# OPTION TO PURCHASE
EQUIPMENT

THIS OPTION AGREEMENT (the
Agreement) entered into this 20th day of October, 2004,
between:

| | EnerDel,
Inc.(EnerDel), a corporation incorporated under the laws of the
State of Delaware;
| | ---------------------------------------------------------------------------------------------

| | Ener1, Inc.(Ener1), a corporation incorporated under the laws of the
State of Florida; and
| | --------------------------------------------------------------------------------------------

| | Ener1
Battery Company (Ener1 Battery) a corporation incorporated under
the laws of the State of Florida.
| | ----------------------------------------------------------------------------------------------------------

WHEREAS, EnerDel and Ener1,
Inc., Ener1 Batterys parent company, have entered into a Formation, Subscription and
Stockholders Agreement dated October 20, 2004 (the Subscription
Agreement) wherein Ener1 subscribed to purchase eighty million five hundred
thousand (80,500,000) shares of EnerDels $0.01 common stock in exchange for fifteen
million dollars ($15,000,000.00) and other capital contributions.

AND, WHEREAS, as part of
Ener1s above-referenced capital contributions, Ener1 Battery grants this option to
purchase the equipment to EnerDel upon certain conditions;

NOW, THEREFORE, in
consideration of the mutual covenants and premises contained herein, the parties hereby
mutually agree as follows:

# 1. Option to Purchase:

As part of the Ener1s
subscription for Ener1 common stock, Ener1 Battery hereby grants an irrevocable option to
EnerDel (the Option) to purchase the equipment currently owned by Ener1
Battery listed in Exhibit A. The exercise price of the Option for the
Equipment identified on the attached schedule 10.1 will be one dollar ($1.00).

   Conditions Precedent to
Exercise of Option:

| | - | The
equipment set forth on Attachment A is currently subject to a lien as collateral for
$20,000,000 of 5% senior secured convertible debentures due in 2009 issued by Ener1 in
January 2004 (the Debentures). Ener1 and Ener1 Battery agree that once the
aforementioned lien is released in full, the option will be deemed automatically
exercised with respect to such equipment. Ener1 Battery also agrees to maintain property
insurance for full replacement value on the subject equipment until purchased by EnerDel
or EnerDel notifies Ener1 Battery that it no longer intends to use the equipment.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | Upon
release of the above lien in full, Ener1 will notify EnerDel of such release and Ener1
Battery shall promptly provide EnerDel with a bill of sale and other appropriate transfer
documents to transfer good and marketable title to such equipment free and clear of any
liens, encumbrances or claims whatsoever.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | Until
the above-referenced lien is released, EnerDel is prohibited from exercising this option.
| | - | -----------------------------------------------------------------------------------------------

# 2. Non-Assignment:

None of the parties hereto may assign any
of its rights or delegate any of its duties under this Agreement, except to an affiliate
which remains affiliated with EnerDel during the term of this Agreement, without first
obtaining the written consent of the other party.

# 3. Governing Law:

This Agreement shall be governed and
interpreted in accordance with the laws of the State of Florida

# 4. Amendments:

This Agreement constitutes the entire
agreement among the parties in relation to the subject matter hereof and supersedes and
integrates all prior negotiations between the parties. No modification, waiver, or
discharge of this Agreement shall be binding unless in writing and signed by authorized
representatives of all of the parties.

# 5. Bulk Sales and Retail
Sales Tax:

EnerDel will not require Ener1
Battery to comply with the requirements of applicable bulk sales lawsor any such
other comparable legislation as may be applicable to the transaction contemplated herein.
Notwithstanding the foregoing, Ener1 Battery agrees to indemnify EnerDel from and against
any claims EnerDel may suffer or be exposed to by virtue of such non-compliance.

# 6. Disputes:

The parties agree that any disputes
concerning this Agreement or the subject matter hereof, including the interpretation or
application of this Agreement, that cannot be settled by negotiation among the parties
shall be resolved by arbitration in Ft. Lauderdale, Florida in accordance with the rules
of the American Arbitration Association.

# 7. Confidentiality:

The terms of this Agreement shall be
kept confidential by the parties hereto.

# 8. Notices:

All notices among the parties shall
be in writing and shall be directed and personally delivered, or sent by facsimile to the
respective parties at the addresses hereinafter provided, or any new address of any party
which may be indicated by written notice to the other parties in the future :

| | If to EnerDel:With a copy to:
If to Ener1: With a copy to:If to Ener1 Battery:
With a copy to: | EnerDel, Inc.
                                            500 West Cypress Creek Road
                                            Suite 100
                                            Fort Lauderdale, Florida 33309
                                            Attn: Kevin P. Fitzgerald
                                            Tel: 954-556-4020
                                            Fax: 954-776-5337EnerDel, Inc.
                                            500 West Cypress Creek Road
                                            Suite 100
                                            Fort Lauderdale, Florida 33309
                                            Attn: General Counsel
                                            Tel:  954-556-4020
                                            Fax: 954-776-3359Ener1, Inc.
                                            500 West Cypress Creek Road
                                            Suite 100
                                            Fort Lauderdale, Florida 33309
                                            Attn: Kevin P. Fitzgerald
                                            Tel: 954-556-4020
                                            Fax: 954-776-5337Ener1, Inc.
                                            500 West Cypress Creek Road
                                            Suite 100
                                            Fort Lauderdale, Florida 33309
                                            Attn: General Counsel
                                            Tel:  954-556-4020
                                            Fax: 954-776-3359Ener1 Battery Company
                                            500 West Cypress Creek Road
                                            Suite 100
                                            Fort Lauderdale, Florida 33309
                                            Attn: Kevin P. Fitzgerald
                                            Tel: 954-556-4020
                                            Fax: 954-776-5337Ener1 Battery Company
                                            500 West Cypress Creek Road
                                            Suite 100
                                            Fort Lauderdale, Florida 33309
                                            Attn: General Counsel
                                            Tel:  954-556-4020
                                            Fax: 954-776-3359
| | ---------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

All such notices shall be deemed to
have been given or received: (a) upon receipt if personally delivered, (b) twenty-four
(24) hours following the transmission with confirmed answer back, if sent by facsimile.

# 9. Further Assurances:

The parties shall do all such things
and provide all such reasonable assurances as may be required to consummate the
transactions contemplated hereby in compliance with all applicable laws and regulations.
Each party shall provide such further documents or instruments required by the other
parties as may be reasonably necessary or desirable to effect the purpose of this
Agreement and carry out its provisions.

# 10. Counterparts:

This Agreement may be executed by the
Parties in separate counterparts each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute one and the same instrument.
This Agreement may be executed by facsimile signature.

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first above written.

| |  | EnerDel, Inc.BY: /s/  Kevin P. Fitzgerald
 Kevin P. FitzgeraldChief Executive OfficerEner1, Inc.BY: /s/ Ronald N. Stewart
Ronald N. StewartExecutive Vice PresidentEner1 Battery CompanyBY: /s/ Ronald N. Stewart
Ronald N. Stewart Chief Operating Officer
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

EXHIBIT A

LISTING OF
EQUIPMENT

ENER1-CONTRIBUTED
EQUIPMENT USAGE RIGHTS

|           |  |  |                                                   |  |  |        
|---------- |  |  | ------------------------------------------------- |  |  | -------
|           |  |  | Glove Box System for Lithium production Line -    |  |  |        
|BRAUN      |  |  | down payment for production line 1                |  |  | 1      
|MBRAUN     |  |  | MB 150 B-G-il (1250/780) K                        |  |  | 1      
|MBRAUN     |  |  | MB 150 B-G-il (1250/780) K                        |  |  | UKRAINE
|MBRAUN     |  |  | MB 150 B-G-il (1250/780) K                        |  |  | 1      
|Satako     |  |  | Test Machine of Battery Abuse - 1 UNIT            |  |  |        
|Satako     |  |  | Test Machine of Battery Abuse - 1 UNIT            |  |  |        
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|Sartorious |  |  | Scale                                             |  |  | LAB    
|           |  |  | Density Measurement, stainless pieces and devices |  |  | LAB    
|Sartorious |  |  |                                                   |  |  |        
|Sartorious |  |  | Temperature control MA50/100                      |  |  |        
|Sartorious |  |  | Glass Fiber Filters                               |  |  |        
|Sartorious |  |  | Aluminium disks for measuring material weights    |  |  |        
|Sartorious |  |  | Industrial scale                                  |  |  | LAB    
|Seteram    |  |  | LABSYS TGA/DTA/DSC                                |  |  | LAB    
|Seteram    |  |  | Structure SETSYS 1600-1750                        |  |  | LAB    
|Seteram    |  |  | Structure SETSYS 1600-1751                        |  |  | LAB    
|Seteram    |  |  | Calvet DSC111                                     |  |  | LAB    

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                             
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|Micrometrics
Micrometrics
       
Micrometrics
       
Micrometrics
       
Plasma      
Arcotronics 
Arcotronics 
       
Arcotronics 
       
Arcotronics 
Arcotronics 
Arcotronics 
Arcotronics 
Arcotronics 
       
Arcotronics 
       
Arcotronics 
Arcotronics 
Arcotronics 
       
Arcotronics 
       
Arcotronics 
       
Arcotronics 
Arcotronics 
Arcotronics 
Arcotronics 
Itochu      
Imatex      
Imatex      
Imatex      
Imatex      
Imatex      
Imatex      
       
Imatex      
       

       
Imatex      
       
Imatex | Gemini 2370 w/Vacuum Pump&FlowPrep     
060, Saturn 5200, AutoChem 2910        
Flow Prep 060 for Gemini               
 Gemini 2370 w/Vacuum Pump&FlowPrep
060, Saturn 5200, AutoChem 2911        
Gemini 2370 w/Vacuum Pump&FlowPrep
060, Saturn 5200, AutoChem 2912        
                                  
Plasma TV                              
Soft Cell Packing and Filling Unit     
Electrode Blanking Equipment           
Soft Pack Cell Packaging and Filling
Machine                                
Tab Current-Collector Folding and
Trimming Unit                          
Tab Final Folding Unit                 
Tab to Current Collector Welding Unit  
Pallet Return Transport System         
Auxiliary Tools                        
 Soft-Pack Cell Degassing and Sealing
Machine                                
Machine for Lithium Anode Assembling
and Inserting into Separator Bag       
Cell Filling Under Vacuum Machine      
Soft Cell Pack Assembly Machine        
Soft Cell Degassing and Sealing
Machine                                
Soft Pack Cell Packaging and Filling
Machine                                
Unit for Lithium Anode Assembling and
Inserting into Separator Bag           
Cell Filling Under Vacuum Machine      
Tab Welding Machine                    
Electrode Notching and Cutting Machine 
Hirano - Both Side Coating Machine     
Glove Boxes - Line # 2                 
Glove Boxes - Line # 1                 
Glove Boxes - Line # 2                 
Glove Boxes - Line # 2                 
Glove Boxes - Line # 3                 
Compressed Argon Supply Units for      
System III (2 Units)                   
Solvent Removal System                 
 

                                  
Solvent Removal System                 
Machine for Lithium Anode Assembling   
and Inserting into Separator Bag | QC      
      QC      
      QC      
      QC      
 550 Cypress
   Crk Rd.
       1      
       1      
       1      
       1      
       1      
       1      
       1      
      na      
       3      
       2      
       3      
         
       1      
       2      
       1      
       1      
       2      
       2      
     COAT     
       2      
       2      
       2      
       2      
       3      
       3      
         
       3      
         

       3      
         
       3 | 56      
   53      
   55      
   56      
   29      
    9      
    7      
    3      
    5      
    4      
    2      
   LOT
   28      
   15      
   26      
      
    8      
   18      
    1      
    6      
   16      
   20      
   45
   30      
   30      
   21      
   21      
   36      
 38 / 37   
      
   31      
      

      
   32      
      
   24 | AUTO CHEM 2910  
  FlowPrep 060   
VACUUM PREP 061  
 FLOW PREP 060   
    SPF 300P     
    EBE 292A     
    SPF 446P     
    TFT 470A     
    TFF 471P     
    TTW 294P     
    PRT 473P     
    SDS 299A     
    ASB 469P     
    CFV 472Q     
   LAO 468A      
    SDS 299A     
    SPF 446Q     
    ASB 469P     
    CFV 472P     
    TFW 486Q     
    ENC 499B     
     Mbraun      
     Mbraun      
  Ener1 Line 2   
  Ener1 Line 2   
  Ener1 Line 3   
  MV4751-Sera    
            
   MB LMF II     
            
  MB LMF II      
            
   ASB469P | 304
      1065       
      822
      1065
    300GBC2A
    292MA69A
    446GBC3A
    470GBR0A
    471GBR1A
    294GA73A
    473GBS0A
    299MB76A
   469G.BW3A
    472GB78A
   468MBS5A
    299MB24A
   446G.BW6A
   469M.BS5A
    472GBR2A
   486Q.BW4A
   499M.BW2A
      2497
      2497
     3109C
     3109C
     3376C
  1398 / 1400    
            
  no serial #    
            
 no serial #     
            
  469G.B77A | 3 UNITS
2 UNITS -
2 TAGS
Line 2 -
1st Unit
Line 2 -
2nd Unit