Document:

Securities
Purchase Agreement

 

This Securities Purchase
Agreement (this “Agreement”), dated as of October 28, 2014, is entered into by and between Saleen
Automotive, Inc., a Nevada corporation (“Company”), and Typenex
Co-Investment, LLC, a Utah limited liability company, its successors and/or assigns (“Investor”).

  

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

 

B.
Investor desires to purchase and Company desires to issue and sell, upon the terms and conditions set forth in this Agreement,
a Secured Convertible Promissory Note, in the form attached hereto as Exhibit A, in the original principal amount of $215,000.00
(the “Note”), convertible into shares of common stock, $0.001 par value per share, of Company (the “Common
Stock”), upon the terms and subject to the limitations and conditions set forth in such Note.

 

C.
This Agreement, the Note, the Security Agreement (as defined below), the Investor Notes (as defined below), and all other certificates,
documents, agreements, resolutions and instruments delivered to any party under or in connection with this Agreement, as the same
may be amended from time to time, are collectively referred to herein as the “Transaction Documents”.

 

D.
For purposes of this Agreement: “Conversion Shares” means all shares of Common Stock issuable upon conversion
of all or any portion of the Note; and “Securities” means the Note and the Conversion Shares.

 

NOW,
THEREFORE, Company and Investor hereby agree as follows:

 

1.
Purchase and Sale of Securities.

 

1.1.
Purchase of Securities. Company shall issue and sell to Investor and Investor agrees to purchase from Company the Note.
In consideration thereof, Investor shall pay (i) the amount designated as the initial cash purchase price on Investor’s
signature page to this Agreement (the “Initial Cash Purchase Price”), and (ii) issue to Company the Investor
Notes (the sum of the initial principal amount of the Investor Notes, together with the Initial Cash Purchase Price, the “Purchase
Price”). The Purchase Price and the OID (as defined herein) are allocated to the Tranches (as defined in the Note) of
the Note as set forth in the table attached hereto as Exhibit B.

 

1.2.
Form of Payment. On the Closing Date, (i) Investor shall pay the Purchase Price to Company by delivering the following
at the Closing: (A) the Initial Cash Purchase Price, which shall be delivered by wire transfer of immediately available funds
to Company, in accordance with Company’s written wiring instructions; (B) Investor Note #1 in the principal amount of $25,000.00
duly executed and substantially in the form attached hereto as Exhibit C (“Investor Note #1”); (C) Investor
Note #2 in the principal amount of $25,000.00 duly executed and substantially in the form attached hereto as Exhibit C (“Investor
Note #2”); (D) Investor Note #3 in the principal amount of $25,000.00 duly executed and substantially in the form attached
hereto as Exhibit C (“Investor Note #3”); (E) Investor Note #4 in the principal amount of $25,000.00
duly executed and substantially in the form attached hereto as Exhibit C (“Investor Note #4”); and (F)
Investor Note #5 in the principal amount of $25,000.00 duly executed and substantially in the form attached hereto as Exhibit
C (“Investor Note #5”, and together with Investor Note #1, Investor Note #2, Investor Note #3, and Investor
Note #4, the “Investor Notes”); and (ii) Company shall deliver the duly executed Note on behalf of Company,
to Investor, against delivery of such Purchase Price.

 

    	 

    	 

    

 

1.3.
Closing Date. Subject to the satisfaction (or written waiver) of the conditions set forth in Section 5 and Section 6 below,
the date and time of the issuance and sale of the Securities pursuant to this Agreement (the “Closing Date”)
shall be 5:00 p.m., Eastern Time on or about October 28, 2014, or such other mutually agreed upon time. The closing of the transactions
contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at the offices of Investor unless
otherwise agreed upon by the parties.

 

1.4.
Collateral for the Note. The Note shall be secured by the collateral set forth in that certain Security Agreement attached
hereto as Exhibit D listing all of the Investor Notes as security for Company’s obligations under the Transaction
Documents (the “Security Agreement”).

 

1.5.
Collateral for Investor Notes. Initially, none of the Investor Notes will be secured, but all or any of the Investor Notes
may become secured subsequent to the Closing by such collateral and at such time as determined by Investor in its sole discretion.
In the event Investor desires to secure any of the Investor Notes, Company shall timely execute any and all amendments and documents
and take such other measures requested by Investor that are necessary or advisable in order to properly secure the applicable
Investor Notes.

 

1.6.
Original Issue Discount: Transaction Expenses. The Note carries an original issue discount of $10,000.00 (the “OID”).
In addition, Company agrees to pay $5,000.00 to Investor to cover Investor’s legal fees, accounting costs, due diligence,
monitoring and other transaction costs incurred in connection with the purchase and sale of the Securities (the “Transaction
Expense Amount”), all of which amount is included in the initial principal balance of the Note. The Purchase Price,
therefore, shall be $200,000.00, computed as follows: $215,000.00 original principal balance, less the OID, less the Transaction
Expense Amount. The Initial Cash Purchase Price shall be the Purchase Price less the sum of the initial principal amounts of the
Investor Notes. The portion of the OID and the Transaction Expense Amount allocated to the Initial Cash Purchase Price are set
forth on Exhibit B.

 

2.
Investor’s Representations and Warranties. Investor represents and warrants to Company that: (i) this Agreement has
been duly and validly authorized; (ii) this Agreement constitutes a valid and binding agreement of Investor enforceable in accordance
with its terms; (iii) Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D
of the 1933 Act, and (iv) this Agreement and the Investor Notes have been duly executed and delivered on behalf of Investor.

 

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3.
Representations and Warranties of Company. Company represents and warrants to Investor that: (i) Company is a corporation
duly organized, validly existing and in good standing under the laws of its state of incorporation and has the requisite corporate
power to own its properties and to carry on its business as now being conducted; (ii) Company is duly qualified as a foreign corporation
to do business and is in good standing in each jurisdiction where the nature of the business conducted or property owned by it
makes such qualification necessary; (iii) Company has registered its Common Stock under Section 12(g) of the Securities Exchange
Act of 1934, as amended (the “1934 Act”), and is obligated to file reports pursuant to Section 13 or Section
15(d) of the 1934 Act; (iv) each of the Transaction Documents and the transactions contemplated hereby and thereby, have been
duly and validly authorized by Company; (v) this Agreement, the Note, the Security Agreement, and the other Transaction Documents
have been duly executed and delivered by Company and constitute the valid and binding obligations of Company enforceable in accordance
with their terms, subject as to enforceability only to general principles of equity and to bankruptcy, insolvency, moratorium,
and other similar laws affecting the enforcement of creditors’ rights generally; (vi) the execution and delivery of the
Transaction Documents by Company, the issuance of Securities in accordance with the terms hereof, and the consummation by Company
of the other transactions contemplated by the Transaction Documents do not and will not conflict with or result in a breach by
Company of any of the terms or provisions of, or constitute a default under (a) Company’s formation documents or bylaws,
each as currently in effect, (b) any indenture, mortgage, deed of trust, or other material agreement or instrument to which Company
is a party or by which it or any of its properties or assets are bound, including any listing agreement for the Common Stock,
or (c) to Company’s knowledge, any existing applicable law, rule, or regulation or any applicable decree, judgment, or order
of any court, United States federal or state regulatory body, administrative agency, or other governmental body having jurisdiction
over Company or any of Company’s properties or assets; (vii) no further authorization, approval or consent of any court,
governmental body, regulatory agency, self-regulatory organization, or stock exchange or market or the stockholders or any lender
of Company is required to be obtained by Company for the issuance of the Securities to Investor; (viii) none of Company’s
filings with the SEC contained, at the time they were filed, any untrue statement of a material fact or omitted to state any material
fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which
they were made, not misleading; (ix) Company has filed all reports, schedules, forms, statements and other documents required
to be filed by Company with the SEC under the 1934 Act on a timely basis or has received a valid extension of such time of filing
and has filed any such report, schedule, form, statement or other document prior to the expiration of any such extension; (x)
Company is not, nor has it at any time in the previous (12) months been, a “Shell Company,” as such type of “issuer”
is described in Rule 144(i)(l) under the 1933 Act; (xi) Company has taken no action which would give rise to any claim by any
person or entity for a brokerage commission, placement agent or finder’s fees or similar payments by Investor relating to
the Note or the transactions contemplated hereby; (xii) except for such fees arising as a result of any agreement or arrangement
entered into by Investor without the knowledge of Company (an “Investor’s Fee”), Investor shall have
no obligation with respect to such fees or with respect to any claims made by or on behalf of other persons for fees of a type
contemplated in this subsection that may be due in connection with the transactions contemplated hereby and Company shall indemnify
and hold harmless each of Investor, Investor’s employees, officers, directors, stockholders, managers, agents, and partners,
and their respective affiliates, from and against all claims, losses, damages, costs (including the costs of preparation and attorneys’
fees) and expenses suffered in respect of any such claimed or existing fees (other than an Investor’s Fee, if any); (xiii)
when issued, each of the Securities will be validly issued, fully paid for and non-assessable, free and clear of all liens, claims,
charges and encumbrances; and (xiv) Company has performed due diligence and background research on Investor and its affiliates
including, without limitation, John M. Fife, and, to its satisfaction, has made inquiries with respect to all matters Investor
may consider relevant to the undertakings and relationships contemplated by the Transaction Documents including, among other things,
the following: http://investing.businessweek.com/research/stocks/people/person.asp?personId=7505107&ticker=UAHC; SEC
Civil Case No. 07-C-0347 (N.D. Ill.); SEC Civil Action No. 07-CV-347 (N.D. Ill); and FINRA Case #2011029203701. Company, being
aware of the foregoing matters, acknowledges and agrees that such matters, or any similar matters, have no bearing on the transactions
contemplated by the Transaction Documents and covenants and agrees it will not use any such information as a defense to performance
of its obligations under the Transaction Documents or in any attempt to avoid, modify or reduce such obligations.

 

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4.
Company Covenants. Until all of Company’s obligations hereunder are paid and performed in full, or within the timeframes
otherwise specifically set forth below, Company shall comply with the following covenants: (i) from the date hereof until the
date that is six (6) months after all the Conversion Shares either have been sold by Investor, or may permanently be sold by Investor
without any restrictions pursuant to Rule 144, Company shall timely make all filings required to be made by it under the 1933
Act, the 1934 Act, Rule 144 or any United States securities laws and regulations thereof applicable to Company or by the rules
and regulations of its principal trading market, and such filings shall conform to the requirements of applicable laws, regulations
and government agencies, and, unless such filings are publicly available on the SEC’s EDGAR system (via the SEC’s
web site at no additional charge), Company shall provide a copy thereof to Investor promptly after such filings; (ii) so long
as Investor beneficially owns any of the Securities and for at least twenty (20) Trading Days thereafter, Company shall file all
reports required to be filed with the SEC pursuant to Sections 13 or 15(d) of the 1934 Act, and shall take all reasonable action
under its control to ensure that adequate current public information with respect to Company, as required in accordance with Rule
144, is publicly available, and shall not terminate its status as an issuer required to file reports under the 1934 Act even if
the 1934 Act or the rules and regulations thereunder would permit such termination; (iii) the Common Stock shall be listed or
quoted for trading on any of (a) the NYSE Amex, (b) the New York Stock Exchange, (c) the Nasdaq Global Market, (d) the Nasdaq
Capital Market, (e) the OTC Bulletin Board, (f) the OTCQX, (g) the OTCQB, or (h) the OTCPink; (iv) when issued, each of the Securities
(including, without limitation, the Conversion Shares), will be validly issued, fully paid for and non-assessable, free and clear
of all liens, claims, charges and encumbrances, (v) Company shall use the net proceeds received hereunder for working capital
and general corporate purposes only; provided, however, Company will not use such proceeds to pay fees payable (A) to any
broker or finder relating to the offer and sale of the Securities unless such broker, finder, or other party is a registered investment
adviser or registered broker-dealer and such fees are paid in full compliance with all applicable laws and regulations, or (B)
to any other party relating to any financing transaction effected prior to the date hereof; and (vi) from and after the date hereof
and until all of Company’s obligations hereunder and the Note are paid and performed in full, Company shall not transfer,
assign, sell, pledge, hypothecate or otherwise alienate or encumber the Investor Notes in any way without the prior written consent
of Investor.

 

5.
Conditions to Company’s Obligation to Sell. The obligation of Company hereunder to issue and sell the Securities
to Investor at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions:

 

5.1.
Investor shall have executed this Agreement and the Investor Notes and delivered the same to Company.

 

5.2.
Investor shall have delivered the Initial Cash Purchase Price to Company in accordance with Section 1.2 above.

 

6.
Conditions to Investor’s Obligation to Purchase. The obligation of Investor hereunder to purchase the Securities
at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that
these conditions are for Investor’s sole benefit and may be waived by Investor at any time in its sole discretion:

 

6.1.
Company shall have executed this Agreement and delivered the same to Investor.

 

6.2.
Company shall have delivered to Investor the duly executed Note in accordance with Section 1.2 above.

 

6.3.
The Irrevocable Letter of Instructions to Transfer Agent substantially in the form attached hereto as Exhibit E shall have
been delivered to and acknowledged in writing by Company’s transfer agent (the “Transfer Agent”).

 

6.4.
Company shall have delivered to Investor a fully executed Secretary’s Certificate substantially in the form attached hereto
as Exhibit F evidencing Company’s approval of the Transaction Documents.

 

6.5.
Company shall have delivered to Investor a fully executed Share Issuance Resolution substantially in the form attached hereto
as Exhibit G to be delivered to the Transfer Agent.

 

6.6.
Company shall have delivered to Investor fully executed copies of the Security Agreement and all other Transaction Documents required
to be executed by Company herein or therein.

 

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7.
Reservation of Shares. At all times during which the Note is convertible, Company will reserve from its authorized and
unissued Common Stock to provide for the issuance of Common Stock upon the full conversion of the Note. Company will at all times
reserve at least three (3) times the number of shares of Common Stock equal to the Outstanding Balance (as defined in and determined
pursuant to the Note) divided by the Conversion Price (as defined in and determined pursuant to the Note) (the “Share
Reserve”), but in any event not less than 8,000,000 shares of Common Stock shall be reserved at all times for such purpose
(the “Transfer Agent Reserve”). Company further agrees that it will cause the Transfer Agent to immediately
add shares of Common Stock to the Transfer Agent Reserve in increments of 1,000,000 shares as and when requested by Investor in
writing from time to time, provided that such incremental increases do not cause the Transfer Agent Reserve to exceed the Share
Reserve. In furtherance thereof, from and after the date hereof and until such time that the Note has been paid in full, Company
shall require the Transfer Agent to reserve for the purpose of issuance of Conversion Shares under the Note, a number of shares
of Common Stock equal to the Transfer Agent Reserve. Company shall further require the Transfer Agent to hold such shares of Common
Stock exclusively for the benefit of Investor and to issue such shares to Investor promptly upon Investor’s delivery of
a conversion notice under the Note. Finally, Company shall require the Transfer Agent to issue shares of Common Stock pursuant
to the Note to Investor out of its authorized and unissued shares, and not the Transfer Agent Reserve, to the extent shares of
Common Stock have been authorized, but not issued, and are not included in the Transfer Agent Reserve. The Transfer Agent shall
only issue shares out of the Transfer Agent Reserve to the extent there are no other authorized shares available for issuance
and then only with Investor’s written consent.

 

8.
Miscellaneous. The provisions set forth in this Section 8 shall apply to this Agreement, as well as all other Transaction
Documents as if these terms were fully set forth therein.

 

8.1.
Original Signature Pages. Each party agrees to deliver its original signature pages to the Transaction Documents to the
other party within five (5) Trading Days of the date hereof. Notwithstanding the foregoing, the Transaction Documents shall be
fully effective upon exchange of electronic signature pages by the parties and payment of the Initial Cash Purchase Price by Investor.
For the avoidance of doubt, the failure by either party to deliver its original signature pages to the other party shall not affect
in any way the validity or effectiveness of any of the Transaction Documents, provided that such failure to deliver original signatures
shall be a breach of the party’s obligations hereunder.

 

8.2.
Cross Default. Any Event of Default (as defined in the Note) by Company under the Note shall be deemed a default under
this Agreement, and any default by Company under this Agreement will be deemed an Event of Default under the Note.

 

8.3.
Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Utah
for contracts to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict
of laws. Each party consents to and expressly agrees that exclusive venue for Arbitration (as defined in Exhibit H) of
any dispute arising out of or relating to any Transaction Document or the relationship of the parties or their affiliates shall
be in Salt Lake County or Utah County, Utah; provided, however, that notwithstanding anything herein to the contrary, enforcement
of Investor’s rights under the Security Agreement will occur in accordance with the Uniform Commercial Code of the applicable
state(s) under the Security Agreement and enforcement of Company’s rights over the Collateral will occur in accordance with
the laws of the state in which the Collateral is located). Without modifying the parties obligations to resolve disputes hereunder
pursuant to the Arbitration Provisions (as defined below), for any litigation arising in connection with any of the Transaction
Documents, each party hereto hereby (a) consents to and expressly submits to the exclusive personal jurisdiction of any state
or federal court sitting in Salt Lake County, Utah, (b) expressly submits to the exclusive venue of any such court for the purposes
hereof, and (c) waives any claim of improper venue and any claim or objection that such courts are an inconvenient forum or any
other claim or objection to the bringing of any such proceeding in such jurisdictions or to any claim that such venue of the suit,
action or proceeding is improper.

 

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8.4.
Arbitration of Claims. The parties shall submit all Claims (as defined in Exhibit H) arising under this Agreement
or any other Transaction Document or other agreements between the parties and their affiliates to binding arbitration pursuant
to the arbitration provisions set forth in Exhibit H attached hereto (the “Arbitration Provisions”).
The parties hereby acknowledge and agree that the Arbitration Provisions are unconditionally binding on the parties hereto and
are severable from all other provisions of this Agreement. Any capitalized term not defined in the Arbitration Provisions shall
have the meaning set forth in this Agreement. By executing this Agreement, Company represents, warrants and covenants that Company
has reviewed the Arbitration Provisions carefully, consulted with legal counsel about such provisions (or waived its right to
do so), understands that the Arbitration Provisions are intended to allow for the expeditious and efficient resolution of any
dispute hereunder, agrees to the terms and limitations set forth in the Arbitration Provisions, and that Company will not take
a position contrary to the foregoing representations. Company acknowledges and agrees that Investor may rely upon the foregoing
representations and covenants of Company regarding the Arbitration Provisions.

 

8.5.
Calculation Disputes. Notwithstanding the Arbitration Provisions, in the case of a dispute as to any arithmetic calculation
under the Transaction Documents, including without limitation, calculating the Outstanding Balance, the Conversion Price, the
Conversion Shares, or the VWAP (as defined in the Note) (collectively, “Calculations”), Company or Investor
(as the case may be) shall submit the disputed determinations or arithmetic calculations (as the case may be) via email or facsimile
with confirmation of receipt (a) within two (2) Trading Days after receipt of the applicable notice giving rise to such dispute
to Company or Investor (as the case may be) or (b) if no notice gave rise to such dispute, at any time after Investor learned
of the circumstances giving rise to such dispute. If Investor and Company are unable to agree upon such determination or calculation
within two (2) Trading Days of such disputed determination or arithmetic calculation (as the case may be) being submitted to Company
or Investor (as the case may be), then Investor shall, within two (2) Trading Days, submit via email or facsimile the disputed
Calculation to Unkar Systems Inc. (“Unkar Systems”). Company shall cause Unkar Systems to perform the determinations
or calculations (as the case may be) and notify Company and Investor of the results no later than ten (10) Trading Days from the
time it receives such disputed determinations or calculations (as the case may be). Unkar Systems’ determination of the
disputed Calculation shall be binding upon all parties absent demonstrable error. Unkar Systems’ fee for performing such
Calculation shall be paid by the incorrect party, or if both parties are incorrect, by the party whose Calculation is furthest
from the correct Calculation as determined by Unkar Systems. In the event Company is the losing party, no extension of the Delivery
Date shall be granted and Company shall incur all effects for failing to deliver the applicable shares in a timely manner as set
forth in the Transaction Documents. Notwithstanding the foregoing, Investor may, in its sole discretion, designate an independent,
reputable investment bank or accounting firm other than Unkar Systems to resolve any such dispute and in such event, all references
to “Unkar Systems” herein will be replaced with references to such independent, reputable investment bank or accounting
firm so designated by Investor.

 

8.6.
Counterparts. Each Transaction Document may be executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall constitute one instrument. The parties hereto confirm that any electronic copy of another
party’s executed counterpart of a Transaction Document (or such party’s signature page thereof) will be deemed to
be an executed original thereof.

 

8.7.
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the
interpretation of, this Agreement.

 

8.8.
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform to such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision hereof.

 

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8.9.
Entire Agreement: Amendments. This Agreement and the instruments and exhibits referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither Company nor Investor makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement may be waived or amended other than by an instrument in writing signed by the parties hereto.

 

8.10.
Notices. Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall
be deemed effectively given on the earliest of: (a) the date delivered, if delivered by personal delivery as against written receipt
therefor or by email to an executive officer, or by facsimile (with successful transmission confirmation), (b) the earlier of
the date delivered or the third Trading Day after deposit, postage prepaid, in the United States Postal Service by certified mail,
or (c) the earlier of the date delivered or the third Trading Day after mailing by express courier, with delivery costs and fees
prepaid, in each case, addressed to each of the other parties thereunto entitled at the following addresses (or at such other
addresses as such party may designate by five (5) calendar days’ advance written notice similarly given to each of the other
parties hereto):

 

If
to Company:

 

Saleen
Automotive, Inc.

Attn:
Steve Saleen

2375
Wardlow Road

Corona,
California 92882

 

If
to Investor:

 

Typenex
Co-Investment, LLC

Attn:
John Fife

303
East Wacker Drive, Suite 1200

Chicago,
Illinois 60601

 

With
a copy to (which copy shall not constitute notice):

 

Hansen
Black Anderson Ashcraft PLLC

Attn:
Jonathan K. Hansen

3051
West Maple Loop, Suite 325

Lehi,
Utah 84043

 

8.11.
Successors and Assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be
performed by Investor hereunder may be assigned by Investor to a third party, including its financing sources, in whole or in
part, without the need to obtain Company’s consent thereto. Company may not assign its rights or obligations under this
Agreement or delegate its duties hereunder without the prior written consent of Investor.

 

8.12.
Survival. The representations and warranties of Company and the agreements and covenants set forth in this Agreement shall
survive the Closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of Investor. Company agrees
to indemnify and hold harmless Investor and all its officers, directors, employees, attorneys, and agents for loss or damage arising
as a result of or related to any breach or alleged breach by Company of any of its representations, warranties and covenants set
forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they
are incurred.

 

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8.13.
Publicity. Company and Investor shall have the right to review a reasonable period of time before issuance of any press
releases by the other party with respect to the transactions contemplated hereby.

 

8.14.
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

8.15.
Investor’s Rights and Remedies Cumulative; Liquidated Damages. All rights, remedies, and powers conferred in this
Agreement and the Transaction Documents are cumulative and not exclusive of any other rights or remedies, and shall be in addition
to every other right, power, and remedy that Investor may have, whether specifically granted in this Agreement or any other Transaction
Document, or existing at law, in equity, or by statute, and any and all such rights and remedies may be exercised from time to
time and as often and in such order as Investor may deem expedient. The parties acknowledge and agree that upon Company’s
failure to comply with the provisions of the Transaction Documents, Investor’s damages would be uncertain and difficult
(if not impossible) to accurately estimate because of the parties’ inability to predict future interest rates and future
share prices, Investor’s increased risk, and the uncertainty of the availability of a suitable substitute investment opportunity
for Investor, among other reasons. Accordingly, any fees, charges, and default interest due under the Note and the other Transaction
Documents are intended by the parties to be, and shall be deemed, liquidated damages (under Company’s and Investor’s
expectations that any such liquidated damages will tack back to the Closing Date for purposes of determining the holding period
under Rule 144). The parties agree that such liquidated damages are a reasonable estimate of Investor’s actual damages and
not a penalty, and shall not be deemed in any way to limit any other right or remedy Investor may have hereunder, at law or in
equity. The parties acknowledge and agree that under the circumstances existing at the time this Agreement is entered into, such
liquidated damages are fair and reasonable and are not penalties. All fees, charges, and default interest provided for in the
Transaction Documents are agreed to by the parties to be based upon the obligations and the risks assumed by the parties as of
the Closing Date and are consistent with investments of this type. The liquidated damages provisions of the Transaction Documents
shall not limit or preclude a party from pursuing any other remedy available at law or in equity; provided, however, that
the liquidated damages provided for in the Transaction Documents are intended to be in lieu of actual damages.

 

8.16.
Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement or the other Transaction Documents,
if at any time Investor shall or would be issued shares of Common Stock under any of the Transaction Documents, but such issuance
would cause Investor (together with its affiliates) to beneficially own a number of shares exceeding the Maximum Percentage (as
defined in the Note), then Company must not issue to Investor the shares that would cause Investor to exceed the Maximum Percentage.
The shares of Common Stock issuable to Investor that would cause the Maximum Percentage to be exceeded are referred to herein
as the “Ownership Limitation Shares”. Company will reserve the Ownership Limitation Shares for the exclusive
benefit of Investor. From time to time, Investor may notify Company in writing of the number of the Ownership Limitation Shares
that may be issued to Investor without causing Investor to exceed the Maximum Percentage. Upon receipt of such notice, Company
shall be unconditionally obligated to immediately issue such designated shares to Investor, with a corresponding reduction in
the number of the Ownership Limitation Shares. For purposes of this Section, beneficial ownership of Common Stock will be determined
under Section 13(d) of the 1934 Act.

 

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8.17.
Attorneys’ Fees and Cost of Collection. In the event of any arbitration or action at law or in equity to enforce
or interpret the terms of this Agreement or any of the other Transaction Documents, the parties agree that the party who is awarded
the most money shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of
the full amount of the attorneys’ fees, deposition costs, and expenses paid by such prevailing party in connection with
arbitration or litigation without reduction or apportionment based upon the individual claims or defenses giving rise to the fees
and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to award fees and expenses
for frivolous or bad faith pleading. If (a) the Note is placed in the hands of an attorney for collection or enforcement prior
to commencing arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Investor
otherwise takes action to collect amounts due under the Note or to enforce the provisions of the Note; or (b) there occurs any
bankruptcy, reorganization, receivership of Company or other proceedings affecting Company’s creditors’ rights and
involving a claim under the Note; then Company shall pay the costs incurred by Investor for such collection, enforcement or action
or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys’
fees, expenses, deposition costs, and disbursements.

 

8.18.
Waiver. No waiver of any provision of this Agreement shall be effective unless it is in the form of a writing signed by
the party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any
other provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing
waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in
writing.

 

8.19.
Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND
THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE RELATIONSHIPS OF THE
PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW
OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY
WAIVING SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

 

8.20.
Time of the Essence. Time is expressly made of the essence with respect to each and every provision of this Agreement and
the other Transaction Documents.

 

[Remainder
of page intentionally left blank; signature page follows]

 

    	9

    	 

    

 

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

 

	SUBSCRIPTION
    AMOUNT:	 
	 	 
	Principal
    Amount of Note:	$215,000.00
	 	 
	Initial
    Cash Purchase Price:	$75,000.00

 

	 	INVESTOR:
	 	 	 
	 	Typenex
    Co-Investment, LLC
	 	 	 
	 	By:	Red Cliffs Investments,
    Inc., its Manager
	 	 	 
	 	By:	/s/
    John M. Fife
	 		John M. Fife,
    President

 

	 	COMPANY:
	 	 	 
	 	Saleen
    Automotive, Inc.
	 	 	 
	 	By:	/s/
    Steve Saleen
	 	Printed
    Name:	 
	 	Title:	 

 

	ATTACHED
    EXHIBITS:
	 	 
	Exhibit
    A	Note
	Exhibit
    B	Allocation
    of Purchase Price
	Exhibit
    C	Form
    of Investor Note
	Exhibit
    D	Security
    Agreement
	Exhibit
    E	Irrevocable
    Transfer Agent Instructions
	Exhibit
    F	Secretary’s
    Certificate
	Exhibit
    G	Share
    Issuance Resolution
	Exhibit
    H	Arbitration
    Provisions

 

    	 

    	 

    

 

EXHIBIT
H

 

ARBITRATION
PROVISIONS

 

1.
Dispute Resolution. For purposes of this Exhibit H. the term “Claims” means any disputes, claims,
demands, causes of action, liabilities, damages, losses, or controversies whatsoever arising from related to or connected with
the transactions contemplated in the Transaction Documents and any communications between the parties related thereto, including
without limitation any claims of mutual mistake, mistake, fraud, misrepresentation, failure of formation, failure of consideration,
promissory estoppel, unconscionability, failure of condition precedent, rescission, and any statutory claims, tort claims, contract
claims, or claims to void, invalidate or terminate the Agreement or any of the other Transaction Documents. The term “Claims”
specifically excludes a dispute over Calculations (as defined in the Agreement) enforcement of Investor’s rights and remedies
against the personal property described in the Security Agreement under the applicable provisions of the Uniform Commercial Code.
The parties hereby agree that the arbitration provisions set forth in this Exhibit H (“Arbitration Provisions”)
are binding on the parties hereto and are severable from all other provisions in the Transaction Documents. As a result, any attempt
to rescind the Agreement or declare the Agreement or any other Transaction Document invalid or unenforceable for any reason is
subject to these Arbitration Provisions. These Arbitration Provisions shall also survive any termination or expiration of the
Agreement.

 

2.
Arbitration. Except as otherwise provided herein, all Claims must be submitted to arbitration (“Arbitration”)
to be conducted in Salt Lake County, Utah or Utah County, Utah and pursuant to the terms set forth in these Arbitration Provisions.
The parties agree that the award of the arbitrator shall be final and binding upon the parties; shall be the sole and exclusive
remedy between them regarding any Claims, counterclaims, issues, or accountings presented or pleaded to the arbitrator; and shall
promptly be payable in United States dollars free of any tax, deduction or offset (with respect to monetary awards). Any costs
or fees, including without limitation attorneys’ fees, incident to enforcing the arbitrator’s award shall, to the
maximum extent permitted by law, be charged against the party resisting such enforcement. The award shall include Default Interest
(as defined in the Note) both before and after the award. Judgment upon the award of the arbitrator will be entered and enforced
by a state court sitting in Salt Lake County, Utah. The parties hereby incorporate herein the provisions and procedures set forth
in the Utah Uniform Arbitration Act, U.C.A.§ 78B-11-101 et seq. (as amended or superseded from time to time, the “Arbitration
Act”). Pursuant to Section 78B-11-105 of the Arbitration Act, in the event of conflict between the terms of these Arbitration
Provisions and the provisions of the Arbitration Act, the terms of these Arbitration Provisions shall control.

 

3.
Arbitration Proceedings. Arbitration between the parties will be subject to the following procedures:

 

3.1
Pursuant to Section 110 of the Arbitration Act, the parties agree that a party may initiate Arbitration by giving written notice
to the other party (“Arbitration Notice”) in the same manner that notice is permitted under Section 8.10 of
the Agreement; provided, however, that the Arbitration Notice may not be given by email or fax. Arbitration will be deemed
initiated as of the date that the Arbitration Notice is deemed delivered under Section 8.10 of the Agreement (the “Service
Date”). After the Service Date, information may be delivered, and notices may be given, by email or fax pursuant to
Section 8.10 of the Agreement or any other method permitted thereunder. The Arbitration Notice must describe the nature of the
controversy, the remedies sought, and the election to commence Arbitration proceedings. All Claims in the Arbitration Notice must
be pleaded consistent with the Utah Rules of Civil Procedure.

 

3.2
Within ten (10) calendar days after the Service Date, Investor shall select and submit to Company the names of three arbitrators
that are designated as “neutrals” or qualified arbitrators by Utah ADR Services (http://www.utahadrservices.com) (such
three designated persons hereunder are referred to herein as the “Proposed Arbitrators”). For the avoidance
of doubt, each Proposed Arbitrator must be qualified as a “neutral” with Utah ADR Services. Within ten (10) calendar
days after Investor has submitted to Company the names of the Proposed Arbitrators, Company must select, by written notice to
Investor, one (1) of the Proposed Arbitrators to act as the arbitrator for the parties under these Arbitration Provisions. If
Company fails to select one of the Proposed Arbitrators in writing within such 10-day period, then Investor may select the arbitrator
from the Proposed Arbitrators by providing written notice of such selection to Company. If Investor fails to identify the Proposed
Arbitrators within the time period required above, then Company may at any time prior to Investor designating the Proposed Arbitrators,
select the names of three arbitrators that are designated as “neutrals” or qualified arbitrators by Utah ADR Service
by written notice to Investor. Investor may then, within ten (10) calendar days after Company has submitted notice of its selected
arbitrators to Investor, select, by written notice to Company, one (1) of the selected arbitrators to act as the arbitrator for
the parties under these Arbitration Provisions. If Investor fails to select in writing and within such 10-day period one of the
three arbitrators selected by Company, then Company may select the arbitrator from its three previously selected arbitrators by
providing written notice of such selection to Investor. Subject to Paragraph 3.12 below, the cost of the arbitrator must be paid
equally by both parties; provided, however, that if one party refuses or fails to pay its portion of the arbitrator fee,
then the other party can advance such unpaid amount (subject to the accrual of Default Interest thereupon), with such amount added
to or subtracted from, as applicable, the award granted by the arbitrator. If Utah ADR Services ceases to exist or to provide
a list of neutrals, then the arbitrator shall be selected under the then prevailing rules of the American Arbitration Association.
The date that the selected arbitrator agrees in writing to serve as the arbitrator hereunder is referred to herein as the “Arbitration
Commencement Date”.

 

Arbitration
Provisions, Page 1

 

    	 

    	 

    

 

3.3
An answer and any counterclaims to the Arbitration Notice, which must be pleaded consistent with the Utah Rules of Civil Procedure,
shall be required to be delivered to the other party within twenty (20) calendar days after the Service Date. Upon request, the
arbitrator is hereby instructed to render a default award, consistent with the relief requested in the Arbitration Notice, against
a party that fails to submit an answer within such time period.

 

3.4
The party that delivers the Arbitration Notice to the other party shall have the option to also commence legal proceedings with
any state court sitting in Salt Lake County, Utah (“Litigation Proceedings”), subject to the following: (i)
the complaint in the Litigation Proceedings is to be substantially similar to the claims set forth in the Arbitration Notice,
provided that an additional cause of action to compel arbitration will also be included therein, (ii) so long as the other party
files an answer to the complaint in the Litigation Proceedings and an answer to the Arbitration Notice, the Litigation Proceedings
will be stayed pending an award of the arbitrator hereunder, (iii) if the other party fails to file an answer in the Litigation
Proceedings or an answer in the Arbitration Proceedings, then the party initiating Arbitration shall be entitled to a default
judgment consistent with the relief requested, to be entered in the Litigation Proceedings, and (iv) any legal or procedural issue
arising under the Arbitration Act that requires a decision of a court of competent jurisdiction may be determined in the Litigation
Proceedings. Any award of the arbitrator may be entered in such Litigation Proceedings pursuant to the Arbitration Act.

 

3.5
Pursuant to Section 118(8) of the Arbitration Act, the parties agree that discovery shall be conducted in accordance with the
Utah Rules of Civil Procedure; provided, however, that incorporation of such rules will in no event supersede the Arbitration
Provisions set forth herein, including without limitation the time limitation set forth in Paragraph 3.9 below, and the following:

 

(a)
Discovery will only be allowed if the likely benefits of the proposed discovery outweigh the burden or expense, and the discovery
sought is likely to reveal information that will satisfy a specific element of a claim or defense already pleaded in the Arbitration.
The party seeking discovery shall always have the burden of showing that all of the standards and limitations set forth in these
Arbitration Provisions are satisfied. The scope of discovery in the Arbitration proceedings shall also be limited as follows:

 

(i)
To facts directly connected with the transactions contemplated by the Agreement.

 

(ii)
To facts and information that cannot be obtained from another source that is more convenient, less burdensome or less expensive.

 

(c)
No party shall be allowed (a) more than fifteen (15) interrogatories (including discrete subparts), (b) more than fifteen (15)
requests for admission (including discrete subparts), (c) more than ten (10) document requests (including discrete subparts),
or (d) more than three depositions (excluding expert depositions) for a maximum of seven (7) hours per deposition.

 

3.6
Any party submitting any written discovery requests, including interrogatories, requests for production, subpoenas to a party
or a third party, or requests for admissions, must prepay the estimated attorneys’ fees and costs, as determined by the
arbitrator, before the responding party has any obligation to produce or respond.

 

(a)
All discovery requests must be submitted in writing to the arbitrator and the other party before issuing or serving such discovery
requests. The party issuing the written discovery requests must include with such discovery requests a detailed explanation of
how the proposed discovery requests satisfy the requirements of these Arbitration Provisions and the Utah Rules of Civil Procedure.
Any party will then be allowed, within ten (10) calendar days of receiving the proposed discovery requests, to submit to the arbitrator
an estimate of the attorneys’ fees and costs associated with responding to such written discovery requests and a written
challenge to each applicable discovery request. After receipt of an estimate of attorneys’ fees and costs and/or challenge(s)
to one or more discovery requests, the arbitrator will make a finding as to the likely attorneys’ fees and costs associated
with responding to the discovery requests and issue an order that (A) requires the requesting party to prepay the attorneys’
fees and costs associated with responding to the discovery requests, and (B) requires the responding party to respond to the discovery
requests as limited by the arbitrator within a certain period of time after receiving payment from the requesting party. If a
party entitled to submit an estimate of attorneys’ fees and costs and/or a challenge to discovery requests fails to do so
within such 10-day period, the arbitrator will make a finding that (A) there are no attorneys’ fees or costs associated
with responding to such discovery requests, and (B) the responding party must respond to such discovery requests (as may be limited
by the arbitrator) within a certain period of time as determined by the arbitrator.

 

Arbitration
Provisions, Page 2

 

    	 

    	 

    

 

(b)
In order to allow a written discovery request, the arbitrator must find that the discovery request satisfies the standards set
forth in these Arbitration Provisions and the Utah Rules of Civil Procedure. The arbitrator must strictly enforce these standards.
If a discovery request does not satisfy any of the standards set forth in these Arbitration Provisions or the Utah Rules of Civil
Procedure, the arbitrator may modify such discovery request to satisfy the applicable standards, or strike such discovery request
in whole or in part.

 

(c)
Discovery deadlines will be set forth in a scheduling order issued by the arbitrator. The parties hereby authorize and direct
the arbitrator to take such actions and make such rulings as may be necessary to carry out the parties’ intent for the arbitration
proceedings to be efficient and expeditious.

 

3.7
Each party may submit expert reports (and rebuttals thereto), provided that such reports must be submitted by the deadlines established
by the arbitrator. Expert reports must contain the following: (a) a complete statement of all opinions the expert will offer at
trial and the basis and reasons for them; (b) the expert’s name and qualifications, including a list of all publications
within the preceding 10 years, and a list of any other cases in which the expert has testified at trial or in a deposition or
prepared a report within the preceding 10 years; and (c) the compensation to be paid for the expert’s study and testimony.
The parties are entitled to depose any other party’s expert witness one time for no more than 4 hours. An expert may not
testify in a party’s case-in-chief concerning any matter not fairly disclosed in the expert report.

 

3.8
All information disclosed by either party during the Arbitration process (including without limitation information disclosed during
the discovery process) shall be considered confidential in nature. Each party agrees not to disclose any confidential information
received from the other party during the discovery process unless (i) prior to or after the time of disclosure such information
becomes public knowledge or part of the public domain, not as a result of any inaction or action of the receiving party, (ii)
such information is required by a court order, subpoena or similar legal duress to be disclosed if such receiving party has notified
the other party thereof in writing and given it a reasonable opportunity to obtain a protective order from a court of competent
jurisdiction prior to disclosure; or (iii) disclosed to the receiving party’s agents, representatives and legal counsel
on a need to know basis who each agree in writing not to disclose such information to any third party. Pursuant to Section 118(5)
of the Arbitration Act, the arbitrator is hereby authorized and directed to issue a protective order to prevent the disclosure
of privileged information and confidential information upon the written request of either party.

 

3.9
The parties hereby authorize and direct the arbitrator to take such actions and make such rulings as may be necessary to carry
out the parties’ intent for the arbitration proceedings to be efficient and expeditious. Pursuant to Section 120 of the
Arbitration Act, the parties hereby agree that an award of the arbitrator must be made within 150 days after the Arbitration Commencement
Date. The arbitrator is hereby authorized and directed to hold a scheduling conference within ten (10) calendar days after the
Arbitration Commencement Date in order to establish a scheduling order with various binding deadlines for discovery, expert testimony,
and the submission of documents by the parties to enable the arbitrator to render a decision prior to the end of such 150-day
period. The Utah Rules of Evidence will apply to any final hearing before the arbitrator.

 

Arbitration
Provisions, Page 3

 

    	 

    	 

    

 

3.10
The arbitrator shall have the right to award or include in the arbitrator’s award any relief which the arbitrator deems
proper under the circumstances, including, without limitation, specific performance and injunctive relief, provided that the arbitrator
may not award exemplary or punitive damages.

 

3.11
If any part of these Arbitration Provisions is found to violate applicable law or to be illegal, then such provision shall be
modified to the minimum extent necessary to make such provision enforceable under applicable law.

 

3.12
The arbitrator is hereby directed to require the losing party to (i) pay the full amount of the costs and fees of the arbitrator,
and (ii) reimburse the prevailing party the reasonable attorneys’ fees, arbitrator costs, deposition costs, and other discovery
costs incurred by the prevailing party.

 

[Remainder
of page intentionally left blank]

 

Arbitration
Provisions, Page 4SECURED
CONVERTIBLE PROMISSORY NOTE

 

	Effective
    Date: October 28, 2014	U.S.
    $215,000.00

 

FOR
VALUE RECEIVED, saleen
automotive,
inc.,
a Nevada corporation (“Borrower”), promises to pay to typenex
Co-investment,
LLC, a Utah limited liability company, or its successors or assigns (“Lender”), $215,000.00 and any
interest, fees, charges, and late fees on the date that is twelve (12) months after the Purchase Price Date (as defined below)
(the “Maturity Date”) in accordance with the terms set forth herein and to pay interest on the Outstanding
Balance (as defined below) (including all Tranches (as defined below), both Conversion Eligible Tranches (as defined below) and
Subsequent Tranches (as defined below) that have not yet become Conversion Eligible Tranches) at the rate of ten percent
(10%) per annum from the Purchase Price Date until the same is paid in full. This Secured Convertible Promissory Note (this
“Note”) is issued and made effective as of October 28, 2014 (the “Effective Date”). For purposes
hereof, the “Outstanding Balance” of this Note means, as of any date of determination, the Purchase Price (as
defined below), as reduced or increased, as the case may be, pursuant to the terms hereof for redemption, conversion, offset,
or otherwise, plus any original issue discount (“OID”), the Transaction Expense Amount (as defined below),
accrued but unpaid interest, collection and enforcements costs (including attorneys’ fees) incurred by Lender, transfer,
stamp, issuance and similar taxes and fees related to Conversions (as defined below), and any other fees or charges (including
without limitation late charges) incurred under this Note. This Note is issued pursuant to that certain Securities Purchase Agreement
dated October 28, 2014, as the same may be amended from time to time (the “Purchase Agreement”), by and between
Borrower and Lender. All interest calculations hereunder shall be computed on the basis of a 360-day year comprised of twelve
(12) thirty (30) day months, shall compound daily and shall be payable in accordance with the terms of this Note. Certain capitalized
terms used herein but not otherwise defined shall have the meaning ascribed thereto in the Purchase Agreement. Certain other capitalized
terms used herein are defined in Attachment 1 attached hereto and incorporated herein by this reference.

 

This
Note carries an OID of $10,000.00. In addition, Borrower agrees to pay $5,000.00 to Lender to cover Lender’s legal fees,
accounting costs, due diligence, monitoring and other transaction costs incurred in connection with the purchase and sale of this
Note (the “Transaction Expense Amount”), all of which amount is included in the initial principal balance of
this Note. The purchase price for this Note shall be $200,000.00 (the “Purchase Price”), computed as follows:
$215,000.00 original principal balance, less the OID, less the Transaction Expense Amount. The Purchase Price shall be payable
by delivery to Borrower at Closing of the Investor Notes and a wire transfer of immediately available funds in the amount of the
Initial Cash Purchase Price (as defined in the Purchase Agreement). For purposes hereof, the term “Purchase Price Date”
means the date the Initial Cash Purchase Price is delivered by Lender to Borrower.

 

Notwithstanding
any other provision contained in this Note, the conversion by Lender of any portion of the Outstanding Balance shall only be exercisable
in six (6) tranches (each, a “Tranche”), consisting of (i) an initial Tranche in an amount equal to
$83,750.00 and any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other
Transaction Documents (as defined in the Purchase Agreement) (the “Initial Tranche”), and (ii) five (5) additional
Tranches, each in the amount of $26,250.00, plus any interest, costs, fees or charges accrued thereon or added thereto under the
terms of this Note and the other Transaction Documents (each, a “Subsequent Tranche”). The Initial Tranche
shall correspond to the Initial Cash Purchase Price, $3,750.00 of the OID and the Transaction Expense Amount, and may be converted
any time subsequent to the Purchase Price Date. The first Subsequent Tranche shall correspond to Investor Note #1 and $1,250.00
of the OID, the second Subsequent Tranche shall correspond to Investor Note #2 and $1,250.00 of the OID, the third Subsequent
Tranche shall correspond to Investor Note #3 and $1,250.00 of the OID, the fourth Subsequent Tranche shall correspond to Investor
Note #4 and $1,250.00 of the OID, and the fifth Subsequent Tranche shall correspond to Investor Note #5 and $1,250.00 of the OID.
Lender’s right to convert any portion of any of the Subsequent Tranches is conditioned upon Lender’s payment in full
of the Investor Note corresponding to such Subsequent Tranche (upon the satisfaction of such condition, such Subsequent Tranche
becomes a “Conversion Eligible Tranche”). For the avoidance of doubt, subject to the other terms and conditions
hereof, the Initial Tranche shall be deemed a Conversion Eligible Tranche as of the Purchase Price Date for all purposes hereunder
and may be converted in whole or in part at any time subsequent to the Purchase Price Date, and each Subsequent Tranche that becomes
a Conversion Eligible Tranche may be converted in whole or in part at any time subsequent to the first date on which such Subsequent
Tranche becomes a Conversion Eligible Tranche. For all purposes hereunder, Conversion Eligible Tranches shall be converted (or
redeemed, as applicable) in order of the lowest- numbered Conversion Eligible Tranche. At all times hereunder, the aggregate amount
of any costs, fees or charges incurred by or assessable against Borrower hereunder, including, without limitation, any fees, charges
or premiums incurred in connection with an Event of Default (as defined below), shall be added to the lowest-numbered then-current
Conversion Eligible Tranche.

 

    	 

    	 

    

 

1.
Payment; Prepayment. All payments owing hereunder shall be in lawful money of the United States of America or Conversion
Shares (as defined below), as provided for herein, and delivered to Lender at the address furnished to Borrower for that purpose.
All payments shall be applied first to (a) costs of collection, if any, then to (b) fees and charges, if any, then to (c) accrued
and unpaid interest, and thereafter, to (d) principal. Notwithstanding the foregoing, so long as Borrower has not received a Conversion
Notice (as defined below) from Lender where the applicable Conversion Shares have not yet been delivered and so long as no Event
of Default has occurred since the Effective Date (whether declared by Lender or undeclared), then Borrower shall have the right,
exercisable on not less than five (5) Trading Days prior written notice to Lender to prepay the Outstanding Balance of this Note,
in full, in accordance with this Section 1. Any notice of prepayment hereunder (an “Optional Prepayment Notice”)
shall be delivered to Lender at its registered address and shall state: (y) that Borrower is exercising its right to prepay this
Note, and (z) the date of prepayment, which shall be not less than five (5) Trading Days from the date of the Optional Prepayment
Notice. On the date fixed for prepayment (the “Optional Prepayment Date”), Borrower shall make payment of the
Optional Prepayment Amount (as defined below) to or upon the order of Lender as may be specified by Lender in writing to Borrower.
If Borrower exercises its right to prepay this Note, Borrower shall make payment to Lender of an amount in cash (the “Optional
Prepayment Amount”) equal to 125% (the “Prepayment Premium”) multiplied by the then Outstanding Balance
of this Note. In the event Borrower delivers the Optional Prepayment Amount to Lender prior to the Optional Prepayment Date or
without delivering an Optional Prepayment Notice to Lender as set forth herein without Lender’s prior written consent, the
Optional Prepayment Amount shall not be deemed to have been paid to Lender until the Optional Prepayment Date. Moreover, in such
event the Optional Prepayment Liquidated Damages Amount will automatically be added to the Outstanding Balance of this Note on
the day Borrower delivers the Optional Prepayment Amount to Lender. In the event Borrower delivers the Optional Prepayment Amount
without an Optional Prepayment Notice, then the Optional Prepayment Date will be deemed to be the date that is five (5) Trading
Days from the date that the Optional Prepayment Amount was delivered to Lender. In addition, if Borrower delivers an Optional
Prepayment Notice and fails to pay the Optional Prepayment Amount due to Lender within two (2) Trading Days following the Optional
Prepayment Date, Borrower shall forever forfeit its right to prepay this Note.

 

2. Security.
This Note is secured by that certain Security Agreement of even date herewith, as the same may be amended from time to time (the
“Security Agreement”), executed by Borrower in favor of Lender encumbering the Investor Notes, as more specifically
set forth in the Security Agreement, all the terms and conditions of which are hereby incorporated into and made a part of this
Note.

 

    	 

    	 

    

 

3. Conversion.

 

3.1.
Conversion Price. Subject to the adjustments set forth herein, the conversion price for each Conversion (the “Conversion
Price”) shall be the higher of (a) $0,001 (the “Floor”) or (b) 65% (the “Conversion
Factor”) of the average of the three (3) lowest VWAPs in the twenty (20) Trading Days immediately preceding the
applicable Conversion, provided that if at any time the average of the three (3) lowest VWAPs in the twenty (20) Trading Days
immediately preceding any date of measurement is below $0.02, then in such event the then-current Conversion Factor shall be reduced
by 5% for all future Conversions (subject to other reductions set forth in this section). Additionally, if at any time after the
Effective Date, Borrower is not DWAC Eligible, then the then-current Conversion Factor will automatically be reduced by 5% for
all future Conversions. If at any time after the Effective Date, the Conversion Shares are not DTC Eligible, then the then-current
Conversion Factor will automatically be reduced by an additional 5% for all future Conversions. Finally, in addition to the Default
Effect, if any Major Default occurs after the Effective Date, the Conversion Factor shall automatically be reduced for all future
Conversions by an additional 5% for each of the first three (3) Major Defaults that occur after the Effective Date (for the avoidance
of doubt, each occurrence of any Major Default shall be deemed to be a separate occurrence for purposes of the foregoing reductions
in Conversion Factor, even if the same Major Default occurs three (3) separate times). For example, the first time Borrower is
not DWAC Eligible, the Conversion Factor for future Conversions thereafter will be reduced from 65% to 60% for purposes of this
example. Following such event, the first time the Conversion Shares are no longer DTC Eligible, the Conversion Factor for future
Conversions thereafter will be reduced from 60% to 55% for purposes of this example. If, thereafter, there are three (3) separate
occurrences of a Major Default pursuant to Section 4.1(i), then for purposes of this example the Conversion Factor would be reduced
by 5% for the first such occurrence, and so on for each of the second and third occurrences of such Major Default. In no case
shall the Conversion Factor be reduced below 40%.

 

3.2.
Conversions. Lender has the right at any time after the Purchase Price Date until the Outstanding Balance has been paid
in full, including without limitation until any Optional Prepayment Date (even if Lender has received an Optional Prepayment Notice),
at its election, to convert (each instance of conversion is referred to herein as a “Conversion”) all or any
part of the Outstanding Balance into shares (“Conversion Shares”) of fully paid and non-assessable common
stock, $0,001 par value per share (“Common Stock”), of Borrower as per the following conversion formula:
the number of Conversion Shares equals the amount being converted (the “Conversion Amount”) divided by the
Conversion Price. Notwithstanding the foregoing, in the event the Conversion Price would be less than $0,001 but for the Floor,
instead of delivering Conversion Shares to Lender with respect to such Conversion, Borrower shall be required to deliver to Lender
an amount in cash equal to the number of Conversion Shares deliverable with respect to the applicable Conversion multiplied by
the VWAP of the Common Stock on the date the applicable Conversion Notice is delivered to Borrower. Conversion notices in the
form attached hereto as Exhibit A (each, a “Conversion Notice”) may be effectively delivered to Borrower
by any method of Lender’s choice (including but not limited to facsimile, email, mail, overnight courier, or personal delivery),
and all Conversions shall be cashless and not require further payment from Lender. Borrower shall deliver the Conversion Shares
from any Conversion to Lender in accordance with Section 8 below within three (3) Trading Days of Lender’s delivery of the
Conversion Notice to Borrower.

 

4.
Defaults and Remedies.

 

4.1.
Defaults. The following are events of default under this Note (each, an “Event of Default”): (i) Borrower
shall fail to pay any principal, interest, fees, charges, or any other amount when due and payable hereunder; or (ii) Borrower
shall fail to deliver any Conversion Shares in accordance with the terms hereof; or (iii) a receiver, trustee or other similar
official shall be appointed over Borrower or a material part of its assets and such appointment shall remain uncontested for twenty
(20) days or shall not be dismissed or discharged within sixty (60) days; (iv) Borrower shall become insolvent or generally fails
to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any;
or (v) Borrower shall make a general assignment for the benefit of creditors; or (vi) Borrower shall file a petition for relief
under any bankruptcy, insolvency or similar law (domestic or foreign); or (vii) an involuntary proceeding shall be commenced or
filed against Borrower; or (viii) Borrower shall default or otherwise fail to observe or perform any covenant, obligation, condition
or agreement of Borrower contained herein or in any other Transaction Document, other than those specifically set forth in this
Section 4.1; or (ix) Borrower shall become delinquent in its filing requirements as a fully-reporting issuer registered with the
SEC or shall fail to timely file all required quarterly and annual reports and any other filings that are necessary to enable
Lender to sell Conversion Shares pursuant to Rule 144; or (x) any representation, warranty or other statement made or furnished
by or on behalf of Borrower to Lender herein, in any Transaction Document, or otherwise in connection with the issuance of this
Note shall be false, incorrect, incomplete or misleading in any material respect when made or furnished; or (xi) the occurrence
of a Fundamental Transaction without Lender’s prior written consent; or (xii) Borrower shall fail to maintain the Share
Reserve as required under the Purchase Agreement; or (xiii) Borrower effectuates a reverse split of its Common Stock without twenty
(20) Trading Days prior written notice to Lender; or (xiv) any money judgment, writ or similar process shall be entered or filed
against Borrower or any subsidiary of Borrower or any of its property or other assets for more than $100,000, and shall remain
unvacated, unbonded or unstayed for a period of twenty (20) calendar days unless otherwise consented to by Lender; or (xv) Borrower
shall fail to deliver to Lender original signature pages to all Transaction Documents within five (5) Trading Days of the Purchase
Price Date; or (xvi) Borrower is not DWAC Eligible.

 

    	 

    	 

    

 

4.2.
Remedies. Upon the occurrence of any Event of Default, Borrower shall within one (1) Trading Day deliver written notice
thereof via facsimile, email or reputable overnight courier (with next day delivery specified) (an “Event of Default
Notice”) to Lender. At any time and from time to time after the earlier of Lender’s receipt of an Event
of Default Notice and Lender becoming aware of the occurrence of any Event of Default, Lender may accelerate this Note by written
notice to Borrower, with the Outstanding Balance becoming immediately due and payable in cash at the Mandatory Default Amount
(as defined hereafter). Notwithstanding the foregoing, at any time following the occurrence of any Event of Default, Lender may,
at its option, elect to increase the Outstanding Balance by applying the Default Effect (as defined below) (subject to the limitation
set forth below) via written notice to Borrower without accelerating the Outstanding Balance, in which event the Outstanding Balance
shall be increased as of the date of the occurrence of the applicable Event of Default pursuant to the Default Effect, but the
Outstanding Balance shall not be immediately due and payable unless so declared by Lender (for the avoidance of doubt, if Lender
elects to apply the Default Effect pursuant to this sentence, it shall reserve the right to declare the Outstanding Balance immediately
due and payable at any time and no such election by Lender shall be deemed to be a waiver of its right to declare the Outstanding
Balance immediately due and payable as set forth herein unless otherwise agreed to by Lender in writing). For purposes hereof,
the “Default Effect” is calculated by multiplying the Conversion Eligible Outstanding Balance as of the date
the applicable Event of Default occurred by (i) 15% for each occurrence of any Major Default, or (ii) 5% for each occurrence of
any Minor Default, and then adding the resulting product to the Outstanding Balance as of the date the applicable Event of Default
occurred, with the sum of the foregoing then becoming the Outstanding Balance under this Note as of the date the applicable Event
of Default occurred; provided that the Default Effect may only be applied three (3) times hereunder with respect to Major Defaults
and three (3) times hereunder with respect to Minor Defaults; and provided further that the Default Effect shall not apply to
any Event of Default pursuant to Section 4.1(ii) hereof. Notwithstanding the foregoing, upon the occurrence of any Event of Default
described in clauses (iii), (iv), (v), (vi) or (vii) of Section 4.1, the Outstanding Balance as of the date of acceleration shall
become immediately and automatically due and payable in cash at the Mandatory Default Amount, without any written notice required
by Lender. The “Mandatory Default Amount” means the greater of (i) the Outstanding Balance (including all Tranches,
both Conversion Eligible Tranches and Subsequent Tranches that have not yet become Conversion Eligible Tranches) divided by the
Conversion Price (as defined below) on the date the Mandatory Default Amount is demanded, multiplied by the volume weighted average
price (the “VWAP”) on the date the Mandatory Default Amount is demanded (subject to a limit of $0,001), or
(ii) the Default Effect. At any time following the occurrence of any Event of Default, upon written notice given by Lender to
Borrower, interest shall accrue on the Outstanding Balance beginning on the date the applicable Event of Default occurred at an
interest rate equal to the lesser of 22% per annum or the maximum rate permitted under applicable law (“Default
Interest”). Additionally, following the occurrence of any Event of Default, Borrower may, at its option, pay any Conversion
in cash instead of Conversion Shares by paying to Lender on or before the applicable Delivery Date (as defined below) a cash amount
equal to the number of Conversion Shares set forth in the applicable Conversion Notice multiplied by the highest intra-day trading
price of the Common Stock that occurs during the period beginning on the date the applicable Event of Default occurred and ending
on the date of the applicable Conversion Notice. In connection with acceleration described herein, Lender need not provide, and
Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and Lender may immediately and without expiration
of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable
law. Such acceleration may be rescinded and annulled by Lender at any time prior to payment hereunder and Lender shall have all
rights as a holder of the Note until such time, if any, as Lender receives full payment pursuant to this Section 4.2. No such
rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon. Nothing herein shall
limit Lender’s right to pursue any other remedies available to it at law or in equity including, without limitation, a decree
of specific performance and/or injunctive relief with respect to Borrower’s failure to timely deliver Conversion Shares
upon Conversion of the Notes as required pursuant to the terms hereof.

 

    	 

    	 

    

 

4.3.
Cross Default. A breach or default by Borrower of any covenant or other term or condition contained in any Other Agreements
(as defined below) shall, at the option of Lender, be considered an Event of Default under this Note, in which event Lender shall
be entitled (but in no event required) to apply all rights and remedies of Lender under the terms of this Note. “Other
Agreements” means, collectively, (a) all existing and future agreements and instruments between, among or by Borrower
(or an affiliate), on the one hand, and Lender (or an affiliate), on the other hand, and (b) any financing agreement or a material
agreement that affects Borrower’s ongoing business operations. For the avoidance of doubt, all existing and future loan
transactions between Borrower and Lender and their respective affiliates will be cross-defaulted with each other loan transaction
and with all other existing and future debt of Borrower to Lender.

 

5. Unconditional
Obligation; No Offset. Borrower acknowledges that this Note is an unconditional, valid, binding and enforceable obligation
of Borrower not subject to offset (except as set forth in Section 18 below), deduction or counterclaim of any kind. Borrower hereby
waives any rights of offset it now has or may have hereafter against Lender, its successors and assigns, and agrees to make the
payments or conversions called for herein in accordance with the terms of this Note.

 

6. Waiver.
No waiver of any provision of this Note shall be effective unless it is in the form of a writing signed by the party granting
the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any other provision or
consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing waiver or consent
or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in writing.

 

7.
Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. Without limiting any provision hereof,
if Borrower at any time on or after the Effective Date subdivides (by any stock split, stock dividend, recapitalization or otherwise)
one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price in effect
immediately prior to such subdivision will be proportionately reduced. Without limiting any provision hereof, if Borrower at any
time on or after the Effective Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding
shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will
be proportionately increased. Any adjustment pursuant to this Section 7 shall become effective immediately after the effective
date of such subdivision or combination. If any event requiring an adjustment under this Section 7 occurs during the period that
a Conversion Price is calculated hereunder, then the calculation of such Conversion Price shall be adjusted appropriately to reflect
such event.

 

    	 

    	 

    

 

8.
Method of Conversion Share Delivery. On or before the close of business on the third (3rd) Trading Day following
the date of delivery of a Conversion Notice, as applicable (the “Delivery Date”), Borrower shall, provided
it is DWAC Eligible at such time, deliver or cause its transfer agent to deliver the applicable Conversion Shares electronically
via DWAC to the account designated by Lender in the applicable Conversion Notice. If Borrower is not DWAC Eligible, it shall deliver
to Lender or its broker (as designated in the Conversion Notice, as applicable), via reputable overnight courier, a certificate
representing the number of shares of Common Stock equal to the number of Conversion Shares to which Lender shall be entitled,
registered in the name of Lender or its designee. For the avoidance of doubt, Borrower has not met its obligation to deliver Conversion
Shares by the Delivery Date unless Lender or its broker, as applicable, has actually received the certificate representing the
applicable Conversion Shares no later than the close of business on the relevant Delivery Date pursuant to the terms set forth
above.

 

9.
Conversion Delays. If Borrower fails to deliver Conversion Shares in accordance with the timeframes stated in Sections
2 and 8, Lender, at any time prior to selling ail of those Conversion Shares, may rescind in whole or in part that particular
Conversion attributable to the unsold Conversion Shares, with a corresponding increase to the Outstanding Balance (any returned
Conversion Amount will tack back to the Purchase Price Date for purposes of determining the holding period under Rule 144). In
addition, for each Conversion, in the event that Conversion Shares are not delivered by the fourth Trading Day (inclusive of the
day of the Conversion), a late fee equal to the greater of (a) $500.00 per day and (b) 2% of the applicable Conversion Share Value
rounded to the nearest multiple of $100.00 (but in any event the cumulative amount of such late fees for each Conversion shall
not exceed 200% of the applicable Conversion Share Value) will be assessed for each day after the third Trading Day (inclusive
of the day of the Conversion) until Conversion Share delivery is made; and such late fee will be added to the Outstanding Balance
(such fees, the “Conversion Delay Late Fees”). For illustration purposes only, if Lender delivers a Conversion
Notice to Borrower pursuant to which Borrower is required to deliver 100,000 Conversion Shares to Lender and on the Delivery Date
such Conversion Shares have a Conversion Share Value of $20,000.00 (assuming a Closing Sale Price on the Delivery Date of $0.20
per share of Common Stock), then in such event a Conversion Delay Late Fee in the amount of $500.00 per day (the greater of $500.00
per day and $20,000.00 multiplied by 2%, which is $400.00) would be added to the Outstanding Balance of the Note until such Conversion
Shares are delivered to Lender. For purposes of this example, if the Conversion Shares are delivered to Lender twenty (20) days
after the applicable Delivery Date, the total Conversion Delay Late Fees that would be added to the Outstanding Balance would
be $10,000.00 (20 days multiplied by $500.00 per day). If the Conversion Shares are delivered to Lender one hundred (100) days
after the applicable Delivery Date, the total Conversion Delay Late Fees that would be added to the Outstanding Balance would
be $40,000.00 (100 days multiplied by $500.00 per day, but capped at 200% of the Conversion Share Value).

 

10.
Ownership Limitation. Notwithstanding anything to the contrary contained in this Note or the other Transaction Documents,
if at any time Lender shall or would be issued shares of Common Stock under any of the Transaction Documents, but such issuance
would cause Lender (together with its affiliates) to beneficially own a number of shares exceeding 4.99% of the number of shares
of Common Stock outstanding on such date (including for such purpose the shares of Common Stock issuable upon such issuance) (the
“Maximum Percentage”), then Borrower must not issue to Lender shares of the Common Stock which would exceed
the Maximum Percentage. For purposes of this section, beneficial ownership of Common Stock will be determined pursuant to Section
13(d) of the 1934 Act. The shares of Common Stock issuable to Lender that would cause the Maximum Percentage to be exceeded are
referred to herein as the “Ownership Limitation Shares”. Borrower will reserve the Ownership Limitation Shares
for the exclusive benefit of Lender. From time to time, Lender may notify Borrower in writing of the number of the Ownership Limitation
Shares that may be issued to Lender without causing Lender to exceed the Maximum Percentage. Upon receipt of such notice, Borrower
shall be unconditionally obligated to immediately issue such designated shares to Lender, with a corresponding reduction in the
number of the Ownership Limitation Shares. Notwithstanding the forgoing, the term “4.99%” above shall be replaced
with “9.99%” at such time as the Market Capitalization of the Common Stock is less than $10,000,000.00. Notwithstanding
any other provision contained herein, if the term “4.99%” is replaced with “9.99%” pursuant to the preceding
sentence, such increase to “9.99%” shall remain at 9.99% until increased, decreased or waived by Lender as set forth
below. By written notice to Borrower, Lender may increase, decrease or waive the Maximum Percentage as to itself but any such
waiver will not be effective until the 61st day after delivery thereof. The foregoing 61-day notice requirement is enforceable,
unconditional and non-waivable and shall apply to all affiliates and assigns of Lender.

 

    	 

    	 

    

 

11. Payment
of Collection Costs. If this Note is placed in the hands of an attorney for collection or enforcement prior to commencing
arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Lender otherwise
takes action to collect amounts due under this Note or to enforce the provisions of this Note, then Borrower shall pay the reasonable
costs incurred by Lender for such collection, enforcement or action including, without limitation, attorneys’ fees and disbursements.
Borrower also agrees to pay for any costs, fees or charges of its transfer agent that are charged to Lender pursuant to any Conversion
or issuance of shares pursuant to this Note.

 

12. Opinion
of Counsel. In the event that an opinion of counsel is needed for any matter related to this Note, Lender has the right to
have any such opinion provided by its counsel. Lender also has the right to have any such opinion provided by Borrower’s
counsel.

 

13. 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 internal laws of the State of Utah, without giving effect
to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of Utah. The provisions set forth in the Purchase
Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

14. Resolution
of Disputes.

 

14.1. Arbitration
of Disputes. By its acceptance of this Note, each party agrees to be bound by the Arbitration Provisions set forth as an Exhibit
to the Purchase Agreement.

 

14.2. Calculation
Disputes. Notwithstanding the Arbitration Provisions, in the case of a dispute as to any Calculations (as defined in the Purchase
Agreement), such dispute will be resolved in the manner set forth in the Purchase Agreement.

 

15. Cancellation.
After repayment or conversion of the entire Outstanding Balance this Note shall be deemed paid in full, shall automatically be
deemed canceled, and shall not be reissued.

 

16. Amendments.
The prior written consent of both parties hereto shall be required for any change or amendment to this Note.

 

17. Assignments.
Borrower may not assign this Note without the prior written consent of Lender. This Note and any shares of Common Stock issued
upon conversion of this Note may be offered, sold, assigned or transferred by Lender without the consent of Borrower.

 

18. Offset
Rights. Notwithstanding anything to the contrary herein or in any of the other Transaction Documents, (a) the parties hereto
acknowledge and agree that Lender maintains a right of offset pursuant to the terms of the Investor Notes that, under certain
circumstances, permits Lender to

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be duly executed as of the Effective Date.

 

	 	BORROWER: 
	 	 
	 	SALEEN
AUTOMOTIVE,
INC.
	 	By:	
	 	Name:	 
	 	Title:	 

 

ACKNOWLEDGED,
ACCEPTED AND AGREED:

 

LENDER:

 

Typenex
Co-Investment, LLC

 

	By:	Red
    Cliffs Investments, Inc., its Manager	 

 

	 	By:	 	 
	 	 	John M. Fife,
    President	 

 

[Signature
Page to Secured Convertible Promissory Note]

 

    	 

    	 

    

 

ATTACHMENT
1

DEFINITIONS

 

For
purposes of this Note, the following terms shall have the following meanings:

 

Al.
“Approved Stock Plan” means any stock option plan which has been approved by the board of directors of Borrower,
pursuant to which Borrower’s securities may be issued to any employee, officer or director for services provided to Borrower.

 

A2.
“Closing Bid Price” and “Closing Sale Price” means, for any security as of any date,
the last closing bid price and last closing trade price, respectively, for such security on its principal market, as reported
by Bloomberg, or, if its principal market begins to operate on an extended hours basis and does not designate the closing bid
price or the closing trade price (as the case may be) then the last bid price or last trade price, respectively, of such security
prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if its principal market is not the principal securities exchange
or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal
securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do
not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the
electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively,
is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers
for such security as reported in “OTC Pink” by Pink OTC Markets Inc. (formerly Pink Sheets LLC), and any successor
thereto. If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of
the foregoing bases, the Closing Bid Price or the Closing Sale Price (as the case may be) of such security on such date shall
be the fair market value as mutually determined by Lender and Borrower. If Lender and Borrower are unable to agree upon the fair
market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 14.2. All such
determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction
during such period.

 

A3.
“Conversion Eligible Outstanding Balance” means the Outstanding Balance of this Note less the sum of the outstanding
balances of each Subsequent Tranche that has not yet become a Conversion Eligible Tranche (i.e., Lender has not yet paid the outstanding
balance of the Investor Note that corresponds to such Subsequent Tranche).

 

A4.
“Conversion Share Value” means the product of the number of Conversion Shares deliverable pursuant to any Conversion
multiplied by the Closing Sale Price of the Common Stock on the Delivery Date for such Conversion.

 

A5.
“DTC” means the Depository Trust Company.

 

A6.
“DTC Eligible” means, with respect to the Common Stock, that such Common Stock is eligible to be deposited
in certificate form at the DTC, cleared and converted into electronic shares by the DTC and held in the name of the clearing firm
servicing Lender’s brokerage firm for the benefit of Lender.

 

A7.
“DTC/FAST Program” means the DTC’s Fast Automated Securities Transfer Program.

 

A8.
“DWAC” means Deposit Withdrawal at Custodian as defined by the DTC.

 

A9.
“DWAC Eligible” means that (i) Borrower’s Common Stock is eligible at DTC for full services pursuant
to DTC’s operational arrangements, including without limitation transfer through DTC’s DWAC system, (ii) Borrower
has been approved (without revocation) by the DTC’s underwriting department, (iii) Borrower’s transfer agent is approved
as an agent in the DTC/FAST Program, (iv) the Conversion Shares are otherwise eligible for delivery via DWAC; (v) Borrower has
previously delivered all Conversion Shares to Lender via DWAC; and (vi) Borrower’s transfer agent does not have a policy
prohibiting or limiting delivery of the Conversion Shares via DWAC.

 

A10.
“Excluded Securities” means any shares of Common Stock, options, or convertible securities issued or issuable
in connection with any Approved Stock Plan; provided that the option term, exercise price or similar provisions of any
issuances pursuant to such Approved Stock Plan are not amended, modified or changed on or after the Purchase Price Date.

 

All.
“Fundamental Transaction” means that (y) (i)
Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, consolidate or merge with
or into (whether or not Borrower or any

 

Attachment
1 to Secured Convertible Promissory Note, Page 1

 

    	 

    	 

    

 

EXHIBIT
A

 

Typenex
Co-Investment, LLC

303
East Wacker Drive, Suite 1200

Chicago,
Illinois 60601

 

	 	 	Date:
                                  

 

Saleen
Automotive, Inc.

Attn:
Steve Saleen

2375
Wardlow Road

Corona,
California 92882

 

CONVERSION
NOTICE

 

The
above-captioned Lender hereby gives notice to Saleen Automotive, Inc., a Nevada corporation (the “Borrower”),
pursuant to that certain Secured Convertible Promissory Note made by Borrower in favor of Lender on October 28, 2014 (the “Note”),
that Lender elects to convert the portion of the Note balance set forth below into fully paid and non-assessable shares of Common
Stock of Borrower as of the date of conversion specified below. Said conversion shall be based on the Conversion Price set forth
below. In the event of a conflict between this Conversion Notice and the Note, the Note shall govern, or, in the alternative,
at the election of Lender in its sole discretion, Lender may provide a new form of Conversion Notice to conform to the Note. Capitalized
terms used in this notice without definition shall have the meanings given to them in the Note.

 

A. Date
of Conversion: _________

 

B. Conversion
#: _______________ 

 

C. Conversion
Amount: ________________ 

 

D. Conversion
Price: _________________ 

 

E. Conversion
Shares: _________________ (C divided by D)

 

F. Remaining
Outstanding Balance of Note:                                    *

 

G. Remaining
balance of Investor Notes:                                   *

 

H. Outstanding
Balance of Note net of balance of Investor Notes:________________ * (F minus G)

 

*
Subject to adjustments for corrections, defaults, interest and other adjustments permitted by the Transaction Documents (as defined
in the Purchase Agreement), the terms of which shall control in the event of any dispute between the terms of this Conversion
Notice and such Transaction Documents.

 

The
Conversion Amount converted hereunder shall be deducted from the following Conversion Eligible Tranche(s):

 

	Conversion
    Amount	 	Tranche
    No.
	 	 	 
	 	 	 
	 	 	 

 

Exhibit
A to Secured Convertible Promissory Note, Page 1

 

    	 

    	 

    

 

Please
transfer the Conversion Shares electronically (via DWAC) to the following account:

 

	Broker:
    	 	 	Address:
    	 
	DTC#:	 	 	 	 
	Account
    #: 	 	 	 	 
	Account
    Name: 	 	 	 	 

 

To
the extent the Conversion Shares are not able to be delivered to Lender electronically via the DWAC system, deliver all such certificated
shares to Lender via reputable overnight courier after receipt of this Conversion Notice (by facsimile transmission or otherwise)
to:

 

	 	 	 
	 	 	 
	 	 	 

 

	Sincerely,	 
	 	 	 
	Lender:	 
	 	 	 
	Typenex
    Co-Investment, LLC	 
	 	 	 
	By:	Red Cliffs Investments,
    Inc., its Manager	 

 

	 	By:	 	 
	 	 	John M. Fife,
    President	 

 

Exhibit
A to Secured Convertible Promissory Note, Page 2

 

    	 

    	 

    

 

EXHIBIT
B

 

Saleen
Automotive, Inc.

2375
Wardlow Road

Corona, California 92882

 

	Typenex
    Co-Investment, LLC	Date:
                                

Attn:
John Fife

303
East Wacker Dr., Suite 1200

Chicago, Illinois 60601

 

NOTICE
OF EXERCISE

OF
BORROWER OFFSET RIGHT

 

The
above-captioned Borrower hereby gives notice to Typenex Co-Investment, LLC, a Utah limited liability company (the “Lender”),
pursuant to that certain Secured Convertible Promissory Note made by Borrower in favor of Lender on October 28, 2014 (the “Note”),
of Borrower’s election to exercise the Borrower Offset Right as set forth below. In the event of a conflict between this
Notice of Exercise of Borrower Offset Right and the Note, the Note shall govern. Capitalized terms used in this notice without
definition shall have the meanings given to them in the Note.

 

A. Effective
Date of Offset:______________ , 201_

 

B. Amount
of Offset: __________________ 

 

C. Investor
Note(s) Being Offset: _____________

 

*
Subject to adjustments for corrections, defaults, interest and other adjustments permitted by the Transaction Documents (as defined
in the Purchase Agreement), the terms of which shall control in the event of any dispute between the terms of this Notice of Exercise
of Borrower Offset Right and such Transaction Documents.

 

Sincerely,

 

Borrower:

 

	SALEEN
AUTOMOTIVE,
INC.	 
	 	 	 
	By:		 
	Name:	 	 
	Title:	 	 

 

Exhibit
B to Secured Convertible Promissory Note, Page 1

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