Document:

AGREEMENT AND CONSENT

 

February 27, 2012

 

In accordance with the terms and conditions
of that certain Restructuring, Lockup and Plan Support Agreement, dated as of January 25, 2012 (the “Plan Support Agreement”),
by and among the parties hereto, (a) the parties hereto hereby consent to the amendment to the Prepackaged Plan of Reorganization
under Chapter 11 of the Bankruptcy Code, attached as Exhibit A to the Plan Support Agreement, and filed by Ener1, Inc., on January
26, 2012, with the United States Bankruptcy Court for the Southern District of New York (the “Plan”), in accordance
with Exhibit A hereto, (b) the parties hereto hereby consent to the amendment to the form of New Notes Loan Agreement (attached
as Exhibit B to the Plan Support Agreement, and filed on January 26, 2012, as Schedule 1 to the Plan), in accordance with Exhibit
B hereto, (c) the parties hereto hereby acknowledge and agree that the aggregate amount of the Initial Equity Contribution
(as such term is defined in the form of Equity Commitment Agreement, attached as Exhibit G to the Plan Support Agreement, and filed
on January 26, 2012, as Schedule 4 to the Plan (the “Equity Commitment Agreement”)), shall be $11,300,000, (d)
the parties hereto acknowledge and agree that footnote 3 to the Equity Commitment Agreement (Maximum Equity Amount) is hereby replaced
in its entirety to read as follows: “$55 million less the principal amount of the DIP borrowings converted into Preferred
Stock at confirmation of the plan” and (e) Bzinfin S.A. hereby agrees to reasonably agree to the amendment to Exhibit B to
the Equity Commitment Agreement (Consolidated EBITDA and Working Capital Ratio Milestones) to be proposed by Ener1, Inc. (the “Company”)
following the date hereof, which amendment shall be prepared by the Company based on the Budget attached as Exhibit J to the New
Notes Loan Agreement referred to in clause (b) above.

 

Except as amended hereby, the Plan Support
Agreement is hereby reconfirmed and shall remain in full force and effect without modification.

 

This Agreement and Consent shall be governed
by and construed in accordance with the internal laws of the State of New York, without regard to any conflict of laws provisions
which would require the application of the law of any other jurisdiction.

 

This Agreement and Consent may be executed
in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same agreement.
Execution copies of this Agreement and Consent may be delivered by facsimile or electronic mail which shall be deemed to be an
original.

 

[Signature Page Follows]

 

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

 

ENER1, INC.

 

	By:	/s/ Alex Sorokin	 	 
	 	Name:  Alex Sorokin	 	 
	 	Title:  CEO	 	 

 

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GSAM

 

LIBERTY HARBOR SPECIAL INVESTMENTS, LLC

 

	By:	Goldman Sachs Asset Management, L.P.	 	 
	 	 	 	 
	 	/s/ Gregg J. Felton	 	 
	 	Name:  Gregg J. Felton	 	 
	 	Title:  Authorized Signatory	 	 

 

 

GOLDMAN SACHS PALMETTO STATE CREDIT FUND, L.P.

 

	By:	Goldman Sachs Asset Management, L.P.	 	 
	 	 	 	 
	 	/s/ Gregg J. Felton	 	 
	 	Name:  Gregg J. Felton	 	 
	 	Title:  Authorized Signatory	 	 

 

    	 

    	 

    
 

WHITEBOX

 

WHITEBOX CREDIT ARBITRAGE PARTNERS, L.P.

 

	By: 	/s/ Mark Strefling	 	
	Name: 	Mark Strefling	 	 
	Title: 	CLO	 	 

 

 

PANDORA SELECT PARTNERS, L.P.

  

	By: 	/s/ Mark Strefling	 	
	Name: 	Mark Strefling	 	 
	Title: 	CLO	 	 

 

 

WHITEBOX CONCENTRATED CONVERTIBLE ARBITRAGE PARTNERS, L.P.

 

	By: 	/s/ Mark Strefling	 	
	Name: 	Mark Strefling	 	 
	Title: 	CLO	 	 

 

 

WHITEBOX MULTI STRATEGY PARTNERS, L.P.

  

	By: 	/s/ Mark Strefling	 	
	Name: 	Mark Strefling	 	 
	Title: 	CLO	 	 

 

 

WHITEBOX SPECIAL OPPORTUNITIES FUND LP, SERIES B

 

	By: 	/s/ Mark Strefling	 	
	Name: 	Mark Strefling	 	 
	Title: 	CLO	 	 

 

    	 

    	 

    
 

BZINFIN

 

BZINFIN S.A.

 

 

	By:	/s/ Patrick T. Billet	 	 
	Name:  	 Patrick T. Billet	 	 
	Title:	Attorney-in-fact	 	 

 

    	 

    	 

    

 

ITOCHU

 

	ITOCHU CORPORATION	 	 
	 	 	 	 
	 	 	 	 
	By:	/s/ Kiyoshi Fujii	 	 
	Name: 	Kiyoshi Fujii	 	 
	Title:	General Manager	 	 
		Industrial Machinery & electronic System Dept.	 

 

    	 

    	 

    

 

Exhibit A – Amendment to Plan

 

 

    	 

    	 

    

 

UNITED STATES BANKRUPTCY COURT

FOR THE SOUTHERN DISTRICT OF NEW YORK

	
        In re:

         

        ENER1, INC.,

         

        Debtor.
	 	
        Chapter 11

         

        Case No.: 12-

         

 

MODIFIED
PREPACKAGED PLAN OF REORGANIZATION 

UNDER CHAPTER
11 OF THE BANKRUPTCY CODE

 

	
        REED SMITH
        LLP

        ·           599 Lexington Avenue

        ·             22nd Floor

        ·      New
York, NY 10022

        ·          Telephone: (212) 521 5400

        ·      Facsimile:
(212) 521 5450

	Proposed Counsel for the Debtor

 

Dated: January
26,February 27, 2012

    	 

    	 

    
 

1.38Exit
Funding: The commitment of the Exit Funder to provide financing in an amount of up to $8186
million less the principal amount outstanding under the DIP Facility as of the Effective Date on the terms set forth in the Equity
Commitment Agreement, substantially in the form annexed as Schedule 4 to the Plan, to be entered into as of the Effective Date.

 

1.39Exit
Funder: Each of Bzinfin S.A. (or its Affiliate), Goldman Sachs Palmetto State Credit Fund, L.P., Liberty Harbor Special Investments,
LLC, Whitebox Multi Strategy Partners, L.P., Whitebox Concentrated Convertible Arbitrage Partners L.P., Pandora Select Partners,
L.P., Whitebox Credit Arbitrage Partners, L.P., and Whitebox Special Opportunities Fund LP, Series B, in each case, in its capacity
as a provider of a portion of the Exit Funding, in accordance with the terms of the Equity Commitment Agreement.

 

1.40File
or Filed: To file, or to have been filed, with the Clerk of the Bankruptcy Court in the Chapter 11 Case.

 

1.41Final
Decree: A Final Order of the Bankruptcy Court entered pursuant to section 350(a) of the Bankruptcy Code closing the Chapter
11 Case.

 

1.42Final
Distribution: The final payment made to any holders of Claims in Class 6 (General Unsecured Claims).

 

1.43Final
Distribution Date: The date upon which the Final Distribution is made.

 

1.44Final
Order: An order or judgment of the Bankruptcy Court or other court of competent jurisdiction, as entered on its docket, that
has not been reversed, stayed, vacated, modified or amended, and as to which (i) the time to appeal, petition for certiorari or
move for a stay, reargument, rehearing or a new trial has expired and no appeal, petition for

    	- 10 -

    	 

    

denoted as a percentage rate of interest
on a principal sum of money or (ii) a security interest in property), the term “Interest” means “equity security”,
as defined in section 101(16) of the Bankruptcy Code, and includes all issued shares of common stock and preferred stock of the
Debtor as of the Petition Date, all Warrants, options, or other rights, contractual or otherwise, to acquire any such equity interest
in the debtor, or the right to purchase, sell, or subscribe to a share, security, or interest specified in subparagraph (A) or
(B) of section 101(16) of the Bankruptcy Code, and any subordinated claim which arises pursuant to section 510(b) of the Bankruptcy
Code.

 

1.50Lien:
Shall have the meaning set forth in section 101(37) of the Bankruptcy Code.

 

1.51Line
of Credit Agreement: The Line of Credit Agreement dated June 29, 2011, as amended, by and between the Debtor and Bzinfin S.A.,
that established a line of credit for the Debtor in the aggregate principal amount of $15,000,000, as may be amended or supplemented
from time to time, provided, however, that pursuant to the terms of the Subordination Agreement the indebtedness
under the Line of Credit Agreement is subordinated to the indebtedness under the Senior Notes Agreement.

 

1.52Line
of Credit Claims: The Claims arising under the Line of Credit Agreement.

 

1.53Line
of Credit Claims New Common Stock Amount: $12,081,177.28

 

1.54Net
Cumulative Cash Outflows: This term shall have the meaning ascribed to it in the New Notes Loan Agreement and be calculated
for the period from February 27, 2012 through March 29, 2013.

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1.551.54
New Board of Directors: The board of directors of the Reorganized Debtor on and after the Effective Date.

 

1.561.55
New Common Stock: The common stock, par value $0.01 per share, to be issued by the Reorganized Debtor on the
Effective Date to the holders of Claims in Classes 3, 4, and 5 pursuant to sections 5.3, 5.4, and 5.5 of this Plan and reserved
for issuance upon the conversion of New Preferred Stock into New Common Stock.

 

1.571.56
New Directors: The persons identified in the Plan Supplement who will serve as directors of the Reorganized
Debtor on and after the Effective Date.

 

1.581.57
New Notes: The notes to be issued to the holders of Claims in Class 3, pursuant to the New Notes Loan Agreement
and section 5.3 of this Plan.

 

1.591.58
New Notes Loan Agreement: The Loan Agreement, substantially in the form annexed as Schedule 1 to this Plan,
to be entered into on the Effective Date by and among the Debtor, and as lenders, Goldman Sachs Palmetto State Credit Fund, L.P.;
Liberty Harbor Special Investments, LLC; Whitebox Multi Strategy Partners, L.P.; Whitebox Concentrated Convertible Arbitrage Partners
L.P.; Pandora Select Partners, L.P.; Whitebox Credit Arbitrage Partners, L.P.; and Whitebox Special Opportunities Fund LP, Series
B, as may be amended or supplemented from time to time.

 

1.601.59
New Organization Documents: The Amended and Restated Articles of Incorporation and the Amended and Restated
Bylaws of the Reorganized Debtor, substantially in the form annexed as Schedule 5.

 

1.611.60
New Preferred Stock: The Series A Cumulative Convertible Preferred Stock to be issued by the Reorganized Debtor
on the Effective Date and thereafter.

 

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Loan Claims are outstanding on the Effective
Date, such Claims shall be paid in full (including principal, accrued prepetition and postpetition interest through the date of
payment, any adequate protection payments required in connection therewith and all other amounts due under the Bridge Loan Documents)
in cash on the Effective Date and upon such payment the Liens granted to the Bridge Lenders pursuant to the Bridge Loan Documents
shall terminate and be deemed released.

 

5.3Class 3 (Senior
Note Claims). Each holder of a Senior Note Claim will receive its pro rata allocation of (i) on the Effective Date (a)
Cash in the amount of $2,717,708.76,1,001,261.12,
(b) New Notes with a principal amount equal to (1) 75% of the principal amount of the Senior Notes (plus accrued interest through
the Effective Date) minus (2) $8,153,126.28, and (c) a number of shares of New Common Stock equal to 10,000,000 multiplied by the
quotient of the Senior Note Claims New Common Stock Amount divided by the Total New Common Stock Calculation Amount; (ii) on the
date that is four months after the Effective Date, Cash in the amount of $2,717,708.76, together with interest thereon accruing
from the Effective Date through the date of payment at the interest rate of 7 percent per annum to be paid in Cash;
and (iii) on the date that is eight months after the Effective Date, Cash in the amount of $2,717,708.76, together
with interest thereon accruing from the Effective Date through the date of payment at the interest rate of 7 percent per annum
to be paid in Cash. The four and eight month;
and (iv) on the later of the first anniversary of the Effective Date or April 10, 2013, Cash in the amount of $1,716,447.64, together
with interest thereon accruing from the Effective Date through the date of payment at the interest rate of 7 percent per annum,
to be paid in

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Cash; provided, however, that for every dollar that the Net Cumulative Cash Outflows are greater than
$25,915,000.00, 85.8 cents will be satisfied in shares of New Preferred Stock up to an aggregate amount of $1,716,447.64, plus
accrued interest on such amount, rather than paid in Cash; provided further, however, that if the Net Cumulative
Cash Outflows are greater than or equal to $27,915,000.00, then the full amount of the $1,716,447.64 payment, including interest
thereon, will be satisfied in shares of New Preferred Stock. To the extent that shares of New Preferred Stock are used to satisfy
any portion of the $1,716,447.64 payment, including any interest thereon, such shares shall have an aggregate liquidation preference
equal to the portion of the $1,716,447.64 payment, plus any interest thereon, satisfied with shares of New Preferred Stock. Each
of the Cash payments set forth above in clauses (ii), (iii),
and (iiiiv)
shall have the benefit of the collateral and guarantees provided for in the New Notes Loan Agreement and shall be (x) pari passu
with the payments with respect to the Convertible Note Claims set forth in sections 5.4 (ii,)
(iii), and (iiiiv)
below, and (y) senior in right of payment to the principal and interest payments under the New Notes Loan Agreement, on terms set
forth in the New Notes Loan Agreement.

 

5.4Class 4 (Convertible
Note Claims). Each holder of a Convertible Note Claim will receive its pro rata allocation of (i) on the Effective Date
(a) Cash in the amount of $448,957.91165,405.54
and (b) a number of shares of New Common Stock equal to 10,000,000 multiplied by the quotient of the Convertible Note Claims New
Common Stock Amount divided by the Total New Common Stock Calculation Amount, (ii) on the date that is four months after the Effective
Date, Cash in the amount of $448,957.91, together with interest thereon accruing from the Effective Date through the date of payment
at the interest rate of 7 percent per annum to be paid in Cash; and (iii) on the
date that is eight months after the Effective Date, Cash in the amount of $448,957.91, together with interest thereon accruing
from the Effective Date through the date of payment at the interest rate of 7 percent per annum to be paid in Cash.
The four and eight month; and (iv) on the later of the
first anniversary of the Effective Date or April 10, 2013,

 

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Cash in the amount of $283,552.36, together with interest thereon accruing
from the Effective Date through the date of payment at the interest rate of 7 percent per annum, to be paid in Cash; provided,
however, that for every dollar that the Net Cumulative Cash Outflows are greater than $25,915,000.00, 14.2 cents will be
satisfied in shares of New Preferred Stock up to an aggregate amount of $283,552.36, plus accrued interest on such amount, rather
than paid in Cash; provided further, however, that if the Net Cumulative Cash Outflows are greater than or equal
to $27,915,000.00, then the full amount of the $283,552.36 payment, including interest thereon, will be satisfied in shares of
New Preferred Stock. To the extent that shares of New Preferred Stock are used to satisfy any portion of the $283,552.36 payment,
including any interest thereon, such shares shall have an aggregate liquidation preference equal to the portion of the $283,552.36
payment, plus any interest thereon, satisfied with shares of New Preferred Stock. Each of the Cash payments set forth
above in clauses (ii), (iii), and (iiiiv)
shall have the benefit of the collateral and guarantees provided for in the New Notes Loan Agreement and shall be (x) pari passu
with the payments with respect to the Senior Note Claims set forth in sections 5.3 (ii,)
(iii), and (iiiiv)
above, and (y) senior in right of payment to the principal and interest payments under the New Notes Loan Agreement, on terms set
forth in the New Notes Loan Agreement.

 

5.5Class 5 (Line
of Credit Claims). On the Effective Date, each holder of a Line of Credit Claim will receive its pro rata allocation
of a number of shares of New Common Stock equal to 10,000,000 multiplied by the quotient of the Line of Credit Claims New Common
Stock Amount divided by the Total New Common Stock Calculation Amount.

 

5.6Class 6 (General
Unsecured Claims) Except to the extent that a holder of an Allowed General Unsecured Claim agrees to a less favorable treatment
or has been paid prior to the Effective Date, each Allowed General Unsecured Claim in Class 6 (General

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7.2Issuance of
New Notes. On the Effective Date: (i) the Senior Notes shall be canceled
and extinguished, and the holders thereof shall not retain any rights thereunder and such instruments shall evidence no rights;
and, (ii) the Reorganized Debtor will issue the New Notes pursuant to the New Notes Loan Agreement.

 

7.3Issuance of
New Common Stock and New Preferred Stock. On the Effective Date: (i)
all authorized or issued Interests shall be canceled and extinguished, and the holders thereof shall not retain any rights thereunder
and such instruments shall evidence no rights; and, (ii) the Reorganized Debtor will issue the New Common Stock and the New Preferred
Stock other than the New Preferred Stock that is to be issued
at a later date pursuant to the Plan and the Equity Commitment Agreement.
Upon the issuance of the New Common Stock and the New Preferred Stock, each holder of a Claim who accepts delivery of such shares
of New Common Stock and New Preferred Stock provided for in this Plan, will be deemed to have consented and agreed to the terms
of, and will thereby be deemed to have become a party to, the Stockholders Agreement and the Registration Rights Agreement regardless
of whether such party actually executes the Stockholders Agreement or the Registration Rights Agreement. An aggregate of 10,000,000
shares of New Common Stock will be (x) issued on the Effective Date to holders of Senior Note Claims, Convertible Note Claims,
and Line of Credit Claims under the Plan and (y) reserved for issuance upon the conversion of the New Preferred Stock issued and
outstanding as of the Effective Date (in an amount equal to the Total New Preferred Stock Amount) into New Common Stock. The conversion
price for the New Preferred Stock shall be the Total New Common Stock Calculation Amount divided by 10,000,000.

 

7.4No Fractional
Shares. No fractional shares of New Common Stock or New Preferred Stock shall be distributed pursuant to the Plan. When any
distribution on account

 

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other professionals have participated
in good faith and in compliance with the applicable provisions of the Bankruptcy Code in the offer and issuance of the securities
under the Plan. Accordingly, such entities and individuals shall not be liable at any time for the violation of any applicable
law, rule or regulation governing the solicitation of acceptances or rejections of the Plan or the offer and issuance of the securities
under the Plan.

 

14.18Expedited
Tax Determination. The Reorganized Debtor may request an expedited determination of taxes under 505(b) of the Bankruptcy Code
for all returns filed for, or on behalf of, the Debtor for any and all taxable periods ending after the Petition Date through,
and including, the Effective Date.

 

14.19Dissolution
of any Statutory Committees and Cessation of Fee and Expense Payment. To the extent that one or more official committees are
appointed in the Chapter 11 Case, such committees shall be dissolved on the Effective Date and the retention or employment of any
advisors or professionals retained by the committees, including, without limitation, accountants, attorneys and financial advisors
will terminate. After the Effective Date, the Reorganized Date Debtor shall no longer be responsible for paying any fees and expenses
incurred by the members of any advisors or professionals retained by any such committees.

 

14.20Fees and
Expenses of Plan Support Parties. On the Effective Date, the Debtor shall pay all fees and expenses of the Plan Support Parties
in accordance with the terms of the Plan Support Agreement.

 

	Dated: January 26,February
27, 2012	Respectfully submitted,
	 	
        Ener1, Inc., a Florida corporation

        By: _s/
        Alex Sorokin____________________

         

    	- 58 -

    	 

    

Exhibit B – Amendment to Form of
New Notes Loan Agreement

 

    	- 58 -

    	 

    
  

WEIL DRAFT

01/25/12

 

LOAN AGREEMENT

dated as of [__________ ___], 2012

among

ENER1, INC.,

as Borrower

 

CERTAIN SUBSIDIARIES OF ENER1, INC.,

as Guarantors

 

VARIOUS LENDERS,

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Administrative Agent and Collateral
Agent,

 

________________________________________________________

 

$[_____________] Term Loan

________________________________________________________

 

    	 

    	 

    
  

	APPENDICES:	A	Term Loans
	 	B	Notice Addresses
	SCHEDULES:	3.1(i)	Closing Date Mortgaged Properties
	 	4.1	Jurisdictions of Organization and Qualification
	 	4.2	Equity Interests and Ownership
	 	4.11	Real Estate Assets
	 	4.14	Material Contracts
	 	6.1	Certain Indebtedness
	 	6.2	Certain Liens
	 	6.3	Certain Negative Pledges
	 	6.5	Certain Restrictions on Subsidiary Distributions
	 	6.6	Certain Investments
	 	6.11	Certain Affiliate Transactions
	EXHIBITS:	A	Note
	 	B	Assignment Agreement
	 	C	Closing Date Certificate
	 	D	Counterpart Agreement
	 	E	Certificate of Non-Bank Status
	 	F	Collateral Agreement
	 	G	Landlord Personal Property Collateral Access Agreement
	 	H	Intercompany Note
	 	I	Fixed Charge Coverage Ratio Certificate
		J	Borrower’s
    Cash Flow Through Q1 2013

 

    	v

    	 

    

“Borrower”
as defined in the preamble hereto.

“Business
Day” means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of New
York or is a day on which banking institutions located in such state are authorized or required by law or other governmental action
to close.

“Bzinfin”
means Bzinfin S.A.

“Capital
Lease” means, as applied to any Person, any lease of any property (whether real, personal or mixed) by that Person as
lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.

“Cash”
means money, currency or a credit balance in any demand or Deposit Account.

“Cash Equivalents”
means, as at any date of determination, any of the following: (i) marketable securities (a) issued or directly and unconditionally
guaranteed as to interest and principal by the United States Government or (b) issued by any agency of the United States the obligations
of which are backed by the full faith and credit of the United States, in each case maturing within one year after such date; (ii)
marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state
or any public instrumentality thereof, in each case maturing within one year after such date and having, at the time of the acquisition
thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (iii) commercial paper maturing no more than
three months from the date of creation thereof and having, at the time of the acquisition thereof, a rating of at least A-1 from
S&P or at least P-1 from Moody’s; (iv) certificates of deposit or bankers’ acceptances maturing within three months
after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States of
America or any state thereof or the District of Columbia that (a) is at least “adequately capitalized” (as defined
in the regulations of its primary Federal banking regulator) and (b) has Tier 1 capital (as defined in such regulations) of not
less than $1,000,000,000; and (v) shares of any money market mutual fund that (a) has substantially all of its assets invested
continuously in the types of investments referred to in clauses (i) and (ii) above, (b) has net assets of not less than $5,000,000,000,
and (c) has the highest rating obtainable from either S&P or Moody’s.

“Certificate
re Non-Bank Status” means a certificate substantially in the form of Exhibit E.

“Change
of Control” means (a) the consummation of a merger or consolidation of Borrower with or into another entity (except
a merger or consolidation in which the holders of Borrower’s outstanding Stock immediately prior to such merger or consolidation
continue to Beneficially Own immediately thereafter at least 50% of the voting power of Stock or the capital stock, or equivalent
equity interests, of the surviving or acquiring entity (or its parent entity if the surviving entity is wholly owned by the parent
entity), (b) a sale, lease or other disposition of all or substantially all of the assets of Borrower and its Subsidiaries on
a consolidated basis (including securities of Borrower’s directly or indirectly owned subsidiaries), other than a sale,
lease or other disposition to an Affiliate of the Borrower or to Bzinfin or its Affiliates, (c) such time that Bzinfin, together
with its Affiliates, including any Permitted Transferee as a result of a Permitted Transfer under clauses (b), (c) or (e) of the
definition thereof, cease to possess the power to elect a majority of the members of the Board of Directors of Borrower or (d)
such time that Bzinfin and its Affiliates, including any Permitted Transferee as a result of a Permitted Transfer under clauses
(b), (c) or (e) of the definition thereof, shall cease to Beneficially Own, in the aggregate, at least 35% of the outstanding
shares of the Stock on an as converted basis into New Common Stock.

    	4

    	 

    

“Debtor Relief
Laws” means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States
or other applicable jurisdictions from time to time in effect.

“Default”
means a condition or event that, after notice or lapse of time or both, would constitute an Event of Default.

“Deferred
Amount” means the amount equal to (a) $3,000,000 if on the Amortization Date that is the later of: (i) the first
anniversary of the Closing Date and (ii) April 10, 2013, the Net Cumulative Cash Outflows from February 27, 2012 through March
29, 2013 are equal to or exceed $25,915,000 and (b) the difference between $25,915,000 and the Net Cumulative Cash Outflows from
February 27, 2012 through March 29, 2013 (not to exceed $3,000,000) if on the Amortization Date that is the later of: (i) the first
anniversary of the Closing Date and (ii) April 10, 2013, the Net Cumulative Cash Outflows from February 27, 2012 through March
29, 2013 is less than $25,915,000. For purposes of Section 2.7(a) hereof, the Deferred Amount shall be deemed to include accrued
interest thereon to the extent as and when the Deferred Amount is paid in shares of New Preferred Stock in accordance with the
provisos in such Section 2.7(a). 

“Deposit
Account” means a demand, time, savings, passbook or like account with a bank, savings and loan association, credit union
or like organization, other than an account evidenced by a negotiable certificate of deposit.

“Disqualified
Equity Interests” means any Equity Interest which, by its terms (or by the terms of any security or other Equity Interests
into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (i) matures or is
mandatorily redeemable (other than solely for Equity Interests which are not otherwise Disqualified Equity Interests), pursuant
to a sinking fund obligation or otherwise, (ii) is redeemable at the option of the holder thereof (other than solely for Equity
Interests which are not otherwise Disqualified Equity Interests), in whole or in part, (iii) provides for the scheduled payments
or dividends in cash, or (iv) is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that
would constitute Disqualified Equity Interests, in each case, prior to the date that is 91 days after the Latest Maturity Date.

“Dollars”
and the sign “$” mean the lawful money of the United States of America.

“Domestic
Subsidiary” means any Subsidiary organized under the laws of the United States of America, any State thereof or the District
of Columbia.

“Effective
Date” has the meaning assigned to that term in the Plan.

“Eligible
Assignee” means any Person other than a natural Person that is (i) a Lender, an affiliate of any Lender or a Related
Fund (any two or more Related Funds being treated as a single Eligible Assignee for all purposes hereof), or (ii) a commercial
bank, insurance company, investment or mutual fund or other entity that is an “accredited investor” (as defined in
Regulation D under the Securities Act); provided, no Credit Party or any Subsidiary of a Credit Party shall be an Eligible
Assignee.

“Employee
Benefit Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA which is or was sponsored,
maintained or contributed to by, or required to be contributed by, Borrower, any of its Material Subsidiaries or any of their respective
ERISA Affiliates.

    7	 

    	 

    

“NAIC”
means The National Association of Insurance Commissioners, and any successor thereto.

“Narrative
Report” means, with respect to the financial statements for which such narrative report is required, a narrative report
describing the operations of Borrower and its Subsidiaries in the form prepared for presentation to senior management thereof for
the applicable month, Fiscal Quarter or Fiscal Year and for the period from the beginning of the then current Fiscal Year to the
end of such period to which such financial statements relate.

“Net Asset
Sale Proceeds” means, with respect to any Asset Sale, an amount equal to: (i) Cash payments (including any Cash received
by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received)
received by Borrower or any of its Material Subsidiaries from such Asset Sale, minus (ii) any bona fide direct costs (not
payable to any Affiliate of Borrower) incurred in connection with such Asset Sale, including (a) income or gains taxes payable
by the seller as a result of any gain recognized in connection with such Asset Sale and any taxes that may be withheld as a result
of repatriation of such Cash payments to Borrower (including in connection with distributions to any Subsidiary), (b) payment of
the outstanding principal amount of, premium or penalty, if any, and interest on any Indebtedness (other than the Term Loans) that
is secured by a Lien on the stock or assets in question (or, in the case of Asset Sales by Ener1 Korea, to the extent required
by the terms of unsecured Indebtedness of Ener1 Korea; provided that the terms requiring such repayment are substantially
similar to the terms of existing Indebtedness of Ener1 Korea on the date hereof) and that is required to be repaid under the terms
thereof as a result of such Asset Sale and (c) a reasonable reserve for any indemnification payments (fixed or contingent) attributable
to seller’s indemnities and representations and warranties to purchaser in respect of such Asset Sale undertaken by Borrower
or any of its Material Subsidiaries in connection with such Asset Sale; provided that upon release of any such reserve,
the amount released shall be considered Net Asset Sale Proceeds; provided, further, that payments received with respect
to any Asset Sale consummated by a Material Subsidiary which is a joint venture or strategic alliance shall not constitute Net
Asset Sale Proceeds to the extent that the applicable joint venture or strategic alliance agreement restricts the distribution
of such proceeds to the parties thereto.

“Net
Cumulative Cash Outflows” means an aggregate amount of all cash outflows net of all cash inflows of Borrower and
its Subsidiaries calculated substantially as set forth in Exhibit J attached hereto for illustrative purposes only. 

“Net Insurance/Condemnation
Proceeds” means an amount equal to: (i) any Cash payments or proceeds received by Borrower or any of its Material Subsidiaries
(a) under any casualty insurance policy in respect of a covered loss thereunder or (b) as a result of the taking of any assets
of Borrower or any of its material Subsidiaries by any Person pursuant to the power of eminent domain, condemnation or otherwise,
or pursuant to a sale of any such assets to a purchaser with such power under threat of such a taking, minus (ii) (a) any
actual and reasonable costs (not payable to any Affiliate of Borrower) incurred by Borrower or any of its material Subsidiaries
in connection with the adjustment or settlement of any claims of Borrower or such Material Subsidiary in respect thereof, and (b)
any bona fide direct costs incurred in connection with any sale of such assets as referred to in clause (i)(b) of this definition,
including income taxes payable as a result of any gain recognized in connection therewith.

“Net Mark-to-Market
Exposure” of a Person means, as of any date of determination, the excess (if any) of all unrealized losses over all
unrealized profits of such Person arising from Indebtedness of the type described in clause (xi) of the definition thereof. As
used in this definition, “unrealized losses” means the fair market value of the cost to such Person of replacing such
Indebtedness as of the date of determination (assuming such Indebtedness were to be terminated as of that date), and

    15	 

    	 

    

 “Secured
Parties” means (i) each Agent, (ii) each Lender, (iii) solely with respect to the Holders Plan Payments, each Holder,
and (iv) solely with respect to the Itochu Plan Payments, Itochu.

“Securities”
means any stock, shares, partnership interests, voting trust certificates, certificates of interest or participation in any profit-sharing
agreement or arrangement, options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates
of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to
subscribe to, purchase or acquire, any of the foregoing.

“Securities
Act” means the Securities Act of 1933, as amended from time to time, and any successor statute.

“Solvent”
means, with respect to any Credit Party, that as of the date of determination, both (i) (a) the sum of such Credit Party’s
debt (including contingent liabilities) does not exceed the present fair saleable value of such Credit Party’s present assets;
(b) such Credit Party’s capital is not unreasonably small in relation to its business as contemplated on the Closing Date
and reflected in the Projections or with respect to any transaction contemplated to be undertaken after the Closing Date; and (c)
such Person has not incurred and does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts
beyond its ability to pay such debts as they become due (whether at maturity or otherwise); and (ii) such Person is “solvent”
within the meaning given that term and similar terms under the Bankruptcy Code and other applicable laws relating to fraudulent
transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall be computed
as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for
accrual under Statement of Financial Accounting Standards No.5).

“Specified
Amount ” as defined in Section 2.7(a). 

“Sponsor”
means Bzinfin S.A.

“Stock”
means all issued and outstanding shares of New Common Stock and New Preferred Stock, together with all other shares of capital
stock of Borrower of any class or series which may after the Effective Date be issued.

“Subordinated
Indebtedness” as defined in Section 6.1(o).

“Stockholders
Agreement” means that certain Stockholders Agreement, dated as of the Effective Date, by and among the Borrower and the
shareholders of the Company party thereto, as it may be amended, restated, supplemented or otherwise modified from time to time.

“Subsidiary”
means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or
other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled
(without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers,
trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and
policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or a combination thereof; provided, in determining

    	20

    	 

    

such notice is delivered
after the Closing Date, promptly after Borrower’s receipt of such notice) a Note or Notes to evidence such Lender’s
Term Loan.

2.4Interest
on Term Loans.

(a)               
Except as otherwise set forth herein, each Loan shall bear interest on the unpaid principal amount thereof from the date
made through repayment (whether by acceleration or otherwise) at the rate that is 7.00% per annum; provided that
(i) commencing on the Interest Payment Date occurring on the last Business Day of the Fiscal Quarter ending March 31, 2013, in
the event that, as of any Interest Payment Date, the Fixed Charge Coverage Ratio for the four Fiscal Quarter period most recently
ended prior to such Interest Payment Date (as demonstrated in the Fixed Charge Coverage Ratio Certificate delivered to the Administrative
Agent not later than 12:00 p.m. (New York City time) at least three Business Days in advance of the applicable Interest payment
Date) equals or exceeds 1.75:1, accrued interest on the Term Loans as of such Interest Payment Date shall be paid in cash and (ii)
in the event that the requirements of clause (i) above are not satisfied at such Interest Payment Date, and in any event prior
to March 31, 2013, the accrued interest on the Term Loans at such Interest Payment Date shall be capitalized with and added to
the principal amount of the Term Loans for all purposes of this Agreement (such capitalized interest, “PIK Interest”),
it being understood that the amount of PIK Interest as of any date shall include all PIK Interest capitalized prior to or on such
date.

(b)              
Interest payable or capitalized (as applicable) pursuant to Section 2.4(a) shall be computed on the basis of a 360-day year
for the actual number of days elapsed in the period during which it accrues. In computing interest on any Term Loan, the Closing
Date or the last Interest Payment Date shall be included, and the date of payment of such Term Loan shall be excluded.

(c)               
Except as otherwise set forth herein, interest on each Loan (i) shall accrue on a daily basis and shall be payable or capitalized
(as applicable), in arrears on each Interest Payment Date with respect to interest accrued on and to each such payment date; (ii)
shall accrue on a daily basis and shall be payable in arrears upon any prepayment of that Term Loan, whether voluntary or mandatory,
to the extent accrued on the amount being prepaid; and (iii) shall accrue on a daily basis and shall be payable in arrears at maturity
of the Term Loans, including final maturity of the Term Loans.

2.5Default
Interest. Upon the occurrence and during the continuance of an Event of Default under Section 8.1, the principal amount of
all Loans outstanding shall thereafter bear interest (including post-petition interest in any proceeding under Debtor Relief Laws)
payable on demand at a rate that is 2.00% per annum in excess of the interest rate otherwise payable hereunder with respect
to the applicable Loans. Payment or acceptance of the increased rates of interest provided for in this Section 2.5 is not a permitted
alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights
or remedies of Administrative Agent or any Lender.

2.6Fees.
Borrower agrees to pay to Agents pursuant to the Agent Fee Letter fees in the amounts and at the times described in the letter
dated as of January 13, 2012 from Wilmington to Weil, Gotshal & Manges, LLP, as counsel for the GS Funds and delivered to
Borrower1.

2.7Scheduled
Payments.

 

 

 1
Agent Fee Letter shall be executed at closing. 

    23	 

    	 

    

(a)               
Scheduled Installments. The principal amounts of the Term Loans shall be repaid in consecutive installments and
at final maturity (each such payment, an “Installment”) in the aggregate amounts set forth below on each date
set forth below (the “Amortization Date”):

	Amortization Date	Term Loan Installments
	
        FirstThe
        later of: (i) the first anniversary of the Closing Date and
        (ii) April 10, 2013

         
	
        $5,000,000 minus
        the Deferred Amount to be applied to the principal amount of the Term Loans (excluding PIK Interest) outstanding on
        the first anniversary of the Closing Date

         

	
        SecondThe
        later of: (i) the second anniversary of the Closing Date
        and (ii) April 10, 2014

         
	
        $5,000,000 plus
        the Deferred Amount to be applied to the principal amount of the Term Loans (excluding PIK Interest) outstanding on
        the second anniversary of the Closing Date

         

	Third anniversary of the Closing Date	
        25% of the principal amount of the Term Loans (excluding PIK Interest)
        outstanding on the third anniversary of the Closing Date

         

	Fourth anniversary of the Closing Date	
        25% of the principal amount of the Term Loans (excluding PIK Interest)
        outstanding on the third anniversary of the Closing Date plus 1⁄3 of the PIK Interest on and as of the fourth anniversary
        of the Closing Date

         

	Fifth anniversary of the Closing Date	
        25% of the principal amount of the Term Loans (excluding PIK Interest)
        outstanding on the third anniversary of the Closing Date plus 1⁄3 of the PIK Interest on and as of the fourth anniversary
        of the Closing Date

         

	Maturity Date	Remainder

 

; provided, however, that so
long as any Holders Plan Payment or Itochu Plan Payment remains outstanding, Borrower shall not pay any amounts to Lenders hereunder
(although any such amounts owing to Lenders shall remain due), including without limitation any voluntary or mandatory prepayments
of the Term Loans in accordance with Sections 2.8, 2.9 or 2.10 and any amendments, modifications or waivers of this proviso shall
be subject to Section 10.5(c); and provided further that (a) if on
the Amortization Date that is the later of: (i) the second anniversary of the Closing Date and (ii) April 10, 2014, the Net Cumulative
Cash Outflows from April 1, 2013 through March 31, 2014 are equal to or exceed $[__]2
(the “Specified Amount”), the full Deferred Amount will be paid in shares
of New Preferred Stock and (b) if on the Amortization Date that is the later of: (i) the second anniversary of the

 

 

 

 

2
Such amount to be reasonably agreed upon by Lenders, Bzinfin and Borrower based on Borrower’s
revised Projections to be substantially in the form of Exhibit J and to be delivered prior to the Effective Date. 

 

    24	 

    	 

    

 

Closing
Date and (ii) April 10, 2014, the Net Cumulative Cash Outflows from April 1, 2013 through March 31, 2014 are less than the Specified
Amount, the portion of the Deferred Amount equal to the difference between the Specified Amount and such Net Cumulative Cash Outflows
(not to exceed $3,000,000) shall be paid in Cash and the balance of the Deferred Amount (if any) will be paid in shares of New
Preferred Stock. To the extent that shares of New Preferred Stock are used to satisfy any portion of the Deferred Amount, such
shares shall have an aggregate liquidation preference equal to the portion of the Deferred Amount satisfied with shares of New
Preferred Stock.

 

Subject to the foregoing
proviso, (x) such Installments shall be reduced in connection with any voluntary or mandatory prepayments of the Term Loans in
accordance with Sections 2.8, 2.9 and 2.10, as applicable; and (y) the Term Loans, together with all other amounts owed hereunder
with respect thereto, shall, in any event, be paid in full no later than the Maturity Date.

(b)              
AHYDO Payment. On the last day of each accrual period (as defined in Section 1272(a)(5) of the Internal Revenue Code)
occurring after the fifth anniversary of the Closing Date, Borrower shall in addition pay the minimum amount necessary, if any,
to ensure that the Term Loans do not constitute “applicable high yield discount obligations” within the meaning of
Section 163(i) of the Internal Revenue Code.

1.2        
Voluntary Prepayments.

(a)               
Voluntary Prepayments. Any time and from time to time Borrower may prepay any Term Loans on any Business Day in whole
or in part without premium or penalty, in an aggregate minimum amount of $1,000,000 and integral multiples of $50,000 in excess
of that amount.

(b)              
Notice of Prepayment. All such prepayments shall be made upon not less than three Business Day’s prior written
or telephonic notice given to Administrative Agent by 12:00 p.m. (New York City time) on the date required and, if given by telephone,
promptly confirmed by delivery of written notice thereof to Administrative Agent (and Administrative Agent will promptly transmit
such original notice for Term Loans by telefacsimile or telephone to each Lender). Upon the giving of any such notice, the principal
amount of the Term Loans specified in such notice shall become due and payable on the prepayment date specified therein. Any such
voluntary prepayment shall be applied as set forth in Section 2.10.

1.3        
Mandatory Prepayments.

(a)               
Asset Sales. No later than the third Business Day following the date of receipt by Borrower or any of its Subsidiaries
of any Net Asset Sale Proceeds, Borrower shall prepay the Term Loans as set forth in Section 2.10 in an aggregate amount equal
to 50% of such Net Asset Sale Proceeds.

(b)              
Insurance/Condemnation Proceeds. No later than the third Business Day following the date of receipt by Borrower
or any of its Subsidiaries, or Administrative Agent as loss payee, of any Net Insurance/Condemnation Proceeds, Borrower shall
hold such Net Insurance/Condemnation Proceeds in an escrow account and if such proceeds may be used by Borrower in accordance
with clause (ii) below, but are not so used by Borrower in accordance therewith, then such Net Insurance/Condemnation Proceeds
shall be used to prepay the Term Loans as set forth in Section 2.10 in an aggregate amount equal to such Net Insurance/Condemnation
Proceeds; provided, (i) so long as no Default or Event of Default shall have occurred and be continuing, and (ii) to the
extent that aggregate Net Insurance/Condemnation Proceeds from the Closing Date through the applicable date of determination do
not exceed $2,000,000, Borrower shall have the option, directly or through one or more of its Material Subsidiaries to invest
such Net Insurance/Condemnation Proceeds within one hundred

    	25

    	 

    

Cash Flow Forecast

 

Cash Flow Forecast through Q1 2013

Prepared as of 2-25-12

 

	 	 	 	 	 	 	 	 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Hearing	 	 	 	 	 	 Effective	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Week ending	 	3/2/2012	 	 	3/9/2012	 	 	Date	 	 	3/16/2012	 	 	3/23/2012	 	 	3/30/2012	 	 	4/6/2012	 	 	4/13/2012	 	 	4/20/2012	 	 	4/27/2012	 	 	5/4/2012	 	 	5/11/2012	 	 	5/18/2012	 	 	5/25/2012	 

	Inflows: Receipts	 	 	5,000	 	 	 	88	 	 	 	0	 	 	 	488	 	 	 	228	 	 	 	643	 	 	 	788	 	 	 	2,112	 	 	 	1,078	 	 	 	873	 	 	 	1,179	 	 	 	389	 	 	 	389	 	 	 	1,137	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Outflows:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Payroll	 	 	(869	)	 	 	(24	)	 	 	 	 	 	 	(1,069	)	 	 	0	 	 	 	(1,421	)	 	 	0	 	 	 	(2,216	)	 	 	0	 	 	 	(832	)	 	 	0	 	 	 	(835	)	 	 	(206	)	 	 	(130	)
	Vendor payments	 	 	(1,970	)	 	 	(1,383	)	 	 	0	 	 	 	(1,165	)	 	 	(565	)	 	 	(384	)	 	 	(2,802	)	 	 	(367	)	 	 	(420	)	 	 	(449	)	 	 	(648	)	 	 	(1,391	)	 	 	(364	)	 	 	(72	)
	Utilities	 	 	(30	)	 	 	(30	)	 	 	 	 	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(30	)
	Professional Fees and Contracts	 	 	 	 	 	 	 	 	 	 	(775	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(50	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(50	)
	Real Estate Leases	 	 	 	 	 	 	(156	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(156	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(148	)	 	 	 	 	 	 	 	 	 	 	 	 
	WanXiang interest payments	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Transfers to Other subsidiaries	 	 	(167	)	 	 	(90	)	 	 	0	 	 	 	(214	)	 	 	(90	)	 	 	(394	)	 	 	(115	)	 	 	(234	)	 	 	(128	)	 	 	(198	)	 	 	(75	)	 	 	(75	)	 	 	(75	)	 	 	(75	)
	  Total outflows	 	 	(3,036	)	 	 	(1,683	)	 	 	(775	)	 	 	(2,478	)	 	 	(685	)	 	 	(2,229	)	 	 	(3,103	)	 	 	(2,847	)	 	 	(578	)	 	 	(1,559	)	 	 	(901	)	 	 	(2,331	)	 	 	(675	)	 	 	(357	)
	Net inflow/(outflow)	 	 	1,964	 	 	 	(1,596	)	 	 	(775	)	 	 	(1,990	)	 	 	(457	)	 	 	(1,586	)	 	 	(2,315	)	 	 	(735	)	 	 	500	 	 	 	(686	)	 	 	278	 	 	 	(1,942	)	 	 	(286	)	 	 	780	 

 

 

	Week ending	 	6/1/2012	 	 	6/8/2012	 	 	6/15/2012	 	 	6/22/2012	 	 	6/29/2012	 	 	July-12	 	 	August-12	 	 	September-12	 	 	October-12	 	 	November-12	 	 	December-12	 	 	January-13	 	 	February-13	 	 	March-13	 

	Inflows: Receipts	 	 	1,093	 	 	 	303	 	 	 	1,111	 	 	 	1,298	 	 	 	303	 	 	 	5,203	 	 	 	2,641	 	 	 	3,256	 	 	 	3,076	 	 	 	4,253	 	 	 	6,610	 	 	 	5,271	 	 	 	4,799	 	 	 	4,013	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Outflows:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Payroll	 	 	(702	)	 	 	(130	)	 	 	(848	)	 	 	(130	)	 	 	(702	)	 	 	(2,350	)	 	 	(1,944	)	 	 	(1,772	)	 	 	(1,772	)	 	 	(1,742	)	 	 	(1,742	)	 	 	(1,742	)	 	 	(1,742	)	 	 	(1,742	)
	Vendor payments	 	 	(422	)	 	 	(1,505	)	 	 	(522	)	 	 	(944	)	 	 	(857	)	 	 	(2,543	)	 	 	(4,365	)	 	 	(4,198	)	 	 	(3,126	)	 	 	(3,285	)	 	 	(3,687	)	 	 	(4,397	)	 	 	(2,551	)	 	 	(3,307	)
	Utilities	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(30	)	 	 	(120	)	 	 	(110	)	 	 	(110	)	 	 	(110	)	 	 	(110	)	 	 	(110	)	 	 	(110	)	 	 	(110	)	 	 	(110	)
	Professional Fees and Contracts	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(100	)	 	 	(50	)	 	 	(50	)	 	 	(50	)	 	 	(50	)	 	 	(125	)	 	 	(75	)	 	 	(150	)	 	 	(50	)	 	 	(50	)	 	 	(50	)
	Real Estate Leases	 	 	(148	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(148	)	 	 	(148	)	 	 	(136	)	 	 	(136	)	 	 	(136	)	 	 	(136	)	 	 	(136	)	 	 	(136	)	 	 	(136	)	 	 	(136	)
	WanXiang interest payments	 	 	 	 	 	 	 	 	 	 	(450	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(450	)	 	 	 	 	 	 	 	 	 	 	(450	)	 	 	 	 	 	 	 	 	 	 	(450	)
	Transfers to Other subsidiaries	 	 	(75	)	 	 	(75	)	 	 	(75	)	 	 	(75	)	 	 	(75	)	 	 	(300	)	 	 	(375	)	 	 	(300	)	 	 	(300	)	 	 	(375	)	 	 	(225	)	 	 	0	 	 	 	0	 	 	 	0	 
	 Total outflows	 	 	(1,377	)	 	 	(1,740	)	 	 	(1,925	)	 	 	(1,279	)	 	 	(1,862	)	 	 	(5,511	)	 	 	(6,980	)	 	 	(7,016	)	 	 	(5,569	)	 	 	(5,723	)	 	 	(6,500	)	 	 	(6,435	)	 	 	(4,589	)	 	 	(5,795	)
	Net inflow/(outflow)	 	 	(283	)	 	 	(1,437	)	 	 	(814	)	 	 	20	 	 	 	(1,559	)	 	 	(308	)	 	 	(4,339	)	 	 	(3,761	)	 	 	(2,493	)	 	 	(1,470	)	 	 	110	 	 	 	(1,164	)	 	 	210	 	 	 	(1,782	)a50184012_ex101e.htm

Exhibit 10.1(e)

 

 

DYAX CORP.

 

AMENDED AND RESTATED 1995 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK UNIT CERTIFICATE

(Employees)

 

	RSU Number:  _________	__________ Units 

                                                                               

 

This Restricted Stock Unit Certificate (this “Certificate”) confirms that Dyax Corp. (the “Company”), a Delaware corporation, has on the date set forth below (the “Award Date”) granted to the person named below (“Participant”) an award (the “Award”) of the number of Restricted Stock Units (the "Units") set forth below pursuant to the Company’s Amended and Restated 1995 Equity Incentive Plan (the “Plan”), each Restricted Stock Unit representing the right to receive one share of the Company’s Common Stock, par value $0.01 per share (the “Common Stock”), subject to the terms and conditions set forth below and on the reverse side of this Certificate.

 

Award Date:                                                                           _________________________________

Name of Participant:                                                             _________________________________

Address:                                                                                _________________________________

Social Security No.:                                                              _________________________________

Number of Restricted Stock Units:                                    _________________________________

Vesting Schedule:                                                                 _________________________________

 

 

By acceptance of this Award, Participant agrees to all the terms and conditions hereof, including, without limitation, those set forth in the Plan and on the reverse side of this Certificate.

 

DYAX CORP.

 

By:_______________________________

Title:

 

PARTICIPANT:

 

_______________________________

{Signature}

*  *  *  *  *

 

  

  

  

 

TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS ("UNITS")

 

1. The Plan.  In the event of any conflict between the terms of the Plan and this Award, the terms of the Plan shall govern.  The Committee administers the Plan and its determinations regarding the operation of the Plan are final.  Subject to the limitations set forth in the Plan, the Committee may amend the Plan or this Award.  Capitalized terms used but not defined herein shall have the meaning set forth in the Plan.  Copies of the Plan may be obtained upon written request without charge from the Treasurer of the Company.

 

2. No Rights as Stockholder or Employee.  Participant shall not have any of the rights or privileges of a stockholder of the Company with respect to the Units granted pursuant to this Award unless and until shares of Common Stock have been issued and delivered to Participant.  No adjustments shall be made for dividends or distributions or other rights for which the record date is prior to the date such shares of Common Stock are issued.  The rights of Participant with respect to the Restricted Stock Units shall remain forfeitable at all times prior to the date on which such rights vest in accordance with Sections 4, 5 and 6 below.  Participant shall not have any rights to continued employment by the Company or its Affiliates by virtue of the grant of this Award.

 

3. Conversion of Units: Issuance of Common Stock.  No shares of Common Stock shall be issued to Participant prior to the date on which the Units vest in accordance with Sections 4, 5 and 6.  Subject to Section 10, the Company shall deliver to Participant, on or promptly after each vesting date set forth on the cover of this Certificate, the shares of Common Stock represented by the whole Units that vest on such date, less any shares withheld pursuant to Section 8 below.  The value of any fractional Unit shall be paid in cash at the time the certificate is delivered to Participant.  The shares of Common Stock issued on conversion of vested Units shall be free of all restrictions on transferability and forfeiture under this Award.

 

4. Vesting.  Subject to the terms and conditions of this Award, the Units shall vest and be settled according to the Vesting Schedule set forth on the cover of this Certificate, so long as Participant remains continuously employed by the Company until the corresponding vesting date for the Units.

 

5. Change in Control.  As provided in the Plan, in the event of a Change in Control affecting the Company’s outstanding Common Stock, the Committee shall equitably adjust the number and kind of shares subject to this Award or make provision for a cash payment. If such Change in Control involves a consolidation or merger of the Company with another entity, the sale or exchange of all or substantially all of the assets of the Company or a reorganization or liquidation of the Company, then in lieu of the foregoing, the Committee may in its discretion accelerate or waive any vesting period.

 

6. Termination of Employment.  If, prior to vesting of the Units pursuant to Section 4 or 5, Participant ceases to be an employee of the Company for any reason (voluntary or involuntary), then Participant’s rights to all of the unvested Units shall be immediately and irrevocably forfeited.

 

7. Restriction on Transfer.  The Units are not transferable by Participant otherwise than by will or the laws of descent and distribution.  The naming of a Designated Beneficiary does not constitute a transfer.

 

8. Income Tax Matters.  Participant shall pay to the Company, or make provision satisfactory to the Company for payment of, any taxes required by law to be withheld in respect of the Units subject to this Award no later than the date of the event creating the tax liability.  In order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable taxes are withheld or collected from Participant.  In the Company’s discretion, such tax obligations may be paid in whole or in part by having the Company withhold a portion of the shares of Common Stock otherwise to be delivered valued at their Fair Market Value, or to the extent permitted by law, deducting any such tax obligations from any payment of any kind otherwise due to Participant, including wages or other cash compensation.  Unless Participant provides advance notice to the Company in accordance with its requirements and Participant pays, or otherwise properly instructs the Company to withhold, amounts sufficient for Participant's tax withholding obligations, the Company shall have the right, but not the obligation, to withhold shares of common stock to pay such tax obligations.

 

9. 409A.  In the event that the Committee determines that any amounts will be immediately taxable to Participant under Section 409A of the Code and related Department of Treasury guidance (or subject Participant to a penalty tax) in connection with the grant or vesting of the Restricted Stock Units or any provision of this Award or the Plan, the Company may (i) adopt such amendments to this Award (having prospective or retroactive effect), that the Committee determines to be necessary or appropriate to preserve the intended tax treatment of the Units and/or (ii) take such other actions as the Committee determines to be necessary or appropriate to comply with the requirements of Section 409A of the Code and related Department of Treasury guidance, including such Department of Treasury guidance and other interpretive materials as may be issued after the date on which such Units were granted.

 

10. Conditions for Issuance of Shares.  The Company shall not be required to deliver any shares of Common Stock upon vesting of any Units until (i) such shares of Common Stock have been admitted to listing on all stock exchanges on which the Common Stock is then listed and (ii) the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied, provided however, that the Company may only so delay delivery of shares of Common Stock to the extent that such deferral complies with the provisions of Section 409A of the Code and related Department of Treasury guidance.  Except as provided in the preceding sentence, in no event will shares of Common Stock be delivered later than the date that is two and one-half (21⁄2) months from the end of the calendar year in which the applicable Restricted Stock Units vest.  Any certificates representing shares of Common Stock delivered under this Award may contain such legends as counsel for the Company shall consider necessary to comply with any applicable law.

 

11. Notices.  Any written notices provided for in this Award that are sent by mail shall be deemed received three business days after mailing, but not later than the date of actual receipt.  Notices shall be directed, if to Participant, at the Participant’s address indicated by the Company’s records and, if to the Company, at the Company’s principal executive office.

 

12. Miscellaneous.  The right of Participant to receive shares of Common Stock pursuant to this Award is an unfunded and unsecured obligation of the Company.  The Participant shall have no rights under this Award other than those of an unsecured general creditor of the Company.  Subject to the restrictions on transfer set forth herein, this Award shall be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

 

13. Governing Law.  This Award shall be governed by and construed in accordance with the laws of the State of Delaware and applicable federal law, without regard to applicable conflicts of laws.

 

14. Severability.  If one or more of the provisions of this Award shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Award to be construed so as to foster the intent of this Award and the Plan.

 

 

2

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