# WARRANT

THE WARRANT EVIDENCED OR CONSTITUTED
HEREBY, AND ALL SHARES OF COMMON STOCK ISSUABLE HEREUNDER, HAVE BEEN AND WILL BE ISSUED
WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE ACT)
AND MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT
REGISTRATION UNDER THE ACT UNLESS EITHER (i) THE COMPANY HAS RECEIVED AN OPINION OF
COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT
REGISTRATION IS NOT REQUIRED IN CONNECTION WITH SUCH DISPOSITION OR (ii) THE SALE OF
SUCH SECURITIES IS MADE PURSUANT TO SECURITIES AND EXCHANGE COMMISSION RULE 144.

# WARRANT TO PURCHASE
COMMON STOCK OF ENER1, INC.

(Subject to Adjustment)

Warrant No. 101

THIS
CERTIFIES THAT, for value received, Cofis Compagnie Fiduciaire S.A.or its
permitted registered assigns (Holder), is entitled,
subject to the terms and conditions of this Warrant, at any time or from time to time
after October 15, 2004 (the Effective Date), and before
5:00 p.m. Central Time on October 15, 2014 (the Expiration
Date), to purchase from Ener1, Inc., a Florida corporation (the
Company), 4,166,666 shares of Common Stock of the Company
at a price per share of $1.50 (the Purchase Price). Both
the number of shares of Common Stock purchasable upon exercise of this Warrant and the
Purchase Price are subject to adjustment and change as provided herein. This Warrant is
issued pursuant to the Subscription Agreement, dated as of October 15, 2004 between, the
Company and Holder.

1.       
          CERTAIN DEFINITIONS.As used in this Warrant the following terms shall
          have the following respective meanings:

| | Registered
Holder shall mean any Holder in whose name this Warrant is registered
upon the books and records maintained by the Company.
| | ----------------------------------------------------------------------------------------------------------------------------------------

| | SECshall
mean the United States Securities and Exchange Commission.
| | ---------------------------------------------------------------------

| | Warrant
as used herein, shall include this Warrant and any warrant delivered in substitution or
exchange therefor as provided herein.
| | ---------------------------------------------------------------------------------------------------------------------------------------

| | Warrant
Shares shall mean the shares of Common Stock to be issuable upon
exercise of this Warrant (or any shares of stock or other securities at the time issuable
upon exercise of this Warrant).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Common
Stock shall mean the Common Stock of the Company and any other
securities at any time receivable or issuable upon exercise of this Warrant.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------

-1-

2.
EXERCISE OF WARRANT

| | 2.1.       Payment.
Subject to compliance with the terms and conditions of this           Warrant and
applicable securities laws, this Warrant may be exercised, in whole           or in part
at any time or from time to time, on or before the Expiration Date by           the
delivery (including, without limitation, delivery by facsimile) of the form           of
Notice of Exercise attached hereto asExhibit 1 (the           Notice
of Exercise), duly executed by the           Holder, at the
principal office of the Company, and as soon as practicable after           such date:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a)                      surrendering
this Warrant at the principal office of the Company, and
| | ----------------------------------------------------------------------------------------------

| | (b)                      payment,
in cash (by check) or by wire transfer, of an amount equal to the                product
obtained by multiplying the number of shares of Common Stock being
               purchased upon such exercise by the then effective Purchase Price (the
               Exercise Amount).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.2.       Stock
Certificates; Fractional Shares. As soon as practicable on or after           such
date, the Company shall issue and deliver to the person or persons entitled           to
receive the same a certificate or certificates for the number of whole shares
          of Common Stock issuable upon such exercise. No fractional shares or scrip
          representing fractional shares shall be issued upon an exercise of this
Warrant.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.3.       Partial
Exercise; Effective Date of Exercise. In case of any partial           exercise of
this Warrant, the Company shall cancel this Warrant upon surrender           hereof and
shall execute and deliver a new Warrant of like tenor and date for           the balance
of the shares of Common Stock purchasable hereunder. This Warrant           shall be
deemed to have been exercised immediately prior to the close of           business on the
date of its surrender for exercise as provided above. The person           entitled to
receive the shares of Common Stock issuable upon exercise of this           Warrant shall
be treated for all purposes as the holder of record of such shares           as of the
close of business on the date the Holder is deemed to have exercised           this
Warrant.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.       
          VALID ISSUANCE; TAXES.All shares of Common Stock issued upon the
          exercise of this Warrant shall be validly issued, fully paid and non-assessable,
          and the Company shall pay all taxes and other governmental charges that may be
          imposed in respect of the issue or delivery thereof. The Company shall not be
          required to pay any tax or other charge imposed in connection with any transfer
          involved in the issuance of any certificate for shares of Common Stock in any
          name other than that of the Registered Holder of this Warrant, and in such case
          the Company shall not be required to issue or deliver any stock certificate or
          security until such tax or other charge has been paid, or it has been
          established to the Companys reasonable satisfaction that no tax or other
          charge is due.

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4.       
          ADJUSTMENT OF PURCHASE PRICE AND NUMBER OF SHARES.The number of shares
          of Common Stock issuable upon exercise of this Warrant (or any shares of stock
          or other securities or property receivable or issuable upon exercise of this
          Warrant) and the Purchase Price are subject to adjustment upon occurrence of the
          following events:

| | 4.1.       Adjustment
for Stock Splits, Stock Subdivisions or Combinations of           Shares. The
Purchase Price of this Warrant shall be proportionally decreased           and the number
of Warrant Shares shall be proportionally increased to reflect           any stock split
or subdivision of the Companys Common Stock. The Purchase           Price of this
Warrant shall be proportionally increased and the number of           Warrant Shares
shall be proportionally decreased to reflect any combination of           the Companys
Common Stock.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.       Adjustment
for Dividends or Distributions of Stock or Other Securities or           Property. In
case the Company shall make or issue, or shall fix a record           date for the
determination of eligible holders entitled to receive, a dividend           or other
distribution with respect to the Common Stock (or any shares of stock           or other
securities at the time issuable upon exercise of the Warrant) payable           in (a) securities
of the Company or (b) assets (excluding cash           dividends paid or payable
solely out of funds legally available therefor), then,           in each such case, the
Holder of this Warrant on exercise hereof at any time           after the consummation,
effective date or record date of such dividend or other           distribution, shall
receive, in addition to the shares of Common Stock (or such           other stock or
securities) issuable on such exercise prior to such date, and           without the
payment of additional consideration therefor, the securities or such           other
assets of the Company to which such Holder would have been entitled upon           such
date if such Holder had exercised this Warrant on the date hereof and had
          thereafter, during the period from the date hereof to and including the date of
          such exercise, retained such shares and/or all other additional stock available
          by it as aforesaid during such period giving effect to all adjustments called
          for by this Section 4.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.3.       Reclassification.
If the Company, by reclassification of securities or           otherwise, shall change
any of the securities as to which purchase rights under           this Warrant exist into
the same or a different number of securities of any           other class or classes,
this Warrant shall thereafter represent the right to           acquire such number and
kind of securities as would have been issuable as the           result of such change
with respect to the securities that were subject to the           purchase rights under
this Warrant immediately prior to such reclassification or           other change and the
Purchase Price therefore shall be appropriately adjusted,           all subject to
further adjustment as provided in this Section 4. No adjustment           shall be made
pursuant to this Section 4.3 upon any conversion or redemption of           the Common
Stock which is the subject of Section 4.5.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.4.       Adjustment
for Capital Reorganization, Merger or Consolidation. In case           of any capital
reorganization of the capital stock of the Company (other than a           combination,
reclassification, exchange or subdivision of shares otherwise           provided for
herein), or any merger or consolidation of the Company with or into           another
corporation, or the sale of all or substantially all the assets of the           Company
then, and in each such case, as a part of such reorganization, merger,
          consolidation, sale or transfer, lawful provision shall be made so that the
          Holder of this Warrant shall thereafter be entitled to receive upon exercise of
          this Warrant, during the period specified herein and upon payment of the
          Purchase Price then in effect, the number of shares of stock or other
securities           or property of the successor corporation resulting from such
reorganization,           merger, consolidation, sale or transfer that a holder of the
shares deliverable           upon exercise of this Warrant would have been entitled to
receive in such           reorganization, consolidation, merger, sale or transfer if this
Warrant had been           exercised immediately before such reorganization, merger,
consolidation, sale or           transfer, all subject to further adjustment as provided
in this Section 4. The           foregoing provisions of this Section 4.4 shall similarly
apply to successive           reorganizations, consolidations, mergers, sales and
transfers and to the stock           or securities of any other corporation that are at
the time receivable upon the           exercise of this Warrant. If the per-share
consideration payable to the Holder           hereof for shares in connection with any
such transaction is in a form other           than cash or marketable securities, then
the value of such consideration shall           be determined in good faith by the Companys
Board of Directors. In all           events, appropriate adjustment (as determined in
good faith by the           Companys Board of Directors) shall be made in the
application of the           provisions of this Warrant with respect to the rights and
interests of the           Holder after the transaction, to the end that the provisions
of this Warrant           shall be applicable after that event, as near as reasonably may
be, in relation           to any shares or other property deliverable after that event
upon exercise of           this Warrant.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-3-

| | 4.5.       Conversion
of Common Stock. In case all or any portion of the authorized           and
outstanding shares of Common Stock of the Company are converted or           reclassified
into other securities or property pursuant to the Companys           Articles of
Incorporation or otherwise, or the Common Stock otherwise ceases to           exist,
then, in such case, the Holder of this Warrant, upon exercise hereof at           any
time after the date on which the Common Stock is so redeemed or converted,
          reclassified or ceases to exist (the Termination           Date),
shall receive, in lieu of the number of shares of           Common Stock that would have
been issuable upon such exercise immediately prior           to the Termination Date, the
securities or property that would have been           received if this Warrant had been
exercised in full and the Common Stock           received thereupon had been
simultaneously converted immediately prior to the           Termination Date, all subject
to further adjustment as provided in this Warrant.           Additionally, the Purchase
Price shall be immediately adjusted to equal the           quotient obtained by dividing
(x) the aggregate Purchase Price of the           maximum number of shares of Common
Stock for which this Warrant was exercisable           immediately prior to the
Termination Date by (y) the number of shares of           Common Stock of the
Company for which this Warrant is exercisable immediately           after the Termination
Date, all subject to further adjustment as provided           herein.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.       
          CERTIFICATE AS TO ADJUSTMENTS.In each case of any adjustment in the
          Purchase Price, or number or type of shares issuable upon exercise of this
          Warrant, the Chief Financial Officer or Controller of the Company shall compute
          such adjustment in accordance with the terms of this Warrant and prepare a
          certificate setting forth such adjustment and showing in detail the facts upon
          which such adjustment is based, including a statement of the adjusted Purchase
          Price. The Company shall promptly send (by facsimile and by either first class
          mail, postage prepaid or overnight delivery) a copy of each such certificate to
          the Holder.

6.       
          LOSS OR MUTILATION.Upon receipt of evidence reasonably satisfactory to
          the Company of the ownership of and the loss, theft, destruction or mutilation
          of this Warrant, and of indemnity reasonably satisfactory to it, and (in the
          case of mutilation) upon surrender and cancellation of this Warrant, the Company
          will execute and deliver in lieu thereof a new Warrant of like tenor as the
          lost, stolen, destroyed or mutilated Warrant.

7.       
          RESERVATION OF COMMON STOCK.The Company hereby covenants that at all
          times there shall be reserved for issuance and delivery upon exercise of this
          Warrant such number of shares of Common Stock or other shares of capital stock
          of the Company as are from time to time issuable upon exercise of this Warrant
          and, from time to time, will take all steps necessary to amend its Articles of
          Incorporation to provide sufficient reserves of shares of Common Stock issuable
          upon exercise of this Warrant (and shares of its Common Stock for issuance on
          conversion of such Common Stock). All such shares shall be duly authorized, and
          when issued upon such exercise, shall be validly issued, fully paid and
          non-assessable, free and clear of all liens, security interests, charges and
          other encumbrances or restrictions on sale and free and clear of all preemptive
          rights, except encumbrances or restrictions arising under federal or state
          securities laws or restrictions provided for in Section 9 below. Issuance of
          this Warrant shall constitute full authority to the Companys officers who
          are charged with the duty of executing stock certificates to execute and issue
          the necessary certificates for shares of Common Stock upon the exercise of this
          Warrant.

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8.       
          TRANSFER AND EXCHANGE.Subject to the terms and conditions of this
          Warrant and compliance with all applicable securities laws, this Warrant and all
          rights hereunder may be transferred in whole or in part, on the books of the
          Company maintained for such purpose at the principal office of the Company
          referred to above, to any Registered Holder parent, subsidiary or affiliate, by
          the Registered Holder hereof in person, or by duly authorized attorney, upon
          surrender of this Warrant properly endorsed and upon payment of any necessary
          transfer tax or other governmental charge imposed upon such transfer. Upon any
          permitted partial transfer, the Company will issue and deliver to the Registered
          Holder a new Warrant or Warrants with respect to the shares of Common Stock not
          so transferred. Each taker and holder of this Warrant, by taking or holding the
          same, consents and agrees that when this Warrant shall have been so endorsed,
          the person in possession of this Warrant may be treated by the Company, and all
          other persons dealing with this Warrant, as the absolute owner hereof for any
          purpose and as the person entitled to exercise the rights represented hereby,
          any notice to the contrary notwithstanding; provided, however that until a
          transfer of this Warrant is duly registered on the books of the Company, the
          Company may treat the Registered Holder hereof as the owner for all purposes.

9.       
          RESTRICTIONS ON TRANSFER.The Holder, by acceptance hereof, agrees that:

| | (a)       
               it will not sell, transfer, pledge or hypothecate any or all of this Warrant
               without the prior written consent of the Company, which consent may be withheld
               in the Companys sole and absolute discretion; and
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       
               notwithstanding any consent given by the Company under Section 9(a) hereof,
               absent an effective registration statement filed with the SEC under the
               Securities Act of 1933, as amended (the 1933 Act), covering
               the disposition or sale of this Warrant or the Common Stock issued or issuable
               upon exercise hereof or the Common Stock issuable upon conversion thereof, as
               the case may be, and registration or qualification under applicable state
               securities laws, such Holder will not sell, transfer, pledge, or hypothecate any
               or all such Warrants or Common Stock, as the case may be, unless either
               (i) the Company has received an opinion of counsel, in form and substance
               reasonably satisfactory to the Company, to the effect that such registration is
               not required in connection with such disposition or (ii) the sale of such
               securities is made pursuant to SEC Rule 144.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-5-

10.       
          COMPLIANCE WITH SECURITIES LAWS.By acceptance of this Warrant, the
          holder hereby represents, warrants and covenants that any shares of stock
          purchased upon exercise of this Warrant or acquired upon conversion thereof
          shall be acquired for investment only and not with a view to, or for sale in
          connection with, any distribution thereof; that the Holder has had such
          opportunity as such Holder has deemed adequate to obtain from representatives of
          the Company such information as is necessary to permit the Holder to evaluate
          the merits and risks of its investment in the company; that the Holder is able
          to bear the economic risk of holding such shares as may be acquired pursuant to
          the exercise of this Warrant for an indefinite period; that the Holder
          understands that the shares of stock acquired pursuant to the exercise of this
          Warrant or acquired upon conversion thereof will not be registered under the
          1933 Act (unless otherwise required pursuant to exercise by the Holder of
          registration rights, if any, previously granted to the registered Holder) and
          will be restricted securities within the meaning of Rule 144 under
          the 1933 Act and that the exemption from registration under Rule 144 will not be
          available for at least one year from the date of exercise of this Warrant, and
          even then will not be available unless a public market then exists for the
          stock, adequate information concerning the Company is then available to the
          public, and other terms and conditions of Rule 144 are complied with; and that
          all stock certificates representing shares of stock issued to the Holder upon
          exercise of this Warrant or upon conversion of such shares may have affixed
          thereto a legend substantially in the following form:

| | THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE ACT), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE
SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE
AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF
COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11.       
          NO RIGHTS OR LIABILITIES AS STOCKHOLDERS.This Warrant shall not entitle
          the Holder to any voting rights or other rights as a stockholder of the Company.
          In the absence of affirmative action by such Holder to purchase Common Stock by
          exercise of this Warrant, no provisions of this Warrant, and no enumeration
          herein of the rights or privileges of the Holder hereof shall cause such Holder
          hereof to be a stockholder of the Company for any purpose.

-6-

12.       
          NOTICES.All notices and other communications between the Company and the
          Holder shall be in writing and shall be delivered by certified or registered
          mail (first class postage pre-paid), guaranteed overnight delivery, or facsimile
          transmission if such transmission is confirmed by delivery by certified or
          registered mail (first class postage pre-paid) or guaranteed overnight delivery,
          to the following addresses and telecopy numbers (or to such other addresses or
          telecopy numbers which such party shall subsequently designate in writing to the
          other party):

| | if to the Company, to: | Ener1, Inc.
                           500 W. Cypress Creek Road, Suite 100
                           Ft. Lauderdale, FL 33309
                           Attn: Chief Executive Officer
                           Telephone:  (954) 556.4020
                           Facsimile:   (954) 776-5337
| | ---------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | with a copy to: | Ener1, Inc.
                           500 W. Cypress Creek Road, Suite 100
                           Ft. Lauderdale, FL 33309
                           Attn: General Counsel
                           Telephone:  (954) 556.4020
                           Facsimile:   (954) 776-3359
| | --------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | if to the Holder, to: | Cofis Compagnie Fiduciaire S.A.
                           Cours des Bastions 4
                           Case postale 5325
                           CH-1211 Geneve 11
                           Attn: Mr. Gerald Calame
                           Tel.:   +41 (0)22 809 10 70
                           Fax :   +41 (0)22 809 10 79
                           E-mail : g.calame@cofisfiduciaire.ch
| | --------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | with a copy to: [Holder to provide] | __________________________
                           __________________________
                           __________________________
                           __________________________
                           __________________________
| | ----------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13.       
          HEADINGS.The headings in this Warrant are for purposes of convenience in
          reference only, and shall not be deemed to constitute a part hereof.

-7-

14.       
          LAW GOVERNING.This Warrant shall be construed and enforced in accordance
          with, and governed by, the laws of the State of Floridawithout regard to
          its conflict of laws provisions and venue shall rest solely in the Federal or
          state courts located inBroward County, Florida.

15.       
          NO IMPAIRMENT.The Company will not, by amendment of its Articles of
          Incorporation or bylaws, or through reorganization, consolidation, merger,
          dissolution, issue or sale of securities, sale of assets or any other voluntary
          action, avoid or seek to avoid the observance or performance of any of the terms
          of this Warrant, but will at all times in good faith assist in the carrying out
          of all such terms and in the taking of all such action as may be necessary or
          appropriate in order to protect the rights of the Registered Holder of this
          Warrant against impairment. Without limiting the generality of the foregoing,
          the Company (a) will not increase the par value of any shares of stock issuable
          upon the exercise of this Warrant above the amount payable therefor upon such
          exercise, and (b) will take all such action as may be necessary or appropriate
          in order that the Company may validly and legally issue fully paid and
          non-assessable shares of Common Stock upon exercise of this Warrant.

16.       
          NOTICES OF RECORD DATE. In case:

| | 16.1.                        the
Company shall take a record of the holders of its Common Stock (or other           stock
or securities at the time receivable upon the exercise of this Warrant),           for
the purpose of entitling them to receive any dividend or other distribution,           or
any right to subscribe for or purchase any shares of stock of any class or           any
other securities or to receive any other right; or
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.2.                        of
any consolidation or merger of the Company with or into another corporation,
          any capital reorganization of the Company, any reclassification of the Capital
          Stock of the Company, or any conveyance of all or substantially all of the
          assets of the Company to another corporation in which holders of the
          Companys stock are to receive stock, securities or property of another
          corporation; or
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.3.                        of
any voluntary dissolution, liquidation or winding-up of the Company; or
| | -------------------------------------------------------------------------------------------------------

| | 16.4.                        of
any redemption or conversion of all outstanding Common Stock;
| | ---------------------------------------------------------------------------------------------

then, and in each such case, the
Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice
specifying, as the case may be, (i) the date on which a record is to be taken for the
purpose of such dividend, distribution or right, or (ii) the date on which such
reorganization, reclassification, consolidation, merger, conveyance, dissolution,
liquidation, winding-up, redemption or conversion is to take place, and the time, if any
is to be fixed, as of which the holders of record of Common Stock or (such stock or
securities as at the time are receivable upon the exercise of this Warrant), shall be
entitled to exchange their shares of Common Stock (or such other stock or securities), for
securities or other property deliverable upon such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such notice
shall be delivered at least thirty (30) days prior to the date therein specified.

17.       
          SEVERABILITY.If any term, provision, covenant or restriction of this
          Warrant is held by a court of competent jurisdiction to be invalid, void or
          unenforceable, the remainder of the terms, provisions, covenants and
          restrictions of this Agreement shall remain in full force and effect and shall
          in no way be affected, impaired or invalidated.

-8-

18.       
          COUNTERPARTS.For the convenience of the parties, any number of counterparts
          of this Warrant may be executed by the parties hereto and each such executed
          counterpart shall be, and shall be deemed to be, an original instrument.

19.       
          NO INCONSISTENT AGREEMENTS.The Company will not on or after the date of
          this Warrant enter into any agreement with respect to its securities which is
          inconsistent with the rights granted to the Holders of this Warrant or otherwise
          conflicts with the provisions hereof. The rights granted to the Holders
          hereunder do not in any way conflict with and are not inconsistent with the
          rights granted to holders of the Companys securities under any other
          agreements, except rights that have been waived.

20.       
          SATURDAYS, SUNDAYS AND HOLIDAYS.If the Expiration Date falls on a Saturday,
          Sunday or legal holiday, the Expiration Date shall automatically be extended
          until 5:00 p.m. the next business day.

-9-

IN
WITNESS WHEREOF, the Company has executed this Warrant as of the Effective Date.

| |  | Ener1, Inc.a Florida corporationBY: /S/ Ronald N. Stewart
Ronald N. StewartExecutive Vice PresidentGeneral Counsel and Secretary
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------

-10-

# EXHIBIT 1

# NOTICE OF EXERCISE

(To be executed upon
exercise of Warrant)

|           | 
|---------- | 
|ENER1, INC | 

The undersigned hereby
irrevocably elects to exercise the right of purchase represented by the within Warrant
Certificate for, and to purchase thereunder, the securities of Ener1, Inc., as provided
for therein, and tenders herewith payment of the exercise price in full in the form of
cash or a certified or official bank check in same-day funds in the amount of
$____________ for _________ such securities.

Please issue a certificate or
certificates for such securities in the name of, and pay any cash for any fractional share
to (please print name, address and tax identification number ):

Name:______________________

Address:____________________

Tax ID:______________________

Signature:____________________

Note: The above signature should
correspond exactly with the name on the first page of this Warrant Certificate or with the
name of the assignee appearing in the assignment form below.

If said number of shares shall not be
all the shares purchasable under the within Warrant Certificate, a new Warrant Certificate
is to be issued in the name of said undersigned for the balance remaining of the shares
purchasable thereunder rounded up to the next higher whole number of shares.

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