Document:

EX 10.1

    Exhibit
      10.1

     

    NAME
      OF SUBSCRIBER:
      _____________________________

     

    
      	
              To:
                

            	
              Odyne
                Corporation

            

    

    89
      Cabot
      Drive, Suite L

    Hauppauge,
      New York 11788

     

    SUBSCRIPTION
      AGREEMENT

     

    This
      Subscription Agreement (this “Agreement”) is being delivered to you in
      connection with your investment in Odyne Corporation (“Odyne” or the “Company”).
      Matrix USA LLC (the “Placement Agent”) shall serve as the placement agent of
      Odyne in conducting an offering (the “Offering”) of units (“Units”), each Unit
      consisting of (i) a 10% Senior Secured Convertible Debenture (“Debenture”),
      which shall be secured by a first priority lien on Odyne’s assets, and which are
      convertible into shares of Odyne’s common stock (“Common Stock”), and (ii) a
      detachable, three-year warrant to purchase shares of Common Stock (“Warrant”)
      equal to 100% of the principal amount of the Debenture divided by the exercise
      price of the Warrant, which is $0.75 per
      share. The purchase price per Unit is $100,000. The Offering is being conducted
      on a “best efforts - five (5) Units or none” basis with a maximum of thirty five
      (35) Units being offered. All funds received in the Offering prior to the First
      closing of the Offering (the “First Closing”) shall be held in escrow by
      Signature Bank (the “Escrow Agent”) and, upon fulfillment of the other
      conditions precedent set forth herein, shall be released from escrow and
      delivered to Odyne at which time the securities subscribed for as further
      described below shall be delivered, subject to Section 8 hereof, to you. The
      Company and the Placement Agent may continue to offer and sell Units and conduct
      additional closings (each, a “Closing”) for the sale of additional Units after
      the First Closing until the termination of the Offering. 

     

    1.    SUBSCRIPTION
      AND PURCHASE PRICE

     

    1.1    Subscription.
      Subject
      to the conditions set forth in Section 2 hereof, the undersigned hereby
      subscribes for and agrees to purchase the number of Units indicated on page
      10
      hereof on the terms and conditions described herein. The minimum number of
      Units
      that may be purchased is five (5). Subscriptions for lesser amounts may be
      accepted at the discretion of Odyne and the Placement Agent.

     

    1.2    Purchase
      of Securities.
      The
      undersigned understands and acknowledges that the purchase price to be remitted
      to the Placement Agent in exchange for the Units shall be $100,000 per Unit,
      for
      an aggregate purchase price as set forth on page 10 hereof (the “Aggregate
      Purchase Price”). The undersigned’s delivery of this Agreement to the Placement
      Agent shall be accompanied by payment for the Units subscribed for hereunder,
      payable in United States dollars, by check or wire transfer, to “Signature Bank,
      as Escrow Agent for Odyne Corporation” with the undersigned’s delivery of this
      Agreement to the Placement Agent. The undersigned understands and agrees that,
      subject to Section 2.1(a) and applicable law, by executing this Agreement,
      he,
      she or it is entering into a binding agreement. The undersigned further
      understands and acknowledges that he, she or it is purchasing the Units
      independently and not in reliance of any person or entity participating in
      this
      Offering. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.    ACCEPTANCE
      AND CLOSING PROCEDURES

     

    2.1    Acceptance
      or Rejection.

     

    (a)    The
      obligation of the undersigned to purchase the Units shall be irrevocable, and
      the undersigned shall be legally bound to purchase the Units subject to the
      terms set forth in this Agreement.

     

    (b)    The
      undersigned understands and agrees that Odyne and the Placement Agent reserve
      the right to reject this subscription for the Units in whole or part at any
      time
      prior to the closing (the “Closing”) of the purchase and sale of the Units if,
      in their reasonable judgment, they deem such action to be in the best interest
      of Odyne, notwithstanding the undersigned’s prior receipt of notice of
      acceptance of the undersigned’s subscription.

     

    (c)    In
      the
      event of rejection of this subscription by Odyne or the Placement Agent in
      accordance with Section 2.1(b), or in the event that the sale of the Units
      is
      not consummated by the Placement Agent for any reason, this Agreement and any
      other agreement entered into between the undersigned and the Placement Agent
      relating to this subscription shall thereafter have no force or effect, and
      the
      Placement Agent shall promptly return or cause to be returned to the undersigned
      the purchase price remitted to the Escrow Agent, without interest thereon or
      deduction therefrom.

     

    2.2    Closing.

     

    Each
      Closing shall take place at the offices of Greenberg Traurig, LLP, counsel
      to
      Odyne, at The MetLife Building, 200 Park Avenue, 15th Floor, New York, New
      York
      10166, or such other place as determined by the Placement Agent. The First
      Closing shall take place on a Business Day promptly following the satisfaction
      of the conditions set forth in Section 8 below. Each subsequent Closing shall
      take place at such times as determined by Odyne (each closing date referred
      to
      as a “Closing Date”), or such other date as is mutually agreed to by the parties
      and the undersigned. “Business Day” shall mean from the hours of 9:00 a.m.
      (E.S.T.) through 5:00 p.m. (E.S.T.) of a day other than a Saturday, Sunday
      or
      other day on which commercial banks in New York, New York are authorized or
      required to be closed.

     

    3.    INVESTOR’S
      REPRESENTATIONS AND WARRANTIES

     

    The
      undersigned hereby acknowledges, agrees with and represents and warrants to
      Odyne and the Placement Agent and its affiliates, as follows:

     

    (a)    The
      undersigned has full power and authority to enter into this Agreement, the
      execution and delivery of which has been duly authorized, if applicable, and
      this Agreement constitutes a valid and legally binding obligation of the
      undersigned.

     

    (b)    The
      undersigned acknowledges his, her or its understanding that the offering and
      sale of the Units is intended to be exempt from registration under the
      Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section
      4(2) of the Securities Act and the provisions of Regulation D promulgated
      thereunder (“Regulation D”). In furtherance thereof, the undersigned represents
      and warrants to Odyne and the Placement Agent and its affiliates as
      follows:

     

    (i)    The
      undersigned realizes that the basis for the exemption from registration may
      not
      be available if, notwithstanding the undersigned’s representations contained
      herein, the undersigned is merely acquiring the Units for a fixed
      or

    
      
         

      

      
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    determinable
      period in the future, or for a market rise, or for sale if the market does
      not
      rise. The undersigned does not have any such intention.

     

    (ii)    The
      undersigned is acquiring the Units solely for the undersigned’s own beneficial
      account, for investment purposes, and not with view to, or resale in connection
      with, any distribution of the Debenture, or shares of Common Stock into which
      the Debenture is convertible and the Warrants are exercisable.

     

    (iii)    The
      undersigned has the financial ability to bear the economic risk of his, her
      or
      its investment, has adequate means for providing for current needs and
      contingencies, and has no need for liquidity with respect to the investment
      in
      Odyne;

     

    (iv)    The
      undersigned and the undersigned’s attorney, accountant, purchaser representative
      and/or tax advisor, if any (collectively, “Advisors”), have received the
      Confidential Private Placement Memorandum of the Company dated September 19,
      2007, together with all annexes thereto (as such documents may be further
      amended or supplemented after the date hereof, the “Offering Materials”),
      relating to the Offering by Odyne of the Units, and all other documents
      requested by the undersigned or Advisors, if any, have carefully reviewed them
      and understood the information contained therein, prior to the execution of
      this
      Agreement; and

     

    (v)    The
      undersigned (together with the
      undersigned’s
      Advisors, if any) has such knowledge and experience in financial and business
      matters as to be capable of evaluating the merits and risks of the prospective
      investment in the Units. If other than an individual, the undersigned also
      represents it has not been organized solely for the purpose of acquiring the
      Units.

     

    (c)    The
      information in the Investor Questionnaire completed and executed by the
      undersigned (the “Investor Questionnaire”) is true and accurate in all respects,
      and the undersigned is an “accredited investor,” as that term is defined in Rule
      501(a) of Regulation D.

     

    (d)    The
      undersigned is not relying on the Placement Agent or its affiliates or
      sub-agents with respect to economic considerations involved in this investment.
      The undersigned has relied on the advice of, or has consulted with, only his,
      her or its Advisors. Each Advisor, if any, is capable of evaluating the merits
      and risks of an investment in the Units as such are described in the Offering
      Materials, and each Advisor, if any, has disclosed to the undersigned in writing
      (a copy of which is annexed to this Agreement) the specific details of any
      and
      all past, present or future relationships, actual or contemplated, between
      the
      Advisor and the Placement Agent or any affiliate or sub-agent
      thereof.

     

    (e)    The
      undersigned will not sell or otherwise transfer the Debenture or Warrants
      (including such shares of Common Stock into which the Debentures are convertible
      and Warrants are exercisable, and collectively with the Debentures and Warrants,
      the “Securities”) without registration under the Securities Act or an exemption
      therefrom, and fully understands and agrees that the undersigned must bear
      the
      economic risk of his, her or its purchase because, among other reasons, the
      Securities have not been registered under the Securities Act or under the
      securities laws of any state and, therefore, cannot be resold, pledged, assigned
      or otherwise disposed of unless they are subsequently registered under the
      Securities Act and under the applicable state securities laws, or an exemption
      from such registration is available. In particular, the undersigned is aware
      that the Securities are “restricted securities,” as such term is defined in Rule
      144 promulgated under the Securities Act (“Rule 144”), and they may not be sold
      pursuant to Rule 144 unless all of the conditions of Rule 144 are met. The
      undersigned also understands that, except as otherwise provided herein, Odyne
      is
      under no obligation to register the Securities on the undersigned’s behalf or to
      assist the undersigned in complying with any exemption from
      registration

    
      
         

      

      
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    under
      the
      Securities Act or applicable state securities laws. The undersigned understands
      that any sales or transfers of the Securities may be further restricted by
      state
      securities laws and are further restricted by the provisions of this
      Agreement.

     

    (f)    No
      representations or warranties have been made to the undersigned by Odyne or
      the
      Placement Agent, or any of their respective officers, employees, agents,
      sub-agents, affiliates or subsidiaries, other than any representations of Odyne
      or the Placement Agent contained herein and in the Offering Materials, and
      in
      subscribing for Units the undersigned is not relying upon any representations
      other than those contained herein or in the Offering Materials.

     

    (g)    The
      undersigned understands and acknowledges that the undersigned’s purchase of the
      Units is a speculative investment that involves a high degree of risk and the
      potential loss of the undersigned’s entire investment. The undersigned has
      carefully read and considered the matters set forth in the Offering Materials
      and in particular the matters under the caption “Risk Factors” therein, and
      expressly acknowledges that Odyne has a limited operating history. 

     

    (h)    The
      undersigned’s overall commitment to investments that are not readily marketable
      is not disproportionate to the undersigned’s net worth, and an investment in the
      Units will not cause such overall commitment to become excessive.

     

    (i)    The
      undersigned understands and agrees that the Securities shall bear substantially
      the following legend until (i) such Securities shall have been registered under
      the Securities Act and effectively disposed of in accordance with a registration
      statement that has been declared effective or (ii) in the opinion of counsel
      for
      Odyne such Securities may be sold without registration under the Securities
      Act
      or any applicable “blue sky” or state securities laws:

     

    THE
      SECURITIES REPRESENTED HEREIN HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES
      LAWS. SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT
      BE
      OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED OR
      HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FILED BY
      THE
      ISSUER WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION COVERING SUCH SECURITIES
      UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER
      THAT SUCH REGISTRATION IS NOT REQUIRED.

     

    (j)    Neither
      the U.S. Securities and Exchange Commission (the “SEC”) nor any state securities
      commission has approved the Units or the Securities, or passed upon or endorsed
      the merits of the Offering or confirmed the accuracy or determined the adequacy
      of the Offering Materials. The Offering Materials has not been reviewed by
      any
      Federal, state or other regulatory authority.

     

    (k)    The
      undersigned and his, her or its Advisors, if any, have had a reasonable
      opportunity to ask questions of and receive answers from a person or persons
      acting on behalf of Odyne concerning the offering of the Units and the business,
      financial condition, results of operations and prospects of Odyne, and all
      such
      questions have been answered to the full satisfaction of the undersigned and
      the
      undersigned’s Advisors, if any.

     

    (l)    The
      undersigned is unaware of, is in no way relying on, and did not become aware
      of
      the offering of the Units through or as a result of, any form of general
      solicitation or general advertising including, without limitation, any article,
      notice, advertisement or other communication

    
      
         

      

      
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    published
      in any newspaper, magazine or similar media or broadcast over television, radio
      or electronic mail through the Internet, in connection with the offering and
      sale of the Units and is not subscribing for Units and did not become aware
      of
      the offering of the Units through or as a result of any seminar or meeting
      to
      which the undersigned was invited by, or any solicitation of a subscription
      by,
      a person not previously known to the undersigned in connection with investments
      in securities generally.

     

    (m)    The
      undersigned has taken no action that would give rise to any claim by any person
      for brokerage commissions, finders’ fees or the like relating to this Agreement
      or the transactions contemplated hereby (other than commissions to be paid
      by
      Odyne to the Placement Agent, its sub-agents or as otherwise described in the
      Offering Materials and, in turn, to be paid to other selected
      dealers).

     

    (n)    The
      undersigned is not relying on Odyne, the Placement Agent or any of their
      respective employees, agents or sub-agents with respect to the legal, tax,
      economic and related considerations of an investment in the Units, and the
      undersigned has relied on the advice of, or has consulted with, only his, her
      or
      its own Advisors.

     

    (o)    The
      undersigned acknowledges that any estimates or forward-looking statements or
      projections included in the Offering Materials were prepared by the management
      of Odyne in good faith, but that the attainment of any such projections,
      estimates or forward-looking statements cannot be guaranteed by Odyne or its
      management and should not be relied upon.

     

    (p)    No
      oral
      or written representations have been made, or oral or written information
      furnished, to the undersigned or his, her or its Advisors, if any, in connection
      with the offering of the Units that are in any way inconsistent with the
      information contained in the Offering Materials.

     

    (q)    The
      undersigned’s substantive relationship with the Placement Agent or sub-agents
      through which the undersigned is subscribing for Units predates the Placement
      Agent’s or such sub-agents’ contact with the undersigned regarding an investment
      in the Units.

     

    (r)    All
      of
      the foregoing representations, warranties and agreements shall survive the
      Closing.

     

    4.    ODYNE’S
      REPRESENTATIONS AND WARRANTIES

     

    Odyne
      hereby acknowledges, agrees with and represents and warrants to each of the
      undersigned, as follows:

     

    (a)    Odyne
      has
      the corporate power and authority to execute and deliver this Agreement and
      to
      perform its obligations hereunder. This Agreement has been duly authorized,
      executed and delivered by Odyne and is valid, binding and enforceable against
      Odyne in accordance with its terms. 

     

    (b)    The
      Debentures and Warrants to be issued to the undersigned pursuant to this
      Agreement, when issued and delivered in accordance with the terms thereof and
      this Agreement, will be duly and validly issued and will be fully paid and
      non-assessable. 

     

    (c)    Odyne
      has
      duly and validly reserved, out of its authorized and unissued Common Stock,
      for
      issuance upon conversion of the Debenture and exercise of the Warrants, a number
      of shares sufficient for such purpose. The Common Stock to be issued to the
      undersigned upon conversion of the Debentures and exercise of the Warrants
      pursuant to this Agreement, when issued and delivered in accordance with this
      Agreement, the Debenture and the Warrant will, upon receipt by Odyne of the
      applicable cash conversion or exercise price therefor, be validly issued and
      fully paid and non-assessable.

    
      
         

      

      
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    (d)    Neither
      the execution and delivery nor the performance of this Agreement by Odyne will
      conflict with Odyne’s Certificate of Incorporation or By-laws, as amended to
      date, or result in a breach of any terms or provisions of, or constitute a
      default under, any material contract, agreement or instrument to which Odyne
      is
      a party or by which Odyne is bound.

     

    (e)    After
      giving effect to the transactions contemplated by this Agreement and immediately
      after the Closing, Odyne will have the outstanding capital stock as described
      in
      the Offering Materials. 

     

    (g)    Odyne
      has
      made available to the Subscriber audited financial statements of Odyne for
      the
      year
      ended December 31, 2006, as well as unaudited financial statements for the
      six
      months ended June 30, 2007 (collectively the “Financial Statements”), which
      Financial Statements have been prepared in accordance with generally accepted
      accounting principles applied on a consistent basis (except as stated in such
      Financial Statements or the notes thereto) and fairly present the financial
      position of Odyne. The Offering Materials contain all material information
      relating to Odyne and its operations and financial condition. Since the date
      of
      the Financial Statements, there has been no Material Adverse Effect in Odyne’s
      business, financial condition or affairs not disclosed in the Offering
      Materials. The Offering Materials and the Financial Statements do not contain
      any untrue statement of a material fact or omit to state a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading in light of the circumstances when made.  To
      Odyne’s knowledge, none of its reports filed 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. 

     

    5.    COVENANTS

     

    5.1    Registration
      Rights.
      Odyne
      is obligated to register the resale of the shares of Common Stock issuable
      upon
      conversion and/or exercise of the Securities pursuant to the terms of the
      Registration Rights Agreement of even date herewith between Odyne and the
      undersigned.

     

    5.2    Short
      Sales.
      The
      undersigned covenants that neither it nor any affiliate acting on its behalf
      or
      pursuant to any understanding with it will execute any “short sales,” as defined
      in Rule 200 of Regulation SHO under the Securities Exchange Act of 1934, as
      amended (“Short Sales”), during the period commencing on the date of receipt by
      the undersigned of this Agreement and ending on the earlier of (i) the date
      of
      effectiveness of the Registration Statement or (ii) the date on which the shares
      of Common Stock issuable upon the conversion of the Debentures and exercise
      of
      the Warrants are first eligible for sale under Rule 144(k). The
      undersigned understands
      and acknowledges that the SEC currently takes the position that coverage of
      short sales of shares of the Common Stock “against the box” prior to the
      effectiveness of the Registration Statement with the Securities is a violation
      of Section 5 of the Securities Act, as set forth in Item 65, Section A, of
      the
      Manual of Publicly Available Telephone Interpretations, dated July 1997,
      compiled by the Office of Chief Counsel, Division of Corporation Finance.
Notwithstanding
      the foregoing, except as otherwise provided for in this Section 5.2, the
      undersigned does not make any representation, warranty or covenant hereby that
      it will not engage in Short Sales in the securities of the Company after
the
      earlier of (i) the date of effectiveness of the Registration Statement or (ii)
      the date on which the shares of Common Stock issuable upon the conversion of
      the
      Debentures and exercise of the Warrants are first eligible for sale under Rule
      144(k). The
      undersigned covenants that, during the period commencing on the earlier of
      (i)
      the date of effectiveness of the Registration Statement or (ii) the date on
      which the shares of Common Stock issuable upon the conversion of the Debentures
      and exercise of the Warrants are first eligible for sale under Rule 144(k)
      and
      terminating on the date when it holds no shares of Common Stock, neither the
      undersigned nor any affiliate acting on its behalf or pursuant to any
      understanding with it shall knowingly engage in

    
      
         

      

      
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    any
      Short
      Sales, except on those days (each, a “Permitted Day”) on which the aggregate
      short position with respect to the Common Stock of the undersigned prior to
      giving effect to any Short Sales by it on Permitted Day does not exceed its
      Permitted Share Position (as defined below) on such Permitted Day; provided,
      however,
      that
      the undersigned will only be entitled to engage in transactions that constitute
      Short Sales on a Permitted Day to the extent that, following such transaction,
      the aggregate short position with respect to the Common Stock of the undersigned
      does not exceed its Permitted Share Position.  For purposes of this Section
      5.2, the undersigned’s “Permitted Share Position” means, with respect to any
      date of determination, the number of shares of Common Stock beneficially owned
      by it (including shares of Common Stock issuable upon the conversion of the
      Debentures and exercise of the Warrants, and shares purchased in the open
      market, or otherwise), plus the sum of the maximum number of shares then
      issuable upon the exercise of the Warrants (including portions of the Warrants
      not yet exercised and without regard to any other exercise restrictions
      applicable to the Warrants) to the undersigned.  Notwithstanding the
      foregoing, in the case of a subscriber that is a multi-managed investment
      vehicle in which separate portfolio managers manage separate portions of the
      undersigned’s assets and the portfolio managers have no direct knowledge of the
      investment decisions made by the portfolio managers managing other portions
      of
      its assets, the covenant set forth above shall only apply with respect to the
      portion of assets managed by the portfolio manager that made the investment
      decision to purchase the Securities covered by this Agreement.

     

    6.    USE
      OF PROCEEDS

     

    The
      net
      proceeds of the Offering will be used in a manner consistent with the plan
      described in “Use of Proceeds” in the Offering Materials and the Monthly
      Operating Budget, as defined in Section 8.1(a) of this Agreement. 

     

    7.    INSIDER
      TRADING PROHIBITION; INDEMNITY

     

    7.1    Until
      the
      filing by Odyne of its Current Report on Form 8-K with the SEC describing the
      Offering, but without limiting the provisions of Section 7.2 below, the
      undersigned hereby agrees to (i) refrain from (a) engaging in any transactions
      with respect to the capital stock of Odyne or any securities exercisable or
      convertible into or exchangeable for any shares of capital stock of Odyne,
      and
      (b) entering into any transaction which would have the same effect, or entering
      into any swap, hedge or other arrangement that transfers, in whole or in part,
      any of the economic consequences of ownership of the capital stock of Odyne
      and
      (ii) indemnify and hold harmless Odyne, the Placement Agent, and their
      respective officers and directors, employees, agents, sub-agents and affiliates
      and each other person, if any, who controls any of the foregoing, against any
      loss, liability, claim, damage and expense whatsoever (including, but not
      limited to, any and all expenses whatsoever reasonably incurred in
      investigating, preparing or defending against any litigation commenced or
      threatened or any claim whatsoever) arising out of or based upon any violation
      of this Section 7 by the undersigned.

     

    7.2    The
      undersigned agrees to indemnify and hold harmless Odyne, the Placement Agent,
      the Escrow Agent and their respective officers and directors, employees, agents,
      sub-agents and affiliates and each other person, if any, who controls any of
      the
      foregoing, against any loss, liability, claim, damage and expense whatsoever
      (including, but not limited to, any and all expenses whatsoever reasonably
      incurred in investigating, preparing or defending against any litigation
      commenced or threatened or any claim whatsoever) arising out of or based upon
      any false representation or warranty by the undersigned, or the undersigned’s
      breach of, or failure to comply with, any covenant or agreement made by the
      undersigned herein or in any other document furnished by the undersigned to
      Odyne, the Placement Agent, the Escrow Agent and their respective officers
      and
      directors, employees, agents, sub-agents and affiliates and each other person,
      if any, who controls any of the foregoing in connection with the
      Offering.

    
      
         

      

      
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    8.    CONDITIONS
      TO ACCEPTANCE OF SUBSCRIPTION

     

    Odyne’s
      right to accept the subscription of the undersigned is conditioned upon
      satisfaction of the following conditions precedent on or before the date Odyne
      accepts such subscription (the “Closing Date”) (any or all of which may be
      waived by the undersigned in his, her or its sole discretion):

     

    8.1    On
      the
      First Closing, 

     

    (a)    Odyne
      shall provide the Placement Agent with evidence reasonably satisfactory to
      the
      Placement Agent that Odyne has decreased its average monthly operating expenses,
      exclusive of materials, non-cash items and expenses associated with the
      Offering, to no more than $275,000 per month, commencing as of September 1,
      2007
      (the “Monthly Operating Budget”).

    

    (b)    Messrs.
      Joseph Ambrosio and Konstantinos (Gus) Sfakianos shall have extended their
      employment agreements with Odyne for an additional three (3) years from the
      First Closing.

     

    (c)    No
      legal
      action, suit or proceeding shall be pending which seeks to restrain or prohibit
      the transactions contemplated by this Agreement.

     

    (d)    The
      representations and warranties of Odyne contained in this Agreement shall have
      been true and correct on the date of this Agreement and shall be true and
      correct on the First Closing Date as if made on the First Closing
      Date.

    

    8.2    On
      each
      Closing thereafter,

     

    (a)    No
      legal
      action, suit or proceeding shall be pending which seeks to restrain or prohibit
      the transactions contemplated by this Agreement.

     

    (b)    The
      representations and warranties of Odyne contained in this Agreement shall have
      been true and correct on the date of this Agreement and shall be true and
      correct on the Closing Date as if made on the Closing Date.

     

    (c)    Odyne
      shall have provided the Placement Agent with evidence that Odyne has been
      maintaining the Monthly Operating Budget.

    

    (d)    The
      Placement Agent shall be satisfied that the Company shall be working with the
      CEO to develop new strategies for the overall improvement of the Company,
      including, but not limited to, delivering products and adapting staffing needs
      of the Company.

    

    8.3    Appointment
      of Director.

    

    Upon
      the
      termination of the Offering, the Investor whom shall have purchased the most
      Units in this Offering shall be appointed to the Board, provided such Investor
      shall have purchased at least five (5) Units. In the event that no Investor
      shall have purchased at least five (5) Units, then the Placement Agent shall
      have the right, subject to the approval of Odyne, which such approval shall
      not
      be unreasonably withheld, to nominate an Investor to the Board or, at a minimum,
      to nominate and Investor to attend all meetings of the Board.

    

    9.    NOTICES
      TO SUBSCRIBERS

     

    9.1    THE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES
      LAWS OF ANY STATE AND ARE BEING OFFERED AND SOLD IN

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    RELIANCE
      ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
      SUCH
      STATE LAWS. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC,
      ANY
      STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF
      THE
      FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR
      THE
      ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS. ANY REPRESENTATION TO THE
      CONTRARY IS UNLAWFUL.

     

    9.2    THE
      SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
      NOT
      BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT, AND
      APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
      THEREFROM. SUBSCRIBERS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
      FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
      TIME.

     

    
      	
              10.

            	
              MISCELLANEOUS
                PROVISIONS

            

    

     

    10.1    Survival.
      The
      undersigned’s representations and warranties made in this Subscription Agreement
      shall survive the execution and delivery of this Agreement and the delivery
      of
      the Debentures and Warrants.

     

    10.2    Notices.
      Any
      party may send any notice, request, demand, claim or other communication
      hereunder to the undersigned at the address set forth on the signature page
      of
      this Agreement or to Odyne at the address set forth above using any means
      (including personal delivery, expedited courier, messenger service, fax,
      ordinary mail or electronic mail), but no such notice, request, demand, claim
      or
      other communication will be deemed to have been duly given unless and until
      it
      actually is received by the intended recipient. Any party may change the address
      to which notices, requests, demands, claims and other communications hereunder
      are to be delivered by giving the other parties written notice in the manner
      herein set forth.

     

    10.3    Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    10.4    Binding
      Effect.
      Except
      as otherwise provided herein, this Agreement shall be binding upon, and inure
      to
      the benefit of, the parties to this Agreement and their heirs, executors,
      administrators, successors, legal representatives and assigns. If the
      undersigned is more than one person or entity, the obligation of the undersigned
      shall be joint and several and the agreements, representations, warranties
      and
      acknowledgments contained herein shall be deemed to be made by, and be binding
      upon, each such person or entity and his, her or its heirs, executors,
      administrators, successors, legal representatives and permitted
      assigns.

     

    10.5    Assignability.
      This
      Agreement is not transferable or assignable by the undersigned. This Agreement
      shall be transferable or assignable by the Placement Agent to
      Odyne.

     

    10.6    Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, without giving effect to conflicts of law
      principles.

     

    10.7    Entire
      Agreement; Amendments; Waivers.
      This
      Agreement supersedes all other prior oral or written agreements between the
      undersigned and Odyne, their affiliates and persons acting on their behalf
      with
      respect to the matters discussed herein, and this Agreement and the instruments
      referenced herein (including the other documents executed in connection with
      the
      Offering) contain the entire understanding of the parties with respect to the
      matters covered herein and therein and, except as

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    specifically
      set forth herein or therein, neither Odyne nor the undersigned makes any
      representation, warranty, covenant or undertaking with respect to such matters.
      In addition:

    

    (i)    Except
      as
      provided herein, no failure or delay on the part of the Investor in exercising
      any power or right under this Agreement shall operate as a waiver thereof,
      nor
      shall any single or partial exercise of any such power or right preclude any
      other or further exercise thereof or the exercise of any other power or right.
      No notice to or demand on Odyne in any case shall entitle it to any notice
      or
      demand in similar or other circumstances. No waiver or approval by the Investor
      shall, except as may be otherwise stated in such waiver or approval, be
      applicable to subsequent transactions. No waiver or approval hereunder shall
      require any similar or dissimilar waiver or approval thereafter to be granted
      hereunder.

    

    (ii)    Neither
      this Agreement, nor any provisions hereof, shall be waived, modified, discharged
      or terminated except by an instrument in writing signed by the party against
      whom any waiver, modification, discharge or termination is sought.

     

    ANTI-MONEY
      LAUNDERING REQUIREMENTS

     

    
      	
              The
                USA PATRIOT Act

            	
              What
                is money laundering?

            	
              How
                big is the problem and why is it important?

            
	
              The
                USA PATRIOT Act is designed to detect, deter, and punish terrorists
                in the
                United States and abroad. The Act imposes new anti-money laundering
                requirements on brokerage firms and financial institutions. Since
                April
                24, 2002, all brokerage firms have been required to have new,
                comprehensive anti-money laundering programs.

               

              To
                help you understand these efforts, we want to provide you with some
                information about money laundering and our steps to implement the
                USA
                PATRIOT Act.

            	
              Money
                laundering is the process of disguising illegally obtained money
                so that
                the funds appear to come from legitimate sources or activities. Money
                laundering occurs in connection with a wide variety of crimes, including
                illegal arms sales, drug trafficking, robbery, fraud, racketeering,
                and
                terrorism.

            	
              The
                use of the U.S. financial system by criminals to facilitate terrorism
                or
                other crimes could taint our financial markets. According to the
                U.S.
                State Department, one recent estimate puts the amount of worldwide
                money
                laundering activity at $1 trillion a
                year.

            

    

    

    
      	
              What
                are we required to do to eliminate money
                laundering?

            
	
              Under
                the rules required by the USA PATRIOT Act, our anti-money laundering
                program must designate a special compliance officer, set up employee
                training, conduct independent audits, and establish policies and
                procedures to detect and report suspicious transactions and ensure
                compliance with the law.

               

            	
              As
                part of our required program, we may ask you to provide various
                identification documents or other information. Until you provide
                the
                information or documents we need, we may not be able to effect any
                transactions for you.

            

    

    

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    PRIVACY
      POLICY

     

    It
      is the
      policy of Matrix USA LLC (“Matrix”) to respect the privacy of customers who
      subscribe to transactions underwritten by Matrix.

     

    Whether
      its own brokers introduce customers to Matrix or the introduction was made
      through Selling Agents (hereinafter referred to as “Subscribers”) non-public
      personal information is protected by Matrix. 

     

    Matrix
      does not disclose any nonpublic personal information about Subscribers to
      anyone, except as required or permitted by law and to effect, administer, or
      enforce transactions requested by Subscribers in the ordinary processing,
      servicing or maintaining their accounts. Furthermore, Matrix does not reserve
      the right to disclose Subscriber’s nonpublic personal information in the future
      without first notifying the Subscriber of a change in privacy policy and
      providing a convenient opportunity for Subscriber to opt out of information
      sharing with nonaffiliated third parties.

     

    Under
      the
      USA PATRIOT Act of 2001 (Public Law 107-56)(together with all rules and
      regulations promulgated thereunder, the “Patriot Act”), Matrix and/or your
      broker may be required or requested to disclose to one or more regulatory and/or
      law enforcement bodies certain information regarding transactions relating
      to
      your account involving transactions with foreign entitles and individuals,
      other
      transactions in your account as required in the Patriot Act and other activities
      described in the Patriot Act as “suspicious activities.” Neither Matrix nor your
      broker shall have any obligation to advise you of any such disclosures or
      reports made in compliance with the Patriot Act.

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    ALL
      SUBSCRIBERS MUST COMPLETE THIS PAGE

     

    IN
      WITNESS WHEREOF, the undersigned has executed this Agreement on the ____ day
      of
      ____________ 2007.

     

    

    
      	
              ________________________

            	
              X
                $100,000 for each Unit

            	
              =
                $_____________________.

            
	
              Units
                subscribed for

            	 	
              Aggregate
                Purchase Price

            

    

    

    Manner
      in
      which Title is to be held (Please Check One):

    
      	
              1.

            	
              ___

            	
              Individual

            	
              7.

            	
              ___

            	
              Trust/Estate/Pension
                or Profit sharing Plan

              Date
                Opened:______________

            
	
              2.

            	
              ___

            	
              Joint
                Tenants with Right of Survivorship

            	
              8.

            	
              ___

            	
              As
                a Custodian for

              ________________________________

              Under
                the Uniform Gift to Minors Act of the State of

              ________________________________

            
	
              3.

            	
              ___

            	
              Community
                Property

            	
              9.

            	
              ___

            	
              Married
                with Separate Property

            
	
              4.

            	
              ___

            	
              Tenants
                in Common

            	
              10.

            	
              ___

            	
              Keogh

            
	
              5.

            	
              ___

            	
              Corporation/Partnership/
                Limited Liability Company

            	
              11.

            	
              ___

            	
              Tenants
                by the Entirety

               

            
	
              6.

            	
              ___

            	
              IRA

            	 	 	 

    

    

    IF
      MORE
      THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.

    INDIVIDUAL
      SUBSCRIBERS MUST COMPLETE PAGE 12.

    SUBSCRIBERS
      WHICH ARE ENTITIES MUST COMPLETE PAGE 13.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    EXECUTION
      BY NATURAL PERSONS

     

    
      	
              _____________________________________________________________________________

              Exact
                Name in Which Title is to be Held

            
	
              _________________________________

               Name
                (Please Print)

            	 	
              _________________________________

               Name
                of Additional Purchaser

            
	
              _________________________________

               Residence:
                Number and Street

            	 	
              _________________________________

               Address
                of Additional Purchaser

            
	
              _________________________________

               City,
                State and Zip Code

            	 	
              _________________________________

               City,
                State and Zip Code

            
	
              _________________________________

               Social
                Security Number

            	 	
              _________________________________

               
                Social Security Number

            
	
              _________________________________
                

              Telephone
                Number 

            	 	
              _________________________________

              Telephone
                Number

            
	
              _________________________________
                

              Fax
                Number (if available)

            	 	
              ________________________________

              Fax
                Number (if available)

            
	
              _________________________________
                

              E-Mail
                (if available) 

            	 	
              ________________________________
                

              E-Mail
                (if available)

            
	
              __________________________________

               (Signature)

            	 	
              ________________________________

               (Signature
                of Additional Purchaser)

            
	
               

               

              ACCEPTED
                this ___ day of _________ 2007, on behalf of Odyne.

            
	 	
              By: _________________________________

              Name:

              Title:

            
	 	 

    

    

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    EXECUTION
      BY SUBSCRIBER WHICH IS AN ENTITY

    (Corporation,
      Partnership, LLC, Trust, Etc.)

     

    
      	
              _____________________________________________________________________________

              Name
                of Entity (Please Print)

            
	
              Date
                of Incorporation or Organization: 

               

            
	
              State
                of Incorporation or Organization: 

               

               

               

            
	
              State
                of Principal Office: 

               

            
	
              Federal
                Taxpayer Identification Number: 

               

              ____________________________________________

              Office
                Address

              ____________________________________________

              City,
                State and Zip Code

              ____________________________________________

              Telephone
                Number

              ____________________________________________

              Fax
                Number (if available)

              ____________________________________________

              E-Mail
                (if available)

            
	 	
              By:
                _________________________________

              Name:

              Title:

            
	
              [seal]

               

              Attest:
                _________________________________

              (If
                Entity is a Corporation)

               

            	
               

               

              _________________________________

               

               

              _________________________________

              Address

            
	 	 
	
              ACCEPTED
                this ____ day of __________ 2007, on behalf of Odyne.

            
	 	
               

               

               

              By:
                _________________________________

              Name:

              Title:

            

    

     

    
      
         

      

        -14-Exhibit
      10.2

     

    REGISTRATION
      RIGHTS AGREEMENT

    

    THIS
      REGISTRATION RIGHTS AGREEMENT,
      dated as
      of__________, 2007 (this “Agreement”), is made by and between ODYNE
      CORPORATION,
      a
      Delaware corporation, with headquarters located at 89 Cabot Drive, Suite L,
      Hauppauge, New York 11788 (the “Company”), and each entity or individual listed
      on the signature page hereto (each, an “Investor”). 

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      upon
      the terms and subject to the conditions of the Subscription Agreement, dated
      as
      of the date of acceptance as set forth on the Subscription Agreement, between
      the Investor and the Company (the “Subscription Agreement”) capitalized terms
      not otherwise defined herein shall have the meanings ascribed to them in the
      Subscription Agreement), the Company has agreed to issue and sell to the
      Investor a Unit consisting of a Debenture and a Warrant; and

    

    WHEREAS,
      the
      Debenture is convertible into shares of Common Stock (the “Conversion Shares”);
      which term, for purposes of this Agreement, shall include shares of Common
      Stock
      of the Company issuable in lieu of accrued interest through the Maturity Date
      of
      the Debenture, as that term is defined in and as contemplated by the Debenture)
      upon the terms and subject to the conditions contained in the Debenture; and
      

    

    WHEREAS,
      the
      Company has agreed to issue the Warrant to the Investor in connection with
      the
      issuance of the Debenture, and the Warrant may be exercised for the purchase
      of
      shares of Common Stock (the “Warrant Shares”) upon the terms and conditions of
      the Warrant; and

    

    WHEREAS,
      to
      induce the Investor to execute and deliver Subscription Agreement, the Company
      has agreed to provide certain registration rights under the Securities Act
      of
      1933, as amended, and the rules and regulations thereunder, or any similar
      successor statute (collectively, the “Securities Act”), with respect to the
      Registrable Securities (as defined below); 

    

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

    

    1.    Definitions. As
      used
      in this Agreement, the following terms shall have the following
      meanings:

    

    (a)    “Closing
      Date” means the date of the final closing of the purchase and sale of the
      Debentures and Warrants.

     

    (b)    “Effective
      Date” means the date the SEC declares a Registration Statement covering
      Registrable Securities and otherwise meeting the conditions contemplated hereby
      to be effective.

    

    (c)    “Principal
      Trading Market” shall mean The National Association of Securities Dealers Inc.’s
      Over-The-Counter Bulletin Board, the Pink Sheets, or a national securities
      exchange or national quotation system. 

    

    (d)    “Register,”
      “Registered,” and “Registration” refer to a registration effected by preparing
      and filing a Registration Statement or Statements in compliance with the
      Securities Act and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    pursuant
      to Rule 415 under the Securities Act or any successor rule providing for
      offering securities on a continuous basis (“Rule 415”), and the declaration or
      ordering of effectiveness of such Registration Statement by the United States
      Securities and Exchange Commission (the “SEC”).

     

    (e)    “Registrable
      Securities” means the Conversion Shares and the Warrant Shares, provided that
      all such shares shall cease to be Registrable Securities at such time as they
      have been soled under a Registration Statement or pursuant to Rule 144 under
      the
      Securities Act or otherwise or at such time as they are eligible to be sold
      pursuant to Rule 144 (without volume limitations).. 

    

    (f)    “Registration
      Statement” means a registration statement of the Company under the Securities
      Act covering Registrable Securities on Form SB-2, if the Company is then
      eligible to file using such form, and if not eligible, on such other appropriate
      form.

    

    2.    Registration.

    

    (a)    Mandatory
      Registration.
      The
      Company shall prepare and file with the SEC, as soon as possible after the
      Closing Date but no later than sixty (60) days after the Closing Date (the
      “Required Filing Date”), a Registration Statement registering for resale by the
      Investor a number of shares of Common Stock for the Investors to sell the
      Registrable Securities, but in no event less than the number of shares equal
      to
      the number of shares into which the Debentures and all interest thereon through
      the Maturity Date would be convertible at the time of filing of such
      Registration Statement and (y) the number of Warrant Shares which would be
      issuable on exercise of the Warrant at its initial exercise price. The
      Registration Statement shall also cover the shares of Common Stock issuable
      upon
      exercise of the Warrants being issued to Matrix USA, LLC. The Registration
      Statement shall state that, in accordance with Rule 416 and 457 under the
      Securities Act, it also covers such indeterminate number of additional shares
      of
      Common Stock as may become issuable upon conversion of the Debentures and the
      exercise of the Warrants to prevent dilution resulting from stock splits or
      stock dividends. The Company will use its reasonable best efforts to cause
      such
      Registration Statement to be declared effective. In the event that the
      Registration Statement is is not effective (the “Required Effective Date”) upon
      the earlier of (Y) five (5) days after oral or written notice by the SEC that
      it
      may be declared effective or (Z) one hundred eighty (180) days after the Closing
      Date (unless such failure to become effective is a result of the actions of
      the
      Investor), the Company will be deemed to be in breach of this Agreement.

    

    (b)    Payments
      by the Company.

     

    (i)    If
      the
      Registration Statement covering the Registrable Securities is not filed in
      proper form with the SEC by the Required Filing Date, the Company will make
      payment to the Investor in such amounts and at such times as shall be determined
      pursuant to this Section 2(b). 

    

    (ii)    If
      the
      Registration Statement covering the Registrable Securities is not effective
      by
      the relevant Required Effective Date or if the Investor is restricted from
      making sales of Registrable Securities covered by a previously effective
      Registration Statement at any time by virtue of a suspension or stop order
      with
      respect to such Registration Statement (the date such restriction commences,
      a
“Restricted Sale Date”), then the Company will make payments to the Investor in
      such amounts and at such times as shall be determined pursuant to this Section
      2(b); notwithstanding the following, the Company may suspend the Investor from
      making sales of Registrable Securities for up to three such suspension periods
      during any consecutive 12 month period, each of which suspension period shall
      not either (i) be for more than twenty (20) business days or (ii) begin less
      than ten (10) business days after the last day of the preceding
      suspension.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (iii)    The
      amount (the “Periodic Amount”) to be paid by the Company to the Investor shall
      be determined as of each Computation Date (as defined below) and such Periodic
      Amount shall be equal to 2% of the principal amount of Debenture outstanding
      for
      the period from the date following each of the relevant Required Filing Date
      or
      the Required Effective Date, as the case may be, to the first relevant
      Computation Date, and thereafter to each subsequent Computation Date (prorated
      on a daily basis if such period is less than thirty (30) days); provided,
      however,
      that
      such Periodic Amounts shall cease after six (6) months from the initial
      Computation Date. The parties acknowledge that the failure to comply on a timely
      basis with the provisions related to both the Required Filing Date and the
      Required Effective Date would result in a payment of four (4%) percent of the
      then outstanding principal amount of the Debenture. 

    

    (iv)    Each
      Periodic Amount will be payable by the Company, and at the option of the
      Company, in cash or freely tradable shares of Common Stock (1) on the day after
      the Required Filing Date or the Required Effective Date, as the case may be,
      and
      (2) each thirtieth day thereafter. 

    

    (v)    The
      parties acknowledge that the damages which may be incurred by the Investor
      if
      the Registration Statement is not filed by the Required Filing Date or the
      Registration Statement has not been declared effective by a Required Effective
      Date, including if the right to sell Registrable Securities under a previously
      effective Registration Statement is suspended or the shares of the Company’s
      stock are not listed on the Principal Trading Market, may be difficult to
      ascertain. The parties agree that the Periodic Amounts represent a reasonable
      estimate on the part of the parties, as of the date of this Agreement, of the
      amount of such damages.

    

    (vi)    Notwithstanding
      the foregoing, the amounts payable by the Company pursuant to this provision
      shall not be payable to the extent any delay in the effectiveness of the
      Registration Statement or such Registration Statement is suspended or subject
      to
      a stop order occurs because of an act of, or a failure to act or to act timely
      by the Investor or its counsel.

     

    (vii)    “Computation
      Date” means (A) the date which is the earlier of (1) thirty (30) days after the
      Required Filing Date or Required Effective Date, as the case may be, or (2)
      the
      date after the Required Filing Date on which the Registration Statement is
      filed
      (with respect to payments due as contemplated by Section 2(b)(i) hereof) or
      the
      date after the Required Effective Date on which the Registration Statement
      is
      declared effective (with respect to payments due as contemplated by Section
      2(b)(ii) hereof), as the case may be, and (B) each date which is the earlier
      of
      (1) thirty (30) days after the previous Computation Date or (2) the date after
      the previous Computation Date on which the Registration Statement is filed
      (with
      respect to payments due as contemplated by Section 2(b)(i) hereof) or is
      declared effective (with respect to payments due as contemplated by Section
      2(b)(ii) hereof), as the case may be.

    

    
      
        (viii)    Notwithstanding
          anything to the contrary contained in this Agreement,
          if the staff of the SEC (the “Staff”) or the SEC seeks to characterize any
          offering pursuant to a Registration Statement filed pursuant to this Agreement
          as constituting a primary offering of securities by or on behalf of the
          Company,
          or in any other manner, such that the Staff or the SEC does not permit
          such
          Registration Statement to become effective and used for resales in a continuous
          at the market offering pursuant to Rule 415 under the Securities Act by
          the
          Investors (or as otherwise may be acceptable to each Investor) without
          being
          named therein as “underwriters” (a “Resale Registration Statement”), then the
          Company shall have the right to reduce the number of Registrable Securities
          to
          be included in such Registration Statement by all Investors, to the extent
          that
          the Staff or the SEC shall permit such Registration Statement to become
          effective as a Resale Registration Statement. In making such reduction,
          the
          Company shall reduce the number of Registrable Securities to be included
          by
          all

      

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    Investors
      on a pro rata basis (based upon the number of Registrable Securities otherwise
      required to be included for each Investor), unless the inclusion of Registrable
      Securities by a particular Investor or a particular type of Investors is the
      cause of the refusal by the Staff or the SEC to allow such Registration to
      become effective as a Resale Registration Statement, in which event the
      Registrable Securities held by such Investor or type of Investors shall be
      the
      only Registrable Securities subject to reduction (and if by a set of Investors
      on a pro rata basis with respect to such Investors or on such other basis as
      would result in the exclusion of the least number of shares by all such
      Investors). In addition, if the Staff or the SEC requires any Investor seeking
      to sell Registrable Securities under a Registration Statement filed pursuant
      to
      this Agreement to be identified as an “underwriter” in order to permit such
      Registration Statement to become effective, and such Investor does not consent
      to being so named as an underwriter in such Registration Statement, then, in
      each such case, the Company shall be entitled to reduce the total number of
      Registrable Securities to be registered on behalf of such Investor, until such
      time as the Staff or the SEC does not require such identification. 

    

    (ix)    If
      any
      reduction in the number of Registrable Securities included in a Registration
      Statement is made pursuant to paragraph (i) above, then no Investor shall have
      any claim against the Company as a result of such reduction or any Event or
      other delay or breach of this Agreement attributable primarily to the refusal
      of
      the Staff or the SEC to permit the Registration Statement to become effective
      as
      a Resale Registration Statement, nor shall any such reduction entitle any
      Investor to require the Company to pay any partial damages pursuant to Section
      2(b) hereof. In the event of any reduction in Registrable Securities pursuant
      to
      this paragraph, an affected Investor shall have the right, upon delivery of
      a
      written request to the Company signed by the Investor, to require the Company
      to
      file a registration statement within 90 days after its receipt of such request
      (subject to any restrictions imposed by Rule 415 or required by the Staff or
      the
      SEC) for resale by such Investor in a manner reasonably acceptable to such
      Investor, and the Company shall following such request use its commercially
      reasonable efforts to cause such registration statement to be declared and
      kept
      effective in the same manner as otherwise contemplated in this Agreement for
      registration statements hereunder, in each case until such time as: (i) all
      Registrable Securities held by such Investor have been registered pursuant
      to an
      effective Registration Statement in a manner reasonably acceptable to such
      Investor, (ii) such Investor’s Registrable Securities may be resold by such
      Investor without restriction (including volume limitations) pursuant to
      Rule 144(k) of the Securities Act, or (iii) the Investor agrees to be named
      as an underwriter in any such Registration Statement as to all Registrable
      Securities held by such Investor and which have not theretofore been included
      in
      a Registration Statement under this Agreement (it being understood that the
      special demand right under this sentence may be exercised by a Investor multiple
      times and with respect to limited amounts of Registrable Securities in order
      to
      permit the resale thereof by such Investor as contemplated above). 

    

    3.    Obligations
      of the Company.
      In
      connection with the registration of the Registrable Securities, the Company
      shall do each of the following:

     

    (a)    Prepare
      promptly, and file with the SEC by the Required Filing Date a Registration
      Statement with respect to not less than the number of Registrable Securities
      provided in Section 2(a) above, and thereafter use its reasonable best efforts
      to cause such Registration Statement relating to Registrable Securities to
      become effective by the Required Effective Date and keep the Registration
      Statement effective at all times during the period (the “Registration Period”)
      continuing until the earlier of (i) the date when the Investors may sell all
      Registrable Securities under Rule 144 without volume or other restrictions
      or
      limits or (ii) the date the Investors no longer own any of the Registrable
      Securities, which Registration Statement (including any amendments or
      supplements thereto and prospectuses contained therein) shall not contain any
      untrue statement of a material fact or omit to state a

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances in which they were made, not
      misleading;

    

    (b)    Prepare
      and file with the SEC such amendments (including post-effective amendments)
      and
      supplements to the Registration Statement and the prospectus used in connection
      with the Registration Statement as may be necessary to keep the Registration
      Statement effective at all times during the Registration Period, and, during
      the
      Registration Period, comply with the provisions of the Securities Act with
      respect to the disposition of all Registrable Securities of the Company covered
      by the Registration Statement until such time as all of such Registrable
      Securities have been disposed of in accordance with the intended methods of
      disposition by the seller or sellers thereof as set forth in the Registration
      Statement;

    

    (c)    Permit
      a
      single firm of counsel designated by the Investor to review the Registration
      Statement and all amendments and supplements thereto a reasonable period of
      time
      (but not less than three (3) business days) prior to their filing with the
      SEC,
      and not file any document in a form to which such counsel reasonably objects,
      at
      Investor’s expense.

     

    (d)    Notify
      the Investor and the Investor’s counsel (initially Steven W. Schuster, Esq., c/o
      McLaughlin & Stern, LLP, 260 Madison Avenue, New York, NY 10016) and any
      managing underwriters immediately (and, in the case of (i)(A) below, not less
      than three (3) business days prior to such filing) and (if requested by any
      such
      person) confirm such notice in writing no later than one (1) business day
      following the day (i)(A) when a Prospectus or any Prospectus supplement or
      post-effective amendment to the Registration Statement is proposed to be filed;
      (B) whenever the SEC notifies the Company whether there will be a “review” of
      such Registration Statement; (C) whenever the Company receives (or a
      representative of the Company receives on its behalf) any oral or written
      comments from the SEC in respect of a Registration Statement (copies or, in
      the
      case of oral comments, summaries of such comments shall be promptly furnished
      by
      the Company to the Investors); and (D) with respect to the Registration
      Statement or any post-effective amendment, when the same has become effective;
      (ii) of any request by the SEC or any other Federal or state governmental
      authority for amendments or supplements to the Registration Statement or
      Prospectus or for additional information; (iii) of the issuance by the SEC
      of
      any stop order suspending the effectiveness of the Registration Statement
      covering any or all of the Registrable Securities or the initiation of any
      proceedings for that purpose; (iv) if at any time any of the representations
      or
      warranties of the Company contained in any agreement (including any underwriting
      agreement) contemplated hereby ceases to be true and correct in all material
      respects; (v) of the receipt by the Company of any notification with respect
      to
      the suspension of the qualification or exemption from qualification of any
      of
      the Registrable Securities for sale in any jurisdiction, or the initiation
      or
      threatening of any proceeding for such purpose; and (vi) of the occurrence
      of
      any event that to the best knowledge of the Company makes any statement made
      in
      the Registration Statement or Prospectus or any document incorporated or deemed
      to be incorporated therein by reference untrue in any material respect or that
      requires any revisions to the Registration Statement, Prospectus or other
      documents so that, in the case of the Registration Statement or the Prospectus,
      as the case may be, it will not contain any untrue statement of a material
      fact
      or omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading. In addition, the Company shall furnish the Investor’s
      Counsel with copies of all intended written responses to the comments
      contemplated in clause (C) of this Section 3(d) not later than one (1) business
      day in advance of the filing of such responses with the SEC so that the
      Investors shall have the opportunity to comment thereon, if relevant to the
      Investors;

    

    (e)    Furnish
      the Investor and to Investor’s Counsel (i) promptly after the same is prepared
      and publicly distributed, filed with the SEC, or received by the Company, one
      (1) copy of the

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    Registration
      Statement, each preliminary prospectus and prospectus, and each amendment or
      supplement thereto, and (ii) such number of copies of a prospectus, and all
      amendments and supplements thereto and such other documents, as such Investor
      may reasonably request in order to facilitate the disposition of the Registrable
      Securities owned by such Investor;

    

    (f)    As
      promptly as practicable after becoming aware thereof, notify each Investor
      of
      the happening of any event of which the Company has knowledge, as a result
      of
      which the prospectus included in the Registration Statement, as then in effect,
      includes an untrue statement of a material fact or omits to state a material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading, and
      use its best efforts promptly to prepare a supplement or amendment to the
      Registration Statement or other appropriate filing with the SEC to correct
      such
      untrue statement or omission, and deliver a number of copies of such supplement
      or amendment to the Investor as the Investor may reasonably
      request;

    

    (g)    As
      promptly as practicable after becoming aware thereof, notify the Investor who
      holds the Registrable Securities being sold (or, in the event of an underwritten
      offering, the managing underwriters) of the issuance by the SEC of a Notice
      of
      Effectiveness or any notice of effectiveness or any stop order or other
      suspension of the effectiveness of the Registration Statement at the earliest
      possible time;

     

    (h)    Use
      its
      reasonable efforts to secure and maintain the designation of all the Registrable
      Securities covered by the Registration Statement on the Principal Trading Market
      within the meaning of Rule 11Aa2-1 of the SEC under the Securities Exchange
      Act
      of 1934, as amended (the “Exchange Act”), and the quotation of the Registrable
      Securities on the Principal Trading Market.

    

    
      
        (i)    Cooperate
          with the Investor to facilitate the timely preparation and delivery
          of certificates for the Registrable Securities to be offered pursuant to
          the
          Registration Statement and enable such certificates for the Registrable
          Securities to be in such denominations or amounts as the case may be, as
          the
          Investor may reasonably request, and, within five (5) business days after
          a
          Registration Statement which includes Registrable Securities is ordered
          effective by the SEC, the Company shall deliver, and shall cause legal
          counsel
          selected by the Company to deliver, to the transfer agent for the Registrable
          Securities (with a copy to Steven W. Schuster, Esq.) an appropriate instruction
          and opinion of such counsel; 

      

    

    

    (j)    For
      a
      period of 75 days from the Effective Date, not file a Registration Statement
      covering any additional shares of Common Stock (excluding on Form
      S-8);

     

    (k)   Take
      all
      other reasonable actions necessary to expedite and facilitate disposition by
      the
      Investor of the Registrable Securities pursuant to the Registration
      Statement.

     

    4. Obligations
      of the Investor.
      In
      connection with the registration of the Registrable Securities, the Investors
      shall have the following obligations:

    

    (a)    The
      Investor, by the Investor’s acceptance of the Registrable Securities, agrees to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of the Registration Statement hereunder, unless
      the Investor has notified the Company in writing of the Investor’s election to
      exclude all of the Investor’s Registrable Securities from the Registration
      Statement; and

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    (b)    The
      Investor agrees that, upon receipt of any notice from the Company of the
      happening of any event of the kind described in Section 3(f) or 3(g), above,
      the
      Investor will immediately discontinue disposition of Registrable Securities
      pursuant to the Registration Statement covering such Registrable Securities
      until the Investor’s receipt of the copies of the supplemented or amended
      prospectus contemplated by Section 3(f) or 3(g) and, if so directed by the
      Company, the Investor shall deliver to the Company (at the expense of the
      Company) or destroy (and deliver to the Company a certificate of destruction)
      all copies in the Investor’s possession, of the prospectus covering such
      Registrable Securities current at the time of receipt of such
      notice.

    

    5.    Expenses
      of Registration.
      

    

    (a)    All
      expenses (other than (i) underwriting discounts and commissions of the Investor
      and (ii) expenses of the Investor’s counsel incurred in connection with
      registrations, filings or qualifications pursuant to Section 3), but including,
      without limitation, all registration, listing, and qualifications fees, printers
      and accounting fees, the fees and disbursements of counsel for the Company
      shall
      be borne by the Company. 

    

    (b)    The
      Company has not, as of the date hereof, nor shall the Company on or after the
      date of this Agreement, enter into any agreement with respect to its securities
      that is inconsistent with the rights granted to the Investor in this Agreement
      or the Subscription Agreement, except as disclosed therein.

    

    6.    Indemnification.
       After
      Registrable Securities are included in a Registration
      Statement under this Agreement:

    

    (a)    To
      the
      extent permitted by law, the Company will indemnify and hold harmless, the
      Investor, the directors, if any, of such Investor, the officers, if any, of
      such
      Investor (each, an “Indemnified Party”), against any losses, claims, damages,
      liabilities or expenses (joint or several) incurred (collectively, “Claims”) to
      which any of them may become subject under the Securities Act, the Exchange
      Act
      or otherwise, insofar as such Claims (or actions or proceedings, whether
      commenced in respect thereof) arise out of or are based upon: (i) any untrue
      statement or untrue statement of a material fact contained in the Registration
      Statement or any post-effective amendment thereof or the omission or alleged
      omission to state therein a material fact required to be stated therein or
      necessary to make the statements therein not misleading, (ii) any untrue
      statement or untrue statement of a material fact contained in the final
      prospectus (as amended or supplemented, if the Company files any amendment
      thereof or supplement thereto with the SEC) or the omission or alleged omission
      to state therein any material fact necessary to make the statements made
      therein, in the light of the circumstances under which the statements therein
      were made, not misleading or (iii) any violation or alleged violation by the
      Company of the Securities Act, the Exchange Act, any state securities law or
      any
      rule or regulation under the Securities Act, the Exchange Act or any state
      securities law (the matters in the foregoing clauses (i) through (iii) being
      collectively referred to as “Violations”). The Company shall reimburse the
      Investor for any reasonable legal fees or other reasonable expenses incurred
      by
      them in connection with investigating or defending any such Claim.
      Notwithstanding anything to the contrary contained herein, the indemnification
      agreement contained in this Section 6(a) shall not (i) apply to any Claims
      arising out of or based upon a Violation which occurs in reliance upon and
      in
      conformity with information furnished in writing to the Company by or on behalf
      of any Indemnified Party expressly for use in connection with the preparation
      of
      the Registration Statement or any such amendment thereof or supplement thereto;
      (ii) be available to the extent such Claim is based on a failure of the Investor
      to deliver or cause to be delivered the prospectus made available by the
      Company; or (iii) apply to amounts paid in settlement of any Claim if such
      settlement is effected without the prior written consent of the Company, which
      consent

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    shall
      not
      be unreasonably withheld. The Investor will indemnify the Company, its officers,
      directors and agents (including legal counsel) (each an “Indemnified Party”)
      against any claims arising out of or based upon a Violation which occurs in
      reliance upon and in conformity with information furnished in writing to the
      Company, by or on behalf of such Investor, expressly for use in connection
      with
      the preparation of the Registration Statement, subject to such limitations
      and
      conditions set forth in this Section 6. The Investor shall reimburse the Company
      for any reasonable legal fees or other reasonable expenses incurred by it in
      connection with investigating or defending any such Claim. Such indemnity shall
      remain in full force and effect regardless of any investigation made by or
      on
      behalf of the Indemnified Party, and shall survive the offering and transfer
      of
      the Registrable Securities by the Investor.

    

    (b)    Promptly
      after receipt by an Indemnified Party under this Section 6 of notice of the
      commencement of any action (including any governmental action), such Indemnified
      Party shall, if a Claim in respect thereof is to be made against any
      indemnifying party under this Section 6, deliver to the indemnifying party
      a
      written notice of the commencement thereof and the indemnifying party shall
      have
      the right to participate in, and, to the extent the indemnifying party so
      desires, jointly with any other indemnifying party similarly noticed, to assume
      control of the defense thereof with counsel mutually satisfactory to the
      indemnifying party and the Indemnified Party, as the case may be; provided,
      however,
      that an
      Indemnified Party shall have the right to retain its own counsel with the
      reasonable fees and expenses to be paid by the indemnifying party, if, in the
      reasonable opinion of counsel retained by the indemnifying party, the
      representation by such counsel of the Indemnified Party and the indemnifying
      party would be inappropriate due to actual or potential differing interests
      between such Indemnified Party and any other party represented by such counsel
      in such proceeding. The failure to deliver written notice to the indemnifying
      party within a reasonable time of the commencement of any such action shall
      not
      relieve such indemnifying party of any liability to the Indemnified Party under
      this Section 6, except to the extent that the indemnifying party is prejudiced
      in its ability to defend such action. The indemnification required by this
      Section 6 shall be made by periodic payments of the amount thereof during the
      course of the investigation or defense as such expense, loss, damage or
      liability is incurred and is due and payable.

    

    7.    Contribution.
      To the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided,
      however,
      that
      (a) no contribution shall be made under circumstances where the maker would
      not
      have been liable for indemnification under the fault standards set forth in
      Section 6; (b) no seller of Registrable Securities guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the Securities Act)
      shall be entitled to contribution from any seller of Registrable Securities
      who
      was not guilty of such fraudulent misrepresentation; and (c) except where the
      seller has committed fraud (other than a fraud by reason of the information
      included or omitted from the Registration Statement as to which the Company
      has
      not given notice as contemplated under Section 3 hereof) or intentional
      misconduct, contribution by any seller of Registrable Securities shall be
      limited in amount to the net amount of proceeds received by such seller from
      the
      sale of such Registrable Securities.

    

    8.    Reports
      under
      Securities Act and Exchange Act.
      With a
      view to making available to Investor the benefits of Rule 144 promulgated under
      the Securities Act or any other similar rule or regulation of the SEC that
      may
      at any time permit Investor to sell securities of the Company to the public
      without Registration (“Rule 144”), the Company agrees to:

    

    (a)    make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144;

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    (b)    file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the Securities Act and the Exchange Act; 

    

    (c)    furnish
      to the Investor so long as the Investor owns Registrable Securities, promptly
      upon request, (i) a written statement by the Company that it has complied with
      the reporting requirements of Rule 144, the Securities Act and the Exchange
      Act
      , a copy of the most recent annual or quarterly report of the Company and such
      other reports and documents so filed by the Company and (iii) such other
      information as may be reasonably requested to permit the Investor to sell such
      securities pursuant to Rule 144 without Registration.

     

    9.    Assignment
      of the Registration Rights.
      The
      rights to have the Company register Registrable Securities pursuant to this
      Agreement shall be automatically assigned by the Investors to any transferee
      of
      the Registrable Securities (or all or any portion of any unconverted Debentures)
      only if the Company is, within a reasonable time after such transfer or
      assignment, furnished with written notice of (a) the name and address of such
      transferee or assignee and (b) the securities with respect to which such
      registration rights are being transferred or assigned. 

    

    10.    Amendment
      of Registration Rights.
      Any
      provision of this Agreement may be amended and the observance thereof may be
      waived (either generally or in a particular instance and either retroactively
      or
      prospectively), only with the written consent of the Company and the Investor.
      Any amendment or waiver affected in accordance with this Section 10 shall be
      binding upon the Investor and the Company.

    

    11.    Miscellaneous.

    

    (a)    A
      person
      or entity is deemed to be an Investor of Registrable Securities whenever such
      person or entity owns of record such Registrable Securities. If the Company
      receives conflicting instructions, notices or elections from two or more persons
      or entities with respect to the same Registrable Securities, the Company shall
      act upon the basis of instructions, notice or election received from the
      registered owner of such Registrable Securities.

    

    (b)    Notices
      required or permitted to be given hereunder shall be given in the manner
      contemplated by the Subscription Agreement, (i) if to the Company or to the
      Investor, to their respective address and the address of their counsel as
      contemplated by the Subscription Agreement, and (ii) if to any other Investor,
      at such address as such Investor shall have provided in writing to the Company,
      or at such other address as each such party furnishes by notice given in
      accordance with this Section 11(b).

    

    (c)    Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

    

    (d)    This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of New York for contracts to be wholly performed in such state and
      without giving effect to the principles thereof regarding the conflict of laws.
      Each of the parties consents to the jurisdiction of the federal courts in the
      City of New York, New York or the state courts of the State of New York sitting
      in the City of New York, New York County, New York in connection with any
      dispute arising under this Agreement and hereby waives, to the maximum extent
      permitted by law, any objection, including any objection based on
      forum non coveniens,
      to the
      bringing of any such proceeding in such jurisdictions. To the extent determined
      by such court, the Company shall reimburse the Investor for any reasonable
      legal
      fees and disbursements incurred by the Investor in enforcement of or protection
      of any of its rights under this Agreement

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    (e)    If
      any
      provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement or the validity or
      enforceability of this Agreement in any other jurisdiction.

     

    (f)    Subject
      to the requirements of Section 9 of this Agreement, this Agreement shall inure
      to the benefit of and be binding upon the successors and assigns of each of
      the
      parties hereto.

    

    (g)    All
      pronouns and any variations thereof refer to the masculine, feminine or neuter,
      singular or plural, as the context may require.

    

    (h)    The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning thereof.

    

    (i)    This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original but all of which shall constitute one and the same agreement.
      This Agreement, once executed by a party, may be delivered to the other party
      hereto by telephone line facsimile transmission of a copy of this Agreement
      bearing the signature of the party so delivering this Agreement.

    

    (j)    This
      Agreement constitutes the entire agreement among the parties hereto with respect
      to the subject matter hereof. There are no restrictions, promises, warranties
      or
      undertakings, other than those set forth or referred to herein. This Agreement
      supersedes all prior agreements and understandings among the parties hereto
      with
      respect to the subject matter hereof. This Agreement may be amended only by
      an
      instrument in writing signed by the party to be charged with enforcement
      thereof. 

    

    
      
        (k)    The
          Company acknowledges that any failure by the Company to perform
          its obligations under Section 3(a) hereof, or any delay in such performance
          could result in loss to the Investors, and the Company agrees that, in
          addition
          to any other liability the Company may have by reason of such failure or
          delay,
          the Company shall be liable for all direct damages caused by any such failure
          or
          delay, unless the same is the result of force majeure. Neither party shall
          be
          liable for consequential damages.

      

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties have caused this Agreement to be duly executed as of the day and year
      first above written.

    

    

    COMPANY:

    ODYNE
      CORPORATION

     

    By: 
      ___________________________

    Title: 
      __________________________

     

     

    INVESTOR:

     

    By: 
      ____________________________

    Name:
      __________________________

    Title: 
      ___________________________

     

     

    
      
        
        

      

      -11-

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