| | LOAN AGREEMENT N 045-KB/2002 
 St.Petersburg "___" "________________ 2002
Saint  Petersburg  Joint  Stock  Bank  Tavricheskiy  (Open
Joint  Stock  Company),  hereinafter  refered  to as  "the
Bank",  represented  by the Chief of Credit  department Mr
Vladimir  P.  Skaruk,  acting on the basis of the power of
attorney No 54 of November 23, 2000, and
ENER1 USA  INCORPORATED,  hereinafter  referred to as "the
Borrower",  represented  by the  corporation  director  Mr
Mike Zoi,  acting on the basis of the  Charter,  concluded
the present Agreement as follows:
                    1. SUBJECT OF THE AGREEMENT
1.1 Under the  present  Agreement  the Bank is  obliged to
transfer  to the  Borrower  funds in amount  of  1,200,000
(One  million two hundred  thousand)  US dollars,  and the
Borrower  is obliged to pay back the  specified  amount of
the loan and the relevant  interests on it under the terms
of the present Agreement.
                     2. THE BORROWER IS OBLIGED
2.1.  To repay the loan  amount not later than  August 20,
2004.
 2.2.  To  pay  the  Bank  interests  on  the  loan  amount
 outstanding  quarterly  not late than 28th (twenty  eigth)
of the last month of the  quarter at the rate of 8 (eight)
per cent calculated  annually.  The final interest payment
is due to with the last  installment  of the loan  return.
Calculation  of  interests  is  effected  up to the day of
entire   execution  of   obligations   under  the  present
Agreement (clause 3.9)
2.3.   To   provide   the  Bank  with  all  the   required
Agreements,  contracts,  information  on all
bank accounts available,  financial  statements etc), that
can disclose financial  situation of the Borrower,  within
two   days  on   receiving   the   Bank's   request.   The
above-mentioned  information  should be  submitted  to the
Bank in written form unless other is specified.
2.4.  Not to  assign  rights  and  liabilities  under  the
present  Agreement to any third persons without the Bank's
consent.
2.5.  To inform the Bank of making any  amendments  to the
statutory  documentation  of  the  Borrower,   changes  in
number  of  shareholders  and their  shares  and those who
auou  have signed the loan documents on behalf of the company.
Information  (confirming   documentation)  is  due  to  be
presented to the Bank in written  form,  notary  certified
within 3  (three)  days on  making  the  above  amendments
(registration).
 3.TERMS OF THE LOAN GRANTING, LOAN REPAYMENT AND INTEREST
                            PAYMENTS
3.1. The loan amount is to be  transmitted  to the foreign
currency  account of the Borrower (clause 6.2).
3.2. Interest payments on the loan amount  outstanding are
to be paid from the date of  remittance  of funds from the
correspondent  account  of the Bank (or  withdrawing  from
the  latter  in any  other  way)  until the date the funds
enter   the   correspondent   account   of  the  Bank  (or
remittance of it to the latter in other way)  inclusive of
entering
3.3.  Calculation  of  interests  is based on the interest
rate (per cents  annually) and the amount of calendar days
considering  the  actual  amount  of days in the year (365
and 366 days correspondently).
3.4.  The  Borrower  is  to  refund  all  the  operational
expenses,   concerned   with   execution  of  the  present
Agreement   not   later   the  next  day  of  the   Bank's
notification about the expenses incurred.
3.5/ The loan  repayment  and interest  payments may be in
ny other hard  currency or in Russian  roubles  only with
he Bank's  permission.  The Borrower  bears all the costs
f currency converting.
3.6.  If the  Borrower  fails  to repay  the  loan  and/or
interests  and/or pay for Bank's  operating  costs in time
(2.1.,  2.2.,  3.4.) , the Bank has the  right to  collect
amounts  due  according  to the  Agreement  and  the  fine
(4.2.)  by  withdrawing  the sum due from  the  Borrower's
from  currency account of the Borrower (clause 6.2).
If  the  sum  the  Bank  is  able  to   receive   in  such
circumstances  is not  enough to repay  the  whole  amount
the  interest  payments  and  fines  are paid in the
first  place,   then  the  loan  amount  overdue  and  the
remaining   sum  is  used  to  repay  the   current   loan
obligations.  The Bank has the right to  change  the queue
of repayments.
3.7. If It is  impossible to withdraw the sum due from the
Borrower's  from the  currency  account,  the Bank has the
right to write off the current  Agreement  concerned  debt
in Russian roubles from the Borrower's bank accounts.  The
exchange  rate used in such case is the  exchange  rate of
USD/RUR fixed by the Central Bank at the transaction  date
plus 5%.
The   Borrower   bears  all  costs   concerning   currency
converting.
3.8. The Bank has the unilateral  right to change dates of
loan  repayment,  to  refuse to grant the loan in case the
Borrower   doesn't   follow  the  terms  of  the   current
Agreement  and  if  the  Bank  supposes  that   Borrower's
activities  are such that it is evident  that the Borrower
will be unable to repay its debts under present terms.  If
it happens,  the Bank informs the Borrower  three calendar
days before it changes  dates of  repayments or terminates
the loan.
3.9. The date of the sides'  obligations  are fulfilled is
stated the date when the funds are withdrawn  (transferred
to) the Bank's  account or the date the Bank gets  (loses)
 access to  the money  by other means.
          4. RESPONSIBILITY FOR FAILING OF FULFILLING THE
                       OBLIGATIONS
4.1. If the dates of loan repayment  (2.1) and/or interest
payments(2.2)  and(or) Bank's operating cost reimbursement
are violated,  the Bank has the right to fine the Borrower
(the  fine  is  0.1%  of the  amount  due  for  every  day
overdue).
 4.2. If the Borrower fails to fulfil  obligations  (stated
 in 2.5) of the current  Agreement,  the Borrower  pays the
 fine to the Bank  (the  fine is  0.05% of the loan  amount
 for every day overdue)
 4.3.  Losses  concerning  the current  Agreement are to be
 paid in full amount, regardless of fines.
 4.4.  The  borrower  is  responsible  for  not  fulfilling
 obligations of current Agreement, regardless of the guilt.
                    5. VALIDITY OF THE AGREEMENT.
                          OTHER CONDITIONS
5.1 The Agreement is valid until relevant  obligations are
fulfilled.
5.2. All current and  operational  expenses are to be paid
by the Borrower,  using the Bank's  tariffs to the date of
the payment.
..3.   Disputes   concerning  the  present  Agreement  are
onsidered by The Arbitration  Court of St-Petersburg  and
eningradskaya Oblast.
5.4.  The  current  Agreement  is  composed in two legally
equal copies. Each side of the Agreement keeps one copy.
               6. THE DETAILS OF THE PARTIES
6.1 Bank:
Saint  Petersburg  Joint  Stock  Bank  Tavricheskiy  (Open
Joint Stock Company)
39, Radischeva Street, St. Petersburg,
191123, Russia
INN 7831000108
BIC 044030877
Cor.  acc.(1)  30101810700000000877  in  GRKC  GU CB RF in
Saint Petersburg
6.2 Borrower:
ENER1  USA INCORPORATED
550 W.  Cypress  Creek  Road,  Suite 120,  Ft.  Lauderdale
Florida. 33309,
KIO 00006, KPP 783585001,
Acc. 40807840800000002601
With Bank Tavrichesky,
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| | 7. SIGNATURE OF THE PARTIES
Caaiuee / Borrower:
ENER1  USA INCORPORATED
   Aeoaeoioa Eioiioaoee:
   Corporation director
   _________________________ Iaee Cie
                             Mr Mike Zoi
   M.II.
   P.S.
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