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Unassociated Document

    EXHIBIT
      4.27

     

     

    FORM
      OF 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. 

     

    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 ( ) (the “Effective
      Date”),
      and
      before 5:00 p.m. Central Time on ( ) (the “Expiration
      Date”),
      to
      purchase from Ener1, Inc., a Florida corporation (the “Company”),
      ( ) (
      ) shares of Common Stock of the Company at a price per share of $ (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.

     

    
      
        
        

      

      
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    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:

     

    
      
        
        

      

      
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    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.

     

    
      
        
        

      

      
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    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.

     

    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.

     

    
      
        
        

      

      
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    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:

     

    
      
        
        

      

      
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    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.

     

    
      
        
        

      

      
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    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
      Commission, then the parties will amend this Warrant, ab
      initio,
      to the
      full extent necessary to eliminate such derivative liability.

     

    
      
        
        

      

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

    

     

    [HOLDER]

    

    Ener1
      Group, Inc.

     

    By:
      ____________________________________

    Name:
      ______________________________

    Title:
      _______________________________

    

    

    

    [ISSUER]

    

    Ener1,
      Inc.,

    a
      Florida
      corporation

     

    By:
      ____________________________________

    Name:
      ______________________________

    Title:
      _______________________________

     

    
      
        
        

      

      
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    EXHIBIT
      1

     

    NOTICE
      OF EXERCISE

     

    (To
      be
      executed upon exercise of Warrant)

     

    
      	
              ENER1,
                INC.

            	
              WARRANT
                NO. 063006A

            

    

     

    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.Exhibit
        4.28

      

      

      WARRANT

      

      THE
        SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
        THE
        SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND 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 OPINION OF COUNSEL IN A FORM REASONABLY
        SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
        OR
        APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
        SAID
        ACT. NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE PLEDGED IN CONNECTION
        WITH A BONA FIDE MARGIN ACCOUNT.

      

      ENER1,
        INC.

      

      Warrant
        To Purchase Common Stock

      

        
          	
                  Warrant
                    No.: 07-001

                	
                  Number
                    of Shares: 500,000

                

        

         

      

      Date
        of
        Issuance: January 5, 2007

      

      Ener1,
        Inc., a Florida corporation (the “Company”),
        hereby certifies that, for good and valuable consideration, the receipt and
        sufficiency of which are hereby acknowledged, CHARLES
        GASSENHEIMER
        (the
“Holder”),
        the
        registered holder hereof or its permitted assigns, is entitled, subject to
        the
        terms set forth below, to purchase from the Company upon surrender of this
        Warrant, at any time or times on or after the date hereof, but not after
        11:59 P.M. Eastern Time on the Expiration Date (as defined herein) five
        hundred thousand (500,000) fully paid and nonassessable shares of Common
        Stock
        (as defined herein) of the Company (the “Warrant
        Shares”)
        at the
        exercise price per share provided in Section 1(b) below or as subsequently
        adjusted; provided, however, that in no event shall the Holder be entitled
        to
        exercise this Warrant for a number of Warrant Shares in excess of that number
        of
        Warrant Shares which, upon giving effect to such exercise, would cause the
        aggregate number of shares of Common Stock beneficially owned by the Holder
        and
        its affiliates to exceed 4.99% of the outstanding shares of the Common Stock
        following such exercise, except within sixty (60) days of the Expiration
        Date
        (however, such restriction may be waived by Holder (but only as to itself
        and
        not to any other holder) upon not less than 65 days prior notice to the
        Company). For purposes of the foregoing proviso, the aggregate number of
        shares
        of Common Stock beneficially owned by the Holder and its affiliates shall
        include the number of shares of Common Stock issuable upon exercise of this
        Warrant with respect to which the determination of such proviso is being
        made,
        but shall exclude shares of Common Stock which would be issuable upon (i)
        exercise of the remaining, unexercised Warrants beneficially owned by the
        Holder
        and its affiliates and (ii) exercise or conversion of the unexercised or
        unconverted portion of any Other Securities of the Company beneficially owned
        by
        the Holder and its affiliates (including, without limitation, any convertible
        notes or preferred stock) subject to a limitation on conversion or exercise
        analogous to the limitation contained herein. Except as set forth in the
        preceding sentence, for purposes of this paragraph, beneficial ownership
        shall
        be calculated in accordance with Section 13(d) of the Securities Exchange
        Act of
        1934, as amended. To the extent that the limitation contained in this paragraph
        applies (and without limiting any rights the Company may otherwise have),
        the
        Company may rely on the Holder’s determination of whether the Warrants are
        exercisable pursuant to the terms hereof, the Company having no obligation
        whatsoever to verify or confirm the accuracy of such determination, and the
        submission of the Exercise Notice by the Holder shall be deemed to be the
        Holder’s representation that the Warrants specified therein are exercisable
        pursuant to the terms hereof. For purposes of this Warrant, in determining
        the
        number of outstanding shares of Common Stock a holder may rely on the number
        of
        outstanding shares of Common Stock as reflected in (1) the Company’s most recent
        Form 10-QSB or Form 10-KSB, as the case may be, (2) a more recent public
        announcement by the Company or (3) any other notice by the Company or its
        transfer agent setting forth the number of shares of Common Stock outstanding.
        Upon the written request of any holder, the Company shall promptly, but in
        no
        event later than five (5) Business Days following the receipt of such notice,
        confirm in writing to any such holder the number of shares of Common Stock
        then
        outstanding. In any case, the number of outstanding shares of Common Stock
        shall
        be determined after giving effect to the exercise of Warrants (as defined
        below)
        by such holder and its affiliates since the date as of which such number
        of
        outstanding shares of Common Stock was reported.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      Section
        1.

      

      (a) This
        Warrant is a common stock purchase warrant (the “Warrant”)
        issued
        pursuant to that certain letter agreement between (“Letter
        Agreement”)
        dated
        the date hereof among Ener1 Group, Inc., the Company and the
        Holder.

      

      (b) Definitions.
        The
        following words and terms as used in this Warrant shall have the following
        meanings:

      

      (i) “Business
        Day”
means
        any day other than Saturday, Sunday or other day on which commercial banks
        in
        the City of New York are authorized or required by law to remain
        closed.

      

      (ii) “Closing
        Bid Price”
means
        the closing bid price of Common Stock as quoted on the Principal Market (as
        reported by Bloomberg Financial Markets (“Bloomberg”)
        through its “Volume at Price” function).

      

      (iii) “Common
        Stock”
means
        (i) the Company’s common stock, par value $0.01 per share, and (ii) any capital
        stock into which such Common Stock shall have been changed or any capital
        stock
        resulting from a reclassification of such Common Stock.

      

      (iv) “Expiration
        Date”
means
        the date five (5) years from the Issuance Date of this Warrant or, if such
        date
        falls on a Saturday, Sunday or other day on which banks are required or
        authorized to be closed in the City of New York or the State of New York
        or on
        which trading does not take place on the Principal Exchange or automated
        quotation system on which the Common Stock is traded (a “Holiday”),
        the
        next date that is not a Holiday.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (v) “Issuance
        Date”
means
        the date hereof.

      

      (vi) “Options”
means
        any rights, warrants or options to subscribe for or purchase Common Stock
        or
        Convertible Securities. 

      

      (vii) “Other
        Securities”
means
        (i) those Options of the Company issued prior to, and outstanding on, the
        Issuance Date of this Warrant, (ii) the shares of Common Stock issuable on
        exercise of such Options, provided such Options are not amended after the
        Issuance Date of this Warrant and (iii) the shares of Common Stock issuable
        upon exercise of this Warrant. 

      

      (viii) “Person”
means
        an individual, a limited liability company, a partnership, a joint venture,
        a
        corporation, a trust, an unincorporated organization and a government or
        any
        department or agency thereof.

      

      (ix) “Principal
        Market”
means
        the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
        Market, the Nasdaq SmallCap Market, whichever is at the time the principal
        trading exchange or market for such security, or the over-the-counter market
        on
        the electronic bulletin board for such security as reported by Bloomberg
        or, if
        no bid or sale information is reported for such security by Bloomberg, then
        the
        average of the bid prices of each of the market makers for such security
        as
        reported in the “pink sheets” by the National Quotation Bureau,
        Inc.

      

      (x) “Securities
        Act”
means
        the Securities Act of 1933, as amended. 

      

      (xi) “Underwritten
        Offering”
means
        a
        registered offering in which securities are sold to one or more underwriters
        on
        a firm commitment basis for reoffering
        to the public.

      

      (xii) “Warrant”
means
        this Warrant and all Warrants issued in exchange, transfer or replacement
        thereof. 

      

      (xiii) “Warrant
        Exercise Price”
shall
        be $0.30 per share. 

      

      (xiv) “Warrant
        Shares”
means
        the shares of Common Stock issuable at any time upon exercise of this Warrant.
        

      

      (c) Other
        Definitional Provisions. 

      

      (i) Except
        as
        otherwise specified herein, all references herein (A) to the Company shall
        be deemed to include the Company’s successors and (B) to any applicable law
        defined or referred to herein shall be deemed references to such applicable
        law
        as the same may have been or may be amended or supplemented from time to
        time.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (ii) When
        used
        in this Warrant, the words “herein”,
        “hereof”,
        and
“hereunder”
        and
        words of similar import, shall refer to this Warrant as a whole and not to
        any
        provision of this Warrant, and the words “Section”,
        “Schedule”,
        and
“Exhibit”
shall
        refer to Sections of, and Schedules and Exhibits to, this Warrant unless
        otherwise specified. 

      

      (iii) Whenever
        the context so requires, the neuter gender includes the masculine or feminine,
        and the singular number includes the plural, and vice versa. 

      

      Section
        2. Exercise
        of Warrant.
        

      

      (a) Subject
        to the terms and conditions hereof, this Warrant may be exercised by the
        Holder
        hereof then registered on the books of the Company, pro rata as hereinafter
        provided, at any time on any Business Day on or after the opening of business
        on
        such Business Day, commencing with the first day after the date hereof, and
        prior to 11:59 P.M. Eastern Time on the Expiration Date (i) by delivery of
        a
        written notice, in the form of the subscription notice attached as Exhibit
        A
        hereto
        (the “Exercise
        Notice”),
        of
        such holder’s election to exercise this Warrant, which notice shall specify the
        number of Warrant Shares to be purchased, payment to the Company of an
        amount equal to the Warrant Exercise Price(s) applicable to the Warrant Shares
        being purchased, multiplied by the number of Warrant Shares (at the applicable
        Warrant Exercise Price) as to which this Warrant is being exercised (plus
        any
        applicable issue or transfer taxes) (the “Aggregate
        Exercise Price”)
        in
        cash or wire transfer of immediately available funds and the surrender of
        this
        Warrant (or an indemnification undertaking with respect to this Warrant in
        the
        case of its loss, theft or destruction) to a common carrier for overnight
        delivery to the Company as soon as practicable following such date 

      

      In
        the
        event of any exercise of the rights represented by this Warrant in compliance
        with this Section 2, the Company shall use its commercially reasonable efforts
        to on or before the fifth (5th) Business Day following the date of receipt
        of
        the Exercise Notice, the Aggregate Exercise Price and this Warrant (or an
        indemnification undertaking with respect to this Warrant in the case of its
        loss, theft or destruction) and the receipt of the representations of the
        Holder
        specified in Section 6 hereof, if requested by the Company (the “Exercise
        Delivery Documents”),
        and
        if the Common Stock is DTC eligible, credit such aggregate number of shares
        of
        Common Stock to which the Holder shall be entitled to the Holder’s or its
        designee’s balance account with The Depository Trust Company; provided, however,
        if the Holder who submitted the Exercise Notice requested physical delivery
        of
        any or all of the Warrant Shares, or, if the Common Stock is not DTC eligible
        then the Company shall, on or before the fifth (5th)
        Business Day following receipt of the Exercise Delivery Documents, issue
        and
        surrender to a common carrier for overnight delivery to the address specified
        in
        the Exercise Notice, a certificate, registered in the name of the Holder,
        for
        the number of shares of Common Stock to which the Holder shall be entitled
        pursuant to such request. Upon delivery of the Exercise Notice and Aggregate
        Exercise Price referred to in clause (i) or (ii) above the Holder of this
        Warrant shall be deemed for all corporate purposes to have become the Holder
        of
        record of the Warrant Shares with respect to which this Warrant has been
        exercised. In the case of a dispute as to the determination of the Warrant
        Exercise Price, the Closing Bid Price or the arithmetic calculation of the
        Warrant Shares, the Company shall promptly issue to the Holder the number
        of
        Warrant Shares that is not disputed and shall submit the disputed determinations
        or arithmetic calculations to the Holder via facsimile within three (3) Business
        Days of receipt of the Holder’s Exercise Notice. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (b) If
        the
        Holder and the Company are unable to agree upon the determination of the
        Warrant
        Exercise Price or arithmetic calculation of the Warrant Shares within one
        (1)
        day of such disputed determination or arithmetic calculation being submitted
        to
        the Holder, then the Company shall immediately submit via facsimile (i) the
        disputed determination of the Warrant Exercise Price or the Closing Bid Price
        to
        an independent, reputable investment banking firm or (ii) the disputed
        arithmetic calculation of the Warrant Shares to its independent, outside
        accountant. The Company shall cause the investment banking firm or the
        accountant, as the case may be, to perform the determinations or calculations
        and notify the Company and the Holder of the results no later than forty-eight
        (48) hours from the time it receives the disputed determinations or
        calculations. Such investment banking firm’s or accountant’s determination or
        calculation, as the case may be, shall be deemed conclusive absent manifest
        error. The fees of such investment banking firm or accountant and other costs
        incurred by either party in connection with such determination shall be borne
        by
        the party whose calculations were most at variance with those of such firm
        or
        accountant.

      

      (c) Unless
        the rights represented by this Warrant shall have expired or shall have been
        fully exercised, the Company shall, as soon as practicable and in no event
        later
        than five (5) Business Days after any exercise and at its own expense, issue
        a
        new Warrant identical in all respects to this Warrant exercised except it
        shall
        represent rights to purchase the number of Warrant Shares purchasable
        immediately prior to such exercise under this Warrant exercised, less the
        number
        of Warrant Shares with respect to which such Warrant is exercised.

      

      (d) No
        fractional Warrant Shares are to be issued upon any pro rata exercise of
        this
        Warrant, but rather the number of Warrant Shares issued upon such exercise
        of
        this Warrant shall be rounded up or down to the nearest whole
        number.

      

      (e) If
        the
        Company or its Transfer Agent shall fail for any reason or for no reason
        to
        issue to the Holder within ten (10) days of receipt of the Exercise Delivery
        Documents, a certificate for the number of Warrant Shares to which the Holder
        is
        entitled or to credit the Holder’s balance account with The Depository Trust
        Company for such number of Warrant Shares to which the Holder is entitled
        upon
        the Holder’s exercise of this Warrant, the Company shall, in addition to any
        other remedies under this Warrant or the Placement Agent Agreement or otherwise
        available to such holder, pay as additional damages in cash to such holder
        on
        each day the issuance of such certificate for Warrant Shares is not timely
        effected an amount equal to 0.025% of the product of (A) the sum of the number
        of Warrant Shares not issued to the Holder on a timely basis and to which
        the
        Holder is entitled, and (B) the Closing Bid Price of the Common Stock for
        the
        trading day immediately preceding the last possible date which the Company
        could
        have issued such Common Stock to the Holder without violating this Section
        2.

      

      (f) If
        within
        ten (10) days after the Company’s receipt of the Exercise Delivery Documents,
        the Company fails to deliver a new Warrant to the Holder for the number of
        Warrant Shares to which such holder is entitled pursuant to Section 2 hereof,
        then, in addition to any other available remedies under this Warrant, or
        otherwise available to such holder, the Company shall pay as additional damages
        in cash to such holder on each day after such tenth (10th)
        day
        that such delivery of such new Warrant is not timely effected in an amount
        equal
        to 0.25% of the product of (A) the number of Warrant Shares represented by
        the
        portion of this Warrant which is not being exercised and (B) the Closing
        Bid
        Price of the Common Stock for the trading day immediately preceding the last
        possible date which the Company could have issued such Warrant to the Holder
        without violating this Section 2.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        3. Covenants
        as to Common Stock.
        The
        Company hereby covenants and agrees as follows:

      

      (a) This
        Warrant is, and any Warrants issued in substitution for or replacement of
        this
        Warrant will upon issuance be, duly authorized and validly issued.

      

      (b) All
        Warrant Shares which may be issued upon the exercise of the rights represented
        by this Warrant will, upon issuance, be validly issued, fully paid and
        nonassessable and free from all taxes, liens and charges with respect to
        the
        issue thereof.

      

      (c) During
        the period within which the rights represented by this Warrant may be exercised,
        the Company will at all times have authorized and reserved at least one hundred
        percent (100%) of the number of shares of Common Stock needed to provide
        for the
        exercise of the rights then represented by this Warrant and the par value
        of
        said shares will at all times be less than or equal to the applicable Warrant
        Exercise Price. If at any time the Company does not have a sufficient number
        of
        shares of Common Stock authorized and available, then the Company shall call
        and
        hold a special meeting of its shareholders, or request that its shareholders
        take action by written consent, within ninety (90) days of that time for
        the
        sole purpose of increasing the number of authorized shares of Common
        Stock.

      

      (d) If
        at any
        time after the date hereof the Company shall file a registration statement,
        the
        Company shall, if the Warrant Shares are not then included on a registration
        statement on file with the SEC, provide notice thereof to the Holder and
        offer
        to register the resale of the Warrant Shares issuable to the Holder pursuant
        to
        the terms of this Warrant The Company shall so list on each national securities
        exchange or automated quotation system, as the case may be, and shall maintain
        such listing of, any other shares of capital stock of the Company issuable
        upon
        the exercise of this Warrant if and so long as any shares of the same class
        shall be listed on such national securities exchange or automated quotation
        system.

      

      (e) The
        Company will not, by amendment of its Articles of Incorporation or through
        any
        reorganization, transfer of assets, consolidation, merger, dissolution, issue
        or
        sale of securities, or any other voluntary action, avoid or seek to avoid
        the
        observance or performance of any of the terms to be observed or performed
        by it
        hereunder, but will at all times in good faith assist in the carrying out
        of all
        the provisions of this Warrant. The Company will take all such actions as
        may be
        necessary or appropriate in order that the Company may validly and legally
        issue
        fully paid and nonassessable shares of Common Stock upon the exercise of
        this
        Warrant.

      

      (f) This
        Warrant will be binding upon any entity succeeding to the Company by merger,
        consolidation or acquisition of all or substantially all of the Company’s
        assets.

      

      Section
        4. Taxes.
        The
        Company shall pay any and all taxes, except any applicable withholding, which
        may be payable with respect to the issuance and delivery of Warrant Shares
        upon
        exercise of this Warrant. Notwithstanding any other provision of this Warrant,
        for income tax purposes, the Holder and any assignee or transferee agree
        that
        the Company and the Company’s Transfer Agent shall be permitted to withhold from
        any amounts payable to such assignee or transferee any taxes required by
        law to
        be withheld from such amounts. Unless exempt from the obligation to do so,
        the
        Holder and each assignee or transferee shall execute and deliver to the Company
        or the Transfer Agent, as applicable, a properly completed Form W-8 or W-9,
        indicating that such assignee or transferee is not subject to back-up
        withholding for United States Federal income tax purposes. Each Holder, assignee
        or transferee that does not deliver such a form pursuant to the preceding
        sentence shall have the burden of proving to the Company’s reasonable
        satisfaction that it is exempt from such requirement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        5. Warrant
        Holder Not Deemed a Shareholder.
        Except
        as otherwise specifically provided herein, no holder, as such, of this Warrant
        shall be entitled to vote or receive dividends or be deemed the Holder of
        shares
        of capital stock of the Company for any purpose, nor shall anything contained
        in
        this Warrant be construed to confer upon the Holder hereof, as such, any
        of the
        rights of a stockholder of the Company or any right to vote, give or withhold
        consent to any corporate action (whether any reorganization, issue of stock,
        reclassification of stock, consolidation, merger, conveyance or otherwise),
        receive notice of meetings, receive dividends or subscription rights, or
        otherwise, prior to the issuance to the Holder of this Warrant of the Warrant
        Shares which he or she is then entitled to receive upon the due exercise
        of this
        Warrant. In addition, nothing contained in this Warrant shall be construed
        as
        imposing any liabilities on such holder to purchase any securities (upon
        exercise of this Warrant or otherwise) or as a stockholder of the Company,
        whether such liabilities are asserted by the Company or by creditors of the
        Company. Notwithstanding this Section 5, the Company will provide the Holder
        of
        this Warrant with copies of the same notices and other information given
        to the
        stockholders of the Company generally, contemporaneously with the giving
        thereof
        to the stockholders.

      

      Section
        6. Representations
        of Holder.
        The
        holder of this Warrant, by the acceptance hereof, represents that it is
        acquiring this Warrant and the Warrant Shares for its own account for investment
        only and not with a view towards, or for resale in connection with, the public
        sale or distribution of this Warrant or the Warrant Shares, except pursuant
        to
        sales registered or exempted under the Securities Act; provided, however,
        that
        by making the representations herein, the Holder does not agree to hold this
        Warrant or any of the Warrant Shares for any minimum or other specific term
        and
        reserves the right to dispose of this Warrant and the Warrant Shares at any
        time
        in accordance with or pursuant to a registration statement or an exemption
        under
        the Securities Act. The holder of this Warrant further represents, by acceptance
        hereof, that, as of this date, such holder is an “accredited investor” as such
        term is defined in Rule 501(a)(1) of Regulation D promulgated by the Securities
        and Exchange Commission under the Securities Act (an “Accredited
        Investor”).
        Upon
        exercise of this Warrant, the Holder shall, if requested by the Company,
        confirm
        in writing, in a form satisfactory to the Company, that the Warrant Shares
        so
        purchased are being acquired solely for the Holder’s own account and not as a
        nominee for any other party, for investment, and not with a view toward
        distribution or resale and that such holder is an Accredited Investor. If
        such
        holder cannot make such representations because they would be factually
        incorrect, it shall be a condition to such holder’s exercise of this Warrant
        that the Company receive such other representations as the Company considers
        reasonably necessary to assure the Company that the issuance of its securities
        upon exercise of this Warrant shall not violate any United States or state
        securities laws.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        7. Ownership
        and Transfer.

      

      (a) Any
        transfer of this Warrant, or any rights or obligations hereunder, by the
        Holder
        shall be subject to the applicable provisions of the Securities Purchase
        Agreement. The Company shall maintain at its principal executive offices
        (or
        such other office or agency of the Company as it may designate by notice
        to the
        Holder hereof), a register for this Warrant, in which the Company shall record
        the name and address of the person in whose name this Warrant has been issued,
        as well as the name and address of each transferee. The Company may treat
        the
        person in whose name any Warrant is registered on the register as the owner
        and
        holder thereof for all purposes, notwithstanding any notice to the contrary,
        but
        in all events recognizing any transfers made in accordance with the terms
        of
        this Warrant.

      

      Section
        8. Piggy-Back
        Registration Rights. 

      

      (a) 
        If the
        Company proposes to file a Registration Statement with the Commission respecting
        an Underwritten Offering of any shares of any class of its
        equity securities for its own account or for the account of a holder of
        securities of the Company pursuant to registration rights granted by the
        Company
        (a “Requesting
        Stockholder”),
        the Company shall give prompt written notice to all the Holders at least
        10
        Business Days prior to the initial filing of the registration statement relating
        to such offering (the “Registration
        Statement”).
        Each such Holder shall have the right, within 5 Business Days after delivery
        of
        such notice, to request in writing that the Company include all or a portion
        of
        the Common Shares issued or issuable upon exercise of such Holder's Warrants
        or
        such Other Securities as shall be issued or issuable upon the exercise of
        the
        Warrants (the “Warrant
        Shares”)
        in such Registration Statement (“Piggy-back
        Registration Rights”).
        The Company shall include in such Underwritten Offering all of the Warrant
        Shares that a Holder has requested be included, unless the underwriter for
        such
        offering (in either case, the “managing
        underwriter”)
        delivers a notice (a “Cutback
        Notice”)
        pursuant to Section 8(b) or 8(c) hereof. The managing underwriter may deliver
        one or more Cutback Notices at any time prior to the execution of the
        underwriting agreement for such Underwritten Offering.

      

      (b) If
        the
        proposed Underwritten Offering is an Underwritten Offering by the Company
        on a
        primary basis (a “Primary
        Registration”),
        the
provisions
        of this Section 8(b) shall be applicable if the managing underwriter delivers
        a
        Cutback Notice stating that, in its opinion, the number of securities to
        be
        offered for the account of the Company (“Company
        Shares”),
        plus the Warrant Shares that the Holders have requested to be sold therein,
        plus
        the securities (the “Other
        Shares”)
        that selling stockholders (other than the Holders) exercising similar piggy-back
        registration rights with respect to such offering (“Other
        Selling Stockholders”)
        propose to sell therein, exceeds the maximum number of shares specified by
        the
        managing underwriter in such Cutback Notice that may be distributed without
        having a material adverse effect on the price, timing or distribution of
        the
        Company Shares. Such maximum number of shares that may be so sold, excluding
        the
        Company Shares, are referred to as the “Includible
        Shares.”
        If the managing underwriter delivers such Cutback Notice, the Company shall
        be
        entitled to include all of the Company Shares in the Underwritten Offering
        in
        priority to the inclusion of any Other Shares or Warrant Shares. Each requesting
        Holder and Other Selling Stockholder shall then be entitled to include in
        such
        offering up to its pro rata portion of the Includible Shares, based on the
        number of securities requested to be sold by the Holders and the Other Selling
        Stockholders. No shareholder that proposes to sell Warrant Shares or Other
        Shares in the proposed offering may sell any such shares therein unless all
        Company Shares are so included.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c) If
        the
        proposed Underwritten Offering is an Underwritten Offering pursuant to demand
        registration rights exercised by a Requesting Stockholder,
        then the provisions of this Section 8(c) shall be applicable if the managing
        underwriter delivers a Cutback Notice stating that, in its opinion, the
        aggregate number of Company Shares, Warrant Shares and Other Shares requested
        to
        be included in such offering therein exceeds the maximum number of shares
        (the
“Includible
        Secondary Shares”)
        specified by the managing underwriter in such Cutback Notice that may be
        distributed without having a material adverse effect on the price, timing
        and
        distribution of the Common Shares being distributed. If the managing underwriter
        delivers such Cutback Notice, the Company will include in such registration,
        (i)
        first, the securities requested to be included therein by a Requesting
        Stockholder exercising demand registration rights, (ii) second, the securities
        requested to be included therein by the Company, if any, and (iii) third,
        each
        requesting Holder's and Other Selling Stockholder's pro rata portion of the
        Includible Secondary Shares, based on the number of securities requested
        to be
        sold by such Holders and Other Selling Stockholders.

      

      (d) The
        underwriting agreement for such Underwritten Offering shall provide that
        each
        requesting Holder shall have the right to sell its Warrant
        Shares to the underwriters and that the underwriters shall purchase the Warrant
        Shares at the price paid by the underwriters for the Common Shares sold by
        the
        Company and/or selling stockholders, as the case may be.

      

      Section
        9. Purchase
        Rights; Reorganization, Reclassification, Consolidation, Merger or
        Sale.

      

      (a) If
        at any
        time the Company grants, issues or sells any Options, Convertible Securities
        or
        rights to purchase stock, warrants, securities or other property pro rata
        to the
        record holders of any class of Common Stock (the “Purchase
        Rights”),
        then
        the Holder of this Warrant will be entitled to acquire, upon the terms
        applicable to such Purchase Rights, the aggregate Purchase Rights which such
        holder could have acquired if such holder had held the number of shares of
        Common Stock acquirable upon complete exercise of this Warrant immediately
        before the date on which a record is taken for the grant, issuance or sale
        of
        such Purchase Rights, or, if no such record is taken, the date as of which
        the
        record holders of Common Stock are to be determined for the grant, issue
        or sale
        of such Purchase Rights.

      

      (b) Any
        recapitalization, reorganization, reclassification, consolidation, merger,
        sale
        of all or substantially all of the Company’s assets to another Person or other
        transaction in each case which is effected in such a way that holders of
        Common
        Stock are entitled to receive (either directly or upon subsequent liquidation)
        stock, securities or assets with respect to or in exchange for Common Stock
        (other than as a result of a change in name, a change in par value or a change
        in the jurisdiction of incorporation) is referred to herein as an “Organic
        Change.”
        Following the consummation of any (i) sale of all or substantially all of
        the
        Company’s assets to an acquiring Person or (ii) other Organic Change following
        which the Company is not a surviving entity, the Company or the Person
        purchasing such assets or the successor resulting from such Organic Change
        (in
        each case, the “Acquiring
        Entity”)
        shall
        deliver to each holder of Warrants in exchange for such Warrants, a security
        of
        the Acquiring Entity evidenced by a written instrument substantially similar
        in
        form and substance to this Warrant (including an adjusted warrant exercise
        price
        equal to the value for the Common Stock reflected by the terms of such
        consolidation, merger or sale, and exercisable for a corresponding number
        of
        shares of Common Stock acquirable and receivable upon exercise of the Warrants
        without regard to any limitations on exercise, if the value so reflected
        is less
        than any Applicable Warrant Exercise Price immediately prior to such
        consolidation, merger or sale). Prior to the consummation of any other Organic
        Change, the Company shall make appropriate provision to insure that each
        of the
        Holders of the Warrants will thereafter have the right to acquire and receive
        in
        lieu of or in addition to (as the case may be) the Warrant Shares immediately
        theretofore issuable and receivable upon the exercise of such holder’s
        Warrants (without regard to any limitations on exercise), such shares of
        stock, securities or assets that would have been issued or payable in such
        Organic Change with respect to or in exchange for the number of Warrant Shares
        which would have been issuable and receivable upon the exercise of such holder’s
        Warrant as of the date of such Organic Change (without taking into account
        any
        limitations or restrictions on the exercisability of this Warrant).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        10. Lost,
        Stolen, Mutilated or Destroyed Warrant.
        If this
        Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
        on
        receipt of an indemnification undertaking reasonably satisfactory to the
        Company
        (or, in the case of a mutilated Warrant, the Warrant), issue a new Warrant
        of
        like denomination and tenor as this Warrant so lost, stolen, mutilated or
        destroyed.

      

      Section
        11. Notice.
        Any
        notices, consents, waivers or other communications required or permitted
        to be
        given under the terms of this Warrant must be in writing and will be deemed
        to
        have been delivered: (i) upon receipt, when delivered personally; (ii) upon
        receipt, when sent by facsimile (provided confirmation of receipt is received
        by
        the sending party transmission is mechanically or electronically generated
        and
        kept on file by the sending party); or (iii) one Business Day after deposit
        with a nationally recognized overnight delivery service, in each case properly
        addressed to the party to receive the same. The addresses and facsimile numbers
        for such communications shall be:

       

      
        	
                If
                  to Holder:

              	
                Charles
                  Gassenheimer

              
	 	 
	 	 
	 	
                Attention:

              
	 	
                Telephone: 

              
	 	
                Facsimile: 

              
	 	 
	
                With
                  Copy to:

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                If
                  to the Company, to:

              	
                Ener1,
                  Inc.

              
	 	
                712
                  Fifth Avenue, Suite 9A

              
	 	
                New
                  York, NY 10019

              
	 	
                Attention: Charles
                  Gassenheimer

              
	 	
                Telephone: (212)
                  920-3500

              
	 	
                Facsimile: (212)
                  920-3505

              
	 	 
	
                With
                  a copy to:

              	
                Ener1,
                  Inc.

              
	 	
                500
                  W. Cypress Creek Road - Suite 100

              
	 	
                Ft.
                  Lauderdale, Florida 33309

              
	 	
                Attention:
                  Curtis Wolfe

              
	 	
                Telephone:
                  (954) 202-4442

              
	 	
                Facsimile:
                  (954) 229-7595

              

      

      

      If
        to a
        holder of this Warrant, to it at the address and facsimile number set forth
        on
Exhibit
        C
        hereto,
        with copies to such holder’s representatives as set forth on Exhibit
        C,
        or at
        such other address and facsimile as shall be delivered to the Company upon
        the
        issuance or transfer of this Warrant. Each party shall provide five days’ prior
        written notice to the other party of any change in address or facsimile number.
        Written confirmation of receipt (A) given by the recipient of such notice,
        consent, facsimile, waiver or other communication, (or (B) provided by a
        nationally recognized overnight delivery service shall be rebuttable evidence
        of
        personal service, receipt by facsimile or receipt from a nationally recognized
        overnight delivery service in accordance with clause (i), (ii) or (iii) above,
        respectively.

      

      Section
        12. Date.
        The
        date of this Warrant is set forth on page 1 hereof. This Warrant, in all
        events,
        shall be wholly void and of no effect after the close of business on the
        Expiration Date.

      

      Section
        13. Amendment
        and Waiver.
        Except
        as otherwise provided herein, the provisions of the Warrants may be amended
        and
        the Company may take any action herein prohibited, or omit to perform any
        act
        herein required to be performed by it, only if the Company has obtained the
        written consent of the Holders of Warrants representing at least two-thirds
        of
        the Warrant Shares issuable upon exercise of the Warrants then
        outstanding.

      

      Section
        14. Descriptive
        Headings; Governing Law.
        The
        descriptive headings of the several sections and paragraphs of this Warrant
        are
        inserted for convenience only and do not constitute a part of this Warrant.
        The
        corporate laws of the State of Florida shall govern all issues concerning
        the
        relative rights of the Company and its stockholders. All other questions
        concerning the construction, validity, enforcement and interpretation of
        this
        Agreement shall be governed by the internal laws of the State of New York,
        without giving effect to any choice of law or conflict of law provision or
        rule
        (whether of the State of New York or any other jurisdictions) that would
        cause
        the application of the laws of any jurisdictions other than the State of
        New
        York. Each party hereby irrevocably submits to the exclusive jurisdiction
        of the
        state and federal courts sitting in Hudson County and the United States District
        Court for the Southern District of New York, for the adjudication of any
        dispute
        hereunder or in connection herewith or therewith, or with any transaction
        contemplated hereby or discussed herein, and hereby irrevocably waives, and
        agrees not to assert in any suit, action or proceeding, any claim that it
        is not
        personally subject to the jurisdiction of any such court, that such suit,
        action
        or proceeding is brought in an inconvenient forum or that the venue of such
        suit, action or proceeding is improper. Each party hereby irrevocably waives
        personal service of process and consents to process being served in any such
        suit, action or proceeding by mailing a copy thereof to such party at the
        address for such notices to it under this Agreement and agrees that such
        service
        shall constitute good and sufficient service of process and notice thereof.
        Nothing contained herein shall be deemed to limit in any way any right to
        serve
        process in any manner permitted by law. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        15. Waiver
        of Jury Trial.
        AS
        A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE
        PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
        RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
        ASSOCIATED WITH THIS TRANSACTION.

      
 

      REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK

      IN
        WITNESS WHEREOF,
        the
        Company has caused this Warrant to be signed as of the date first set forth
        above.

       

      
        	 	
                ENER1,
                  INC.

              
	 	 
	 	
                By:
                  ______________________________

              
	 	
                Name: Peter
                  Novak

              
	 	
                Title:
                  Chief Executive Officer

              
	 	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        A TO WARRANT

      
 

      EXERCISE
        NOTICE

      

      TO
        BE EXECUTED 

      BY
        THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

      

      ENER1,
        INC.

      

      The
        undersigned holder hereby exercises the right to purchase ______________
        of the
        shares of Common Stock (“Warrant
        Shares”)
        of
        Ener1, Inc. (the “Company”),
        evidenced by the attached Warrant (the “Warrant”).
        Capitalized terms used herein and not otherwise defined shall have the
        respective meanings set forth in the Warrant.

      

      Specify
        Method of exercise by check mark:

      

      1.
        ___ Cash
        Exercise

      

      (a)
        Payment
        of Warrant Exercise Price.
        The
        holder shall pay the Aggregate Exercise Price of $______________ to the Company
        in accordance with the terms of the Warrant. 

      

      (b)
        Delivery
        of Warrant Shares.
        The
        Company shall deliver to the Holder _________Warrant
        Shares in accordance with the terms of the Warrant. 

      

      

      

      2.
        ___ Cashless
        Exercise

      

      (a)
        Payment
        of Warrant Exercise Price.
        In lieu
        of making payment of the Aggregate Exercise Price, the Holder elects to receive
        upon such exercise the Net Number of shares of Common Stock determined in
        accordance with the terms of the Warrant. 

      

      (b)
        Delivery
        of Warrant Shares.
        The
        Company shall deliver to the Holder _________Warrant
        Shares in accordance with the terms of the Warrant. 

      

      

      Date:
        _______________ __, ______

      

      Name
        of
        Registered Holder

      

      By:
        ___________________________    

      Name:
        _________________________ 

      Title:
        __________________________

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        B TO WARRANT

       

      FORM
        OF WARRANT POWER

      

      FOR
        VALUE RECEIVED,
        the
        undersigned does hereby assign and transfer to ________________, Federal
        Identification No. __________, a warrant to purchase ____________ shares of
        the capital stock of Ener1, Inc. represented by warrant certificate
        no. _____, standing in the name of the undersigned on the books of said
        corporation. The undersigned does hereby irrevocably constitute and appoint
        ______________, attorney to transfer the warrants of said corporation, with
        full
        power of substitution in the premises.

       

      
        	
                Dated:
                  __________________________________

              	___________________________________
	 	 
	 	
                By:
                  _____________________________________

              
	 	
                Name:
                  ___________________________________

              
	 	
                Title:
                  ____________________________________

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