EXCHANGE AGREEMENT

This
Exchange Agreement (this Agreement) is entered into effective as of November
14, 2003, by and among Ener1, Inc., a Florida corporation, f/k/a Inprimis, Inc.
(Ener1), Ener1 Group, Inc., a Florida corporation, f/k/a Ener1 Holdings, Inc.
(Group), Ener1 Battery Company, a Florida corporation, f/k/a Ener1 USA
Incorporated (Battery), Mike Zoi, an individual (Zoi) and Peter
Novak, an individual (Novak and, together with Zoi, the Related
Parties).

Whereas,
the Board of Directors of Ener1 and Group, as the majority stockholder of Ener1, have
determined that it is in the best interests of Ener1 for Ener1 to exchange shares of
Ener1s common stock, par value $0.01 per share (the Common Stock),
warrants to purchase shares of Common Stock (the Warrants) and promissory
notes in the aggregate principal amount of $1,040,817.22 (the Notes) on the
terms and conditions set forth herein and in the Closing Documents (as defined herein), in
exchange for the cancellation of the debt owed by Ener1 and Battery, as applicable, to
Group and the Related Parties, including all accrued interest thereon and any other
amounts due with respect thereto (collectively the Debt, as more fully
described in Section 1 hereof); and

Whereas,
the parties hereto have reached agreement as to the terms of such exchange.

Now,
therefore, in consideration of the premises and the mutual covenants and conditions
herein, the parties hereto agree as follows:

1.       
          Cancellation of the Debt. In exchange for the Common Stock, Warrants and
          Notes to be issued under Section 2 hereof, Group and each of the Related Parties
          hereby severally agrees to cancel that portion of the Debt owed to it and that
          from and after the date hereof, the Debt shall be deemed paid in full. The
          parties hereto agree that the Debt totals $13,327,799.61, subject to
          verification by Ener1s accountants, and consists of the following:

| | (a)                 Promissory
note from Battery to Group in the original principal amount of           $5,500,000,
bearing interest at 10%, dated August 31, 2002, plus accrued           interest of
$663,638.52 (such accrued interest, as well as all other accrued           interest
amounts referred to below, determined as of the effective date of this
          agreement);
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| | (b)                 Promissory
note from Inprimis, Inc. (Inprimis) to Ener1 Holdings,           Inc. in the
original principal amount of $200,000, bearing interest at 12%,           dated February
22, 2002, plus accrued interest of $45,075.03;
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| | (c)                 Promissory
note from Inprimis to Group in the original principal amount of           $1,161,850.00,
bearing interest at 10%, dated August 31, 2002, plus accrued           interest of
$147,724.96;
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| | (d)                 Right
to payment of monies due from Battery to Ener1 s.r.l., assigned by Ener1           s.r.l.
to Group, in the original principal amount of $86,110, plus accrued           interest of
$53,673.13;
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| | (e)                 Four
promissory notes in the combined original principal amount of           $1,586,270.00,
plus combined accrued interest of $130,705.58, consisting of the           following:
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| | (1)                 Promissory
note of Battery, as assignee as of June 30, 2002, payable to Zoi, in           the
original principal amount of $139,994.87, bearing interest at 6%, with           accrued
interest of $11,535.30;
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| | (2)                 Promissory
note of Battery, as assignee as of June 30, 2002, payable to Novak,           in the
original principal amount of $394,949.24, bearing interest at 6% with           accrued
interest of $32,543.04;
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| | (3)                 Promissory
note of Battery, as assignee as of June 30, 2002, payable to Zoi, in           the
original principal amount of $148,552.46, bearing interest at 6%, with           accrued
interest of $12,240.43; and
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| | (4)                 Promissory
note of Battery, as assignee as of June 30, 2002, payable to Novak,           in the
original principal amount of $902,774.22, bearing interest at 6%, with           accrued
interest of $74,386.81; and
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| | (f)                 Intercompany
advances from Group to Ener1 and Battery (as applicable) totaling           $3,752,751.60
as of November 11, 2003.
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2.       
          Issuance of Ener1 Stock, Warrants and Notes to Group and the Related
          Parties.

| | (a)                 In
exchange for the cancellation of the Debt and the other agreements of Group           and
the Related Parties set forth herein, Ener1 will issue on the date hereof           the
following Common Stock, Warrants and Notes to Group and the Related Parties:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Common Stock

| | (1)                 (i)
5,227,947 shares of Ener1 Common Stock to Group in exchange for cancellation           of
$5,227,947 of the portion of the Debt due to Group, and (ii) 9,601,341 shares
          of Ener1 Common Stock to Group in exchange for cancellation of $5,472,764.30 of
          the portion of the Debt due to Group;
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| | (2)                 (i)
140,973 shares of Ener1 Common Stock to Zoi in exchange for cancellation of
          $140,973 of the portion of the Debt due to Zoi, and (ii) 258,903 shares of
Ener1           Common Stock to Group in exchange for cancellation of $147,574.44 of the
portion           of the Debt due to Zoi;
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| | (3)                 (i)
634,017 shares of Ener1 Common Stock to Novak in exchange for cancellation           of
$634,017 of the portion of the Debt due to Novak, and (ii) 1,164,398 shares           of
Ener1 Common Stock to Novak in exchange for cancellation of $663,706.76 of           the
portion of the Debt due to Novak;
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Warrants

| | (4)                 (i)
an immediately exercisable Warrant to Group with a ten-year term in the form
          attached hereto as Exhibit A, to purchase 8,053,530 shares of Common
          Stock at an exercise price of $1.50 per share, and (ii) an immediately
          exercisable Warrant to Group with a ten-year term, in the form attached hereto
          as Exhibit A, to purchase 8,053,531 shares of Common Stock at an
exercise           price of $2.00 per share;
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| | (5)                 (i)
an immediately exercisable Warrant to Zoi with a ten-year term in the form
          attached hereto as Exhibit A, to purchase 217,165 shares of Common Stock
          at an exercise price of $1.50 per share, and (ii) an immediately exercisable
          Warrant to Zoi with a ten-year term, in the form attached hereto as ExhibitA, to purchase 217,165 shares of Common Stock at an exercise price of $2.00
          per share; and
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| | (6)                 (i)
an immediately exercisable Warrant to Novak with a ten-year term in the form
          attached hereto as Exhibit A, to purchase 976,688 shares of Common Stock
          at an exercise price of $1.50 per share, and (ii) an immediately exercisable
          Warrant to Novak with a ten-year term, in the form attached hereto as Exhibit
          A, to purchase 976,688 shares of Common Stock at an exercise price of $2.00
          per share;
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Notes

| | (7)                 a
Note to Group with a two year term in the principal amount of $910,111.64,
          bearing interest at the rate of 10% per annum, with principal and accrued
          interest thereunder convertible into shares of Ener1 Common Stock at the rate
of           $0.72 per share, in the form attached hereto as Exhibit B;
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| | (8)                 a
Note to Zoi with a two year term in the principal amount of $23,775.73,           bearing
interest at the rate of 6% per annum, with principal and accrued           interest
thereunder convertible into shares of Ener1 Common Stock at the rate of           $0.72
per share, in the form attached hereto as Exhibit B; and
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| | (9)                 a
Note to Novak with a two year term in the principal amount of $106,929.85,
          bearing interest at the rate of 6% per annum, with principal and accrued
          interest thereunder convertible into shares of Ener1 Common Stock at the rate
of           $0.72 per share, in the form attached hereto as Exhibit B.
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3.       
          Release. From and after the date hereof, Group and each of the Related
          Parties hereby waives, releases and forever discharges each of Ener1, Battery
          and their respective affiliates and the officers, directors, shareholders,
          employees and agents of all of them, and all assigns of any portion of the Debt
          (collectively, the Released Parties) of and from any and all
          obligations and duties of any kind and nature whatsoever in law or at equity,
          known or unknown with respect to the Debt which any of Group and each of the
          Related Parties and their respective successors and assigns and any person or
          entity claiming by, through or under any of them, ever had, have or may have
          against the Released Parties other than as may arise as a result of any breach
          of this Agreement.

4.       
          Additional Equity Investment. Group hereby agrees, with three days of
          written instructions from Ener1, to purchase and pay for, in cash, an aggregate
          of up to 1,401,953 additional shares of Common Stock, plus (i) an immediately
          exercisable Warrant to Group with a ten-year term, in the form attached hereto
          as Exhibit A, to purchase 752,616 shares of Common Stock at an exercise
          price of $1.50 per share, and (ii) an immediately exercisable Warrant to Group
          with a ten-year term, in the form attached hereto as Exhibit A, to
          purchase 752,617 shares of Common Stock at an exercise price of $2.00 per share,
          for the total purchase price of $1,000,000, which amount shall be prorated as to
          any partial purchases under this section.

5.       
          Registration.

| | (a)                 At
such time as Ener1 is required to file a registration statement with the
          Securities and Exchange Commission (the Commission) to register the
          resale of Common Stock issued in a private offering in which the net proceeds
to           Ener1 equal or exceed $20 million, Ener1 shall file a registration statement
          (the Registration Statement) with the Commission pursuant to Rule
          415 of the Securities Act of 1933, as amended (the Securities Act)
          to register the resale by Group and the Related Parties of (i) the Common Stock
          issued pursuant to Section 2 hereof, (ii) the Common Stock issuable under the
          Warrants and (iii) any Common Stock (and Warrants) issued pursuant to Section 4
          hereof (collectively, the Registrable Securities). Ener1 shall use
          reasonable efforts to have the Registration Statement declared effective by the
          Commission as soon as practicable. Ener1 shall keep the Registration Statement
          effective pursuant to Rule 415 at all times during the period from the date it
          is initially declared effective until the earliest of (i) the second
anniversary           of the date such Registration Statement is filed or (ii) the date
on which all           of the Registrable Securities have been sold. Ener1 shall use
reasonable efforts           to promptly register and qualify, unless an exemption from
registration and           qualification applies, the resale of the Registrable
Securities under such other           securities or blue sky laws of all
applicable jurisdictions in the           United States as Group or a related party
reasonably requests in writing;           provided, however, that Ener1 shall not be
required in connection therewith or           as a condition thereto to file a general
consent to service of process in any           such jurisdiction, except in such
jurisdictions where Ener1 is subject to           service of process. All expenses, other
than underwriting discounts and           commissions and legal and accounting expenses
of Group and the Related Parties,           incurred in connection with registrations,
filings or qualifications pursuant to           this Section 5, shall be paid by Ener1.
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| | (b)                 It
shall be a condition precedent to Ener1s obligations to complete the
          registration pursuant to this Agreement with respect to the Registrable
          Securities that Group and the Related Parties shall furnish to Ener1 such
          information regarding themselves, the Registrable Securities and the intended
          method of disposition of the Registrable Securities as shall be reasonably
          required to effect the effectiveness of the registration of such Registrable
          Securities and shall execute such documents in connection with such
registration           as Ener1 may reasonably request.
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6.       
          Investment Representations. Group and each of the Related Parties hereby
          represent and warrant as follows:

| | (a)                 Such
party is acquiring all Common Stock and Warrants issued hereunder (the           Securities)
for its own account for investment only and not with a           view towards, or for
resale in connection with, the public sale or distribution           thereof, except
pursuant to sales registered or exempted from registration under           the Securities
Act.
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| | (b)                 Such
party is an accredited investor as that term is defined in Rule
          501(a) of Regulation D under the Securities Act as of the date of this
Agreement           and was not organized for the specific purpose of acquiring the
Securities. Such           party understands that the Securities are being offered and
sold to it in           reliance on specific exemptions from the registration
requirements of the United           States federal and state securities laws and that
Ener1 is relying upon the           truth and accuracy of, and such partys
compliance with, the           representations, warranties and agreements of such party
set forth herein and in           the Warrants in order to determine the availability of
such exemptions. Such           party understands that the Securities have not been
registered under the           Securities Act or any state securities laws, and may not
be offered for sale,           sold, assigned or transferred without registration under
the Securities Act or           an exemption therefrom and that, in the absence of an
effective registration           statement under the Securities Act, such Securities may
only be sold under           certain circumstances as set forth in the Securities Act.
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7.       
          Other Provisions. This Agreement shall be interpreted and enforceable
          under the laws of the State of Florida, without regard to its conflict of laws
          provisions, and jurisdiction and venue shall rest solely in the Federal or state
          courts located in Broward County, Florida. This Agreement and the Warrants
          contain all of the agreements of the parties hereto with respect to the
          cancellation of debt and issuance of securities hereunder and supersedes any
          prior written or oral agreements between them with respect thereto. This
          Agreement may be modified only by a written document executed by all of the
          parties hereto. This Agreement shall be binding upon and inure to the benefit of
          the parties and their respective successors and permitted assigns. None of
          Ener1, Battery or EnerLook may assign this Agreement or any rights or
          obligations hereunder without the prior written consent of Group and the Related
          Parties. None of Group or the Related Parties may assign this Agreement or any
          rights or obligations hereunder without the prior written consent of Ener1.

8.       
          Notices. Any notices to be given under this Agreement must be in writing
          and will be deemed to have been delivered: (i) upon receipt, when delivered
          personally; (ii) upon receipt, when sent by facsimile (evidenced by mechanically
          or electronically generated receipt by the senders facsimile machine); or
          (iii) one (1) Business Day after deposit with a nationally recognized
          overnight delivery service, in each case properly addressed to the party to
          receive the same.

[This
space intentionally blank. Signature page follows.]

9.       
          Counterparts. This Agreement may be executed in counterparts, each of
          which shall be deemed an original, but together shall constitute one and the
          same instrument.

IN
WITNESS WHEREOF, the parties have caused this Exchange Agreement to be duly executed
as of the date first written above.

|Ener1 Group, Inc.               
By:      ______________________ 
Name:    ______________________ 
Title:   ______________________ 
Ener1 Battery Company
By:      ______________________
Name:    ______________________
Title:   ______________________
____________________________    
Mike Zoi | Ener1, Inc.
By:      ______________________
Name:    ______________________
Title:   ______________________
____________________________
Peter Novak
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