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EXHIBIT 10.21


Formal Request for Pilot Approval - Submitted by Hybrid Technologies Inc.
For Approval by Chairman Mathew Daus
New York City Taxi and Limousine Commission

May 31, 2006


      PURPOSE OF PILOT TEST WITH THE NEW YORK CITY TAXI AND LIMO COMMISSION
      ---------------------------------------------------------------------
              Based on Chapter 14, Pilot programs City of New York

This  formal  pilot  request  details  the  roles  and  responsibilities  Hybrid
Technologies  and or Hybrid tech regarding the loan of lithium powered  electric
vehicles:  one PT  Cruiser,  Car,  and (see  pages 11 of this  pilot  request as
specified in line b submission of pilot program for approval).


Statement of the Purpose or Value of the Proposed Innovation

Utilizing  these  vehicles  within  the  realm  of  the  TLC  is  a  cooperative
opportunity to demonstrate zero emission vehicle technology in a high-visibility
application.  Benefits  to the  City of New  York  and the  TLC  include  having
improved   compliance   with   Alternative   Fuel  Vehicles   (AFVs)   mandates,
demonstrating the use of an electric vehicle in Taxi and public transport fleets
within the City of New York and studying the possibilities of utilizing electric
vehicles in New York city taxi fleet operations, and establishing a relationship
with Hybrid Tech for possible future collaboration on AFVs. The value to the TLC
and to the City of New York shall be real world knowledge of the  sustainability
and suitability of a fully electric vehicle within the city of New York.

Detailed Description of the Proposed Innovation

See attached spec sheet outlining vehicle specifications


Additional Pilot Programs Throughout Private and Federal Groups and Agencies

Hybrid  Technologies  has entered into similar  pilot  programs  with NASA,  KSC
attached is full contract with NASA outlining pilot program

NASA is piloting  the  lithium PT Cruiser,  Smart Car and ATV at this time for a
period of one year

Hybrid Technologies has entered into a similar pilot program with the Department
of the Navy for testing of a PT Cruiser within the US Military

Hybrid  Technologies has sold at cost to Paratransit,  Inc. not for profit fully
accessible  fleet,  the current vehicle  selected is a Chrysler Town and Country
Van.


Estimate and Costs to TLC and Revenue Impact to Fleet Owners for Purpose of this
Test



<page>

As outlined in this pilot request  Hybrid  Technologies  has formally  agreed to
provide without cost or obligation the use of a fully lithium vehicle. The costs
associated with management of the vehicle such as care and service will be fully
covered by Hybrid Technologies. Full insurance will be provided without cost per
current pilot requirements by Hybrid  Technologies.  The medallion owner will be
required  only to provide  suitable  permits per the TLC for this pilot.  Hybrid
Technologies  will  provide  all  standard  TLC  requirements  for a fleet  taxi
including but not limited to:
1. Paint - the paint will be per NYC TLC standards and will  be  Dupont M6284 or
   BASF WA-8401
2. Divider
3. Meter
4. Lights
5. Taxi signage



The  anticipated  cost of running  the vehicle is based on .11 per KwH * City of
New York KwH fee. And the running time of the initial  pilot  vehicle will range
from 150 MPC to 200 MPC miles per charge.  The associated  cost shall be plus or
minus $2.75 per full charge

Departure from Standard Fleet Taxi Vehicles

The pilot vehicle is a fully lithium powered vehicle  therefore,  it is a unique
vehicle  from a propulsion  standpoint  however,  the  intention is to provide a
vehicle  similar to  standard  combustion  engine  taxi units as  possible.  The
vehicle will provide zero emissions,  slightly higher torque and an engine noise
free environment.

Safety of Operations

The pilot  model,  as used by the US Federal  Government,  will  comply with all
safety  requirements  and as such is not a factor in  respect  to safety  and or
safety  issues.  The  vehicles  use UN approved L1 battery  systems,  as used in
pacemakers, and cellular phones.

The Proposed Duration of the Project

It is requested by Hybrid  Technologies  that this pilot last for a period of no
less than 6 months and no more than 1 year

The Number of Pilot Program Participants

It is  requested  that  permission  be given to place up to three  vehicle  into
regular service  therefore,  the number of participants shall be no less the one
fleet owner and no more then three fleet owners.

Criteria of Test or Pilot

The criteria  for success  shall be based on a group of factors such as, but not
limited to:

Fleet owner recommendations
Driver recommendations
Passenger comfort and approval
Local and State Government support
Weather and climatic  efficiency
Mileage and extended use capacity
Driver feedback  specifically  addressing  engine,  torque and drive time issues
Management  system of battery units'  capacity
Public opinion
Chairman and TLC opinion



<page>

RESPONSIBILITIES PILOT OF VEHICLES WITH THE TLC
-----------------------------------------------
1.         Hybrid Technologies agrees to loan to NASA-KSC and NASA-KSC agrees to
accept from  Hybrid Tech new PT Cruiser  lithium  vehicle  which will  include a
battery pack with 100 percent lithium batteries used to power the vehicle(s) for
use in Fleet Taxi  business.  Vehicles shall be described in request for a pilot
document  ("Supplement")  executed for and requested by Hybrid  Technologies for
approval by the TLC Commission.

2.         This is a formal  request for a test or pilot of a lithium PT cruiser
vehicle only and is not a contract for the sale or lease of  vehicle(s).  Hybrid
Technologies is the owner of the three vehicles  mentioned above, and the TLC or
medallion  owner  recognizes that it does not have any obligation to acquire any
legal or equitable  interest in the  vehicle(s).  The TLC and or medallion owner
shall have the right to possess,  use, and operate any and all vehicles  used in
this pilot.

3.         With respect to each vehicle, the term of the loan (the "Term") shall
commence on the date the  vehicle(s) is delivered to the  medallion  owner/fleet
and or the TLC (the  "In-Service  Date") and shall continue through the date set
forth in the applicable Supplement as the maturity date

PLACEMENT OF VEHICLES IN SERVICE
--------------------------------
1.         Hybrid  Technologies  shall provide a fully  functional  2006 lithium
powered PT Cruiser for the purpose of this pilot or test.  The test will be used
to determine if an electric  vehicle shall be a viable and suitable option for a
regulated taxi fleet in or around the city of New York.

2.         Vehicles shall include all equipment  required by federal,  state, or
municipal statutes, laws, ordinances, rules, or regulations,  present or future.
Hybrid Tech shall pay for and install any equipment  necessary to bring vehicles
in compliance with these  requirements.  Hybrid Technologies agrees to cooperate
with  The  TLC  and  the  emissions  and  regulatory   office  in  accomplishing
compliance.


REGISTRATION, OFFICIAL FEES AND TAXES, MOVEMENT OF VEHICLE
----------------------------------------------------------
1.        Hybrid Technologies shall not be responsible for any fines incurred by
drivers of the vehicles such as traffic or parking tickets.

2.        Hybrid  Technologies  or  its'  designee   will register and title the
vehicle initially,  and the selected fleet owner plans to either provide a valid
TLC tag or shall be responsible for subsequent  registration of the vehicle. All
vehicles will be titled or registered in the state  specified in the Supplement.
The Certificate of Title and Registration for each vehicle shall be completed as
instructed by Hybrid  Technologies.  Hybrid Technologies will be the legal owner
of the vehicle and shall retain possession of all Certificates of Title.

USAGE
-----
The TLC and or fleet owner shall use each  vehicle  only for  official  business
requirements.  The fleet  owner  will  ensure  that all  vehicles  are used in a
careful manner and in accordance with all applicable  governmental and insurance
requirements and limitations and in no event for other than a lawful purpose and
in  compliance  with all  laws.  Hybrid  Technologies'  property  and  liability
insurance  must cover all users of the vehicle and shall be in  accordance  with
TLC insurance regulations of 1,00,0000 dollars liability.



<page>

INSURANCE
---------
1.         Hybrid Technologies shall provide, at Hybrid  Technologies'  expense,
for each vehicle during the Term thereon,  Automobile  Liability  Insurance with
limits not less than $1 million per accident  and  including  comprehensive  and
collision  damage  coverage for each vehicle.  The  insurance  shall name Hybrid
Technologies   as  Loss  Payee  Fleet  Owner  as  additional   insured.   Hybrid
Technologies  must  provide  continued  proof  of such  insurance  to the TLC as
requested.  Proof of  insurance  shall be provided at the time of  execution  of
Supplement to this pilot request.

2.         The medallion  owner shall promptly  notify Hybrid Tech of any damage
to their  vehicles.  The  medallion  owner may  assist  Hybrid  Technologies  in
coordinating  the pickup or delivery of the vehicles with their Approved Service
Providers. The Approved Service Providers shall provide proof that the necessary
repairs  have been  completed  and that the vehicle is safe to  operate.  Hybrid
Technologies  shall pay for any  accident-related  vehicle  repairs or  expenses
which are not covered by insurance.

MAINTENANCE AND REPAIRS

1.         Hybrid Technologies  shall, at Hybrid  Technologies' sole expense (no
maintenance  costs from TLC or fleet  owner),  maintain  all their  vehicles  in
accordance with the owner's and service manuals.  Hybrid Technologies shall have
maintenance  and repairs  performed  only by  authorized  area  dealers or other
Approved  Service  Provider(s)   designated  by  Hybrid   Technologies.   Hybrid
Technologies shall provide the TLC with a list of the Approved Service Providers
in fleet owners' geographic area prior to delivery of the vehicle. If any of the
foregoing dealers cease to be Approved Service Providers during the term, Hybrid
Technologies  will appoint one or more alternate  Approved Service  Providers in
the fleet  owners'  geographic  area and provide the TLC and fleet owner with an
updated list.

2.          Hybrid  Technologies  shall  immediately  arrange for repairs or, if
necessary,   replacement  of  the  vehicle.  All  vehicle  warranty  repair  and
maintenance shall be performed in accordance with the  manufacturer's  suggested
warranty repair and maintenance program and by an Approved Service Provider. Any
manufacturer  recall or other  notices  regarding the operation or repair of the
vehicle will be forwarded to the fleet owner within five (5) days of receipt.

3.         The fleet owner shall  provide,  at its own  expense,  a power source
that  meets  the  specifications  set  forth  by  Hybrid  Technologies  and  the
manufacturer for recharging  required for the proper operation and/or protection
of each vehicle.

4.          The fleet owner shall be  responsible  for all  expenses or charges
associated with washing,  parking, towing, garage, and/or highway tolls for each
vehicle.

5.         It is requested  that the fleet owner gives Hybrid  Technologies  the
right to  inspect  any  vehicle  upon  prior  reasonable  notice  to.  If Hybrid
Technologies,  during any inspection of a vehicle,  determines  that fleet owner
has failed to  perform  its  obligations  as set forth in this  Section,  Hybrid
Technologies shall give the fleet owner written notice thereof. Unless the fleet
owner performs its  obligations  within thirty (30) days from the date of Hybrid
Technologies'  notice,  Hybrid  Technologies  shall have the right,  but not the
obligation,  to  terminate  the loan of the vehicle to the fleet owner and/or to
perform the maintenance, service, and repair required to be performed.


<page>

RETURN OF VEHICLES
------------------
1.         Upon the  expiration or termination of this Agreement in its entirety
or with  respect to any or all  vehicles,  said  vehicles  shall be  returned to
Hybrid  Technologies'  closest regional office or Approved Service Provider from
the  fleet  owner  or  the  TLC  location  on  Rector  Street,  NYC,  at  Hybrid
Technologies'  expense.  The TLC shall give Hybrid Technologies thirty (30) days
written notice of the vehicle  identification number of the vehicle(s) coming to
the end of its' Term.

2.       Prior to Hybrid  Technologies'  acceptance of any vehicle at the end of
the Term for such  vehicle,  Hybrid  Technologies  may  schedule a  pre-recovery
inspection with the fleet owner and or TLC if applicable

3.           Each  vehicle  returned to Hybrid  Technologies  shall have one (1)
battery pack with lithium batteries,  four (4) undamaged tires of identical make
and type, and one (1) spare tire (allowing for normal wear and tear).



ASSIGNMENT
----------


FINANCIAL OBLIGATIONS
----------------------
There will be no transfer of funds between the TLC, medallion owner, fleet owner
and Hybrid Technologies in connection with this Agreement.  Each party will fund
its own  participation  under  this  Agreement.  The TLC will have no  financial
obligation to this project or pilot .

DISCLAIMER OF WARRANTY
----------------------
Neither the TLC nor Hybrid Tech warrants the data's  availability or suitability
for any particular use.

CONTINUING OBLIGATIONS
----------------------
The obligations of the parties set forth in this Agreement  concerning Liability
and Risk of Loss and  Intellectual  Property and Data Rights  shall  continue to
apply after the expiration or termination of this Agreement.

KEY PERSONNEL
-------------
The following personnel are designated as the key officials for their respective
party.  These key  officials  are the  principal  points of contact  between the
parties in the performance of this Agreement:

Taxi Commission

Peter Schenkman
Assistant Commissioner
NYC Taxi & Limousine Commission
Safety & Emissions Division
24-55 BQE West
Woodside, NY 11377
718.267.4599-T
718.956.1400-F




<page>

Hybrid Technologies, Inc.

Richard Griffiths
Public Relations & Business Development
Hybrid Technologies, Inc
5001 East Bonanza Road, Suite 138-14
704-800-9961
Cell: 212 671- 1990





TERM OF AGREEMENT AND RIGHT TO TERMINATION
------------------------------------------
This Agreement sets forth the entire and complete agreement between the parties.
This  Agreement  becomes  effective  on the  date of the last  signature  of the
parties.  Either party,  upon a 30-day  written  notice to the other party,  may
terminate this Agreement at any time and for any reason it deems substantial. In
the event of such termination,  each party shall return to the other any data it
furnished to assist the other in performance of this  Agreement,  but each party
may  retain  one  archival  copy of such  data  and any  data  generated  by its
performance  under the  Agreement,  unless the  "Intellectual  Property and Data
Rights" or other section of this Agreement  provides  otherwise.  This Agreement
shall expire upon completion of all obligations of both parties hereto or not to
exceed one year from the date of the last  signature of the  parties,  whichever
comes first.

NEWS RELEASES AND PUBLICATIONS
------------------------------
The parties  agree to  coordinate  in advance any news  releases  and/or  widely
distributed  publications that result from activities performed pursuant to this
Agreement.  This  coordination  shall entail notifying the respective  points of
contact of the proposed news release or publication in sufficient  time to allow
the other party an opportunity to review and comment as deemed appropriate.


INDEPENDENCE OF CONTRACTS
-------------------------
The parties  agree that this  Agreement  is  independent  of any other  contract
between the TLC and Hybrid Technologies. By participating in this Agreement, TLC
makes no assurances to Hybrid  Technologies  or others as to  performance of the
objects  tested in TLC  facilities  or other test  objects and  relieves  Hybrid
Technologies  of none of its  obligations  under any other  contract,  grant, or
other  agreement with TLC. This  Agreement  does not constitute  TLC's or Hybrid
Technologies' endorsement of any test results,  resulting designs,  hardware, or
other matters.

NONEXCLUSIVITY
--------------
This Agreement is not exclusive; accordingly, Hybrid Technologies or the TLC may
enter into similar agreements for the same or similar purpose with other private
or public entities.



PT Cruisers data



<page>

Interior dimensions:
Head Room-39.2"
Rear Leg Room-40.9"
Exterior Dimensions:
Wheelbase-103"
Total Length-168.9"
Height-63"
Overall Width-67.1"
4 Star NHTSA Crash Test Ratings
4 Star NHTSA rollover crash test rating




Hybrid Technologies' Vehicle Data Sheet

(IMAGE NOT FILED)