Document:

THIS WARRANT AND ANY SHARES ACQUIRED UPON
THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED,
SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

 

SALEEN AUTOMOTIVE, INC.

 

COMMON STOCK PURCHASE WARRANT

 

 

October 8, 2013

 

 

This COMMON STOCK PURCHASE WARRANT certifies
that Ascendiant Capital Markets, LLC, having an address at 18881 Von Karman Avenue, 16th Floor, Irvine, California 92612,
or permitted assignees is the registered holder (the “Holder”) of this Common Stock Purchase Warrant (the “Warrant”)
to purchase shares of the common stock, par value $0.001 per share (the “Common Stock”), of Saleen Automotive,
Inc., a Nevada corporation (the “Company”).

 

FOR VALUE RECEIVED,
the Company hereby certifies that the Holder is entitled to purchase from the Company forty thousand (40,000) duly authorized,
validly issued, fully paid and nonassessable shares of Common Stock (the “Warrant Shares”) at a purchase price
per share set forth in Section 3 below, and otherwise subject to the terms, conditions and adjustments set forth below in this
Warrant. The Holder is the person or entity in whose name this Warrant is registered on the records of the Company regarding registration
and transfers of this Warrant (the “Warrant Register”) and is the owner and holder thereof for all purposes,
except as described in Section 9 hereof.

 

1.               
Exercise of Warrant. This Warrant will be exercisable at any time, in the sole discretion
of the Holder, commencing on the date hereof (the “Commencement Date”).

 

2.               
Expiration of Warrant. This Warrant shall expire on October 7, 2016, 5:00 p.m., Eastern
Standard time (the “Expiration Date”).

 

3.               
Warrant Price. At any time through the Expiration Date, all or any portion of this
Warrant may be exercised for Warrant Shares, in the Holder’s sole discretion, at a price (the “Warrant Price”)
equal to $0.15 per share, as adjusted.

 

4.               
Exercise of Warrant. This Warrant shall be exercisable as follows:

 

4.1            
Manner of Exercise. This Warrant may be exercised into shares of Common Stock by the
Holder hereof, in accordance with the terms and conditions hereof, in whole or in part with respect to any portion of this Warrant
and in the discretion of the Holder, during the period beginning on the Commencement Date and ending on the Expiration Date. Any
exercise shall be undertaken during normal business hours on any day other than a Saturday or a Sunday or a day on which commercial
banking institutions in Los Angeles, California are authorized by law to be closed (a “Business Day”) on or
prior to the Expiration Date with respect to such portion of this Warrant, by surrender of this Warrant to the Company at its office
maintained pursuant to Section 9.2(a) hereof, accompanied by an exercise notice in substantially the form attached to this
Warrant as Exhibit A duly executed by or on behalf of the Holder together with the payment of the Warrant Price in cash
by bank check or wire transfer of immediately available funds.

 

4.2            
When Exercise Effective. Each exercise of this Warrant shall be deemed to have been
effected immediately prior to the close of business on the Business Day on which this Warrant shall have been surrendered to the
Company as provided in Section 4.1 hereof (“Exercise Date”), and, at such time, the corporation, association,
partnership, organization, business, individual, government or political subdivision thereof or a governmental agency (a “Person”
or the “Persons”) in whose name or names any certificate or certificates for shares of Common Stock shall be
issuable upon exercise as provided herein shall be deemed to have become the holder or holders of record thereof. 

 

4.3            
Delivery of Stock Certificates. As soon as practicable after each exercise of this
Warrant, in whole or in part, the Company, at its expense (including the payment by it of any applicable issue taxes), will cause
to be issued in the name of and delivered to the Holder hereof or, subject to Section 9 hereof, as the Holder (upon payment by
the Holder of any applicable transfer taxes) may direct:

 

(a)             
a certificate or certificates (with appropriate restrictive legends, as applicable) for the
number of duly authorized, validly issued, fully paid and nonassessable shares of Common Stock to which the Holder shall be entitled
upon exercise; and

 

(b)            
in case exercise is in part only, a new Warrant of like tenor, dated the date hereof and stating
on the face thereof for the number of shares of Common Stock equal to the number of shares called for on the face of this Warrant
minus the number of shares designated by the Holder upon exercise as provided in Section 4.1 hereof (without giving effect to any
adjustment thereof).

 

4.4            
Shares to be Fully Paid. The Company covenants and agrees that all shares of Common
Stock which may be issued upon the exercise of rights presented by this Warrant will, upon issuance by the Company, be validly
issued, fully paid and nonassessable, and free from preemptive rights and free from all taxes, liens and charges with respect thereto.

 

4.5            
Company to Reaffirm Obligations. The Company will, at the time of each exercise of
this Warrant, upon the written request of the Holder hereof, acknowledge in writing its continuing obligation to afford to the
Holder all rights (including without limitation any rights to registration of the shares of Common Stock issued upon exercise)
to which the Holder shall continue to be entitled after exercise in accordance with the terms of this Warrant; provided, however,
that if the Holder shall fail to make a request, the failure shall not affect the continuing obligation of the Company to afford
the rights to such Holder.

 

5.               
Adjustments.

 

5.1            
Splits, Subdivisions, etc. In the event that the Company should at any time or from
time to time, after the date first referenced above, fix a record date for the effectuation of a split or subdivision of the outstanding
shares of Common Stock, or the determination of holders of Common Stock entitled to receive a dividend or other distribution payable
in additional shares of Common Stock or other securities or rights convertible into, or entitling the holder thereof to receive
directly or indirectly additional shares of Common Stock (hereinafter referred to as “Common Stock Equivalents”)
without payment of any consideration by such holder for the additional shares of Common Stock or the Common Stock Equivalents (including
the additional shares of Common Stock issuable upon conversion or exercise thereof), then, as of such record date (or the date
of such dividend, distribution, split or subdivision if no record date is fixed), the Warrant Price shall be appropriately decreased
so that the number of shares of Common Stock issuable on exercise of this Warrant shall be increased in proportion to such increase
in the aggregate number of shares of the Common Stock outstanding.

 

5.2            
Combinations. If the number of shares of Common Stock outstanding at any time after
the date first referenced above is decreased by a combination of the outstanding shares of Common Stock, then, following the record
date of such combination, the Warrant Price shall be appropriately increased and the number of shares of Common Stock issuable
upon exercise of this Warrant shall be decreased in proportion to such decrease in outstanding shares. 

 

5.3            
Replacement of Securities upon Reorganizations, etc. If after the date hereof any capital
reorganization or reclassification of the Common Stock, or consolidation or merger of the Company with another corporation, or
the sale of all or substantially all of its assets to another corporation or other similar event (each, a “Fundamental
Transaction”) shall be effected, then, as a condition of such Fundamental Transaction, lawful and fair provision shall
be made whereby the Holder of this Warrant shall thereafter have the right to purchase and receive, upon the basis and upon the
terms and conditions specified in this Warrant and in lieu of the shares of Common Stock of the Company immediately theretofore
purchasable and receivable upon the exercise of the rights represented thereby, such shares of stock, securities, or assets as
may be issued or payable with respect to or in exchange for the number of outstanding shares of such Common Stock equal to the
number of shares of such stock immediately theretofore purchasable and receivable upon the exercise of the rights represented by
this Warrant, had such Fundamental Transaction not taken place and in such event appropriate provision shall be made with respect
to the rights and interests of the Holder of this Warrant to the end that the provisions hereof (including, without limitation,
provisions for adjustments of the Warrant Price and of the number of shares purchasable upon the exercise of this Warrant) shall
thereafter be applicable, as nearly as may be in relation to any share of stock, securities, or assets thereafter deliverable upon
the exercise hereof. The Company shall not effect any such Fundamental Transaction unless prior to the consummation thereof the
successor corporation (if other than the Company) resulting from such Fundamental Transaction, or the corporation purchasing such
assets in a Fundamental Transaction, shall assume by written instrument executed and delivered to the Holder of this Warrant the
obligation to deliver to the Holder of this Warrant such shares of stock, securities, or assets as, in accordance with the foregoing
provisions, such holders may be entitled to purchase.

 

5.4            
Notice of Adjustments. Upon any adjustment of the terms of this Warrant pursuant to
this Section 5, then and in each such case the Company shall promptly deliver a notice to the registered Holder of this
Warrant, which notice shall state the Warrant Price resulting from such adjustment and the changes, if any, in the number of Warrant
Shares or kind of securities or other property purchasable at such price upon the exercise hereof, setting forth in reasonable
detail the method of calculation and the facts upon which such calculation is based.

 

5.5            
Adjustment in Number of Securities. Upon each adjustment of the Warrant Price pursuant
to the provisions of this Section 5, the number of securities issuable upon the exercise of each Warrant shall be adjusted
to the nearest full amount by multiplying a number equal to the Warrant Price in effect immediately prior to such adjustment by
the number of Warrant Shares issuable upon exercise of the Warrants immediately prior to such adjustment and dividing the product
so obtained by the adjusted Warrant Price.

 

5.6            
No Fractional Shares. No fractional shares shall be issuable upon exercise of this
Warrant and the number of Warrant Shares to be issued shall be rounded down to the nearest whole share.

 

6.               
Reservation of Shares. The Company shall at all times reserve and keep available out
of its authorized but unissued shares of Common Stock, free from all taxes, liens and charges with respect to the issue thereof,
and not subject to preemptive rights or other similar rights of stockholders of the Company, solely for the purpose of issuing
the shares of Common Stock underlying this Warrant, such number of its shares of Common Stock as shall from time to time be sufficient
to effect the issuance or exercise thereof, and if at any time the number of authorized but unissued shares of Common Stock shall
not be sufficient to issue the Common Stock and effect the exercise of this Warrant, in addition to such other remedies as shall
be available to Holder, the Company shall take such corporate action as may, in the opinion of its counsel, be necessary to increase
the number of authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes,
including without limitation, using its best efforts to obtain the requisite stockholder approval necessary to increase the number
of authorized shares of the Company’s Common Stock. All shares of Common Stock issuable upon exercise of this Warrant shall
be duly authorized and, when issued upon exercise, shall be validly issued and, in the case of shares, fully paid and nonassessable
and free from preemptive rights and free from taxes, liens and charges with respect thereto.

 

7.               

 

8.               
Restrictions on Transfer.

 

8.1Restrictive Legends.
This Warrant and each Warrant issued upon transfer or in substitution for this Warrant pursuant to Section 9, each certificate
for Common Stock issued upon the exercise of any Warrant and each certificate issued upon the transfer of any such Common Stock
shall be transferable only upon satisfaction of the conditions specified in this Section 8. Subject to the provisions of
this Section 8, each of the foregoing securities shall be stamped or otherwise imprinted with a legend reflecting the restrictions
on transfer set forth in this Warrant and any restrictions required under the Securities Act of 1933, as amended (the “Securities
Act”).

 

8.2Notice of Proposed
Transfer; Opinion of Counsel. Prior to any transfer of any securities which are not registered under an effective registration
statement under the Securities Act (“Restricted Securities”), the Holder will give written notice to the Company
of the Holder's intention to affect a transfer and to comply in all other respects with this Section 8.2. Each notice: (i)
shall describe the manner and basic circumstances of the proposed transfer, and (ii) shall designate counsel for the Holder. The
Holder giving notice will submit a copy thereof to the counsel designated in the notice. The following provisions shall then apply:

 

(a)             
If in the opinion of counsel for the Holder, which is reasonably satisfactory to the Company,
the proposed transfer may be effected without registration of Restricted Securities under the Securities Act, the Holder shall
thereupon be entitled to transfer the Restricted Securities in accordance with the terms of the notice delivered by the Holder
to the Company. Each certificate representing the Restricted Securities issued upon or in connection with any transfer shall bear
the restrictive legends required by Section 8.1 hereof.

 

(b)            
If the opinion called for in (a) above is not delivered, the Holder shall not be entitled
to transfer the Restricted Securities until either: (i) receipt by the Company of a further notice from such Holder pursuant to
the foregoing provisions of this Section 8.2 and fulfillment of the provisions of clause (a) above, or (ii) such Restricted
Securities have been effectively registered under the Securities Act.

 

8.3Termination of
Restrictions. The restrictions imposed by this Section 8 upon the transferability of Restricted Securities shall cease
and terminate as to any particular Restricted Securities: (a) which Restricted Securities shall have been effectively registered
under the Securities Act, or (b) when, in the opinion of counsel for the Holder, which is reasonably acceptable to the Company,
or, alternatively, in the opinion of counsel to the Company, such restrictions are no longer required in order to insure compliance
with the Act or Section 8 hereof. Whenever such restrictions shall cease and terminate as to any Restricted Securities,
the Holder thereof shall be entitled to receive from the Company, without expense (other than applicable transfer taxes, if any),
new securities of like tenor not bearing the applicable legends required by Section 8.1 hereof.

 

9.               
Ownership, Transfer and Substitution of Warrant.

 

 

9.1            
Ownership of Warrant. The Company may treat the person in whose name this Warrant is
registered in the Warrant Register maintained pursuant to Section 9.2(b) hereof as the owner and holder thereof for all
purposes, notwithstanding any notice to the contrary, except that, if and when any Warrant is properly assigned in blank, the Company
may (but shall not be obligated to) treat the bearer thereof as the owner of such Warrant for all purposes, notwithstanding any
notice to the contrary. Subject to Section 8 hereof, this Warrant, if properly assigned, may be exercised by a new holder without
a new Warrant first having been issued.

 

		9.2	Office; Transfer and Exchange of Warrant.

 

(a)             
The Company will maintain its principal offices as the office where notices, presentations
and demands in respect of this Warrant may be made upon it until the Company notifies the holder of this Warrant of any change
of location of the office.

 

(b)            
The Company shall cause to be kept at its office maintained pursuant to Section 9.2(a)
hereof a Warrant Register for the registration and transfer of this Warrant. The names and addresses of holders of this Warrant,
the transfers thereof and the names and addresses of transferees of this Warrant shall be registered in such Warrant Register.
The Person in whose name any Warrant shall be so registered shall be deemed and treated as the owner and holder thereof for all
purposes of this Warrant, and the Company shall not be affected by any notice or knowledge to the contrary.

 

(c)             
Upon the surrender of this Warrant, properly endorsed, for registration of transfer or for
exchange at the office of the Company maintained pursuant to Section 9.2(a) hereof, the Company at its expense will (subject
to compliance with Section 8 hereof, if applicable) execute and deliver to or upon the order of the Holder thereof a new Warrant
of like tenor, in the name of such holder or as such holder (upon payment by such holder of any applicable transfer taxes) may
direct, calling in the aggregate on the face thereof for the number of shares of Common Stock called for on the face of this Warrant
so surrendered.

 

9.3            
Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant,
upon delivery of indemnity reasonably satisfactory to the Company in form and amount or, in the case of any mutilation, upon surrender
of this Warrant for cancellation at the office of the Company maintained pursuant to Section 9.2(a) hereof, the Company
at its expense will execute and deliver, in lieu thereof, a new Warrant of like tenor and dated the date hereof.

 

10.            
No Rights or Liabilities as Stockholder. No Holder shall be entitled to vote or receive
dividends or be deemed the holder of any shares of Common Stock or any other securities of the Company which may at any time be
issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as
such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization,
issuance of stock, reclassification of stock, change of par value, consolidation, merger, conveyance, or otherwise) or to receive
notice of meetings, or to receive dividends or subscription rights or otherwise until this Warrant shall have been exercised and
the shares of Common Stock purchasable upon the exercise hereof shall have become deliverable, as provided herein. The Holder will
not be entitled to share in the assets of the Company in the event of a liquidation, dissolution or the winding up of the Company.

 

11.            
Notices of Record Date, etc. In case the Company shall take a record of the holders
of its Common Stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of
entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase
any shares of stock of any class or any other securities, or to receive any other right; or of any capital reorganization of the
Company, any reclassification of the capital stock of the Company, any consolidation or merger of the Company with or into another
corporation (other than a consolidation or merger in which the Company is the surviving entity), or any transfer of all or substantially
all of the assets of the Company; or of the voluntary or involuntary dissolution, liquidation or winding-up of the Company, then,
and in each such case, the Company will mail or cause to be mailed to the registered holder of this Warrant a notice specifying,
as the case may be: (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and
stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any
is to be fixed, as of which the holders of record of Common Stock (or such other stock or securities at the time deliverable upon
the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for
securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding-up. Such notice shall be mailed at least ten (10) days prior to the record date or effective date for the
event specified in such notice unless such prior notice is waived by the registered holder of this Warrant. 

 

12.            
Notices. Any notice or other communication in connection with this Warrant shall be
deemed to be given if in writing (or in the form of a facsimile) addressed as hereinafter provided and actually delivered at said
address: (a) if to any Holder, at the registered address of such holder as set forth in the Warrant Register kept at the office
of the Company maintained pursuant to Section 8.2(a) hereof, or (b) if to the Company, to the attention of its Chief Executive
Officer at its office maintained pursuant to Section 9.2(a) hereof; provided, however, that the exercise of any Warrant
shall be effective in the manner provided in Section 4 hereof.

 

13.            
Payment of Taxes. The Company will pay all documentary stamp taxes attributable to
the issuance of shares of Common Stock underlying this Warrant upon exercise of this Warrant; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any
certificate for shares of Common Stock underlying this Warrant in a name other that of the Holder. The Holder is responsible for
all other tax liability that may arise as a result of holding or transferring this Warrant or receiving shares of Common Stock
underlying this Warrant upon exercise hereof.

 

14.            
Governing Law; Jurisdiction; Waiver of Jury Trial. 

 

(a)             
This Warrant shall be governed by, and construed in accordance with, the internal laws of
the State of Nevada without regard to the choice of law principles thereof. Each of the parties hereto irrevocably submits to the
exclusive jurisdiction of the federal courts and the courts of the State of Nevada located in Clark County for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this Warrant and the transactions contemplated hereby. Service
of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the
same methods as are specified for the giving of notices under this Warrant. Each of the parties hereto irrevocably consents to
the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and
irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum.

 

(b)            
EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH
RESPECT TO THIS WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

15.            
Miscellaneous. Any provision of this Warrant and the observance of any term hereof
may be amended, waived or modified (either generally or in a particular instance and either retroactively or prospectively) only
with the written consent of the Company and the Holder. If one or more provisions of this Warrant are held to be unenforceable
under applicable law, such provisions shall be excluded from this Warrant, and the balance of this Warrant shall be interpreted
as if such provisions were so excluded and shall be enforceable in accordance with its terms. The section headings in this Warrant
are for purposes of convenience only and shall not constitute a part hereof.

 

 

[Remainder of page intentionally left blank;
signature pages follow.]

    	 

    	 

    

IN WITNESS WHEREOF, the Company has caused
this Common Stock Purchase Warrant to be duly executed as of the date first above written.

 

SALEEN AUTOMOTIVE, INC.

 

 

By: _________________________

Name:

Title:

 

    	 

    	 

    

EXHIBIT A

 

PURCHASE FORM

 

To: Saleen Automotive, Inc.

 

Dated:____________

 

 

The
undersigned, pursuant to the provisions set forth in the attached Warrant (No. ___), hereby elects to[check applicable
subsection]:

 

 

		________	Purchase ____________ shares of ________________ of Saleen Automotive, Inc. pursuant to the terms
of the attached Warrant and payment of the Warrant Price per share required under such Warrant accompanies this notice;

 

Please issue a certificate
or certificates representing said shares of Saleen Automotive, Inc. the name of the undersigned or in such other name as is specified
below:

 

 

________________________________________

Print or Type Name

 

________________________________________

(Signature must conform in all respects to name
of holder as specified on the face of Warrant)

 

________________________________________

(Street Address)

 

________________________________________

(City) (State) (Zip Code)September 27, 2013(Sent via Electronic Mail)

 

Mr. Steve Saleen, Chief Executive Officer

Saleen Automotive, Inc.

2735 Wardlow Road

Corona, CA 92882

 

Dear Mr. Saleen,

 

Thank you for the opportunity to work with
you and your company, Saleen Automotive, Inc.

 

This letter agreement (the “Agreement”)
confirms that Saleen Automotive, Inc. and its subsidiaries (“Client”) has engaged Ascendiant Capital Markets, LLC ("Ascendiant")
to act as its exclusive advisor to provide corporate finance and investment banking related advice in
connection with a possible Transaction involving the Client, including, but not limited to, identifying potential third party Transaction
partners acceptable to the Client (“Transaction Candidates” or “Candidates”),
coordinating visits by and communication with such Transaction Candidates, performing financial analysis with respect to potential
Transactions, and assisting the Client in structuring, planning and negotiating the terms of a potential Transaction (the “Engagement”).

 

Ascendiant Capital Markets, LLC is an investment
banking firm registered as a broker-dealer with the U.S. Securities and Exchange Commission (SEC), and member of the Financial
Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).

 

For the purposes of
this Agreement, Transaction means, whether effected directly by the Client (or any of the entities comprising the
Client) or indirectly by or through any third party with which the Client may arrange to effect the Transaction or in one or more
transactions or a series of transactions, principally for bona fide capital raising purposes whereby cash is received by the Client
in consideration for the issuance, conversion or cancellation of equity, debt or equity or debt linked securities by the Client
(a “Financing”).

Ascendiant shall devote such time and efforts
to the affairs of the Client as is reasonably necessary to render the services contemplated by this Agreement. Any work or task
of Ascendiant provided for herein which requires Client to provide certain information to assist Ascendiant in completion of the
work shall be excused (without effect upon any obligation of Client) until such time as Client has fully provided all information
and cooperation necessary for Ascendiant to complete the work. The services of Ascendiant shall not include the rendering of any
legal opinions or the performance of any work that is in the ordinary purview of a certified public accountant.

 

It is expressly understood and agreed that
Ascendiant shall have no power to bind Client to any Transaction or contract obligation. Client shall have the right to refuse
any Transaction proposal presented to it without incurring any obligations to Ascendiant.

 

Although Ascendiant cannot guarantee results
on behalf of the Client, it shall use its best efforts to provide the services listed above.

 

1.               
Retainer. N/A.

 

2.               
Success Fee. 

 

(a)            
Financing with any Candidate introduced by Ascendiant. Client
agrees that should Client accept and complete a Transaction(s) with any Candidate Ascendiant presents or introduces to Client during
the Term of this Agreement, or if Client should for a period of twelve (12) months following the termination of this Agreement
(including extensions) accept financing or complete a Transaction from any Candidate presented or introduced to Client by Ascendiant
there shall become due and payable via wire transfer to Ascendiant immediately upon consummation of each Transaction, a cash fee
payable to Ascendiant equal to nine percent (9%) of the gross proceeds raised and actually received
by the Client in such Financing and issue Ascendiant warrants to purchase shares of common stock of
the Client (the “Warrants”) equal to nine percent (9%) of the equity or equity linked securities sold
in such Financing.

(b)            
Financing consummated directly by Client. Client
agrees that should Client accept and complete a Transaction(s) with any party directly (other than a Candidate Ascendiant presents
or introduces to Client) , there shall become due and payable via wire transfer to Ascendiant immediately upon consummation of
each Transaction, a cash fee payable to Ascendiant equal to three percent (3%) of the gross proceeds
raised and actually received by the Client in such Financing and issue Ascendiant warrants to purchase
shares of common stock of the Client (the “Warrants”) equal to three percent (3%) of the equity or equity
linked securities sold in such Financing. 

For the fees payable to Ascendiant as referenced above in Sections
2(a) and 2(b), the Warrants will be identical in all material respects to other warrants
sold in such  Financing, if any, including exercise price, maturity date, cashless exercise, registration rights
and anti-dilution protections, and provided further, that in the event no other warrants are sold in the Financing,
the Warrant will have an exercise price equal to the price per share of the equity or equity linked securities sold in the Financing
(with cashless exercise) and a maturity date equal to the date which is three (3) years after the date such Financing
is consummated.

 

Should Ascendiant not be paid within seven (7) business days after
the completion of a Transaction, a service charge shall accrue from the date of the Transaction at the rate of 1.5% per month.

 

3.               
Expenses. Client shall reimburse Ascendiant for all pre-approved (in writing
or email), out-of-pocket expenses incurred in the performance of the duties to meet the obligations of this Agreement. Payment
shall be made within seven (7) days of invoice. The Client agrees that it will engage its legal counsel at its own expense to assist
in the preparation of any legal documents or definitive agreements deemed necessary to facilitate the Transaction(s) contemplated
herein. 

 

4.               
Term. The term of this Agreement shall be for a period of one year from the date of
this Agreement or the final closing of a Transaction whichever is earlier (the “Term”). Notwithstanding
the foregoing, either party may terminate this Agreement, upon 10 days’ notice, provided however that any compensation and
reimbursements due to Ascendiant pursuant to Sections 1, 2, and 3 shall survive such termination and shall remain in full force
and effect. 

 

5.               
Representations, Warranties, and Indemnification. Each of Ascendiant and Client represents
and warrants to each other that this Agreement has been duly authorized, executed and delivered by it; and, assuming the due execution
by the other party, constitutes a legal, valid and binding agreement of it, enforceable against it in accordance with its terms.
Each of Ascendiant and Client agrees to comply with all applicable securities laws, and the Client will disclose to Ascendiant
all information necessary for Ascendiant to act upon Client's request and to notify Ascendiant promptly of any material changes
to such information. During the Term and the tail period contemplated in Section 2(a), Client hereby represents that it shall notify
Ascendiant within five (5) business days of the completion of any Transaction(s) occurring during the Term of this Agreement and/or
during the applicable tail period to the extent involving Candidates introduced or presented by Ascendiant. Additionally, each
of the Client and Ascendiant agrees to indemnify the other and the other’s affiliates in accordance with the terms and conditions
in Exhibit “A” to this Agreement.

 

6.               
Confidentiality. This Agreement supersedes any and all prior non-disclosure and confidentiality
agreements between Client and Ascendiant. Ascendiant and Client each agree to keep confidential and provide reasonable security
measures to keep confidential information where release may be detrimental to their respective business interests. Ascendiant and
Client shall each require their employees, agents, affiliates, other licensees, and others who will have access to the information
through Ascendiant and Client respectively, to abide by the confidentiality provisions contemplated by this Agreement in perpetuity.
Ascendiant will not, either during its engagement by the Client pursuant to this Agreement or at any time thereafter, disclose,
use or make known for its or another's benefit any confidential information, knowledge, or data of the Client or any of its affiliates
in any way acquired or used by Ascendiant during its engagement by the Client. Confidential information, knowledge or data of the
Client and its affiliates shall not include any information that is, or becomes generally available to the public other than as
a result of a disclosure by Ascendiant or its representatives. Notwithstanding the foregoing, Client hereby authorizes Ascendiant
to transmit to prospective Candidates, information and materials provided by Client and/or developed by Ascendiant on behalf of
Client upon approval by Client of such materials. Additionally, at any time after the consummation or other public announcement
of the Transaction, Ascendiant may, at its own expense, use, from time to time, the Client’s name and logo and a brief description
of the Transaction in publications and/or marketing materials prepared and/or distributed by Ascendiant.

 

7.               
Reserved.

 

8.               
Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of California applicable to contracts executed and to be wholly performed therein without regard to its conflict
of law doctrine. The Client and Ascendiant hereby agree that any dispute concerning this Agreement shall be resolved through binding
arbitration before the FINRA in Los Angeles County pursuant to its arbitration rules, or, at the sole discretion of Ascendiant,
through state or federal court of competent jurisdiction. The prevailing party shall be entitled, in addition to such other relief
that may be granted, to a reasonable sum of attorney’s fees and any other costs and expenses relating thereto.

 

9.               
Entire Agreement. This Agreement represents the entire agreement by and between the
Client and Ascendiant and supersedes any and all other agreements, either oral or written, with respect to the Agreement. Each
party to this Agreement acknowledges that no representation, inducements, promises or agreement, orally or otherwise, have been
made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement,
or promise not contained in this Agreement shall be valid or binding. The Client and Ascendiant hereby agree that the opening and
closing statements of this Agreement are incorporated herein by this reference and made a material part of this Agreement. If any
part of this Agreement is found, or deemed by a court of competent jurisdiction, to be invalid or unenforceable, that part shall
be severable from the remainder of the Agreement. This Agreement may be executed simultaneously in two or more counterparts, each
of which shall be deemed an original, but all of which shall constitute one and the same instrument. Any modification of this Agreement
will be effective only if it is in writing and signed by the Client and Ascendiant. 

 

10.            
Survival of Certain Provisions.Sections 1, 2, 3, 5, 6, 7, 8, 9, 10 and Exhibit
“A” of this Agreement shall survive this Agreement, and remain operative and in full force and effect, regardless of,
(i) the completion of any Transaction, (ii) the resignation of Ascendiant or any termination of Ascendiant’s services, or
(iii) any amendment, expiration or termination of this Agreement, and shall be binding upon, and shall inure to the benefit of,
any successors, assigns, heirs and personal representatives of the Client, Ascendiant, and the Indemnified Persons. 

 

Please initial each page, sign below, and return
an original and one copy of this letter to the undersigned to indicate your acceptance of the terms set forth herein, whereupon
this letter and your acceptance shall constitute a binding agreement by and between Client and Ascendiant as of the date first
above written. We appreciate the opportunity to be of service and look forward to a cooperative working relationship with you and
your staff.

 

		Sincerely,	Accepted and Agreed:

 

Ascendiant Capital Markets, LLC Saleen
Automotive, Inc.

 

Bradley
J. Wilhite

		______________________________	______________________________

By:Bradley
J. WilhiteBy:

Its:Managing
PartnerIts:

Date: September
27, 2013Date: ______________

 

    	 

    	 

    

 

EXHIBIT “A”
TO ENGAGEMENT AGREEMENT

 

This Exhibit “A” is a part of and
is incorporated into that certain letter agreement between Client and Ascendiant. The letter agreement and this Exhibit “A”
are referred to herein as the "Agreement". Capitalized terms used herein without definition shall have the meanings ascribed
to them in the letter agreement.

 

Each of the Client and Ascendiant (each an
“Indemnifying Party”) agrees to indemnify and hold harmless the other, any affiliates and the respective officers,
directors, partners, employees, representatives and agents and any other persons controlling the other or any affiliates within
the meaning of the Securities Act of 1933 or the Securities Exchange Act of 1934 (each such person or entity being referred to
as an "Indemnified Person"), to the fullest extent lawful, from and against, and the Indemnified Persons shall have no
liability to the Indemnifying Party or its owners, affiliates, controlling persons, security holders or creditors for, all claims,
liabilities, losses, damages and expenses, including without limitation and as incurred, reimbursement of all costs of investigating,
preparing, pursuing, or defending any such claim or action, including fees and expenses of counsel to, and the per diem costs and
expenses of personnel of, the Indemnified Person (collectively, "Losses"), whether or not arising out of pending or threatened
litigation, governmental investigation, arbitration or other alternative dispute resolution, or other action or proceeding (individually
a "Proceeding" and collectively "Proceedings"), directly or indirectly related to or arising out of, or in
connection with (i) actions taken or omitted to be taken by the Indemnifying Party, its affiliates, employees, directors,
officers, partners, representatives or agents in connection with any Transaction(s) or activities contemplated by this Agreement;
(ii) actions taken or omitted to be taken by any Indemnified Person pursuant to the terms of, or in connection with services
rendered pursuant to, this Agreement, provided that in the case of this subsection (ii) the Indemnifying Party shall not be
responsible for any Losses arising out of or based upon the willful misconduct or negligence (as determined by the judgment of
a court of competent jurisdiction, no longer subject to appeal or further review) of or by such Indemnified Person; and (iii) any
untrue statement or alleged untrue statement of material fact contained in any Information approved by the Client or any omission
or alleged omission to state a material fact necessary to make the statements therein not misleading (other than untrue statements
or alleged untrue statements in, or omissions or alleged omissions from, information relating to an Indemnified Person furnished
in writing by or on behalf of such Indemnified Person expressly for use in such Information). If the indemnification provided for
under this Agreement is unavailable to an Indemnified Person in respect of any Losses, then the Indemnifying Party, in lieu of
indemnifying such Indemnified Person, shall contribute to the amount paid or payable by such Indemnified Person as a result of
such Losses in such proportion as is appropriate to reflect the relative fault of the Client on the one hand and the Indemnified
Person on the other, as well as any other relevant equitable considerations. If any Proceeding is commenced as to which an Indemnified
Person demands indemnification, the Indemnified Person shall have the right to retain counsel of its own choice to represent it,
the Indemnifying Party shall pay the reasonable fees and expenses of such counsel, and such counsel shall to the extent consistent
with its professional responsibilities cooperate with the Indemnifying Party and any counsel designated by the Indemnifying Party
, provided, that in no event shall the Indemnifying Party be required to pay fees and expenses under this indemnity for more than
one firm of attorneys for the Indemnified Person in any jurisdiction in any one legal action or group of related legal actions.
The Indemnifying Party shall be liable as provided herein for any settlement of any claim against Ascendiant or any Indemnified
Person made with the Indemnifying Party’s written consent, which consent shall not be unreasonably withheld. The Indemnifying
Party agrees that it will not, without the prior written consent of Ascendiant or the Client, as applicable, settle or compromise
or consent to the entry of any judgment in any Proceeding (whether or not any Indemnified Person is a party thereto) unless such
settlement, compromise or consent includes an unconditional release of Ascendiant and each other Indemnified Person from all liability
arising or that may arise out of such Proceeding. The indemnity and contribution obligations of the Indemnifying Party set forth
herein shall be in addition to any liability or obligation the Indemnifying Party may have to any Indemnified Person at common
law or otherwise. The Indemnifying Party hereby consents to personal jurisdiction, service and venue in any court in which any
claim, which is subject to this Agreement, is brought against Ascendiant or any other Indemnified Person.

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