Document:

EMPLOYMENT
      AGREEMENT

     

    AGREEMENT,
      dated as of September 19, 2007, between ODYNE CORPORATION, a Delaware
      corporation (the “Company”),
      and
      ALAN TANNENBAUM (the “Executive”).

     

    WITNESSETH:

     

    WHEREAS,
      the Company desires to retain the services of the Executive and to that end
      desires to enter into a contract of employment with him, upon the terms and
      conditions herein set forth; and

     

    WHEREAS,
      the Executive desires to be employed by the Company upon such terms and
      conditions;

     

    NOW,
      THEREFORE, in consideration of the premises and of the mutual benefits and
      covenants contained herein, the parties hereto, intending to be bound, hereby
      agree as follows:

     

    1.  APPOINTMENT
      AND TERM

     

    Subject
      to the terms hereof, the Company hereby employs the Executive, and the Executive
      hereby accepts employment with the Company, all in accordance with the terms
      and
      conditions set forth herein, for a period commencing on the date hereof (the
      “Commencement
      Date”)
      and
      ending on the first anniversary (the “Expiration
      Date”)
      of the
      initial closing of the Company’s pending private placement of up to $3,500,000
      of 10% senior secured convertible debentures and warrants to purchase common
      stock (the “Private
      Placement”),
      unless the parties mutually agree in writing upon a later date. The term of
      Executive’s employment hereunder may be extended for additional terms of one
      year each provided that the Company gives Executive at least 30 days’ prior
      written notice of its election to extend the term of Executive’s employment and
      Executive agrees in writing to such extension.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.  DUTIES

     

    (a)  During
      the term of this Agreement, the Executive shall hold the position of Chief
      Executive Officer and shall, unless prevented by incapacity, devote all of
      his
      business time, attention and ability during normal corporate office business
      hours to the discharge of his duties hereunder and to the faithful and diligent
      performance of such duties and the exercise of such powers as may be assigned
      to
      or vested in him by the Board of Directors of the Company (the “Board”),
      such
      duties to be consistent with his position. The Executive shall obey the lawful
      directions of the Board and shall use his diligent efforts to promote the
      interests of the Company and to maintain and promote the reputation
      thereof.

     

    (b)  The
      Company shall cause the Executive to be nominated for election to the Board
      for
      so long as the Executive remains the Company’s Chief Executive
      Officer.

     

    (c)  The
      Executive shall not during his term of employment (except as a representative
      of
      the Company or with the consent in writing of the Board) be directly or
      indirectly engaged or concerned or interested in any other business activity,
      except for the Executive’s interest in Ergowerx International, a developer of an
      ergonomic keyboard, or through the Executive’s ownership of an interest of not
      more than 2% in any entity (or except such as does not (i) require a significant
      time commitment by the Executive or (ii) impair the ability of the Executive
      to
      discharge his duties hereunder).

     

    (d)  Notwithstanding
      the foregoing provisions, the Executive shall not be prohibited from serving
      in
      various leadership capacities in civic, charitable and professional
      organizations. The Executive recognizes that his primary and paramount
      responsibility is to the Company. In addition, with the Board’s approval, the
      Executive shall be free to serve as a Director of a non-competing
      corporation.

     

    (e)  The
      Executive shall be based in the Company’s offices located in Suffolk County, New
      York, except for required travel on the Company's business.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3.  REMUNERATION

     

    (a)  Salary.
      As
      compensation for his services pursuant hereto, starting on January 1, 2008,
      the
      Executive shall be paid a base salary during the first year of his employment
      hereunder at the annual rate set forth in Exhibit
      A.
      Such
      salary shall be increased for any renewal term on each anniversary of the
      Commencement Date by an amount equal to 5% of such salary for the preceding
      one
      year period. This amount shall be payable in equal periodic installments in
      accordance with the usual payroll practices of the Company.

     

    (b)  Participation
      in Company Plans.
      Executive shall be entitled, during the term of his employment hereunder, to
      participate in such of the Company’s incentive compensation plans and programs
      as may from time to time be provided by Company for its executive officers
      at
      such level as shall be determined by Company’s Compensation Committee or Board
      of Directors, as appropriate.

     

    (c)  Stock
      Options.

     

    (i)  The
      Executive shall be entitled to receive stock options (the “Stock
      Options”)
      to
      purchase (A) 300,000 shares of Common Stock, par value $.001 per share, of
      the
      Company (the “Common
      Stock”)
      at an
      exercise price equal to the closing price of the Common Stock, as reported
      by
      the OTC Bulletin Board, on the date of the initial closing of the Private
      Placement, which options shall be granted on the Commencement Date and pursuant
      to the Company’s 2006 Equity Incentive Plan, (B) 2,400,000 shares of Common
      Stock at an exercise price equal to the average closing price of the Common
      Stock, as reported by the OTC Bulletin Board, for the 30 trading days on and
      prior to the date of the initial closing of the Private Placement, which options
      shall be granted on the Commencement Date, but subject to the terms of a
      newly-created incentive compensation plan to be adopted by the Company’s
      stockholders (as to which the Company’s current executive officers have agreed
      to vote their respective shares of Common Stock in favor of), and (C) 300,000
      shares of Common Stock at an exercise price equal to the closing price of the
      Common Stock, as reported by the OTC Bulletin Board, on January 2, 2008, which
      options shall be granted on January 2, 2008, and pursuant to the Company’s 2006
      Equity Incentive Plan. Each Stock Option shall vest in three equal installments
      on the second, third and fourth annual anniversaries of the grant date, and
      shall be issued pursuant to a customary stock option agreement, which the
      Executive and the Company shall enter into on or reasonably promptly following
      the respective grant date.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (ii)  In
      the
      event of termination of employment (A) by the Executive without Good Reason
      (as
      defined in Section 7(b)(iv)), on or prior to the second anniversary of the
      Commencement Date or (B) pursuant to Section 7(a)(i)(A), all Stock Options
      not
      theretofore exercisable will lapse and be forfeited. In the event the
      Executive’s employment is terminated for any other reason on or prior to the
      second anniversary of the Commencement Date, all Stock Options not theretofore
      exercisable will thereupon become exercisable. Except as otherwise provided
      in
      the following paragraph, each Stock Option will expire ten years after it is
      granted.

     

    (iii)  In
      the
      event of the termination of the employment of the Executive, all unexercised
      and
      exercisable stock options granted to him hereunder must be exercised by him,
      or
      his estate (or heir(s)), as the case may be, (A) within 12 months of the date
      of
      termination, if the termination is due to disability, as defined in Section
      7(a)(i)(B), (B) in the event of death of the Executive, within 12 months of
      the
      date of termination, as defined in Section 7(a)(i)(C), if the termination is
      due
      to death or
      within
      three months of the date of termination if the termination is for any other
      reason; provided,
      however,
      that in
      the event the Executive’s employment is terminated for Cause, all unvested stock
      options granted to him hereunder become null and void immediately upon
      termination. Any vested options must be exercised within three months of the
      date of termination.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (d)  Other
      Benefits.
      Notwithstanding anything to the contrary herein contained, nothing shall prevent
      the Board of Directors of the Corporation following the recommendations of
      the
      Compensation Committee from prospectively increasing the salary or other
      remuneration of the Executive during the period of employment
      hereunder.

     

    (e)  No
      Additional Compensation.
      Except
      as provided above, in Exhibit
      A
      and in
      Sections 4 and 6 hereof, the Executive shall not be entitled to receive any
      additional compensation, remuneration or other payments from the
      Company.

     

    4.  HEALTH
      INSURANCE AND OTHER FRINGE BENEFITS

     

    The
      Executive shall be entitled to participate in regular employee fringe benefit
      programs to the extent such programs are offered by the Company to its executive
      employees, including, but not limited to, medical, hospitalization, dental
      and
      disability insurance, life insurance and 401(k) plan that are substantially
      consistent with the programs of the Company in effect prior to the Commencement
      Date.

     

    5.  VACATION

     

    The
      Executive shall be entitled to four weeks of vacation (in addition to the usual
      national holidays) during each contract year during which he serves hereunder.
      Such vacation shall be taken at such time or times as will be mutually agreed
      between the Executive and the Company. Vacation not taken during a calendar
      year
      may not be carried forward.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    6.  REIMBURSEMENT
      FOR EXPENSES

     

    The
      Executive shall be reimbursed for reasonable documented business expenses
      incurred in connection with the business of the Company in accordance with
      practices and policies established by the Company.

     

    7.  TERMINATION

     

    (a)  For
      Cause, Disability or Death.

     

    (i)  The
      Company may terminate Executive’s employment hereunder:

     

    (A)  Upon
      written notice to the Executive by the Company at any time terminating the
      Executive for Cause (as such term is defined below). 

     

    (B)  In
      the
      event the Executive, by reason of physical or mental disability, shall be unable
      to perform the services required of him hereunder for a period of more than
      60
      consecutive days, or for more than a total of 90 non-consecutive days in the
      aggregate during any period of twelve (12) consecutive calendar months, on
      the
      61st consecutive day, or the 91st day, as the case may be. The Executive agrees,
      in the event of any dispute under this Section 7(a)(i)(B), and after written
      notice by the Board, to submit to a physical examination by a licensed physician
      practicing in the New York, New York area selected by the Board, and reasonably
      acceptable to the Executive.

     

    (C)  In
      the
      event the Executive dies while employed pursuant hereto.

     

    (ii)  In
      the
      event Executive’s employment hereunder is terminated pursuant to this Section
      7(a), the Company shall have no further obligation to make any further payments
      hereunder other than amounts that have been fully earned, but not yet paid
      to
      Executive.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (iii)  The
      term
“Cause”
shall
      mean termination as a result of (w) willful and material malfeasance, dishonesty
      or habitual drug or alcohol abuse by the Executive related to or affecting
      the
      performance of his duties, (x) continuing and intentional breach,
      non-performance or non-observance of any of the terms or provisions of this
      Agreement, but only after notice by the Company of such breach, nonperformance
      or nonobservance and the failure of the Executive to cure such default as soon
      as practicable (but in any event within ten (10) days following written notice
      from the Company), (y) conduct which the Board in good faith determines could
      reasonably be expected to have a material adverse effect on the business,
      assets, properties, results of operations, financial condition, personnel or
      prospects of the Company (within each category, taken as a whole), but only
      after notice by the Company of such conduct and the failure of the Executive
      to
      cease such conduct as soon as practicable (but in any event within ten (10)
      days
      following written notice from the Company), or (z) the Executive's conviction
      of
      a felony, any crime involving moral turpitude (including, without limitation,
      sexual harassment) related to or affecting the performance of his duties or
      any
      act of fraud, embezzlement, theft or willful breach of fiduciary duty against
      the Company.

     

    (b)  Termination
      without Cause or for Good Reason.

     

    (i)  If
      the
      Executive's employment is terminated by the Company for any reason other than
      Cause or the disability or death of the Executive, or the Executive's employment
      is terminated by Executive for Good Reason (as such term is defined
      below):

     

    (A)  The
      Company shall continue to pay Executive all of the compensation provided for
      in
      Sections 3 and 4 above (including the minimum increases provided therein) during
      the remainder of the then-current term of the Executive's employment;
      and

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (B)  The
      Executive shall be entitled to continue to receive medical benefits coverage
      (as
      described in Section 4) at the Executive's expense, for the remainder of
      Executive's life.

     

    (ii)  The
      obligations of the Executive pursuant to Section 9 hereof
      shall continue for so long as the Executive continues to receive payments due
      pursuant to this Section 7(b).

     

    (iii)  Except
      for the provisions of this Section 7(b), the Company shall have no further
      obligation to the Executive hereunder.

     

    (iv)  “Good
      Reason”
shall
      mean the following:

     

    (A)  material
      breach of the Company's obligations hereunder; 

     

    (B)  any
      decrease in the Executive's salary as increased during the term of the
      Executive’s employment (except for decreases that are in conjunction with
      decreases in the Executive salaries generally); or

     

    (C)  or
      any
      reduction in the Executive's duties or authority inconsistent with the duties
      and authority of an the Executive officer of the Company.

     

    (c)  Voluntary
      Termination.
      In the
      event the Executive's employment is voluntarily terminated by the Executive
      without Good Reason, the Company shall not be obligated to make any further
      payments to the Executive under this Agreement other than amounts fully earned
      but not yet paid as of the date of the Executive's termination.

     

    (d)  Release.
      Notwithstanding the foregoing, Company shall not be obligated to make any
      payments under this Section 7 unless the Executive has executed and delivered
      to
      the Company a further agreement, to be prepared at the time of the Executive’s
      termination of employment, that shall provide (i) an unconditional release
      of
      all claims, charges, complaints and grievances, whether known or unknown to
      the
      Executive, against Company or any of its affiliates, through date of the
      Executive’s termination of employment; (ii) an undertaking to maintain the
      confidentiality of such agreement; and (iii) an undertaking to indemnify Company
      if the Executive breaches such agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (e)  Notice
      of No Extension.
      In the
      event the Company chooses not to enter into any agreement or amendment extending
      the Executive's employment beyond the Expiration Date, the Company agrees to
      provide the Executive at least six (6) months’ prior written notice of such
      determination (which notice may be given either before or after such Expiration
      Date, but if notice is given any later than six (6) months prior the Expiration
      Date, then the term of this Agreement shall be extended until the date which
      is
      six (6) months after the date such notice is given), during which time the
      Executive may seek alternative employment while still being employed by the
      Company.

     

    (f) Notwithstanding
      anything to the contrary contained herein, the parties shall have the right
      to
      terminate this Agreement in the event the Company does not raise at least
      $500,000 in gross proceeds in the Private Placement by December 31,
      2007.

     

    8.  CONFIDENTIAL
      INFORMATION

     

    (a)  The
      Executive covenants and agrees that he will not at any time during the
      continuance of this Agreement or at any time thereafter (i) print, publish,
      divulge or communicate to any person, firm, corporation or other business
      organization (except in connection with the Executive's employment hereunder)
      or
      use for his own account any secret or confidential information relating to
      the
      business of the Company (including, without limitation, information relating
      to
      any customers, suppliers, employees, products, services, formulae, technology,
      know-how, trade secrets or the like, financial information or plans) or any
      secret or confidential information relating to the affairs, dealings, projects
      and concerns of the Company, both past and planned (the “Confidential
      Information”),
      which
      the Executive has received or obtained or may receive or obtain during the
      course of his employment with the Company (whether or not developed, devised
      or
      otherwise created in whole or in part by the efforts of the Executive), or
      (ii) take with him, upon termination of his employment hereunder, any
      information in paper or document form or on any computer-readable media relating
      to the foregoing. The term “Confidential Information” does not include
      information which is or becomes generally available to the public other than
      as
      a result of disclosure by the Executive or which is generally known in the
      alternative media business. The Executive further covenants and agrees that
      he
      shall retain the Confidential Information received or obtained during such
      service in trust for the sole benefit of the Company or its successors and
      assigns.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (b)  The
      term
      Confidential Information as defined in Section 8(a) hereof shall include
      information obtained by the Company from any third party under an agreement
      including restrictions on disclosure known to the Executive.

     

    (c)  In
      the
      event that the Executive is requested pursuant to subpoena or other legal
      process to disclose any of the Confidential Information, the Executive will
      provide the Company with prompt notice so that the Company may seek a protective
      order or other appropriate remedy and/or waive compliance with Section 8 of
      this
      Agreement. In the event that such protective order or other remedy is not
      obtained or that the Company waives compliance with the provisions of Section
      8
      of this Agreement, the Executive will furnish only that portion of the
      Confidential Information which is legally required.

     

    9.  RESTRICTIONS
      DURING EMPLOYMENT AND FOLLOWING TERMINATION

     

    (a)  The
      Executive shall not, anywhere within the United States, during his full term
      of
      employment under Section 1 hereof and, (i) in the event the Executive’s
      employment is terminated for Cause or without Good Reason, for a period of
      one
      year thereafter or (ii) in the event Executive’s employment is terminated
      without Cause or for Good Reason, during the period during which Executive
      receives payments pursuant to Section 7(b) hereof and for 90 days thereafter,
      without the prior written consent of the Company, directly or indirectly, and
      whether as principal, agent, officer, director, partner, employee, consultant,
      broker, dealer or otherwise, alone or in association with any other person,
      firm, corporation or other business organization, carry on, or be engaged,
      have
      an interest in or take part in, or render services to any person, firm,
      corporation or other business organization (other than the Company) engaged
      in a
      business which is competitive with all or part of the Business of the Company.
      The term “Business of the Company” shall mean any business then carried on by
      the Corporation or any of its subsidiaries.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (b)  The
      Executive shall not, for a period of one (1) year after termination of his
      employment hereunder, either on his own behalf or on behalf of any other person,
      firm, corporation or other business organization, endeavor to entice away from
      the Company any person who is an employee of the Company.

     

    (c)  The
      Executive shall not, for a period of one (1) year after termination of his
      employment hereunder, either on his own behalf or on behalf of any other person,
      firm, corporation or other business organization, solicit or direct others
      to
      solicit, any of the Company's customers or prospective customers (including,
      but
      not limited to, those customers or prospective customers with whom the Executive
      had a business relationship during his term of employment) for any purpose
      or
      for any activity that is competitive with all or part of the Business of the
      Company.

     

    (d)  It
      is
      understood by and between the parties hereto that the foregoing covenants by
      the
      Executive set forth in this Section 9 are essential elements of this Agreement
      and that, but for the agreement of the Executive to comply with such covenants,
      the Company would not have entered into this Agreement. It is recognized by
      the
      Executive that the Company currently operates in, and may continue to expand
      its
      operations throughout, the geographical territories referred to in Section
      9(a)
      above. The Company and the Executive have independently consulted with their
      respective counsel and have been advised in all respects concerning the
      reasonableness and propriety of such covenants.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    10.  REMEDIES

     

    (a)  Without
      intending to limit the remedies available to the Company, it is mutually
      understood and agreed that the Executive's services are of a special, unique,
      unusual, extraordinary and intellectual character giving them a peculiar value,
      the loss of which may not be reasonably or adequately compensated in damages
      in
      an action at law, and, therefore, in the event of any material breach by the
      Executive that continues after any applicable cure period, the Company shall
      be
      entitled to equitable relief by way of injunction or otherwise.

     

    (b)  The
      covenants of Section 8 shall be construed as independent of any other provisions
      contained in this Agreement and shall be enforceable as aforesaid
      notwithstanding the existence of any claim or cause of action of the Executive
      against the Company, whether based on this Agreement or otherwise. In the event
      that any of the provisions of Sections 8 or 9 hereof should ever be adjudicated
      to exceed the time, geographic, product/service or other limitations permitted
      by applicable law in any jurisdiction, then such provisions shall be deemed
      reformed in any such jurisdiction to the maximum time, geographic,
      product/service or other limitations permitted by applicable law.

     

    11.  COMPLIANCE
      WITH OTHER AGREEMENTS

     

    The
      Executive represents and warrants to the Company that the execution of this
      Agreement by him and his performance of his obligations hereunder will not,
      with
      or without the giving of notice or the passage of time or both, conflict with,
      result in the breach of any provision of or the termination of, or constitute
      a
      default under, any agreement to which the Executive is a party or by which
      the
      Executive is or may be bound.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    12.  WAIVERS

     

    The
      waiver by the Company or the Executive of a breach of any of the provisions
      of
      this Agreement shall not operate or be construed as a waiver of any subsequent
      breach.

     

    13.  BINDING
      EFFECT; BENEFITS

     

    This
      Agreement shall inure to the benefit of, and shall be binding upon, the parties
      hereto and their respective successors, assigns, heirs and legal respectives,
      including any corporation or other business organization with which the Company
      may merge or consolidate or sell all or substantially all of its assets. Insofar
      as the Executive is concerned, this contract, being personal, cannot be
      assigned.

     

    14.  NOTICES

     

    All
      notices and other communications which are required or may be given under this
      Agreement shall be in writing and shall be deemed to have been duly given when
      delivered to the person to whom such notice is to be given at his or its address
      et forth below, or such other address for the party as shall be specified by
      notice given pursuant hereto:

     

    
      	
            	(a)	
              If
                to the Executive, to him at the address set forth in Exhibit
                A.

            

    

     

    and

     

    
      	
            	(b)	
              If
                to the Company, to it at:

            

    

     

    Odyne
      Corporation

    89
      Cabot
      Court, Suite L

    Hauppauge,
      NY 11788

    Attention:
      President

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    with
      a
      copy to:

     

    Greenberg
      Traurig, LLP

    MetLife
      Building

    200
      Park
      Avenue, 15th
      Floor

    New
      York,
      NY 10166

    Attention:
      Spencer G. Feldman, Esq.

     

    15.  MISCELLANEOUS

     

    (a)  This
      Agreement contains the entire agreement between the parties hereto and
      supersedes all prior agreements and understandings, oral or written, between
      the
      parties hereto with respect to the subject matter hereof. This Agreement may
      not
      be changed or extended except upon written amendment approved by the Board
      and
      the Executive and executed by a duly authorized officer of the Company and
      Executive. Company and Executive acknowledge that each are party to a
      Proprietary Information and Inventions Agreement dated as of an even date
      herewith and that the rights and obligations of each of Company and Executive
      under such agreement are in addition to, and not in substitution of, their
      respective rights and obligations hereunder.

     

    (b)  The
      Executive acknowledges that from time to time, the Company may establish,
      maintain and distribute employee manuals, handbooks or personnel policy manuals,
      and officers or other representatives of the Company may make written or oral
      statements relating to personnel policies and procedures. Such manuals,
      handbooks and statements are intended only for general guidance. No policies,
      procedures or statements of any nature by or on behalf of the Company (whether
      written or oral, and whether or not contained in any employee manual or handbook
      or personnel policy manual), and no acts or practices of any nature, shall
      be
      construed to modify this Agreement or to create express or implied obligations
      of any nature to the Executive.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (c)  This
      Agreement may be executed in counterparts, each of which shall be deemed to
      be
      an original, but all of which together shall constitute one and the same
      instrument.

     

    (d)  All
      questions pertaining to the validity, construction, execution and performance
      of
      this Agreement shall be governed by and construed in accordance with the laws
      of
      the State of New York, without regard to its conflict of law
      principles.

     

    (e)  Any
      controversy or claim arising from, out of or relating to this Agreement, or
      the
      breach hereof (other than controversies or claims arising from, out of or
      relating to the provisions in Sections 8, 9 and 10), shall be determined by
      final and binding arbitration in New York, New York, in accordance with the
      Employment Dispute Resolution Rules of the American Arbitration Association,
      by
      a panel of not less than three (3) independent arbitrators appointed by the
      American Arbitration Association. The decision of the arbitrators may be entered
      and enforced in any court of competent jurisdiction by either the Company or
      the
      Executive.

     

    The
      parties indicate their acceptance of the foregoing arbitration requirement
      by
      initialing below:

    

    
      	
              D.B.

            	 	
              A.T.

            
	
              For
                the Company

            	 	
              Executive

            

    

    

    (f)  In
      no
      event shall Executive be required to seek other employment or take any other
      action by way of mitigation of the amounts payable to Executive under this
      Agreement, and such amounts shall not be reduced whether or not Executive
      obtains other employment after termination of his employment
      hereunder.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day
      and year first above written.

    
      	 	 	 
	 	ODYNE CORPORATION
	 
 	 
 	 
 
	 	By:  	/s/ Daniel Bartley 
	 	
              
Daniel
              Bartley
	 	Chief Financial Officer

    

     

     

     

    EXECUTIVE

     

    /s/
      Alan Tannenbaum

    ___________________________________

    Alan
      Tannenbaum

     

    
      
        
        

      

      
        16EXHIBIT
        4.1

      

      NEITHER
        THIS NOTE, THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE, OR THE SECURITIES
        WHICH MAY BE ISSUED TO THE HOLDER OF THIS NOTE HAVE BEEN REGISTERED WITH
        THE
        SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE
        IN
        RELIANCE UPON THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF FEDERAL
        AND
        STATE SECURITIES LAWS PROVIDED BY REGULATION S UNDER THE SECURITIES ACT OF
        1933,
        AS AMENDED AND MAY NOT BE SOLD, PLEDGED, TRANSFERRED, ASSIGNED, HYPOTHECATED,
        OR
        OTHERWISE DISPOSED OF WITHOUT COMPLIANCE WITH SUCH REQUIREMENTS OR A WRITTEN
        OPINION OF COUNSEL ACCEPTABLE TO THE OBLIGOR THAT SUCH TRANSFER WILL NOT
        RESULT
        IN ANY VIOLATION OF SUCH LAWS OR AFFECT THE LEGALITY OF THEIR
        ISSUANCE.

       

      CONVERTIBLE
        PROMISSORY NOTE

      

        
          	
                  US$250,000

                	
                  April
                    10, 2007

                

        

      

       

      FOR
        VALUE RECEIVED,
        the
        undersigned, True North Energy Corporation, a Nevada corporation (the
        "Obligor"), hereby promises to pay to the order of EH&P Investments AG (the
        "Holder"), the principal sum of Two Hundred Fifty Thousand Dollars ($250,000)
        payable as set forth below. The Obligor also promises to pay to the order
        of the
        Holder interest on the principal amount hereof at a rate of 8% per annum,
        which
        interest shall be payable as set forth below. Interest shall be calculated
        on
        the basis of the year of 365 days and for the number of days actually elapsed.
        The payments of principal and interest hereunder shall be made in coin or
        currency of the United States of America which at the time of payment shall
        be
        legal tender therein for the payment of public and private debts.

      

      This
        Note
        shall be subject to the following additional terms and conditions:

      

      1. Payments.
        Subject
        to prior conversion or acceleration, all principal due hereunder shall be
        payable in one (1) installment on April 10, 2010 (the “Maturity Date”). Subject
        to prior conversion or acceleration, interest shall be payable semi-annually.
        The first such interest payment shall be due the first day of the first month
        following 180 days from the date of this Note. Subsequent interest payments
        will
        be due and payable on the first day of the month every six months thereafter.
        Notwithstanding the foregoing, the final interest payment shall be due and
        payable on the Maturity Date. In the event that any payment to be made hereunder
        shall be or become due on Saturday, Sunday or any other day which is a legal
        bank holiday under the laws of the State of Texas, such payment shall be
        or
        become due on the next succeeding business day.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2. Prepayment.
        The
        Obligor and the Holder understand and agree that the principal amount of
        this
        Note together with all accrued interest due thereon can be prepaid by Obligor
        at
        any time without penalty, commencing May 10, 2007.

       

      3. Conversion.

      

      (a) In
        the
        event the Obligor completes an offering (the “Offering”) of US$10,000,000 or
        more of equity or debt securities within 90 days of the date of this Note
        (the
“Offering Completion Date”), this Note, including any accrued and unpaid
        interest, shall be automatically exchanged for and converted into like share
        or
        securities issued by the Obligor in the Offering on the same terms that such
        like shares or securities are purchased by subscribers in the Offering. The
        amount of like shares or securities so issued shall be based on the amount
        of
        principal and interest converted. The Holder shall effect the conversion
        by
        promptly surrendering this Note to the Obligor. Upon receipt of the Note,
        the
        Obligor will deliver or shall cause to be delivered the like shares or other
        securities of the Obligor issuable upon conversion.

      

      (b) Upon
        a
        conversion involving common stock of the Obligor, the Obligor shall not be
        required to issue stock certificates representing fractions of shares, but
        may
        either make a cash payment in respect of any final fraction of a share or
        round
        up to the next whole share of common stock.

      

      (c) The
        issuance of securities of the Obligor upon conversion of this Note shall
        be made
        without charge to the Holder for any documentary stamp or similar taxes that
        may
        be payable in respect of the issue or delivery of a certificate for such
        securities, provided that the Obligor shall not be required to pay any tax
        that
        may be payable in respect of any transfer involved in the issuance and delivery
        of any such certificate upon conversion in a name other than that of the
        original Holder.

      

      (d) Any
        and
        all notices or other communications or deliveries to be provided by the Holder
        hereunder, shall be in writing and delivered personally, by facsimile, sent
        by a
        nationally recognized overnight courier service or sent by certified or
        registered mail, postage prepaid, addressed to the attention of the Chief
        Executive Officer of the Obligor at the facsimile number or address of the
        principal place of business of the Obligor. Any and all notices or other
        communications or deliveries to be provided by the Obligor hereunder shall
        be in
        writing and delivered personally, by facsimile, sent by a nationally recognized
        overnight courier service or sent by certified or registered mail, postage
        prepaid, addressed to the Holder at the facsimile number or address of the
        Holder appearing on the books of the Obligor, or if no such facsimile telephone
        number or address appears, at the principal place of business of the Holder.
        

      

      (e) Upon
        receipt by Obligor of evidence reasonably satisfactory to Obligor of the
        loss,
        theft, destruction or mutilation of this Note, and, in the case of loss,
        theft
        or destruction, of any indemnification undertaking by the Holder to the Obligor
        in customary form and, in the case of mutilation, upon surrender and
        cancellation of this Note, Obligor shall execute and deliver to the Holder
        a new
        Note.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4. Warrants.
        In
        the
        event an offering is not completed by the Offering Completion Date, common
        stock
        purchase warrants (the “Warrants”) of the Obligor shall be issued to the Holder.
        The Warrants will be exercisable for a period of three years commencing on
        the
        date of issuance of the Warrants. The number of shares of common stock of
        the
        Obligor issuable upon exercise of the Warrants and the exercise price will
        be
        calculated based upon the average closing price of the Obligor’s common stock
        for the 20 business days preceding the date of this Note (the “Average Price”).
        The number of shares which the Holder will be entitled to purchase upon exercise
        of the Warrants shall be calculated by dividing the principal amount of this
        Note by the Average Price. Any fractional shares resulting from said calculation
        will be rounded up to the next whole share. The exercise price of the Warrants
        shall be 140% of the Average Price. By way of example, if the Average Price
        is
        $2.00, the Warrant exercise price will be $2.80.

      

      5. No
        Waiver.
        No
        failure or delay by the Holder in exercising any right, power or privilege
        under
        the Note shall operate as a waiver thereof nor shall any single or partial
        exercise thereof preclude any other or further exercise thereof or the exercise
        of any other right, power or privilege. The rights and remedies herein provided
        shall be cumulative and not exclusive of any rights or remedies provided
        by law.
        No course of dealing between the Obligor and the Holder shall operate as
        a
        waiver of any rights by the Holder.

      

      6. Waiver
        of Presentment and Notice of Dishonor.
        The
        Obligor and all endorsers, guarantors and other parties that may be liable
        under
        this Note hereby waive presentment, notice of dishonor, protest and all other
        demands and notices in connection with the delivery, acceptance, performance
        or
        enforcement of this Note.

      

      7. Place
        of Payment.
        All
        payments of principal of this Note and the interest due hereon shall be made
        at
        such place as the Holder may from time to time designate in
        writing.

      

      8. Events
        of Default.
        The
        entire unpaid principal amount of this Note and the interest due hereon shall,
        at the option of the Holder exercised by written notice to the Obligor forthwith
        become and be due and payable, without presentment, demand, protest or other
        notice of any kind, all of which are hereby expressly waived, if any one
        or more
        of the following events (herein called "Events of Default") shall have occurred
        (for any reason whatsoever and whether such happening shall be voluntary
        or
        involuntary or come about or be effected by operation of law or pursuant
        to or
        in compliance with any judgement, decree or order of any court or any order,
        rule or regulation of any administrative or governmental body) and be continuing
        at the time of such notice:

      

      (a) 
        if
        default shall be made in the due and punctual payment of the interest and/or
        principal of this Note when and as the same shall become due and payable,
        whether at maturity, or by acceleration or otherwise, and such default have
        continued for a period of five (5) business days following Obligor’s receipt of
        written notice from Obligor advising of such default;

      

      (b) if
        the
        Obligor shall:

      

      
        	
              	(i)	
                admit
                  in writing its inability to pay its debts generally as they become
                  due;

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
              	(ii)	
                file
                  a petition in bankruptcy or petition to take advantage of any insolvency
                  act;

              

      

      

      
        	
              	(iii)	
                make
                  assignment for the benefit of
                  creditors;

              

      

      

      
        	
              	(iv)	
                consent
                  to the appointment of a receiver of the whole or any substantial
                  part of
                  its property;

              

      

      

      
        	
              	(v)	
                on
                  a petition in bankruptcy filed against it, be adjudicated a
                  bankrupt;

              

      

      

      
        	
              	(vi)	
                file
                  a petition or answer seeking reorganization or arrangement under
                  the
                  Federal bankruptcy laws or any other applicable law or statute
                  of the
                  United States of America or any State, district or territory thereof;
                  or

              

      

      

      (c) if
        the
        court of competent jurisdiction shall enter an order, judgment, or decree
        appointing, without the consent of the Obligor, a receiver of the whole or
        any
        substantial part of the Obligor's property, and such other, judgment or decree
        shall not be vacated or set aside or stayed with ninety (90) days from the
        date
        of entry thereof;

      

      (d) if,
        under
        the provisions of any other law for the relief or aid of debtors, any court
        or
        competent jurisdiction shall assume custody or control of the whole or any
        substantial part of Obligor's property and such custody or control shall
        not be
        terminated or stayed within (90) days from the date of assumption of such
        custody or control; and

      

      (e) if
        (i)
        the Obligor sells, licenses, or otherwise transfers all or substantially
        all of
        its assets or (ii) merges with or into another entity in a change of control
        transaction.

      

      9. Remedies.
        In case
        any one or more of the Events of Default specified in Section 8 hereof shall
        have occurred and be continuing, the Holder may proceed to protect and enforce
        its rights whether by suit and/or equity and/or by action law, whether for
        the
        specific performance of any covenant or agreement contained in this Note
        or in
        aid of the exercise of any power granted in this Note, or the Holder may
        proceed
        to enforce the payment of all sums due upon the Note or enforce any other
        legal
        or equitable right of the Holder.

      

      10. Severability.
        In the
        event that one or more of the provisions of this Note shall for any reason
        be
        held invalid, illegal or unenforceable in any respect, such invalidity,
        illegality or unenforceability shall not affect any other provision of this
        Note, but this Note shall be construed as if such invalid, illegal or
        unenforceable provision had never been contained herein.

      

      11. Governing
        Law
        This
        Note and the right and obligations of the Obligor and the Holder shall be
        governed by and construed in accordance with the laws of the State of Texas.
        Any
        action to enforce this Note shall be in the federal or state courts of Texas
        situated in Harris County.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        True
        North Energy Corporation has signed this Note as of the 10th day of April
        2007.

       

      
        	 	 	 
	 	OBLIGOR:
	 	 
	 	TRUE
                NORTH ENERGY CORPORATION
	 
 	 
 	 
 
	 	By:  	
                /s/ Massimiliano
                  Pozzini

              
	 	
                

              
	 	
                Massimiliano
                  Pozzoni

                Chief
                  Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]