Telephone:( ) 

        Facsimile:( ) 

        E-mail:

         

        If a corporation, partnership, LLC, trust or other entity:

         

	
         

         
	
         

         

	
         

         

         
	
         

        (Type or print name as it should appear on
        certificate)

         

	
         

         
	
         

        Signature:

        Name:

         (Type or print name)

        Title:

         

        Tax Identification Number:

         

        Address:

        

        Telephone:( ) 

        Facsimile:( ) 

        E-mail:

 

X $0.15=

Number of SharesOffering PricePurchase Price

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