Document:

EXHIBIT
      4.19

    
 

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY
      NOT
      BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION
      THEREFROM

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE ARE HELD BY A PERSON WHO MAY BE
      DEEMED TO BE AN AFFILIATE OF THE ISSUER FOR PURPOSES OF RULE 144 PROMULGATED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY
      BE
      SOLD ONLY IN COMPLIANCE WITH RULE 144, PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A VALID EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT.

     

     

    PROMISSORY
      NOTE 

     

    
      	$3,100,000	
              September
                30,
                2006

            

    

     

    FOR
      VALUE
      RECEIVED, the undersigned, Ener1, Inc., a Florida corporation (the “Borrower”),
      hereby promises to pay to the order of Ener1 Group, Inc., a Florida corporation,
      at such place or to such other party or parties as the holder or any successor
      holder (the “Holder”) of this Secured Promissory Note (this “Note”) may from
      time to time designate, the principal sum of THREE MILLION, ONE HUNDRED THOUSAND
      ($3,100,000) together with interest thereon from the date hereof, upon and
      subject to the terms and conditions specified below.

     

    1. Principal
      and Interest.
      Subject
      to Section 8, the principal amount outstanding under this Note shall be payable
      in full, together with all accrued but unpaid interest thereon, on April 15,
      2009. All payments shall be in lawful money of the United States of America.
      Interest shall accrue only until the maturity hereof, at which time all accrued
      interest shall be payable in full. Interest shall be computed hereunder based
      on
      a 365-day year (or a 366-day year in each leap year) and the actual number
      of
      days (including the first day and excluding the last day) occurring in the
      period for which interest is calculated. Interest shall accrue daily at an
      annual rate of 10%, and be compounded annually. 

     

    2. Application
      of Payments.
      All
      payments made hereunder shall be applied in any manner deemed appropriate by
      the
      Holder.

     

    3. Prepayment.
      Subject
      to Section 8, the Borrower shall have the right to prepay any or all of the
      outstanding principal balance of this Note and any accrued and unpaid interest
      thereon upon three business days’ prior notice to the Holder.

     

    4. Events
      of Default.
      Each of
      the following events shall be an “Event of Default:”

     

    (a) The
      Borrower shall fail to pay any amount due under this Note when the same shall
      have become due and payable.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) A
      decree
      or order is entered by a court having jurisdiction in the premises for relief
      in
      respect of the Borrower under any bankruptcy, insolvency or similar act, law
      or
      statute now or hereafter in effect, or adjudging the Borrower as bankrupt or
      insolvent, or approving a petition seeking reorganization, adjustment or
      composition of or in respect of the Borrower under Title XI of the United States
      of America Code, as now constituted or hereafter in effect, or under any other
      applicable Federal or State bankruptcy law or other similar law, or a receiver,
      liquidator, assignee, trustee, sequestrator (or similar official) of the
      Borrower or of any substantial part of its property, is appointed, or an order
      is entered for the winding up or liquidation of the Borrower’s affairs and any
      such decree or order continues unstayed and in effect for a period of ninety
      (90) consecutive days.

     

    (c) The
      Borrower files any petition, application, answer or consent to or for
      liquidation, reorganization, arrangement or any other relief under any Chapter
      of Title XI of the United States of America Code or any applicable State or
      Federal law or statute, as now or hereafter in effect, or the Borrower consents
      to, or fails to contest in a timely and appropriate manner, the filing of any
      such petition or application for the relief requested therein, or the consent,
      or fails to contest in a timely and appropriate manner, the appointment or
      taking possession by a receiver, liquidator, assignee, trustee, custodian,
      sequestrator (or other similar official) of the Borrower or of any substantial
      part of its property, or the Borrower makes an assignment for the benefit of
      creditors, or the Borrower admits in writing its inability to pay its debts
      generally as they become due, or Borrower fails generally to pay its debts
      as
      such debts become due, or the Borrower or any of its officers, managers or
      members acts in furtherance of any such action.

     

    5. Effect
      of Event of Default.
      Subject
      to Section 8, if no Senior Debenture (as defined below) is outstanding and
      an
      Event of Default occurs and is continuing, the Holder may, by notice to the
      Borrower, declare the principal amount then outstanding of, and the accrued
      interest on, this Note and all other amounts payable under this Note to be
      forthwith due and payable, whereupon such amounts shall be immediately due
      and
      payable without presentment, demand, protest or other formalities of any kind,
      all of which hereby are expressly waived by the Borrower. 

     

    6.Right
      to Convert.
      

     

    (a)Subject
      to and upon compliance with the provisions of this Note, if
      no
      Senior Debenture (as defined below) is outstanding,
      the
      Holder shall have the right, at its option, at any time following the date
      hereof, to convert the principal of this Note and accrued and unpaid interest
      hereon, or any portion thereof, as follows: The conversion price shall be equal
      to $.50. In order to exercise this conversion privilege, the Holder shall
      deliver to the Borrower written notice of its election to convert this Note
      (a
      "Conversion Notice"), which shall specify the amount of principal and/or
      interest to be so converted, and, if all principal and accrued and unpaid
      interest due hereunder is to be converted, the Holder shall surrender this
      Note,
      duly endorsed, to the Borrower. The Conversion Notice shall also state the
      name
      or names (with address) in which the shares of Common Stock which shall be
      issuable on such conversion shall be issued, and shall be accompanied by
      transfer taxes, if required pursuant to Section 4 of this Note. The Holder
      and
      the Borrower shall maintain records showing the principal and interest converted
      and the dates of such conversions or shall use such other method, reasonably
      satisfactory to the Holder and the Borrower, so as not to require physical
      surrender of this Note upon a partial conversion. No fractional shares of Common
      Stock shall be issued upon conversion of this Notes. If any fractional share
      of
      stock otherwise would be issuable upon the conversion of this Note, the Borrower
      shall calculate and pay a cash adjustment in lieu of such fractional share
      at
      the current market value thereof, as determined in good faith by the Borrower's
      Board of Directors, to the Holder. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b) In
      case
      the outstanding shares of Common Stock shall be subdivided into a greater number
      of shares of Common Stock, the Conversion Price in effect at the opening of
      business on the day following the day upon which such subdivision becomes
      effective shall be proportionately reduced, and conversely, in case outstanding
      shares of Common Stock shall be combined into a smaller number of shares of
      Common Stock, the Conversion Price in effect at the opening of business on
      the
      day following the day upon which such combination becomes effective shall be
      proportionately increased, such reduction or increase, as the case may be,
      to
      become effective immediately after the opening of business on the day following
      the day upon which such subdivision or combination becomes
      effective.

    

    (c) The
      Borrower covenants that all shares of Common Stock issuable upon conversion
      of
      this Note will be fully paid and non-assessable and free from all taxes, liens
      and charges with respect to the issue thereof.

    

    7. Taxes
      on Shares Issued.
      The
      issue of stock certificates on conversion of this Note shall be made without
      charge to the Holder for any tax in respect of the issue thereof. The Borrower
      shall not, however, be required to pay any tax which may be payable in respect
      of any transfer involved in the issue and delivery of stock in any name other
      than that of the Holder, and the Borrower shall not be required to issue or
      deliver any such stock certificate unless and until the person or persons
      requesting the issue thereof shall have paid to the Borrower the amount of
      such
      tax or shall have established to the satisfaction of the Borrower that such
      tax
      has been paid.

     

    8. Subordination.
      The
      Borrower covenants and agrees, and the Holder likewise covenants and agrees,
      that the indebtedness represented by this Note and the payment of the principal
      amount and interest hereon or any other amounts in respect hereof is hereby
      expressly made subordinate and junior and subject in right of payment to the
      prior payment in full of all Senior Indebtedness of the Borrower now outstanding
      or hereinafter incurred. The Holder agrees not to ask, demand, sue for, take
      or
      receive from Borrower, directly or indirectly, in cash or other property, or
      by
      set-off or in any other manner (including without limitation from or by way
      of
      collateral), payment of all or any of the obligations arising under the Note
      and
      until the payment in full of the Senior Indebtedness (defined herein). "Senior
      Indebtedness" means the principal of, and premium, if any, and interest on,
      fees, costs and expenses in connection with and other amounts due under the
      Borrower's Senior Secured Convertible Debentures due 2009 issued pursuant to
      the
      Securities Purchase Agreements dated January 20, 2004 and March 14, 2005 (the
      "Senior Debentures"). No payment on account of principal of or interest on
      this
      Note shall be due hereunder, and this Note shall not be paid, redeemed,
      purchased or defeased, in whole or in part, directly or indirectly, by the
      Borrower (or any of its subsidiaries), if at the time such payment would be
      due
      or such repayment, purchase, redemption or defeasance would be made, any Senior
      Debenture is outstanding.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    9. No
      Waiver by Holder.
      No
      single or partial exercise of any power hereunder shall preclude other or
      further exercise thereof or the exercise of any other power. No delay or
      omission on the part of the Holder in exercising any right hereunder shall
      operate as a waiver of such right or of any other right hereunder. Acceptance
      of
      any sum by the Holder that is less than full payment shall not be construed
      as a
      waiver of any default in the payment of this Note.

    

    10. Savings
      Clause.
      In the
      event any provisions of this Note shall result, for any reason and at any time,
      in an effective rate of interest that exceeds the limit of the usury or any
      other law applicable to interest on the indebtedness evidenced hereby, all
      sums
      in excess of those lawfully collectible as interest for the period in question
      shall be (a) applied, to the extent of such excess, against the unpaid portion
      of the principal amount evidenced hereby with the same force and effect as
      though the Holder had agreed to accept such extra payment(s) as a prepayment
      or
      (b) if the indebtedness has been fully paid, refunded by the Holder to the
      Borrower to the extent of such excess.

     

    11. Successors
      and Assigns.
      The
      provisions hereof shall be binding upon the legal representatives, successors
      and assigns of the Borrower and shall inure to the benefit of the Holder and
      its
      successors by operation of law.

     

    12. Amendment.
      This
      Note may from time to time be extended or renewed, with or without notice to
      the
      Borrower, and any related right may be waived, exchanged, surrendered or
      otherwise dealt with, all without affecting the liability of the
      Borrower.

    

    13. Governing
      Law.
      This
      Note shall be governed by and construed and interpreted in accordance with
      the
      laws of the State of Florida (irrespective of the choice of laws principles
      of
      the State of Florida), as to all matters, including matters of validity,
      construction, effect, enforceability, performance and remedies.

     

    14. Section
      Headings.
      The
      headings contained in this Note are for reference purposes only and shall not
      affect in any way the meaning or interpretation hereof.

     

    15. Derivatives.
      If for
      any reason, this Note or any provision thereof be interpreted or deemed to
      result in Borrower derivative liability under generally accepted accounting
      principles, as interpreted and enforced by the U.S. Securities and Exchange
      Commission, then the parties will amend this Note, ab
      initio,
      to the
      full extent necessary to eliminate such derivative liability.

     

    IN
      WITNESS WHEREOF, the Borrower has caused this Note to be executed by a duly
      authorized officer as of date first above written.

     

     

    ENER1,
      INC.

     

     

    By:
      __/s/
      Ronald Stewart_________

    Name: Ronald
      Stewart

    Title: Interim
      Chief Executive Officer

     

    

    
      
        
        

      

      4EXHIBIT
      4.20

    WARRANT

     

    THE
      WARRANT EVIDENCED OR CONSTITUTED HEREBY, AND ALL SHARES OF COMMON STOCK ISSUABLE
      HEREUNDER, HAVE 

    BEEN
      AND
      WILL BE ISSUED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “ACT”) AND MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR
      HYPOTHECATED WITHOUT REGISTRATION UNDER THE ACT UNLESS EITHER (i) THE
      COMPANY HAS RECEIVED AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY
      SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED
      IN
      CONNECTION WITH SUCH DISPOSITION OR (ii) THE SALE OF SUCH SECURITIES IS
      MADE PURSUANT TO SECURITIES AND EXCHANGE COMMISSION RULE 144.

     

    WARRANT
      TO PURCHASE COMMON STOCK OF ENER1, INC.

     

    (Subject
      to Adjustment)

     

    WARRANT
      NO. 093006A

     

    THIS
      CERTIFIES THAT,
      for
      value received, Ener1 Group, Inc., or its permitted registered assigns
      (“Holder”),
      is
      entitled, subject to the terms and conditions of this Warrant, at any time
      or
      from time to time after September 30, 2006 (the “Effective
      Date”),
      and
      before 5:00 p.m. Central Time on September 30, 2011 (the “Expiration
      Date”),
      to
      purchase from Ener1, Inc., a Florida corporation (the “Company”),
      NINE
      MILLION (9,000,000) shares of Common Stock of the Company at a price per share
      of $.40 (the “Purchase
      Price”).
      Both
      the number of shares of Common Stock purchasable upon exercise of this Warrant
      and the Purchase Price are subject to adjustment and change as provided herein.
      

     

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

     

    “Actively
      Traded”
shall
      mean attainment of an average of 20,000 or more shares per business day arm's
      length trading volume of Common Stock over a period of twenty (20) trading
      days
      as reported by the over-the-counter or other established quotation
      agencies.

     

    “Fair
      Market Value”
of
      a
      share of Common Stock as of a particular date shall mean:

     

    (a) If
      traded
      on a securities exchange or the NASDAQ National Market, the Fair Market Value
      shall be deemed to be the average of the closing prices of the Common Stock
      of
      the Company on such exchange or market over the 5 business days ending
      immediately prior to the applicable date of valuation;

     

    (b) If
      Actively Traded over-the-counter, the Fair Market Value shall be deemed to
      be
      the average of the closing bid prices over the 30-day period ending immediately
      prior to the applicable date of valuation; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) If
      not
      Actively Traded over-the-counter or traded on a securities exchange or the
      NASDAQ National Market, the Fair Market Value shall be the value thereof, as
      agreed upon by the Company and the Holder; provided, however, that if the
      Company and the Holder cannot agree on such value, such value shall be
      determined by an independent valuation firm experienced in valuing businesses
      such as the Company and jointly selected in good faith by the Company and the
      Holder. Fees and expenses of the valuation firm shall be paid for by the
      Company.

     

    “HSR
      Act”
shall
      mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
      amended.

     

    “Registered
      Holder”
shall
      mean any Holder in whose name this Warrant is registered upon the books and
      records maintained by the Company.

     

    “SEC”
shall
      mean the United States Securities and Exchange Commission.

     

    “Warrant”
as
      used
      herein, shall include this Warrant and any warrant delivered in substitution
      or
      exchange therefor as provided herein.

     

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

     

    “Common
      Stock”
shall
      mean the Common Stock of the Company and any other securities at any time
      receivable or issuable upon exercise of this Warrant.

     

    2. EXERCISE
      OF WARRANT

     

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

     

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

     

    (b)
      payment in cash (by check) or by wire transfer, of an amount equal to the
      product obtained by multiplying the number of shares of Common Stock being
      purchased upon such exercise by the then effective Purchase Price (the
“Exercise
      Amount”),
      except that if Holder is subject to HSR Act Restrictions (as defined in Section
      2.4 below), the Exercise Amount shall be paid to the Company within five (5)
      business days of the termination of all HSR Act Restrictions.

     

    2.2. “Easy
      Sale” Exercise.
      In lieu
      of the payment methods set forth in Section 2.1(b) above, when permitted by
      law and applicable regulations (including NYSE, NASDAQ and NASD rules, as
      applicable), the Holder may pay the Purchase Price through a “same day sale”
commitment from the Holder (and if applicable a broker-dealer that is a member
      of the National Association of Securities Dealers (a “NASD Dealer”)),
      whereby the Holder irrevocably elects to exercise this Warrant and to sell
      a
      portion of the Shares so purchased to pay for the Purchase Price and the Holder
      (or, if applicable, the NASD Dealer) commits upon sale (or, in the case of
      the
      NASD Dealer, upon receipt) of such Shares to forward the Purchase Price directly
      to the Company.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    2.3. Stock
      Certificates; Fractional Shares.
      As soon
      as practicable on or after such date, the Company shall issue and deliver to
      the
      person or persons entitled to receive the same a certificate or certificates
      for
      the number of whole shares of Common Stock issuable upon such exercise, together
      with cash in lieu of any fraction of a share equal to such fraction of the
      current Fair Market Value of one whole share of Common Stock as of the date
      of
      exercise of this Warrant. No fractional shares or scrip representing fractional
      shares shall be issued upon an exercise of this Warrant.

     

    2.4. HSR
      Act.
      The
      Company hereby acknowledges that exercise of this Warrant by Holder may subject
      the Company and/or the Holder to the filing requirements of the HSR Act and
      that
      Holder may be prevented from exercising this Warrant until the expiration or
      early termination of all waiting periods imposed by the HSR Act (“HSR
      Act Restrictions”).
      If on
      or before the Expiration Date, Holder has sent the Notice of Exercise to Company
      and Holder has not been able to complete the exercise of this Warrant prior
      to
      the Expiration Date because of HSR Act Restrictions, the Holder shall be
      entitled to complete the process of exercising this Warrant in accordance with
      the procedures contained herein notwithstanding the fact that completion of
      the
      exercise of this Warrant would take place after the Expiration
      Date.

     

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

     

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

     

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

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

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

     

    4.2. Reclassification.
      If the
      Company, by reclassification of securities or otherwise, shall change any of
      the
      securities as to which purchase rights under this Warrant exist into the same
      or
      a different number of securities of any other class or classes, this Warrant
      shall thereafter represent the right to acquire such number and kind of
      securities as would have been issuable as the result of such change with respect
      to the securities that were subject to the purchase rights under this Warrant
      immediately prior to such reclassification or other change and the Purchase
      Price therefore shall be appropriately adjusted, all subject to further
      adjustment as provided in this Section 4. No adjustment shall be made pursuant
      to this Section 4.2 upon any conversion or redemption of the Common Stock which
      is the subject of Section 4.4.

     

    4.3. Adjustment
      for Capital Reorganization, Merger or Consolidation.
      In case
      of any capital reorganization of the capital stock of the Company (other than
      a
      combination, reclassification, exchange or subdivision of shares otherwise
      provided for herein), or any merger or consolidation of the Company with or
      into
      another corporation, or the sale of all or substantially all the assets of
      the
      Company then, and in each such case, as a part of such reorganization, merger,
      consolidation, sale or transfer, lawful provision shall be made so that the
      Holder of this Warrant shall thereafter be entitled to receive upon exercise
      of
      this Warrant, during the period specified herein and upon payment of the
      Purchase Price then in effect, the number of shares of stock or other securities
      or property of the successor corporation resulting from such reorganization,
      merger, consolidation, sale or transfer that a holder of the shares deliverable
      upon exercise of this Warrant would have been entitled to receive in such
      reorganization, consolidation, merger, sale or transfer if this Warrant had
      been
      exercised immediately before such reorganization, merger, consolidation, sale
      or
      transfer, all subject to further adjustment as provided in this Section 4.
      The
      foregoing provisions of this Section 4.3 shall similarly apply to successive
      reorganizations, consolidations, mergers, sales and transfers and to the stock
      or securities of any other corporation that are at the time receivable upon
      the
      exercise of this Warrant. If the per-share consideration payable to the Holder
      hereof for shares in connection with any such transaction is in a form other
      than cash or marketable securities, then the value of such consideration shall
      be determined in good faith by the Company’s Board of Directors. In all events,
      appropriate adjustment (as determined in good faith by the Company’s Board of
      Directors) shall be made in the application of the provisions of this Warrant
      with respect to the rights and interests of the Holder after the transaction,
      to
      the end that the provisions of this Warrant shall be applicable after that
      event, as near as reasonably may be, in relation to any shares or other property
      deliverable after that event upon exercise of this Warrant.

     

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

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

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

     

    10. COMPLIANCE
      WITH SECURITIES LAWS. By
      acceptance of this Warrant, the holder hereby represents, warrants and covenants
      that any shares of stock purchased upon exercise of this Warrant or acquired
      upon conversion thereof shall be acquired for investment only and not with
      a
      view to, or for sale in connection with, any distribution thereof; that the
      Holder has had such opportunity as such Holder has deemed adequate to obtain
      from representatives of the Company such information as is necessary to permit
      the Holder to evaluate the merits and risks of its investment in the company;
      that the Holder is able to bear the economic risk of holding such shares as
      may
      be acquired pursuant to the exercise of this Warrant for an indefinite period;
      that the Holder understands that the shares of stock acquired pursuant to the
      exercise of this Warrant or acquired upon conversion thereof will not be
      registered under the 1933 Act (unless otherwise required pursuant to exercise
      by
      the Holder of registration rights, if any, previously granted to the registered
      Holder) and will be “restricted securities” within the meaning of Rule 144 under
      the 1933 Act and that the exemption from registration under Rule 144 will not
      be
      available for at least one year from the date of exercise of this Warrant,
      subject to any special treatment by the SEC for exercise of this Warrant
      pursuant to Section 2.2, and even then will not be available unless a public
      market then exists for the stock, adequate information concerning the Company
      is
      then available to the public, and other terms and conditions of Rule 144 are
      complied with; and that all stock certificates representing shares of stock
      issued to the Holder upon exercise of this Warrant or upon conversion of such
      shares may have affixed thereto a legend substantially in the following
      form:

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

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

     

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

     

    12. NOTICES.
      All
      notices and other communications from the Company to the Holder shall be given
      in accordance with the Exchange Agreement.

     

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

     

    14. LAW
      GOVERNING. This
      Warrant shall be construed and enforced in accordance with, and governed by,
      the
      laws of the State of Florida without
      regard to its conflict of laws provisions and venue shall rest solely in the
      Federal or state courts located in Broward
      County, Florida.

     

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

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    16. NOTICES
      OF RECORD DATE.
      In
      case:

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    20. DERIVATIVES.
      If for
      any reason, this Warrant or any provision thereof be interpreted or deemed
      to
      result in Issuer derivative liability under generally accepted accounting
      principles, as interpreted and enforced by the U.S. Securities and Exchange
      Comission, then the parties will amend this Warrant, ab
      initio,
      to the
      full extent necessary to eliminate such derivative liability.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Warrant as of the Effective Date.

    

     

    [HOLDER]

    

    Ener1
      Group, Inc.

     

    By:__/s/
      Curtis Wolfe_________________________

    Name:
      Curtis Wolfe

    Title:
      General Counsel

    

    

    

    [ISSUER]

    

    Ener1,
      Inc.,

    a
      Florida
      corporation

     

    By:___/s/
      Ronald Stewart______________________

    Name:
      Ronald Stewart

    Title:
      Interim Chief Executive Officer

     

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      1

     

    NOTICE
      OF EXERCISE

     

    (To
      be
      executed upon exercise of Warrant)

     

    
      	
              ENER1,
                INC.

            	
              WARRANT
                NO. 093006A

            

    

     

    The
      undersigned hereby irrevocably elects to exercise the right of purchase
      represented by the within Warrant Certificate for, and to purchase thereunder,
      the securities of Ener1, Inc., as provided for therein, and (check the
      applicable box):

     

    
      	 o	
              Tenders
                herewith payment of the exercise price in full in the form of cash
                or a
                certified or official bank check in same-day funds in the amount
                of
                $____________ for _________ such
                securities.

            

    

     

    
      	 o	
              Elects
                the Easy Sale Exercise option pursuant to Section 2.2 of the Warrant,
                and accordingly requests delivery of a net of ______________ of such
                securities.

            

    

     

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

     

    Name:__________________________________________

     

    Address:________________________________________

     

    Signature:_______________________________________

     

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

     

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

     

     

    
      
        
        

      

      -10-

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