Document:

Exhibit
      10.43

    

    EMPLOYMENT
      AGREEMENT

    

    

    This
      Employment Agreement (this “Agreement”)
      is
      made as of July 27, 2005 but shall be deemed executory only until the date
      on
      which the Executive becomes legally qualified to be an employee of the Company
      under all applicable immigration and other laws (see Section 1 hereof, below),
      by and between Ulrik Grape (the “Executive”)
      and
      EnerDel, Inc., a Delaware corporation (the “Company”). References to the Company
      shall include any Affiliated Companies, as that term is defined
      below.

    

    WHEREAS,
      the Executive and the Company each desire to set forth their agreement with
      respect to the Executive’s employment with the Company.

    

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

    

    	1.  	
            Employment
              Period.
              The Company shall employ the Executive as its Chief Executive Officer
              for
              the period beginning on the date on which the Executive becomes legally
              qualified to be an employee of the Company under all applicable
              immigration and other laws (the “Commencement
              Date”),
              and ending on the date such employment is terminated pursuant to Section
              5
              (the “Employment
              Period”).

          

    

    	2.  	
            Performance
              of Duties.
              The Executive shall be responsible for formulation and implementation
              of
              the business plan and day-to-day operation of the Company. The duties
              of
              the Executive shall include those commonly associated with such position,
              together with such other duties consistent therewith and herewith as
              may
              be assigned to the Executive by the Company’s Board of Directors. The
              Executive shall report to the Company’s Board of Directors. The Executive
              shall provide services primarily at the Company’s offices located in Fort
              Lauderdale, Florida. The Executive shall perform Executive’s duties
              faithfully and will devote his entire business time and attention and
              his
              best efforts to the duties and services of his position.
              

          

    

    	3.  	
            Compensation
              and Benefits.
              The following shall apply during the Employment
              period:

          

    

    
      	 	
              3.1

            	
              Base
                Salary.
                The Executive’s base salary as of the Commencement Date will be $250,000
                per year, payable in accordance with the applicable payroll practices
                of
                the Company. The Company’s Board of Directors shall, from time to time,
                review the Executive’s performance and consider increasing the Executive’s
                Base Salary. 

            

    

    

    
      	 	
              3.2

            	
              Sign-on
                Bonus.
                

            

    

    

    
      	 	 	
              i.

            	
              The
                Executive will be entitled to receive an equity sign-on bonus on
                his first
                day of actual employment by the Company on its payroll, consisting
                of
                immediately vesting, 10 year options to purchase 100,000 shares of
                Ener1,
                Inc. common stock at an exercise price of $.00 per share. These options
                will be issued under the Ener1, Inc. 2002 Employee Stock Participation
                Plan, subject to the terms and conditions thereof, with the option
                grant
                drafted to be consistent with the terms of this Agreement. The Company
                represents that the shares underlying the options have been registered
                with the United States Securities and Exchange Commission by Ener1,
                Inc.
                pursuant to a registration statement on Form
                S-8.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	 	
              ii.

            	
              In
                addition to the equity sign-on bonus, the Executive shall be paid,
                upon
                the execution and delivery by the Executive of this Agreement to
                the
                Company, a cash sign-on bonus of $70,000.

            

    

    

    
      	
            	3.3	
              Performance
                Bonus.
                The Executive shall have the opportunity to earn an annual bonus
                of up to
                100% of his annual salary. The bonus will be determined by EnerDel’s Board
                of Directors based on the performance of the Executive and of
                EnerDel.

            

    

    

    
      	 	
              3.4

            	
              Vacation.
                The Executive shall be entitled to three weeks of paid vacation leave
                per
                year during each of the first three years of the Executive’s employment
                with the Company, and 4 weeks of paid vacation for each subsequent
                year,
                the timing of which shall be approved in accordance with the general
                policies and procedures of the Company as amended from time to time
                for
                executives of the Company and its affiliated entities (“Company
                Policies”).

            

    

    

    
      	 	
              3.5

            	
              Medical
                Insurance.
                The Company shall provide medical insurance coverage to the extent
                consistent with that provided to other Executives of the Company
                and its
                Affiliated Companies, and in accordance with Company
                Policies.

            

    

    

    
      	 	
              3.6

            	
              Other
                Benefits.
                The Executive shall have the right to participate in such pension,
                retirement savings, bonus, profit sharing and other employee welfare
                and
                benefit plans, if any, as are made available generally to employees
                of the
                Company and its Affiliated Companies, in accordance with Company
                Policies.
                

            

    

    

    
      	 	
              3.7

            	
              Withholding.
                There shall be deducted from any payments made hereunder any taxes
                or
                other amounts required to be withheld by any government entity or
                taxing
                authority having jurisdiction over the
                matter.

            

    

    

    
      	 	
              3.8

            	
              Option
                Plan.
                The Executive will be entitled to the following equity participations:
                

            

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	 	 	
              i.

            	
              The
                Executive shall be granted, pursuant to a separate option plan, effective
                on his first day of actual employment with the Company on its payroll
                ,
                options to purchase 1,000,000 shares of Ener1, Inc. common stock,
                vesting
                25% on each of the first four anniversaries of the date of this Agreement.
                Exercise price for these options will be equal to fair market value
                on the
                date of the option, and the term of the options shall be ten years.
                The
                Executive’s right to exercise any of the options shall be subject to the
                Company’s reporting revenue equal to $1.5 million for calendar 2005 and
                $7.0 million for calendar 2006, as confirmed by review or audit by
                its
                independent registered auditors. If the Company revenue falls short
                of the
                target(s) for any of the time frames involved by 20% or more, the
                Executive shall not be able to exercise any of the options referred
                to in
                this provision that have vested unless and until the Company revenue
                for
                subsequent time frames reaches more than 80% of said target revenue.
                The
                Company may also consider granting to the Executive options to purchase
                the Company’s common stock, on terms to be determined by the Company’s
                Board of Directors. Based on the Executive’s performance and the
                performance of the Company and Ener1, Inc., the Boards of Directors
                of
                Ener1, Inc. and the Company may, in their separate and independent
                discretion and subject to any applicable corporate and legal requirements
                and tax and accounting considerations, in lieu of directly granting
                options to purchase the Company’s common stock, instead grant to the
                Executive the opportunity to exchange some or all of the Executive’s
                Ener1, Inc. stock options for options to purchase the Company’s common
                stock, on terms and conditions to be established by the Company and
                Ener1,
                Inc. at the appropriate time.

            

    

     

    
      
        	
              	ii.	
                In
                  the event of Change of Control of the Company, any unvested options
                  granted to the Executive shall vest and shall be fully exercisable
                  immediately. “Change
                  in Control”
                  shall be deemed to occur if any Person shall acquire direct or
                  indirect
                  beneficial ownership (whether as a result of stock ownership, revocable
                  or
                  irrevocable proxies or otherwise) of securities of the Company,
                  pursuant
                  to one or more transactions, such that after consummation and as
                  a result
                  of such transaction, such Person has direct or indirect beneficial
                  ownership of 50% or more of the total combined voting power with
                  respect
                  to the election of directors of the issued and outstanding securities
                  of
                  the Company. “Person”
                  shall mean any person, corporation, partnership, joint venture
                  or other
                  entity or any group (as such term is defined for purposes of Section
                  13(d)
                  of the Exchange Act), other than a Parent or Subsidiary, and “beneficial
                  ownership” shall be determined in accordance with Rule 13d-3 under
                  the Exchange Act. Notwithstanding the foregoing, for purposes of
                  this
                  Agreement, “Change of Control” shall not include any change of control,
                  actual or implicit, resulting from any Person or Persons gaining
                  50% or
                  more of the combined voting power for the Company (or less than
                  50%, even
                  though such lesser amount may represent effective voting control)
                  through
                  an Initial Public Offering by the Company or other financing conducted
                  by
                  or on behalf of the Company.

              

      

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    	4.  	
            Expenses.
              

          

    

    
      	 	
              4.1

            	
              Throughout
                the term of this Agreement, the Executive shall be reimbursed in
                accordance with Company Policies for reasonable out-of-pocket expenses
                incurred by him in the performance of his services hereunder.
                

            

    

    

    
      	 	
              4.2

            	
              In
                addition, the Company shall reimburse the Executive for up to $10,000
                in
                personal travel expenses incurred by the Executive during his first
                year
                of actual employment with the Company.

            

    

    

    
      	 	
              4.3

            	
              In
                addition, the Company will reimburse the Executive for the reasonable,
                documented costs of the Executive’s relocation to the Ft. Lauderdale,
                Florida area. Such costs shall include the cost of moving his (and
                his
                family’s) personal property from California and the cost of airfare for
                himself and his family from California.

            

    

    

    
      	 	
              4.4

            	
              In
                addition, the Company shall reimburse the Executive for automobile
                rental
                and hotel expenses incurred by the Executive during his first year
                of
                actual employment with the Company (or until his relocation to Ft.
                Lauderdale, Florida is completed, whichever comes first).
                

            

    

    

    
      	 	
              4.5

            	
              The
                expenses referenced in subsections 4.1 through 4.4, inclusive, shall
                be
                (i) reimbursed by the Company to the Executive as and when incurred
                by the
                Executive, and promptly after receipt by the Company of written
                documentation which substantiates each reimbursement request, and
                (ii)
                grossed-up to offset the income tax liability, if any, which Executive
                incurs in connection with the receipt of such reimbursed amounts.
                

            

    

     

    	5.  	
            Termination.
              The Executive and the Company shall have the right to terminate this
              Agreement as provided in this Section 5.

          

    

    
      	 	
              5.1

            	
              Voluntary
                Resignation.
                The Executive may terminate his employment hereunder at any time
                upon 30
                days’ prior written notice.

            

    

    

    	5.2  	
             Termination
              by the Company without Cause or Termination by the Executive with Good
              Reason.
              The Company shall have the right to terminate the Executive’s employment
              hereunder without Cause (as Cause is defined below in Section 5.3)
              upon 30
              days’ written notice to the Executive. The Executive shall have the right
              to terminate his employment hereunder with Good Reason as (defined
              below)
              upon 30 days’ written notice to the Company. “Good Reason” shall mean the
              occurrence of any of the following
              events:

          

    

    
      	 	 	
              i.

            	
              (a)
                the assignment to the Executive of responsibilities which are, or
                to a
                position with the Company which is substantially different from,
                Executive’s responsibilities or position as set forth in this Agreement
                (but not including promotions of the Executive), and which have an
                adverse
                effect upon the Executive; or (b) the reduction of the Executive’s
                authority from that set forth herein or otherwise customary for a
                chief
                executive officer of a corporation.

            

    

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
            	ii.	
              a
                reduction by the Company in the Executive’s Base Salary;
                

            

    

    

    
      	 	 	
              iii.

            	
              the
                Company’s material breach of any provision of this Agreement, provided
                that
                if such breach is curable the Executive has given the Company written
                notice of such breach, and the Company has failed to cure such breach
                within 30 days after such notice;
                or

            

    

    

    
      	 	 	
              iv.

            	
              the
                Company shall fail to maintain directors and officers liability coverage.
                

            

    

    

    
      	 	
              5.3

            	
              Termination
                for Cause.
                The company shall have the right to terminate the Executive’s employment
                hereunder at any time upon written notice on account of the existence
                or
                occurrence of one or more of the following events
                (“Cause”):

            

    

    

    	i.  	
            the
              Executive discloses Confidential Information in violation of Section
              7 or
              engages in competition in violation of Section 8 of this
              Agreement;

          

    

    	ii.  	
            the
              Executive materially breaches any other provision of this Agreement,
              and
              fails to cure such breach within 30 days after written notice thereof
              from
              the Company;

          

    

    	iii.  	
            the
              Executive is convicted of a felony; or indicted for any crime involving
              moral turpitude;

          

    

    	iv.  	
            the
              Executive’s use of narcotics, alcohol or illicit drugs has a detrimental
              effect on the performance of his employment responsibilities, as
              determined in the reasonable judgment of the Board of Directors; or
              

          

    

    	v.  	
            any
              failure of the Executive (unless solely and directly caused by, or
              materially contributed to by, the wrongful action or any inaction of
              the
              Company) to maintain his employment eligibility under all applicable
              employment laws, including without limitation, the laws pertaining
              to
              employment of foreign nationals by U.S. companies, or failure of the
              Executive qualify under such laws for employment by the Company on
              or
              before November 15, 2005.

          

    

    
      	 	
              5.4

            	
              Disability.
                The Company may terminate the Executive’s employment hereunder upon 30
                days’ written notice if the employee is unable to perform his duties, in
                any material respect, whether by reason of a physical or mental injury,
                physical incapacity or disability, physical or mental illness or
                otherwise, for a period of more than 180 consecutive days, exclusive
                of
                vacations, holidays, and leaves of absence approved in writing by
                the
                Company, and which, in the written opinion of a practicing physician,
                resident in Florida of recognized ability and reputation selected
                by the
                Company, who has examined the Executive after such 180 days, reasonably
                determines that the Executive is unable to perform his duties hereunder
                as
                an Executive of the Company.

            

    

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    	5.5  	
            Death.
              The Executive’s employment hereunder automatically shall be terminated by
              reason of his death.

          

    

    	6.  	
            Rights
              and Obligations of the Parties Upon Early Termination.
              The Company and the Executive shall have the following rights and
              obligations upon early termination of the Executive’s employment hereunder
              pursuant to Section 5. Nothing herein shall be construed to be in
              derogation of any other benefits provided by the Company pursuant to
              Company Policies or by law.

          

    

    	6.1  	
            Termination
              for Cause.
              The Company shall have no obligation to make payments to the Executive
              in
              accordance with Section 3 for periods after the date on which the
              Executive’s employment with the Company is terminated pursuant to Section
              5.1 (Voluntary Resignation), Section 5.3 (Termination for Cause), Section
              5.4 (Disability) or Section 5.5 (Death), except for payments due and
              owing
              as of such date.

          

    

    	6.2  	
            Termination
              Without Cause or Termination with Good Reason.
              If
              the Company terminates the Executive’s employment hereunder without Cause,
              if the Executive terminates the Executive’s employment hereunder with Good
              Reason pursuant to Section 5.2, the Company shall pay the Executive
              any
              compensation and benefits the Company owes to the Executive through
              the
              effective date of termination and shall continue to make salary payments
              only (subject to required withholding and other applicable taxes) to
              the
              Executive in accordance with his Base Salary, on the Company’s regularly
              scheduled payroll dates, for an additional period of six (6) months
              following the effective date of
              termination.

          

    

    	7.  	
            Confidential
              Information.

          

    

    	7.1  	
            “Confidential
              Information”
              shall mean all trade secrets and other confidential and proprietary
              information of the Company or other entities under common control with,
              controlled by or controlling the Company (hereinafter referred to as
              an
              “Affiliated
              Company”
              or “Affiliated
              Companies”),
              including but not limited to: (i) inventions (whether or not patented
              or
              patentable), writings (whether or not copyrighted or copyrightable),
              designs, systems, processes, discoveries, works of authorship,
              improvements or ideas relating to any products, software, hardware,
              apparatus, processes, or uses thereof produced or being developed by
              the
              Company (“Company
              Products”)
              or the technology or know-how of the Company or any Affiliated Company;
              (ii) the Company’s or any Affiliated Company’s proprietary software,
              consisting of computer programs in source or object code and all related
              documentation and modifications thereto and including programs and
              documentation and training and service materials, including all upgrades,
              improvements and modifications thereto and including programs and
              documentation in incomplete states of design or research and development;
              (iii) the subject matter of the Company’s or any Affiliated Company’s
              patents, design patents, copyrights, trade secrets, trademarks, service
              marks, trade names materials, operating instructions and other
              confidential industrial property, including matters in the process
              of
              design or research and development; (iv) the Company’s or any Affiliated
              Company’s business operations and practices, including marketing,
              research, service and product development plans and strategies which
              have
              been or are being considered, processes product formulations and designs,
              and sales or distribution methods and techniques, other than any of
              the
              foregoing which are published by the Company or otherwise made available
              by the Company to the industry; (v) the Company’s or any Affiliated
              Company’s pricing information, pricing methods, bidding practices, pricing
              structures, cost analysis reports, overhead reports, profit margins
              and
              supplier and vendor arrangements; (vi) information of the Company or
              any
              Affiliated Company relating to persons, firms, partnerships, corporations
              or other entities which are or have been customers of the Company or
              any
              Affiliated Company including identification of or lists of past, existing
              or potential customers and their business requirements and the method
              services can be individually tailored to the needs of particular customers
              together with the programs devised for customers and the materials
              embodying them; (vii) account information relating to customers, including
              payment history, account balances and receivables; and (viii) financial
              information relating to the Company or any Affiliated
              Company.

          

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    	7.2  	
            Company
              Proprietary Rights.
              All Confidential Information created by the Executive (alone or with
              others) during the Employment Period, regardless of whether or not
              such
              information was created during the Company’s customary business hours or
              at the Company’s place of business, shall be and remain the sole property
              of the Company free and clear of any rights or claims that may be made
              by
              the Executive or any other entity. The Executive shall not file any
              copyright or patent applications covering or claiming any Confidential
              Information except with the prior written consent of the Company. Upon
              termination of the Executive’s employment, or at any time upon written
              request of the Company, the Executive shall deliver to the Company
              all
              Confidential Information, whether embodied in Written Materials,
              substances, models, mechanisms or the like, including but not limited
              to,
              customer/client lists, documents, research data, reports, plans,
              proposals, marketing and sales plans, equipment, software, discs,
              illustrations, samples, and manuals or otherwise containing or relating
              to
              the Confidential Information in his possession or control. “Written
              Material” means letters, memoranda, reports, notes, notebooks, books of
              account, data, drawings, prints, plans, specifications, formulae, and
              all
              other documents or writings, and all copies thereof, including those
              stored in forms of electronic media. During the Employment Period and
              for
              a period of one (1) year thereafter, at the request of the Company
              and
              without expense to the Executive but also without additional
              consideration, the Executive shall execute such documents and perform
              such
              other reasonable acts as the Company deems necessary to vest in the
              Company or its designee title to Confidential Information, or to obtain,
              with respect to Confidential Information, copyrights and/or patents
              in any
              jurisdiction or jurisdictions, including, without limitation, any
              application for copyrights or patents, any copyrights or patents issued
              pursuant thereto, and any assignment of any of the
              foregoing.

          

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    	7.3  	
            Non-Disclosure.
              The Executive shall, throughout the term of this Agreement and for
              a
              period of three (3) years thereafter: (i) hold all Confidential
              Information in the strict confidence and not disclose any Confidential
              Information to any third party except to, or with the prior written
              consent of, the person or persons designated from time to time by the
              Board of Directors other than the Executive (an “Authorized
              Representative of the Company”),
              or as required by law or valid order of a court or other governmental
              authority; provided,
              however,
              that prior to making any such disclosure other than with the consent
              of
              the Company the Executive shall first notify the Company of the
              Executive’s intention to disclose Confidential Information pursuant to
              this exception as promptly as is practical under the circumstances
              in
              order to enable the Company to seek a protective order or injunction
              against the making of such disclosure; (ii) not make any use of any
              Confidential Information except such use as is required in the due
              performance of the Executive’s duties hereunder; (iii) comply with all
              non-disclosure and confidentiality agreements to which the Company
              is a
              party; and (iv) take all reasonable precautions to assure that the
              Confidential Information is properly protected and kept from unauthorized
              persons.

          

    

    	7.4  	
            Exclusions.
              The foregoing shall not apply if (i) the Confidential Information is
              known
              to the Executive on the date of this Agreement, (ii) the Confidential
              Information to be disclosed is or has become public knowledge through
              no
              fault of the Executive where the disclosing person was not, to the
              best of
              the Executive’s knowledge, under an obligation not to disclose such
              information, (iii) the Confidential Information to be disclosed was
              known
              to the Executive prior to its disclosure to the Executive; or (iv)
              the
              Confidential Information is to be disclosed as reasonably required
              to
              perform the Executive’s duties under this
              Agreement.

          

    

    
      	
            	8.	
              Non-Competition.

            

    

    

    	8.1  	
            The
              Executive agrees that during the Employment Period, and for a period
              of
              six (6) months following any termination other than a termination by
              the
              Company without Cause or a termination by the Executive for Good Reason
              under Section 5.2, (the “Non-Competition
              Period”),
              the Executive shall not directly or indirectly, alone or as a partner,
              officer, director, employee, consultant, agent, independent contractor,
              member, stockholder or other equity owner of any person or entity,
              engage
              in any business activity which is in competition with the business
              of the
              Company, including without limitation any business that develops, seeks
              to
              develop, markets or sells any product that is similar to or competitive
              with any product that the Company is, to the best knowledge of the
              Executive, seeking to develop, market or sell, or that the Company
              is then
              engaged in developing, marketing or selling. For purposes hereof, the
              “business”
              of the Company shall mean the actual business of the Company as of
              the
              date the Executive leaves the employment of the Company (which, as
              of the
              date hereof, is the development, marketing and sale of lithium batteries
              and their components). Notwithstanding any provision of this subsection
              8.1 to the contrary, Executive may, without violating the provisions
              of
              Section 8 of this Agreement, hold not more than two percent (2%) of
              the
              issued and outstanding stock of any company which competes with the
              Company that is also traded on a public exchange, provided that he
              has no
              other association with such company. 

          

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    	8.2  	
            The
              restrictions set forth in Section 8.1 are a material part of the bargain
              between the parties. The Executive acknowledges and agrees that the
              limitations contained in Section 8.1 with respect to duration and scope
              of
              activity are reasonable. If, however, the geographic area, duration
              or
              scope of activity of any restriction contained in Section 8 shall be
              held
              to be unenforceable, such restriction shall be modified to the extent
              necessary to render it legal, valid and enforceable to the fullest
              extent
              permissible by law.

          

    

    
      	 	
              9.

            	
              Non-solicitation
                of Consultants and Executives.
                During the Employment Period and for a period of six (6) months following
                any termination of the Executive hereunder, the Executive shall not,
                on
                his own behalf or on behalf of any other individual, corporation,
                partnership, limited liability company or other entity, employ, solicit
                for employment, or otherwise assist in the solicitation for employment,
                including any recommendation with respect to employment, of any person
                who
                is a consultant or employee of the Company at the time of any such
                solicitation.

            

    

    

    
      	 	
              10.

            	
              Representations
                and Warranties.
                The Executive represents and warrants as of the date of this Agreement
                and
                as of the Commencement Date that (i) the Executive does not own or
                have
                any interest or right in any inventions or discoveries developed,
                made or
                conceived prior to the Executive’s employment by the Company and relating
                to Company Products or any Confidential Information that has not
                been
                assigned, sold and granted by the Executive to the Company; (ii)
                the
                Executive does not have any obligations to prior employers or others
                relating to Confidential Information related to the business of the
                Company or to any inventions or discoveries; and (iii) the Executive
                is
                not bound by any restriction, agreement, judgment or other limitation
                limiting the Executive’s ability to enter into this Agreement or to
                carryout its terms. 

            

    

    

    
      	 	
              11.

            	
              Remedies.
                If the Executive breaches, or threatens to commit a breach of any
                of the
                provisions contained in Sections 7, 8, or 9 (the “Restrictive
                Covenants”),
                the Company shall have the following rights and remedies, each of
                which
                shall be enforceable, and each of which is in addition to, and not
                in lieu
                of, any other rights and remedies available to the Company at law
                or in
                equity:

            

    

    

    
      	 	
              11.1

            	
              The
                Executive shall account for and pay over to the Company all compensation,
                profits and other benefits which inure, directly or indirectly, to
                the
                Executive, any of his affiliates, or any of his family members, or
                any
                business of which the Executive or any of his relatives, spouse or
                other
                family members is an employee, director, officer, partner, shareholder
                or
                other equity owner resulting from any action or transaction constituting
                a
                breach of any of the Restrictive
                Covenants.

            

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	 	
              11.2

            	
              In
                the event of a violation or threatened violation of any of the Restrictive
                Covenants, the Company is likely to suffer irreparable harm for which
                monetary damages will not be adequate. Having no adequate remedy
                at law,
                the Company shall therefore be entitled to seek to enforce each such
                provision by temporary or permanent injunction without prejudice
                to any
                other rights and remedies that may be available at law or in equity,
                except as may be required by law. In the event that the Company prevails
                in any such action, the Executive shall be responsible to the Company
                for
                any legal fees and costs incurred by the Company to enforce this
                or any
                other provisions of this Agreement.

            

    

    

    
      	 	
              11.3

            	
              If
                any of the Restrictive Covenants, or any part thereof, are held to
                be
                invalid or unenforceable, the same shall not affect the remainder
                of the
                covenant or covenants, which shall be given full effect, without
                regard to
                the invalid or unenforceable portions. Without limiting the generality
                of
                the foregoing, if any of the Restrictive Covenants, or any part thereof,
                are held to be unenforceable because of the duration of such provision
                or
                the area covered thereby, the parties hereto agree that the court
                making
                such determination shall have the power to reduce the duration and/or
                area
                of such provision and, in its reduced form, such provision shall
                then be
                enforceable.

            

    

    

    	13.  	
            Notices.
              Any notices and other communications hereunder shall be in writing
              and
              addressed to the parties as follows (with notice deemed given as
              indicated): (i) by personal delivery upon signed acknowledgment when
              delivered personally; (ii) by certified or registered mail, postage
              prepaid, return receipt requested, 5 business days after mailing; (iii)
              by
              nationally recognized overnight courier service upon confirmation of
              receipt or (iv) by telecopy transmission upon electronic or written
              confirmation of receipt:

          

    

    

    If
      to the
      Executive, to:                  
Ulrik
      Grape

    22
      Oakridge Lane 

    Danville,
      California 94506

    Phone: 925-831-3938

    Fax: 925-831-9226

    

    With
      a
      copy
      to:                                   
Stephen
      R. Barbieri

    214
      Grant
      Avenue, Suite 400

    San
      Francisco, CA 94108

    Telephone:
      415-398-4900

    Facsimile:
      415-840-0312

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    If
      to the
      Company,
      to:                        
EnerDel,
      Inc. 

    500
      W.
      Cypress Creek Road,  Suite
      100

    Fort
      Lauderdale, Florida 33309 

    Attn:
      Ronald Stewart 

    Telephone:
      954-556-4020

    Facsimile:
      954-776-3359 

     

    Either
      party may change its contact address for notices and other communications by
      means of notice to the other party given in accordance with this Section
      13.

    

    
      	 	
              14.

            	
              Governing
                Law.
                This Agreement shall be construed, interpreted, and enforced according
                to
                the laws of the State of Florida without regard to the principles
                of
                conflict of laws.

            

    

    

    
      	 	
              15.

            	
              Severability.
                If any of the provisions of this Agreement shall be held invalid,
                the
                remainder of this Agreement shall not be affected thereby, and shall
                remain in full force and effect.

            

    

    

    
      	 	
              16.

            	
              Successors
                and Assigns.
                The Company may assign its rights under this Agreement to any entity
                that
                assumes the Company’s obligations hereunder in connection with any sale or
                transfer of all or a substantial portion of the Company’s assets to such
                entity through merger, consolidation, or
                otherwise.

            

    

    

    
      	 	
              17.

            	
              Modifications
                in Writing; Waiver.
                No modification, alteration, or addition to this Agreement shall
                be valid
                or effective unless in writing signed by the party against whom
                enforcement thereof is sought. No waiver of any breach of any of
                the terms
                and conditions contained in this Agreement shall be construed to
                be a
                waiver of any succeeding breach of such term or condition, or of
                any other
                term or condition.

            

    

    

    
      	 	
              18.

            	
              Arbitration.
                Any controversy or claim arising out of or relating to this Agreement
                or
                the breach thereof, or the Executive’s employment or the termination
                thereof, shall be settled in the Fort Lauderdale, Florida area, by
                arbitration before a sole arbitrator in accordance with the national
                Rules
                for the Resolution of Employment Disputes of the American Arbitration
                Association. The decision of the arbitrator shall be final and binding
                on
                the parties, and judgment on the award rendered by the arbitrators
                shall
                be entered in any court having jurisdiction thereof. The arbitrator
                shall
                be empowered to enter an equitable decree mandating specific enforcement
                of the terms of this Agreement. The state and federal courts located
                in
                the State of Florida shall have personal jurisdiction over the parties
                for
                any action or proceeding relating to the enforcement of an award
                pursuant
                to any arbitration in which the parties are
                participants.

            

    

    

    
      	 	
              19.

            	
              No
                Waiver of Attorney-Client Privilege or Ethical Duty of
                Confidentiality.
                The Company does not hereby waive the attorney-client privilege with
                respect to any information provided to or communication with the
                Executive
                in any respect.

            

    

    

    
      	 	
              20.

            	
              Amendment.
                This Agreement may only be amended or canceled by the mutual, written
                agreement of the parties. No person, other than the parties hereto,
                shall
                have any rights under or interest in this Agreement or the subject
                matter
                hereof. The parties hereby agree that no oral conversations shall
                be
                deemed to be a modification of this Agreement and neither party shall
                assert the same.

            

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	 	
              21.

            	
              Entire
                Agreement.
                This Agreement contains the entire understanding of the parties with
                respect to the subject matter hereof. This Agreement supersedes any
                prior
                or contemporaneous agreement between the parties with respect to
                the
                subject matter thereof. No other agreements, representations or
                understandings (whether oral or written and whether express or implied)
                which are not expressly set forth in this Agreement have been made
                or
                entered into by either party with respect to the subject matter
                hereof.

            

    

    

    
      	 	
              22.

            	
              Survival.
                The rights, benefits, duties and obligations of the parties hereunder,
                including, without limitation, the rights, benefits, duties and
                obligations contained in Section 7, 8, 9, 11 and 12 herein, and the
                representations and warranties made in Section 10 herein, shall survive
                the term and/or termination of this
                Agreement.

            

    

    

     

    [This
      space intentionally blank. Signature page follows.]

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

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

    

     

      
        	 	 	 	ENERDEL, INC.
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/ 
	
              	 	Name:	
                

              
	 	 	Title:	
                
 

	 	 	 	
                

              
	 	 	 	 
	 	 	 	 

      

      
        	 	 	 	
                 

                 

                 

              
	 	 	By:	EXECUTIVE
	 	 	 	 
	 	 	 	/s/ 
	
              	 	 	
                
Name:
                Ulrik Grape
	 	 	 	 
	 	 	 	 

      

    

     

    
 

    
      
         

      

      
        13Exhibit
      10.44

     

    TAX
      ALLOCATION AGREEMENT

     

    THIS
      AGREEMENT is entered into as March 1, 2006, by and between Ener1 Group, Inc.,
      a
      Florida corporation (“E1G”) and Ener1, Inc. and its subsidiaries (“Ener1”), a
      Florida corporation.

     

    WITNESSETH:

     

    WHEREAS,
      E1G is the common parent corporation of an affiliated group of corporations
      (the
“E1G Affiliated Group”) within the meaning of section 1504(a) of the Internal
      Revenue Code of 1986, as amended (the “Code”), and Ener1 is a corporation more
      than 80% owned by E1G and therefore a member of the E1G Affiliated Group;
      and

     

    WHEREAS,
      E1G and Ener1 deem it appropriate to define the method by which the federal
      income tax, including for all purposes of this Agreement, the alternative
      minimum tax, and certain state and local tax liabilities of the E1G Affiliated
      Group shall be allocated between the parties and the manner in which such
      allocated liability shall be paid.

     

    NOW,
      THEREFORE, in consideration of the premises and of the mutual premises and
      covenants hereinafter set forth, the parties hereto agree as
      follows:

     

    1.  Definitions.
      The following
      terms as used in this Agreement shall have the meanings set forth
      below:

     

    (a)
       “Additional
      Amount” shall mean the amount determined under Section 3 hereof.

     

    (b)
       “Consolidated
      Return” shall mean a consolidated federal income tax return filed pursuant to
      section 1501 of the Code.

     

    (c)
       “Consolidated
      Tax Liability” shall mean the consolidated federal income tax liability,
      including for all purposes of this Agreement, alternative minimum tax liability,
      of the E1G Affiliated Group for any taxable year for which the E1G Affiliated
      Group files a Consolidated Return.

     

    (d)
       “IRS”
      shall mean the Internal Revenue Service.

     

    (e)
       “Member”
      shall mean each includible member of the E1G Affiliated Group.

     

    (f)
       “E1G
      Affiliated Group” shall mean the affiliated group of corporations within the
      meaning of section 1504(a) of the Code of which E1G is the common
      parent.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (g)
       “Regulations”
      shall mean the Treasury regulations as in effect from time to time.

     

    (h)
       “Separate
      Return Tax Liability” shall mean the federal income tax liability, including for
      all purposes of this Agreement, alternative minimum tax liability, of a Member
      computed as if it had filed a separate federal income tax return for the
      applicable taxable year with the modifications set forth in section
      1.1552-1(a)(2)(ii) of the Regulations. 

     

    (i)
       “Separate
      Tax Liability” shall mean the amount owed by a Member under Section 2(a)
      hereof.

     

    (j)
       “Tax
      Sharing Receivable” shall mean the amount owned to a Member pursuant to Section
      2(a) hereof.

     

    2.  Separate
      Tax Liability.

     

    (a)
       If
      a
      Consolidated Return is filed by the E1G Affiliated Group for any taxable year,
      the Separate Tax Liability of each Member for such taxable year shall, if a
      positive number, be the sum of (i) the amount determined for such Member
      pursuant to paragraph (b) hereof, plus or minus, as the case may be, (ii) any
      increase or reduction in the Member's tentative Separate Tax Liability required
      by paragraph (c) hereof. To the extent an allocation to a Member under clause
      (ii) of paragraph (c) hereof reduces a Member's tentative Separate Tax Liability
      to an amount less than zero, such negative amount shall be referred to herein
      as
      a “Tax Sharing Receivable.”

     

    (b)
       Each
      Member's tentative Separate Tax Liability shall be an amount equal to that
      portion of the Consolidated Tax Liability for such taxable year that the
      Member's Separate Return Tax Liability for such taxable year bears to the sum
      of
      the Separate Return Tax Liabilities of all Members for such taxable year;
      provided, however, that such amount shall not exceed the Consolidated Tax
      Liability for such taxable year.

     

    (c)
       Adjustments
      for Additional Amount. If an Additional Amount is determined with respect to
      a
      Member for a Consolidated Return taxable year, then (i) the tentative Separate
      Tax Liability of that Member, as determined pursuant to paragraph (b), shall
      be
      increased by such Additional Amount; and (ii) the Separate Tax Liability of
      each
      of those Members whose tax attributes are absorbed shall be reduced by a pro
      rata portion of the Additional Amount allocated to such Member, which allocation
      shall be made in a manner that reasonably reflects the absorption of the tax
      attributes. This paragraph (c) and Section 3 hereof are intended to allocate
      Additional Amounts of Separate Return Tax Liability in accordance with the
      percentage method of Reg. (S)1.1502-33(d)(3) (using 100% for each Member) and
      shall be interpreted to comply in all material respects with that
      method.

     

    3.
       Additional
      Amount. An “Additional Amount” exists with respect to a Member if, for any
      Consolidated Return taxable year, that Member's Separate Return Tax Liability
      exceeds the tentative Separate Tax Liability of that Member determined pursuant
      to Section 2(b).

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    4.  Payments.
      For each taxable year with respect to which E1G files, or it is reasonably
      anticipated that E1G will file, a Consolidated Return which includes Ener1,
      payment of the Separate Tax Liability or Tax Sharing Receivable with respect
      to
      such taxable year shall be made as follows:

     

    (a)
       On
      or
      before the 15th day of the fourth month of such taxable year, E1G shall estimate
      the Separate Tax Liability or Tax Sharing Receivable of each Member for such
      taxable year.

     

    (b)
       Ener1
      shall pay to E1G or E1G shall pay to Ener1, as the case may be, on or before
      each of the due dates for E1G to make payment of estimates of its federal income
      taxes for such taxable year one-fourth of the amount estimated pursuant to
      paragraph (a) above (the “Estimated Amount”). If, after paying any such
      installment of the Estimated Amount, E1G and Ener1 make a new estimate, the
      amount of each remaining installment (if any) shall be the amount which would
      have been payable if the new estimate had been made when the first estimate
      for
      the taxable year was made, increased or decreased as applicable, by the amount
      computed by dividing: (i) the difference between (A) the amount of the Estimated
      Amount required to be paid before the date on which the new estimate is made,
      and (B) the amount of the Estimated Amount which would have been required to
      be
      paid before such date if the new estimated had been made when the first estimate
      was made, by (ii) the number of installments remaining to be paid on or after
      the date on which the new estimate is made.

     

    (c)
       If,
      after
      the end of each such taxable year with respect to which E1G filed, or reasonably
      anticipates that it will file, a Consolidated Return which includes Ener1,
      it is
      determined that the actual Separate Tax Liability for such taxable period
      exceeds the aggregate amount paid pursuant to the subparagraph (b) above with
      respect to such taxable period, then such excess shall be paid on or before
      the
      later of (i) the 15th day of the third month after the end of such taxable
      period, and (ii) the date on which such excess is finally determined, which
      shall be not later than sixty (60) days after the Consolidated Return for such
      taxable period is filed.

     

    (d)
       If,
      after
      the end of each such taxable year with respect to which E1G filed, or reasonably
      anticipates that it will file, a Consolidated Return which includes Ener1,
      it is
      determined that the amount paid pursuant to subparagraph (b) above with respect
      to such taxable period exceeds the actual Separate Tax Liability or Tax Sharing
      Receivable for such taxable period, then such excess shall be paid on or before
      the later of (i) the 15th day of the third month after the end of such taxable
      period and (ii) the date on which such excess is finally determined, which
      shall
      be not later than sixty (60) after the Consolidated Return for such taxable
      period is filed.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    5.
       Carrybacks.
      The provisions of this Section 5 shall be interpreted in a manner that does
      not
      result in the duplication of any computations required by any other provision
      of
      this Agreement or in the duplication of any tax sharing payment required to
      be
      made pursuant to any other provision of this Agreement.

     

    (a)
       If
      the
      E1G Affiliated Group has a consolidated unused investment credit, a consolidated
      unused foreign tax credit, a consolidated excess charitable contribution, a
      consolidated net capital loss or a consolidated net operating loss, as such
      terms are defined in the Regulations (a “Consolidated Excess Amount”) for any
      taxable year, the portion of such Consolidated Excess Amount which is
      attributable to a Member (the “Separate Excess Amount”) shall be computed in
      accordance with the Consolidated Return Regulations.

     

    (b)
       If
      such
      Consolidated Excess Amount is carried back to a prior taxable year of the E1G
      Affiliated Group during which Ener1 was a Member or was not in existence, then
      the amounts due under this Agreement for such prior taxable year shall be
      redetermined by taking into account such Consolidated Excess Amount and any
      Separate Excess Amount allocable to such taxable year.

     

    (c)
       Payment
      of any amount due under this Section 5 shall be made on the date that a credit
      or refund is allowed with respect to the taxable year to which such payment
      related and shall include any interest attributable thereto under section 6611
      of the Code.

     

    6.
      Subsequent Adjustments. If any adjustments (other than adjustments made pursuant
      to Section 5 hereof) are made to the income, gains, losses, deductions or
      credits of the E1G Affiliated Group for a taxable year during which Ener1 is
      a
      Member, whether by reason of the filing of an amended return or a claim for
      refund which respect to such taxable year or an audit with respect to such
      taxable year by the IRS, the amounts due under this Agreement for such taxable
      year shall be redetermined by taking into account such adjustments. If, as
      a
      result of such redetermination, any amounts due under this Agreement shall
      differ from the amounts previously paid, then payment of such difference shall
      be made (a) in the case of an adjustment resulting in a credit or refund, on
      the
      date on which such credit or refund is allowed with respect to such adjustment,
      or (b) in the case of an adjustment resulting in the assertion of a deficiency,
      on the date on which such deficiency is paid. Any amounts due under this Section
      6 shall include any interest attributable thereto under section 6601 or 6611
      of
      the Code, as the case may be, and any penalties or additional amounts which
      may
      be imposed.

     

    7.
       Foreign
      Tax and State and Local Tax

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (a)
       Ener1
      agrees, on the request of E1G, to join with E1G, or any direct or indirect
      subsidiary of E1G, (i) in any combined or consolidated foreign tax return
      (“Foreign Combined Return”) for any taxable year for which E1G or any such
      direct or indirect subsidiary of E1G files a Foreign Combined Return that may
      include Ener1, and (ii) in any combined or consolidated state or local income
      or
      franchise tax return (“State/Local Combined Return”) for any taxable year for
      which E1G or any such direct or indirect subsidiary of E1G files a State/Local
      Combined Return that may include Ener1.

     

    (b)
       If,
      at
      any time from and after the date of this Agreement, Ener1 is included in any
      Foreign Combined Return or State/Local Combined Return that includes E1G or
      any
      direct or indirect subsidiary of E1G, this Agreement shall be applied in a
      like
      manner to all matters relating to such foreign taxes or state or local income
      or
      franchise taxes.

     

    8.
       Determinations.
      All determinations required hereunder shall be made by the independent public
      accountants regularly employed by the E1G Affiliated Group at the time that
      such
      determination is required to be made or by such other independent tax advisor
      as
      may be selected by E1G, in the exercise of its absolute discretion. Such
      determinations shall be binding and conclusive upon the parties for purposes
      hereof.

     

    9.
       Procedural
      Matters. E1G shall prepare and file the Consolidated Return and other returns,
      documents or statements required to be filed with the IRS with respect to the
      determination of federal income tax liability of the E1G Affiliated Group.
      In
      its sole discretion, E1G shall have the right with respect to any Consolidated
      Returns which it has filed or will file, (i) to determine the manner in which
      such returns, documents or statement shall be prepared and filed, including,
      without limitation, the manner in which any item of income, gain, loss,
      deduction or credit shall be reported, the elections that will be made by any
      Member, (ii) to contest, compromise or settle any adjustment or deficiency
      proposed, asserted or assessed as a result of any audit or such returns by
      the
      IRS, (iii) to file, prosecute, compromise or settle any claim for refund and
      (iv) to determine whether any refunds, to which the E1G Affiliate Group may
      be
      entitled, shall be paid by way of refund or credited against the tax liability
      of the E1G Affiliated Group. Ener1 hereby irrevocably appoints E1G as its agent
      and attorney-in-fact to take such actions (including the execution of documents)
      as E1G may deem appropriate to effect the foregoing.

     

    10.
       Earnings
      and Profits Determinations. For purposes of determining the manner in which
      taxes are shared in calculating each Member's earnings and profits, E1G shall
      be
      entitled to use any of the methods permitted by section 1.1502-33(d) of the
      Regulations that E1G, in the exercise of its absolute discretion, deems
      necessary or appropriate.

     

    11.
       Miscellaneous
      Provisions.

     

    (a)
       This
      Agreement contains the entire understanding of the parties hereto with respect
      to the subject matter contained herein. No alteration, amendment or modification
      of any of the terms of this Agreement shall be valid unless made by an
      instrument signed in writing by an authorized officer of each party
      hereto.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (b)
       This
      Agreement has been made in and shall be construed and enforced in accordance
      with the laws of the State of Florida from time to time obtaining.

     

    (c)
       This
      Agreement shall be binding upon and inure to the benefit of each party hereto
      and their respective successors and assigns.

     

    (d)
       This
      Agreement may be executed simultaneously in two or more counterparts, each
      of
      which shall be deemed an original, but all of which together shall constitute
      one and the same instrument.

     

    (e)
       All
      notices and other communications hereunder shall be deemed to have been duly
      given if delivered by hand or mailed certified or registered mail, postage
      prepaid:

     

    If
      to
      Ener1 Group:

    

    Ener1
      Group, Inc.

    550
      West
      Cypress Creek Rd., Suite 120

    Ft.
      Lauderdale, FL 33309

    Attn:
      Charles Gassenheimer, CEO

    Email:
      cgassenheimer@ener1group.com

    Fax:
      212.920.3510

    

    If
      to
      Ener1, Inc.:

    

    Ener1,
      Inc.

    500
      West
      Cypress Creek Rd., Suite 100

    Ft.
      Lauderdale, FL 33309

    Attn:
      Gerard Herlihy, CFO

    Email:
      Jherlihy@ener1.com

    Fax:
       954
      776-5337

    

    (f) The
      headings of the paragraph of this Agreement are inserted for convenience only
      and shall not constitute a part hereof.

     

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed by their authorized representative, all on the date and year first
      above written.

     

    
      
        	 	 	 	ENER1 GROUP,
                INC.
	 	 	 	 
	 	 	 	 
	 	 	By:	 
	
              	 	
                Name:

                
                  Title:

                

              	
                

              
	 	 	
                 

                 

              	 

      

      
        	 	 	 	 
	 	 	 	ENER1, INC.
	 	 	 	 
	 	 	 	 
	 	 	By:	 
	
              	 	
                Name:

                
                  Title:

                

              	
                

              
	 	 	 	 

      

    

     

    
      

    
      
         

      

      
        7

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