In order to run ODE 1.3.4 under Hibernate, you need to grab external dependencies (and accept Hibernate license).
Run this:
java -cp h2-1.1.117.jar org.h2.tools.RunScript -url 'jdbc:h2:file:ode-db;DB_CLOSE_ON_EXIT=false;user=sa' -showResults -script ode-1.3.4-hib-h2.sql
Then you will get ode-db* files in directory.
Then edit ode-axis2.properties and set:
ode-axis2.dao.factory=org.apache.ode.daohib.bpel.BpelDAOConnectionFactoryImpl ode-axis2.db.mode=INTERNAL ode-axis2.db.int.jdbcurl=jdbc:h2:file:ode-db;DB_CLOSE_ON_EXIT=false;user=sa ode-axis2.db.int.driver=org.h2.Driver hibernate.dialect=org.hibernate.dialect.H2Dialect
Please refer to this page: Upgrading ODE