# CERTIFICATE OF
DESIGNATION OF NON-VOTING, CUMULATIVE
AND REDEEMABLE SERIES A PREFERRED STOCK OF EnerDel, Inc.

Pursuant to Section 151
of the Delaware General Corporation Law

I,
RONALD N. STEWART,Secretary of EnerDel, Inc., a corporation organized and
existing under the Delaware General Corporation Law (the Corporation),
in accordance with the provisions of Section 151 of such law, DO HEREBY CERTIFY
that pursuant to the authority conferred upon the Board of Directors by the Certificate of
Incorporation of the Corporation, as amended, the Board of Directors on October 20, 2004,
adopted a resolution which created a series of shares of Preferred Stock.

RESOLVED,
that pursuant to Section 151(g) of the Delaware General Corporation Law and the authority
vested in the Board of Directors of the Corporation in accordance with the provisions of
Article 4 of the Certificate of Incorporation of the Corporation, as amended, and the
Board of Directors, a series of Preferred Stock of the Corporation be, and hereby is,
created, and the powers, designations, preferences and relative participating, optional or
other special rights of the shares of such series, and the qualifications, limitations or
restrictions thereof, be and hereby are, as follows:

Section
1. Designation and Amount.The shares of such series shall be designated
as Non-Voting, Cumulative and Redeemable Series A Preferred Stock (the
Series A Preferred Stock) and the number of shares constituting
such series shall be eight thousand (8,000) with a par value of One Cent ($0.01) per share
and a face value of One Thousand Dollars ($1,000.00) per share.

Section
2. Dividends.The holders of shares of the Series A Preferred Stock
shall be entitled to receive, out of any assets at the time legally available therefore
and when and as declared by the Board of Directors, dividends at the rate of 8.25%
($0.0825) of face value per share per annum, as adjusted for any stock dividends,
combinations, splits, recapitalizations and the like with respect to such shares, payable
in cash annually commencing on December 31, 2005 and thereafter on the last day of
December of each year that any Series A Preferred Stock shall be outstanding. Such
dividends are prior and in preference to any declaration or payment of any distribution
(as defined below) on any other capital stock of the Corporation. Such dividends shall be
cumulative and shall accrue on each share of Series A Preferred Stock from day to day from
the date of initial issuance thereof whether or not earned or declared so that if such
dividends with respect to any previous dividend period at the rate provided for herein
have not been paid on, or declared and set apart for, all shares of Series A Preferred
Stock at the time outstanding, the deficiency shall be fully paid on such shares before
any distribution shall be paid on, or declared and set apart for Common Stock.
Common Stock shall mean Corporations $0.01 par value Common
Stock.

For
purposes of this Section 2, unless the context otherwise requires,
distribution shall mean the transfer of cash or property without
consideration, whether by way of dividend or otherwise, payable other than in Common
Stock, or the purchase or redemption of shares of the Corporation (other than redemptions
set forth in Section 3 below or repurchases of Common Stock held by employees or
consultants of the Corporation upon termination of their employment or services pursuant
to agreements providing for such repurchase) for cash or property, including any such
transfer, purchase or redemption by a subsidiary of the Corporation.

Section
3.        Redemption. The shares of Series A Preferred Stock shall be redeemable as
follows:

|A. | The Corporation may acquire shares of Series A Preferred Stock in any other
          manner permitted by law, the provisions hereof and the Corporations
          Certificate of Incorporation, as amended hereby.
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|B. | If at any time the Corporation proposes to register shares of Common Stock under
          the Securities Act of 1933, as amended, in connection with the public offering
          of such shares for cash (a Proposed Registration)
          other than a registration statement on Form S-8 or any successor or other forms
          promulgated for similar purposes; then the Corporation must redeem all Series A
          Preferred Stock in full, including all accrued and unpaid dividends for cash,
          from the proceeds received from the closing of such completed public offering of
          Common Stock. If, in connection with any underwritten public offering for the
          account of the Corporation or for stockholders of the Corporation that have
          contractual rights to require the Corporation to register shares of Common
          Stock, the managing underwriter(s) thereof shall impose a limitation on the
          number of shares of Preferred Stock which may be redeemed with the proceeds
          (Proceeds) of such Proposed Registration because, in the
          judgment of such underwriter(s), marketing or other factors dictate such
          limitation is necessary to facilitate such offering, then the Corporation shall
          be obligated to redeem only such limited portion of the Preferred Stock as such
          underwriter(s) shall permit. In such event, the holders of the shares of Series
          A Preferred Stock shall share ratably in any Proceeds according to the
          respective amounts which would be payable in respect of the shares held by them
          upon such redemption if all amounts payable on or with respect to said shares
          were paid in full, including all accrued and unpaid dividends; and this
          redemption obligation shall continue with respect to any subsequent Proposed
          Registration until all Series A Preferred Stock has been redeemed in full,
          including all accrued and unpaid dividends.
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|C. | For clarification and without limiting the foregoing, all Series A Preferred
          Stock must be redeemed in full, including all accrued and unpaid dividends,
          concurrently with and out of the proceeds of the completion of any public
          offering for cash registering the Common Stock for stockholders of the
          Corporation that have contractual rights to require the Corporation to register
          shares of Common Stock as a part of such Proposed Registration, subject to the
          underwriter limitation set forth in Clause B above.
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|D. | In the event that the Corporation has not redeemed all shares of Series A
          Preferred Stock on or before the fourth (4th) anniversary date of the date of
          this certificate, then the holder(s) of the Series A Preferred Stock shall have
          the option to require the Corporation to redeem all the Series A Preferred Stock
          within ten (10) days after notifying the Corporation of their exercise of such
          option; in which case the Corporation will redeem all Series A Preferred Stock
          in full, including all accrued and unpaid dividends for, at the
          Corporations option: (i) cash; (ii) an 8.25% Promissory Note payable in
          four (4) equal quarterly installments acceptable in form and substance to the
          holder thereof; or (iii) any combination of cash and such Promissory Note.
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Section
4. Preferences on Liquidation. In the event of any voluntary or
involuntary liquidation, dissolution or winding up of the Corporation, the holders of the
shares of Series A Preferred Stock then outstanding shall be entitled to be paid, out of
the assets of the Corporation available for distribution to its stockholders, whether from
capital, surplus or earnings, before any payment shall be made in respect of the
Corporations Common Stock, an amount equal to One Thousand ($1,000.00) Dollars per
share, plus all accrued and unpaid dividends thereon (the Liquidation
Price). After setting apart or paying in full the preferential amounts due the
holders of the shares of Series A Preferred Stock, the remaining assets of the Corporation
available for distribution to stockholders, if any, shall be distributed exclusively to
the holders of Common Stock, each such issued and outstanding share of Common Stock
entitling the holder thereof to receive an equal proportion of said remaining assets. If
upon liquidation, dissolution or winding up of the Corporation, the assets of the
Corporation available for distribution to its shareholders shall be insufficient to pay
the holders of the shares of Series A Preferred Stock the full amounts to which they
respectively shall be entitled, the holders of the shares of Series A Preferred Stock
shall share ratably in any distribution of assets according to the respective amounts
which would be payable in respect of the shares held by them upon such distribution if all
amounts payable on or with respect to said shares were paid in full. The merger or
consolidation of the Corporation into or with another corporation in which the Corporation
shall not survive and the shareholders of this Corporation shall own less than fifty (50%)
percent of the voting securities of the surviving corporation, or the sale, transfer or
lease (but not including a transfer or lease by pledge or mortgage to a bona fide lender)
of all or substantially all of the assets of the Corporation shall be deemed to be a
liquidation, dissolution or winding up of the Corporation as those terms as used in this
Section 4.

Section
5. Voting Rights. The Series A Preferred Stock will have no voting
rights except as set forth in Section 6 below.

Section
6. Changes Affecting Series A Preferred Stock.So long as any shares of
Series A Preferred Stock are outstanding, the Corporation shall not, without first
obtaining the approval by vote or written consent, in the manner provided by law, of the
holders of at least a majority of the total number of shares of Series A Preferred Stock
outstanding, voting separately as a class: (i) alter or change any of the powers,
preferences, privileges or rights of the Series A Preferred Stock; or (ii) amend the
provisions of this Certificate of Designations of Non-Voting, Cumulative and
Non-Redeemable Series A Preferred Stock; or (iii) create any new class or series of shares
having preferences prior to or being on a parity with the Series A Preferred Stock as to
dividends or assets.

Section
7. Exchange Rights:

| | A.       
               Exchange.Subject to the conditions and limitations specifically
               provided herein, each holder of Series A Preferred Stock shall have the right,
               at such holders option, at any time prior to January 31, 2005, in
               whole or in part, upon written notice to the Corporation to exchange all or a
               portion of such shares, including all accrued and unpaid dividends thereon, for
               fully paid and non-assessable $0.01 par value per share common stock of
               Ener1, Inc. (Ener1) (Exchange
               Shares or Ener1 Stock) as is determined in
               accordance with the terms hereof (an Exchange).
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| | B.       
               Mechanics of Exchange. Before any holder of Series A Preferred
               Stock shall be entitled to receive Exchange Shares upon Exchange thereof, such
               holder shall surrender the certificate or certificates therefor, duly endorsed
               in blank or accompanied by proper instruments of transfer, at the office of the
               Corporations Secretary, and no later than January 31, 2005, shall
               give written notice (Exchange Notice) to the Corporation at
               such office that such holder elects to exchange the same and shall state in
               writing therein the name or names in which such holder wishes the certificate or
               certificates for Exchanges Shares to be issued. The Corporation, as soon as
               practicable thereafter, shall deliver at such office to such holder or the
               holders nominee, certificates for the full number of shares of Exchange
               Shares to which such holder shall be entitled. Such Exchange shall be deemed to
               have been made immediately following delivery of such notice, and the person or
               persons entitled to receive the Exchange Shares issuable upon such Exchange
               shall be treated for all purposes as the record holder or holders of such
               Exchange Shares on said date.
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| | C.       
               Number of Exchange Shares. Each share of Series A Preferred Stock,
               upon an Exchange of such share, shall be exchanged for 869.5652 Exchange Shares,
               subject to adjustment as set forth below, the Exchange Rate.
               In lieu of any fractional shares to which the holder of Series A Preferred Stock
               would otherwise be entitled, the Corporation shall pay cash equal to such
               fraction multiplied by the fair market value of one Exchange Share based on the
               closing price of Ener1Stock on the date of the Exchange Notice, as published in
               the Wall Street Journal.
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| | D.       
               Registration Rights. Exchange Shares of Ener1 Stock delivered to
               the holder thereof would have no registration rights.
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Section
8. Adjustments to Exchange Price:

| | A.       
                 Stock Splits, Stock Dividends, Etc. If, at any time
               on or after the date on which a certificate of Series A Preferred Stock has been
               issued to a holder (Issue Date), the number of outstanding
               shares of Ener1 Stock is increased by a stock split, stock dividend,
               combination, reclassification or other similar event, the Exchange Price shall
               be proportionately reduced, or if the number of outstanding shares of Ener1
               Stock is decreased by a reverse stock split, combination, reclassification or
               other similar event, the Exchange Price shall be proportionately increased. In
               such event, the Corporation shall notify Ener1s transfer agent of such
               change on or before the effective date thereof.
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| | B.       
               Major Transactions. In the event of a merger, consolidation,
               business combination, tender offer, exchange of shares, recapitalization,
               reorganization, redemption or other similar event, as a result of which shares
               of Ener1 Stock shall be changed into the same or a different number of shares of
               the same or another class or classes of stock or securities or other assets of
               Ener1 or another entity or Ener1 shall sell all or substantially all of its
               assets (each of the foregoing being a Major Transaction) at
               any time after the Issue Date, then the holder thereof shall thereafter have the
               right to receive upon Exchange, in lieu of the shares of Ener1 Stock otherwise
               issuable, such shares of stock, securities and/or other property as would have
               been issued or payable upon such Major Transaction with respect to or in
               exchange for the number of shares of Ener1 Stock which would have been issuable
               upon Exchange had such Major Transaction not taken place (without giving effect
               to any limitations on such Exchange contained herein). The above provisions
               shall apply regardless of whether or not there would have been a sufficient
               number of shares of Ener1 Stock authorized and available for issuance upon
               Exchange as of the date of such transaction, and shall similarly apply to
               successive Major Transactions.
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| | C.       
               Distributions. If, at any time after the Issue Date, the
               Corporation shall declare or make any distribution of its non-cash assets (or
               rights to acquire its assets) to holders of Ener1Stock as a partial liquidating
               dividend or otherwise (including any dividend or distribution to the
               Corporations stockholders in cash or shares (or rights to acquire shares)
               of capital stock of a subsidiary) (a Distribution), upon any
               Exchange herein on or after the date of the Distribution, the Exchange Price
               shall be reduced by an amount equal to the fair market value of the assets
               distributed divided by the number of shares of Ener1 Stock as to which such
               Distribution is to be made, such fair market value to be reasonably determined
               in good faith by the independent members of Ener1s Board of Directors.
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| | D.       
               Notice Of Adjustments. Upon the occurrence of each adjustment or
               readjustment of the Exchange Price pursuant to this Section 8 resulting in
               a change in the Exchange Price by more than one percent (1%), the Corporation,
               at its expense, shall promptly compute such adjustment, readjustment or change
               and prepare and furnish to the holder thereof a certificate setting forth such
               adjustment, readjustment or change and showing in detail the facts upon which
               such adjustment, readjustment or change is based. The Corporation shall, upon
               the written request at any time of the holder thereof, furnish to the holder
               thereof a like certificate setting forth: (i) such adjustment, readjustment or
               change; (ii) the Exchange Price at the time in effect; and (iii) the number of
               shares of Ener1 Stock and the amount which at the time would be received upon
               Exchange herein.
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Section
9. Negative Covenants. The Corporation will not, by amendment of its
certificate of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Corporation, but will at all times in good faith
assist in the carrying out of all the provisions of this Certificate of Designations of
Series A Preferred Stock and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the holders of the shares of Series A
Preferred Stock against impairment.

IN
WITNESS WHEREOF, I have executed subscribed this Certificate of Designations and do
affirm the foregoing as true under the penalties of perjury this 20th day of
October, 2004.

|Attest:


_______________________ |  | BY: /S/ Ronald N. Stewart
Ronald N. StewartSecretary
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