Document:

THIS
NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE “1933 ACT”)

 

US
$55,125.00

 

SALEEN
AUTOMOTIVE, INC.

8%
CONVERTIBLE REDEEMABLE NOTE

DUE
OCTOBER 14, 2015

 

FOR
VALUE RECEIVED, Saleen Automotive, Inc. (the “Company”) promises to pay to the order of LG CAPITAL FUNDING, LLC and
its authorized successors and permitted assigns (“Holder”), the aggregate principal face amount of Fifty Five
Thousand One Hundred Twenty Five Dollars exactly (U.S. $55,125.00) on October 14, 2015 (“Maturity Date”) and
to pay interest on the principal amount outstanding hereunder at the rate of 8% per annum commencing on October 14, 2014. This
Note contains a 5% original issue discount such that the purchase price of the note is $52,500.00. The interest will be paid to
the Holder in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note.
The principal of, and interest on, this Note are payable at 1218 Union Street, Suite #2, Brooklyn, NY 11225, initially, and if
changed, last appearing on the records of the Company as designated in writing by the Holder hereof from time to time. The Company
will pay each interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts
required by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the
last address appearing on the records of the Company. The forwarding of such check or wire transfer shall constitute a payment
of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the
sum represented by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph
4(b) herein.

 

This
Note is subject to the following additional provisions:

 

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

 

 

Initials 

 

    	 

    	 

    

 

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

 

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

 

4.(a)
The Holder of this Note is entitled, at its option, at any time after 180 days, and after full cash payment for the shares convertible
hereunder, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company’s
common stock (the “Common Stock”) without restrictive legend of any nature, at a price (“Conversion
Price”) for each share of Common Stock equal to 61% of the average of the 2 lowest trading prices
(with a floor of $0.00005 per share) of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which
the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future (“Exchange”),
for the eighteen prior trading days including the day upon which a Notice of Conversion is received by the
Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after
4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). If the shares have
not been delivered within 3 business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated by
the Company delivering the shares of Common Stock to the Holder within 3 business days of receipt by the Company of the Notice
of Conversion. Once the Holder has received such shares of Common Stock, the Holder shall surrender this Note to the Company,
executed by the Holder evidencing such Holder’s intention to convert this Note or a specified portion hereof, and accompanied
by proper assignment hereof in blank. Accrued but unpaid interest shall be subject to conversion. No fractional shares or scrip
representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest
whole share. In the event the Company experiences a DTC “Chill” on its shares, the conversion price shall be decreased
to 51% instead of 61% while that “Chill” is in effect. In no event shall the Holder be allowed to effect a conversion
if such conversion, along with all other shares of Company Common Stock beneficially owned by the Holder and its affiliates would
exceed 9.9% of the outstanding shares of the Common Stock of the Company.

 

 

Initials 

 

    	2

    	 

    

 

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

 

(c)The
Notes may be prepaid with the following penalties: (i) if the note is prepaid within 90 days of the issuance date, then at 135%
of the face amount plus any accrued interest; (ii) if the note is prepaid within 91 days after the issuance date but less than
180 days after the issuance date, then at 150% of the face amount plus any accrued interest. This Note may not be prepaid after
the 180th day. Such redemption must be closed and funded within 3 days of giving notice of redemption of the right
to redeem shall be null and void.

 

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

 

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

 

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

 

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

 

 

Initials 

 

    	3

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

(e)A
trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without
its consent and shall not be discharged within sixty (60) days after such appointment; or

 

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

 

(g)One
or more money judgments, writs or warrants of attachment, or similar process, in excess of one hundred thousand dollars ($100,000)
in the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid,
un-vacated, unbonded or unstayed for a period of fifteen (15) days or in any event later than five (5) days prior to the date
of any proposed sale thereunder; or

 

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

 

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

 

 

Initials 

 

    	4

    	 

    

 

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

 

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

 

(m)
The Company shall not be “current” in its filings with the Securities and Exchange Commission; or

 

(n)
The Company shall lose the “bid” price for its stock and a market (including the OTCBB marketplace or other exchange)

 

Then,
or at any time thereafter, unless cured within 5 days, and in each and every such case, unless such Event of Default shall have
been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option
of the Holder and in the Holder’s sole discretion, the Holder may consider this Note immediately due and payable, without
presentment, demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly
waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately,
and without expiration of any period of grace, enforce any and all of the Holder’s rights and remedies provided herein or
any other rights or remedies afforded by law. Upon an Event of Default, interest shall accrue at a default interest rate of 24%
per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law.
In the event of a breach of Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th
day after the conversion notice was delivered to the Company. This penalty shall increase to $500 per day beginning on the
10th day. The penalty for a breach of Section 8(n) shall be an increase of the outstanding principal amounts by 20%.
In case of a breach of Section 8(i), the outstanding principal due under this Note shall increase by 50%. If this Note is not
paid at maturity, the outstanding principal due under this Note shall increase by 10%.

 

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

 

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

 

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

 

 

Initials 

 

    	5

    	 

    

 

11.The
Company represents that it has been a “shell” issuer and that at least 12 months have passed such that the Company
is no longer a “shell issuer. Further. The Company will instruct its counsel to either (i) write a 144- 3(a)(9) opinion
to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel.

 

12.The
Company shall issue irrevocable transfer agent instructions reserving 8,816,000 shares of its Common Stock for conversions under
this Note (the “Share Reserve”). The reserve shall be replenished as needed to allow for conversions of this Note.
Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all costs
associated with issuing and delivering the shares. The company should at all times reserve a minimum of four times the amount
of shares required if the note would be fully converted. The Holder may reasonably request increases from time to time to reserve
such amounts.

 

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

 

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

 

 

Initials 

 

    	6

    	 

    

 

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

 

Dated:
October 14, 2014

 

	 	SALEEN
    AUTOMOTIVE, INC.
	 	 
	 	By:	/s/
    Steve Saleen
	 	 	Steve
    Saleen, Chief Executive Officer

  

 

Initials 

 

    	7

    	 

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

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

 

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

 

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

 

Date
of Conversion: __________________________________________________________

Applicable
Conversion Price: ___________________________________________________

Signature:
__________________________________________________________________

[Print
Name of Holder and Title of Signer]

 

	Address:	 	 
	 	 	 

 

SSN
or EIN: _______________________________

Shares
are to be registered in the following name: __________________________________________________

 

Name:
_____________________________________________________________________

Address:
___________________________________________________________________

Tel:
_____________________________________

Fax:
_____________________________________

SSN
or EIN: _______________________________

 

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

 

Account
Name: ________________________________________________________

Address:
___________________________________________________________________

 

 

Initials 

 

    	8NEITHER
THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE BORROWER UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”)
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED: (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE
SECURITIES LAWS; OR (II) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT
REQUIRED UNDER THE 1933 ACT OR; (III) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

 

10%
CONVERTIBLE NOTE

 

Maturity
Date of April 15, 2015

 

$50,000
October 15, 2014 *the “Issuance Date”

 

FOR
VALUE RECEIVED, Saleen Automotive Inc., a Nevada Corporation (the “Company”) doing business in Corona.
CA hereby promises to pay to the order of JSJ Investments Inc., an accredited investor and Texas Corporation, or its assigns (the
“Holder”) the principal amount of Fifty Thousand Dollars ($50,000), on demand of the Holder at any time on
or after April 15, 2015 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at
the rate of Ten Percent (10%) per annum (the “Interest Rate”) from the date hereof (the “Issuance
Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise;
provided, that any amount of principal or interest on this Note which is not paid when due shall bear interest at such rate on
the unpaid principal balance hereof plus Default Interest from the due date thereof until the same is paid in full. Interest shall
commence accruing on the issuance Date, shall be computed on the basis of a 365-day year and the actual number of days elapsed
and shall accrue daily and, after the Maturity Date, compound quarterly.

 

	 	1.	Payments of
    Principal and Interest.

 

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

 

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

 

    	1

    	 

    

 

 

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

 

	 	i.	“Conversion
    Amount” means the sum of (A) the principal amount
    of this Note to be converted with respect to which this determination is being made. (B) Interest; and (C) Default Interest,
    if any, on unpaid interest and principal, if so included at the Holder’s sole discretion.
	 	 	 
		ii.
    	“Conversion
    Price” means the lower of: (i) a 42% discount to the
    lowest trading price during the previous twenty (20) trading days to the date of Conversion; or (ii) a 42% discount to the
    lowest trading price during the previous twenty (20) trading days before the date that this note was executed.
	 		 
		iii.	“Person”
    means an individual, a limited liability company, a partnership,
    a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.
	 	 	 
		iv.	“Shares”
    means the Shares of the Company into which any balance on
    this Note may be converted upon submission of a Conversion Notice.

 

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

 

	 	i.	Holder’s
    Conversion Requirements. To convert this Note into shares
    of Common Stock on any date set forth in the Conversion Notice by the Holder (the “Conversion
    Date”), the Holder hereof shall transmit by
    email, facsimile or otherwise deliver, for receipt on or prior to 11:59 p.m., Eastern Time on such date or on the next business
    day, a copy of a fully executed notice of conversion in the form attached hereto as Exhibit 1 (the
    “Conversion Date”) to the Company.
	 	 	 
	 	ii.	Company’s
    Response. Upon receipt by the Company of a copy of a Conversion
    Notice, the Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion
    Notice, send, via email, facsimile or overnight courier, a confirmation of receipt of such Conversion Notice to such Holder
    indicating that the Company will process such Conversion Notice in accordance with the terms herein. Within two (2) Business
    Days after the date of the Conversion Confirmation, the Company shall have issued and electronically transferred the shares
    to the Broker indicated in the Conversion Notice; should the Company be unable to transfer the shares electronically, it shall,
    within two (2) Business Days after the date of the Conversion Confirmation, have surrendered to FedEx for delivery the next
    day to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the number
    of shares of Common Stock to which the Holder shall be entitled.
	 	 	 
	 	iii.	Record
    Holder. The person or persons entitled to receive the shares
    of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders
    of such shares of Common Stock on the Conversion Date.
	 	 	 
	 	iv.	Timely
    Response by Company. Upon receipt by Company of a Conversion
    Notice, Company shall respond in a timely manner to Holder by provision within two business days of the Shares requested in
    the Conversion Notice.

 

    	2

    	 

    

 

 

	 	v.	Penalty
    for Delinquent Response. If Company fails to deliver for
    whatever reason (including any neglect or failure by, e.g., the Company, its counsel or the transfer agent) to Holder the
    Shares as requested in a Conversion Notice and within three business days of the receipt thereof, there shall accrue a penalty
    of Additional Shares due to Holder equal to 25% of the number stated in the Conversion Notice beginning on the Fourth business
    day after the date of the Notice. The Additional Shares shall be issued and the amount of the Note retired will not be reduced
    beyond that stated in the Conversion Notice. Each additional 5 business days beyond the Fourth business day after the date
    of this Notice shall accrue an additional 25% penalty for delinquency, without any corresponding reduction in the amount due
    under the Note, for so long as Company fails to provide the Shares so demanded.
	 	 	 
	 	vi.	Conversion
    Right Unconditional. If the Holder shall provide a Notice
    of Conversion as provided herein, the Company’s obligations to deliver Common Stock shall be absolute and unconditional,
    irrespective of any claim of setoff, counterclaim, recoupment, or alleged breach by the Holder of any obligation to the Company.
	 	 	 
	 	vii.	Transfer
    Agent Fees and Legal Fees. The issuance of the certificates
    shall be without charge or expense to the Holder. The Company shall pay any and all Transfer Agent fees, legal fees, and advisory
    fees required for execution of this Convertible Note and processing of any Notice of Conversion, including but not limited
    to the cost of obtaining a legal opinion with regard to the conversion. The Holder will deduct legal fees in the amount of
    $1,000 from the principal payment of the Convertible Note. The Holder will deduct 3rd party due diligence fees
    in the amount of $5,000 due Carter, Terry, & Co.

 

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

 

	 	a.	Organization,
    Good Standing and Qualification. The Company is a corporation
    duly organized, validly existing and in good standing under the laws of the state of its incorporation and has all requisite
    corporate power and authority to carry on its business as now conducted. The Company is duly qualified to transact business
    and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect on its
    business or properties.
	 	 	 
	 	b.	Authorization.
    All corporate action has been taken on the part of the Company,
    its officers, directors and stockholders necessary for the authorization, execution and delivery of this Agreement. The Company
    has taken all corporate action required to make all of the obligations of the Company reflected in the provisions of this
    Agreement, valid and enforceable obligations. The shares of capital stock issuable upon conversion of the Notes have been
    authorized or will be authorized prior to the issuance of such shares.

 

    	3

    	 

    

 

 

	 	c.	Fiduciary
    Obligations. The Company hereby represents that it intends
    to use the proceeds of the Notes primarily for the operations of its business and not for any personal, family, or household
    purpose. The Company hereby represents that its board of directors, in the exercise of its fiduciary duty, has approved the
    execution of this Agreement based upon a reasonable belief that the loan provided for herein is appropriate for the Company
    after reasonable inquiry concerning its financial objectives and financial situation.

 

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

 

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

 

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

 

    	4

    	 

    

 

 

	 	9.	Default
    and Remedies.

 

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

 

	 	10.	Vote
    to Change the Terms of this Note. This Note and any provision
    hereof may only be amended by an instrument in writing signed by the Company and holders of a majority of the aggregate Conversion
    Amount of the Notes then outstanding.
	 	 	 
	 	11.	Lost
    or Stolen Note. Upon receipt by the Company of evidence
    satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or
    destruction, of an indemnification undertaking by the Holder to the Company in a form reasonably acceptable to the Company
    and, in the case of mutilation, upon surrender and cancellation of the Notes, the Company shall execute and deliver a new
    Note of like tenor and date and in substantially the same form as this Note; provided, however, the Company shall not be obligated
    to re-issue a Note if the Holder contemporaneously requests the Company to convert such remaining principal amount into Common
    Stock.
	 	 	 
	 	12.	Payment
    of Collection, Enforcement and Other Costs. If: (i) this
    Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding;
    or (ii) an attorney is retained to represent the Holder of this Note in any bankruptcy, reorganization, receivership or other
    proceedings affecting creditors’ rights and involving a claim under this Note, then the Company shall pay to the Holder
    all reasonable attorneys’ fees, costs and expenses incurred in connection therewith, in addition to all other amounts
    due hereunder.
	 	 	 
	 	13.	Cancellation.
    After all principal and accrued interest at any time owed
    on this Note has been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company
    for cancellation and shall not be reissued.
	 	 	 
	 	14.	Waiver
    of Notice. To the extent permitted by law, the Company hereby
    waives demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance,
    default or enforcement of this Note.
	 	 	 
	 	15.	Governing
    Law. This Note shall be construed and enforced in accordance
    with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed
    by, the laws of the State of Texas, without giving effect to provisions thereof regarding conflict of laws. Each party hereby
    irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in Texas for the adjudication
    of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby
    irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject
    to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the
    venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and
    consents to process being served in any such suit, action or proceeding by sending by certified mail or overnight courier
    a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall
    constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in
    any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
    WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
    CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	5

    	 

    

 

 

	 	16.	Remedies, Characterizations,
    Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative and in addition
    to all other remedies available under this Note, at law or in equity (including a decree of specific performance and/or other
    injunctive relief), and no remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise
    to such remedy and nothing herein shall limit a Holder’s right to pursue actual damages for any failure by the Company
    to comply with the terms of this Note. The Company covenants to each Holder of Notes that there shall be no characterization
    concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect
    to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder thereof
    and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance
    thereof).
	 	 	 
	 	17.
    	Specific Shall
    Not Limit General; Construction. No specific provision contained in this Note shall limit or modify any more general provision
    contained herein. This Note shall be deemed to be jointly drafted by the Company and all Holders and shall not be construed
    against any person as the drafter hereof.
	 	 	 
	 	18.	Failure or Indulgence
    Not Waiver. No failure or delay on the part of this Note in the exercise of any power, right or privilege hereunder shall
    operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
    or further exercise thereof or of any other right, power or privilege.
	 	 	 
	 	19.	Partial Payment.
    In the event of partial payment by the Holder, the principal sum due to the Holder shall be prorated based on the consideration
    actually paid by lender such that the company is only required to repay the amount funded and the company is not required
    to repay any unfunded portion of this note.
	 	 	 
	 	20.	Entire Agreement.
    This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subjects
    herein. None of the terms of this Agreement can be waived or modified, except by an express agreement signed by the Parties.
	 	 	 
	 	21.	Representations
    and Warranties. The Company expressly acknowledges that the Holder, including but not limited to its officer, directors,
    employees, agents, and affiliates, have not made any representation or warranty to it outside the terms of this Agreement.
    The Company further acknowledges that there have been no representations or warranties about future financing or subsequent
    transactions between the parties.

 

    	6

    	 

    

 

 

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

 

	COMPANY: 		
	 	 	 
	Signature:	 	 
	 	 	 
	By:	/s/ Steve Saleen	 
	 	 	 
	Title:	CEO	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Email:	 	 
	 	 	 
	Phone:	 	
	 	 	 
	HOLDER:	 	 
	 	 	 
	Signature:	 	 

 

	/s/ Sameer Hirji	 

 

Sameer Hirji, President

JSJ Investments Inc.

2665 Villa Creek Drive, Suite 214

Dallas TX 75234

888-503-2599

 

    	7

    	 

    

 

 

Exhibit
I

 

Conversion
Notice

 

Reference
is made to the Convertible Note issued by Saleen Automotive Inc. (the “Note”), dated October 15, 2014
in the principal amount of $50,000 with 10% interest. This note currently holds a
principal balance of $50,000 and accrued interest in the amount of $_____. The features of conversion stipulate a
Conversion Price the lower of (i) a 42% discount to the lowest trading price during the previous twenty (20) trading days to
the date of Conversion; or (ii) a 42% discount to the lowest trading price during the previous twenty (20) trading days
before the date that this note was executed, pursuant to the provisions of Section 2(a)(2) in the Note.

 

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

 

Date
of Conversion:_______ 

 

Please
confirm the following information:

 

Conversion
Amount: $________________ 

 

Conversion
Price: $ ____________________________________ __ ( ___ % discount from $ _____)

 

Number
of Common Stock to be issued:___________________________________________________

 

Current
Issued/Outstanding:.___________________________________________________________

 

PLEASE
ISSUE THE COMMON STOCK INTO WHICH THE NOTE IS BEING CONVERTED IN THE NAME OF THE HOLDER OF THE NOTE AND TRANSFER THE SHARES
ELECTRONICALLY TO:

 

[BROKER
INFORMATION]

 

HOLDER
AUTHORIZATION:

JSJ
INVESTMENTS INC.

2665
VILLA CREEK DRIVE, SUITE 214

DALLAS,
TX 75234

888-503-2599

 

Tax
ID: 20-2122354

 

Sameer
Hirji, President 

Date:

 

[Continued
on Next Page]

 

    	8

    	 

    

 

 

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

 

Signature:

 

Steve
Saleen

CEO

Saleen
Automotive Inc.

 

    	9

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