Document:

Exhibit

                             SHAREHOLDERS AGREEMENT

         This Shareholders Agreement (this "Agreement") is dated as of the 25th
day of July, 2003, by and between ITOCHU Corporation, a Japanese kabushiki
kaisha ("ITOCHU"), and ENER1, Inc., a U.S., Florida corporation ("ENER1" and
collectively with ITOCHU the "Shareholders" and each individually as a
"Shareholder").

         WHEREAS, the Shareholders are both shareholders of EnerStruct, Inc., a
Japanese kabushiki kaisha (the "Corporation"); and

         WHEREAS, each of ITOCHU and ENER1 are, through separate license
agreements with the Corporation, granting licenses to the Corporation for
technologies contained in certain pending and granted patents, as more fully set
forth in said license agreements; and

         WHEREAS, the Shareholders wish to establish certain terms, provisions
and conditions with respect to (i) the Common Stock of the Corporation owned or
controlled by the Shareholders; (ii) the management of the Corporation; (iii)
assuring continuity in the management and ownership of the Corporation; and (iv)
certain other matters relating to the Corporation.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Shareholders agree as follows:

         1.       Definitions.

         "Affiliate" means, as to any person or entity, any person or entity
controlling, controlled common control with such person or entity. For the
avoidance of doubt, no Shareholder shall be deemed to be an Affiliate of the
Corporation.

         "Common Stock" means the Corporation's Common Stock or any capital
stock of the Corporation issued or issuable in respect of Common Stock in
connection with any reclassification, reorganization or similar transaction
affecting the Common Stock.

         "Independent Third Party" means any person who, immediately prior to
the contemplated transaction, does not beneficially own in excess of 5% of the
Shares on a fully-diluted basis (a "5% Owner"), who is not an Affiliate of any
such 5% Owner and who is not the spouse, sibling or descendant (by birth or
adoption) of any such 5% Owner or a trust for the benefit of such 5% Owner such
other persons.

         "Initial Public Offering" means the public offer or sale of Shares of
the Corporation, pursuant to the registration thereof under applicable law.

         "Sale of the Corporation" means the sale of the Corporation to an
Independent Third Party or group of Independent Third Parties, pursuant to which
such party or parties acquire (i) capital stock of the Corporation possessing
the voting power under normal circumstances to elect a majority of the
Corporation's Board of Directors (whether by merger, consolidation or sale or
transfer of the Corporation's capital stock) or (ii) all or substantially all of
the Corporation's assets determined on a consolidated basis.

                                       1

         "Shares" means, as of any date of determination thereof, (i) any Common
Stock or Preferred Stock of the Corporation, (ii) any equity securities issued
or issuable directly or indirectly with respect to any Common Stock or Preferred
Stock by way of stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other
reorganization, and (iii) any other shares of any class or series of capital
stock of the Corporation, each of (i), (ii) and (iii) to the extent beneficially
owned by a Shareholder or an Affiliate thereof. Any determination hereunder of
the percentage of outstanding Stock held by one or more holders thereof shall be
performed on the basis that all Preferred Stock then outstanding is converted
into Common Stock in accordance with the terms of the Preferred Stock set forth
in the articles of incorporation of the Corporation, as in effect on the date of
such determination.

         2.       Initial Investments.

         The Shareholders currently own the following amount of Shares:

         Shareholder                Number of Shares                  Percentage

         ITOCHU                     2,500                             51%
         ENER1                      2,400                             49%

The Shares initially represents one-hundred percent (100%) of the outstanding
equity of the Corporation as of the date of this Agreement.

         3.       Agreement with Respect to Voting.

         The Shareholders agree to take all actions necessary, including,
without limitation, voting their Shares, to cause the Corporation to be managed
in accordance with the terms of this Agreement. The Shareholders acknowledge
that the provisions of this Section shall in no way affect or diminish their
obligations arising pursuant to any and all other sections of this Agreement.

         4.       Maintenance of Ownership Share; New Shares Authorization or
Issuance; Dilution.

                  (a)      The Shareholders shall cause the Corporation to not
authorize or issue any additional Shares, unless all the Shareholders agree to
such issuance in writing.

                  (b)      The Shareholders agree that upon the issuance of any
additional Shares by the Corporation, the Shareholders' ownership interest in
the Corporation shall be equally and proportionally diluted and shall remain in
compliance with Subsection (d) of this section.

                  (c)      If the Corporation undertakes an Initial Public
Offering, the aggregate percentage of ownership by the Shareholders shall not
fall below 51% of the issued and outstanding Common Stock of the Corporation
following the completion of the Initial Public Offering.

                                       2

                  (d)      Unless agreed otherwise in writing, during the term
of this Agreement, ITOCHU and ENER1 shall directly or indirectly own or control
51% and 49%, respectively, of the Shares of the total Shares of the Corporation
owned or controlled by the Shareholders and their Affiliates. For example, if
the Shareholders and/or the Corporation agree to sell an interest in the
Corporation such that the purchaser would own 20% of the total outstanding stock
of the Corporation after the purchase, then ITOCHU's ownership would be 51% of
the remaining 80%, and ENER1's ownership would be 49% of the remaining 80%.
ITOCHU and its Affiliates shall not own or control more than 51% of the
outstanding Shares of the Corporation, and ENER1 and its Affiliates shall not
own or control more than 49% of the outstanding Shares of the Corporation.

         5.       Board of Directors; Management of Corporation.

                  (a)      The Shareholders shall cause the Corporation to be
managed by the Board, which shall be composed of no less than five (5) and no
more thanseven (7) directors. The Shareholders shall cause the election of three
(3) directors designated by ITOCHU and two (2) directors designated by ENER1 as
of the date hereof and at each annual meeting of the Shareholders thereafter
during the term of this Agreement. The Shareholders shall cause the Corporation
to have one (1) representative director, who shall be designated by ITOCHU from
among the [three (3)] directors appointed by ITOCHU. If any Shareholder fails to
designate a representative to fill a directorship or if any directorship remains
unfilled following the designation of persons pursuant to the terms of this
Section 5, the election of a person to such directorship shall be accomplished
in accordance with applicable law.

                  (b)      If any Shareholder is, at any time, no longer
entitled to designate a person to serve as a director of the Corporation, then,
any person previously nominated or designated by such Shareholder shall promptly
resign or the Shareholders will take such actions as may be required to remove
such director, and the vacancy so created shall be filled as provided in the
Corporation's articles of incorporation or by applicable law. The Shareholder
that designated a director may request the removal of such director by providing
written notice to the other Shareholder. Upon receipt of any such notice, the
Shareholders shall cause, or shall cause the directors designated by such
Shareholder to cause, the specified director to be removed from the Board. Each
Shareholder shall be solely liable for any costs or damages associated with the
removal of any director nominated by such Shareholder. The removal from the
Board (with or without cause) of any representative designated hereunder by a
Shareholder shall only be at such Shareholder's written request. If any
representative designated hereunder by any Shareholder for any reason ceases to
serve as a member of the Board during his term of office at any time while the
Shareholder is still entitled to designate a director hereunder, the resulting
vacancy on the Board shall be filled by a representative designated by such
Shareholder, as provided hereunder.

                  (c)      The Shareholders agree and acknowledge that ITOCHU,
acting through the directors appointed by it to the Board or otherwise, shall
have the right to appoint the statutory auditor for the Corporation.

                  (d)      The Shareholders agree and acknowledge that the
day-to-day operations of the Corporation shall be managed by officers and
employees as designated by ITOCHU, or appointed by a majority of the Board.

                                       3

         6.       Conflicting Agreements.

         Each Shareholder represents that it has not granted and is not a party
to any proxy, voting trust or other agreement which is inconsistent with or
conflicts with the provisions of this Agreement, and no Shareholder shall grant
any proxy or become party to any voting trust or other agreement which is
inconsistent with or conflicts with the provisions of this Agreement. No
Shareholder shall act, for any reason, as a member of a group or in concert or
enter into any agreement or arrangement with any other person in connection with
the acquisition, disposition or voting of Shares in any manner which is
inconsistent with the provisions of this Agreement.

         7.       Articles of Incorporation.

         The articles of incorporation of the Corporation may be amended in any
manner permitted thereunder, except that the articles of incorporation shall not
be amended in any manner (i) that would conflict with, or be inconsistent with,
the provisions of this Agreement or (ii) as long as directors are entitled to be
appointed under this Agreement, that has not been approved by at least a
majority of the directors appointed pursuant to Section 5 of this Agreement;
provided, however, that this Section 7 shall not apply to an amendment to the
articles of incorporation of the Corporation to increase the authorized capital
stock of the Corporation.

         8.       Actions Consistent with Agreement.

         The Shareholders shall take all steps necessary to ensure that the
Corporation does not circumvent this Agreement by taking any action through a
subsidiary or affiliate that would be prohibited under this Agreement.

         9.       Sale of the Corporation or Substantially all of the
Corporation's Assets.

                  (a)      The Sale of the Corporation or the sale of
substantially all of the Corporation's assets shall require approval by a
majority of the Board, including the approval of the [two (2)] directors
appointed by ENER1. If a Sale of the Corporation or the sale of substantially
all of the Corporation's assets that is approved by a majority of the Board,
including the [two (2)] directors appointed by ENER1 (each such sale being an
"Approved Sale"), is structured as (i) a merger or consolidation, each of the
Shareholders shall waive any dissenter's rights, appraisal rights or similar
rights such holder may have in connection with such merger or consolidation, or
(ii) a sale of stock, each Shareholder shall agree to sell all of his Shares and
rights to acquire Shares on the terms and conditions approved by the Board. Each
Shareholder shall take all necessary or desirable actions in connection with the
consummation of an Approved Sale as reasonably requested by the Board.

                  (b)      The obligations of each of the Shareholders with
respect to an Approved Sale shall be subject to the satisfaction of the
following conditions: (i) upon the consummation of an Approved Sale, each
Shareholder shall receive the same form of consideration and the same amount of
consideration as set forth in Section 10 below; and (ii) each Shareholder who,
at the time of an Approved Sale, holds then currently exercisable rights to
acquire shares of a class of Shares shall be given an opportunity to either (A)
exercise such rights prior to the consummation of the Approved Sale or (B)
receive in exchange for such rights consideration equal to the amount determined
by multiplying (1) the same amount of consideration per share of a class of
Shares received by holders of such class of Shares in connection with the
Approved Sale less the exercise price per share of such class of Shares of such
rights to acquire such class of Shares by (2) the number of shares of such class
of Shares represented by such rights.

                                       4

         10.      Distributions Upon Sale of the Corporation.

         In the event of a Sale of the Corporation, each Shareholder shall
receive in exchange for Shares held by such Shareholder the same form of
consideration on a pro rata basis from such a Sale of the Corporation that such
Shareholder would have received if such consideration had been distributed by
the Corporation in complete liquidation pursuant to the rights and preferences
set forth in the Corporation's articles of incorporation as in effect
immediately prior to such sale or exchange. Each Shareholder shall take all
necessary or desirable actions in connection with the distribution of such
consideration from such Sale of the Corporation as requested by the Corporation.

         11.      Transfer Restrictions.

                  (a)      Notwithstanding any other provisions of this
Agreement to the contrary, no Shareholder may, directly or indirectly, sell,
assign, transfer, grant a participation in, pledge or otherwise dispose of (each
a "Transfer") the Shares held by such Shareholder to an any Person other than an
Affiliate of such Shareholder (each such Person being a "Prospective Buyer"),
unless such transferring Shareholder (the "Transferring Shareholder") first
gives the Corporation written notice (a "Transfer Notice") of such intention,
describing the price and the general terms upon which the Transferring
Shareholder intends to effect such transfer. The Corporation shall then have ten
(10) days following receipt of a Transfer Notice to purchase all, but not less
than all, of the Shares to be transferred (the "Offered Shares") at the same
price per share and on the same terms and conditions as which the Transferring
Shareholder is offering the Offered Shares to the Prospective Buyer by giving
written notice to the Transferring Shareholder of its intent to so purchase the
Offered Shares.

                  (b)      In the event the Corporation fails to exercise its
right of first refusal set forth in Section 11(a) with respect to the Offered
Shares, then the Transferring Shareholder shall deliver a Transfer Notice to the
other Shareholder (the "Purchasing Shareholder"). The Purchasing Shareholder
shall have ten (10) days from the receipt of the Transfer Notice to agree to
purchase all, but not less than all, of the Offered Shares at the same price per
share and on the same terms and conditions as which the Transferring Shareholder
is offering the Offered Shares to the Prospective Buyer by giving written notice
to the Transferring Shareholder stating its intent to so purchase the Offered
Shares.

                  (c)      In the event that both the Corporation and the
Purchasing Shareholder elect not to exercise their rights of first refusal
respectively set forth in Section 11(a) and Section 11(b), the Transferring
Shareholder may within sixty (60) days thereafter sell all, but not less than
all, of the Offered Shares to the Prospective Buyer at a per share price and
upon terms and conditions no more favorable than those specified in the Transfer
Notice. In the event that the Transferring Shareholder has not sold such Offered
Shares within such 60-day period, the Transferring Shareholder shall not
thereafter sell any Offered Shares without first offering the Offered Shares to
the Corporation and the other Shareholder in the manner provided for in this
Section 11.

                                       5

                  (d)      No Shareholder may transfer the Shares held by it (i)
other than in compliance with the provisions of this Agreement, (ii) unless,
prior to transferring any Shares to any person or entity, the transferring
Shareholder shall cause the prospective transferee to execute and deliver to the
Corporation and the other Shareholder a counterpart of this Agreement (which
shall be deemed to be an original part of this Agreement as though executed on
the date hereof) and (iii) unless such transfer is permitted under the Japanese
securities laws and any other applicable securities laws. Any attempt to
transfer or encumber any shares of Shares not in accordance with this Agreement
shall be null and void and, to the extent possible, each of the Shareholders
shall ensure that the Corporation does not give effect to such attempted
transfer or encumbrance in its stock records.

                  (e)      If a Shareholder acquires any Shares as the result of
a transaction not subject to the provisions of Sections 11(a), 11(b) or 11(c)
(including in connection with a foreclosure), then such Shareholder will offer
to the Corporation and the other Shareholders the right to participate in such
acquisition in accordance with the provisions of Sections 11(a), 11(b) and 11(c)
hereof.

         12.      Confidential and Proprietary Corporation Information.

         Each of the Shareholders agree to hold in absolute confidence all
confidential and proprietary business information of the Corporation, protect
all such information from disclosure and not to use any such information for his
or her personal gain or other benefit. Such information shall include, but not
be limited to: patents, trademarks, all accounting and financial data, customer
lists, contracts and correspondences, customer information, computer programs,
methods of manufacturing and business plans. The provisions of this Section 12
shall not apply to any information that (a) is or becomes publicly available
without breach of this Agreement; (b) can be shown by documentation to have been
known by a Shareholder prior to its receipt from the Corporation or the other
Shareholder; (c) is rightfully received from a third party who did not acquire
or disclose such information by a wrongful or tortious act; or (d) can be shown
by documentation to have been developed independently by a Shareholder without
reference to any confidential information of the Corporation.

         13.      Representations, Warranties, Covenants, and Indemnification.

                  (a)      Each Shareholder represents and warrants to the other
Shareholder that, to its knowledge, there are no claims (or facts or
circumstances upon which such a claim could be based) that could dilute or
otherwise adversely affect the shareholdings of the other Shareholder. In the
event any such claim occurs, the other Shareholder may take such actions, in its
discretion, as necessary to protect its shareholdings in the Corporation; and
the Shareholder subject to the claim agrees to be fully responsible for all
legal fees incurred by the other Shareholder in protecting its interests from
such claim or claims.

                  (b)      ITOCHU represents and warrants to ENER1 that:

                           (i)      It is a corporation organized and existing,
and in good standing under, the laws of Japan, and that it has full and
unrestricted authority to enter into this Agreement and to perform its
obligations hereunder;

                                       6

                           (ii)     The execution, delivery and performance of
this Agreement by it will not result in any breach or violation of any contract,
agreement, undertaking, judgment, decree, order, law, regulation or rule to
which it is a party or by which it or any of its assets are bound; and

                           (iii)    This Agreement has been duly and validly
executed and delivered by it and is binding upon and enforceable against it in
accordance with its terms, except as enforceability may be limited or affected
by applicable bankruptcy, insolvency, reorganization or other laws of general
application relating to or affecting the rights of creditors and except as
enforceability may be limited by rules of law governing specific performance,
injunctive relief or other equitable remedies.

                  (c)      ENER1 represents and warrants to ITOCHU that:

                           (i)      It is a corporation organized and existing,
and in good standing under, the laws of [the State of Florida, United States of
America], and that it has full and unrestricted authority to enter into this
Agreement and to perform its obligations hereunder;

                           (ii)     The execution, delivery and performance of
this Agreement by it will not result in any breach or violation of any contract,
agreement, undertaking, judgment, decree, order, law, regulation or rule to
which it is a party or by which it or any of its assets are bound; and

                           (iii)    This Agreement has been duly and validly
executed and delivered by it and is binding upon and enforceable against it in
accordance with its terms, except as enforceability may be limited or affected
by applicable bankruptcy, insolvency, reorganization or other laws of general
application relating to or affecting the rights of creditors and except as
enforceability may be limited by rules of law governing specific performance,
injunctive relief or other equitable remedies.

         14.      Patent Licenses.

         The Shareholders shall license certain of their respective patent
rights to the Corporation as set forth in Schedule 14 hereto (each a "License
Agreement").

         15.      Term and Termination.

                  (a)      This Agreement shall come into effect upon (i)
execution of this Agreement by each of the Shareholders and (ii) the completion
of each Shareholder's purchase of the Shares referenced in Section 2 above.

                  (b)      This Agreement shall terminate upon the occurrence of
 any of the following:

                           (i)      the subsequent written agreement of the
                          Shareholders;

                           (ii)     the termination of either License Agreement;

                                       7

                           (iii)    upon either Shareholder owning or
                           controlling less than twenty-five percent (25%) of
                           the Common Stock of the Corporation originally
                           purchased by such Shareholder and referenced in
                           Section 2 above ; or

                           (iv)     any material breach or default of the terms
                           and conditions of this Agreement, if such breach or
                           default is not cured within thirty (30) days after
                           receipt of written notice from the non-breaching
                           party.

         16.      Amendment and Waiver.

         Except as otherwise provided herein, no modification, amendment or
waiver of any provision of this Agreement shall be effective against the parties
to this Agreement unless approved in writing by each of the Shareholders. The
failure of any Shareholder to enforce any of the provisions of this Agreement
shall in no way be deemed as a waiver of such provisions and shall not affect
the right of such Shareholder thereafter to each and every provision of this
Agreement in accordance with its terms.

         17.      Severability.

         Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law of any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
or enforceability in any other jurisdiction, but this Agreement shall be
construed and enforced as if such invalid, illegal or unenforceable provision
had never been contained herein.

         18.      Entire Agreement.

         Except as otherwise expressly set forth herein, this documents the
complete agreement and understanding among the parties hereto with respect to
the subject matter hereof and supersedes and preempts any prior understandings,
agreements or representations by or among the parties, written or oral, which
may have related to the subject matter hereof in any way.

         19.      Successors and Assigns.

         Except as otherwise provided herein, this Agreement shall inure to the
benefit of and be enforceable by each of the Shareholders and any permitted
subsequent holders of Shares and the respective successors and permitted assigns
of each of them, so long as they hold any Shares.

         20.      Counterparts.

         This Agreement may be executed in separate counterparts, each of which
shall be deemed an original and all of which taken together shall constitute one
and the same instrument.

                                       8

         21.      Remedies.

         Each of the Shareholders shall be entitled to enforce their rights
under this Agreement specifically, to recover damages by reason of any breach of
any provisions of this Agreement and to exercise all other rights existing in
their favor. The parties hereto agree and acknowledge that money damages may not
be an adequate remedy for any breach of the provisions of this Agreement and
that either of the Shareholders may, in its sole discretion, apply to any court
of law or equity of competent jurisdiction for specific performance and/or
injunctive relief in order to enforce or prevent any violation of the provisions
of this Agreement.

         22.      Notices.

         All notices hereunder shall be made by certified or registered airmail,
return receipt requested, by reputable overnight courier, or by facsimile
transmission, and shall be sent to the following addresses (or at such other
address for a party as shall be specified by like notice; provided that notices
of a change of address shall be effective only upon receipt thereof):

         Notices to ITOCHU:                 Toshihiko Fujioka, Deputy Manager
                                            Planning & Business Development Office
                                            Industrial Machinery Division
                                            ITOCHU Corporation
                                            2-5-1 Kita-Aoyama
                                            Minato-ku, Tokyo 107-8077
                                            JAPAN
                                            Facsimile: 81-3-3497-2345

         Notices to ENER1:                  Ronald Stewart, CEO
                                            ENER1, Inc.
                                            550 W. Cypress Creek Rd., Suite 120
                                            Ft. Lauderdale, Florida 33309
                                            U.S.A.
                                            Facsimile: 954.229.7595

         With copy to:                      Mike Zoi, Director
                                            ENER1, Inc.
                                            550 W. Cypress Creek Rd., Suite 120
                                            Ft. Lauderdale, Florida 33309
                                            U.S.A.
                                            Facsimile: 954.229.7595

         Notices to the Corporation:        Satoshi Kohara, President
                                            EnerStruct, Inc.
                                            2-5-1 Kita-Aoyama
                                            Minato-ku, Tokyo 107-8077
                                            JAPAN
                                            Facsimile: to be advised

         Such notices shall be deemed effective, (a) if delivered in person or
by courier, upon actual receipt by the intended recipient, (b) if sent by
facsimile, on the date of transmission unless transmitted after normal business
hours at the location of the recipient, in which case on the following business
day; or (c) if mailed, upon the date of first attempted delivery.

                                       9

         23.      Governing Law.

         All questions concerning this Agreement shall be governed by and
interpreted in accordance with the laws of the Japan, without giving effect to
any choice of law or conflict of law provision or rules.

         24.      Jurisdiction.

         The parties hereto hereby submit to the exclusive jurisdiction of
Japanese courts, with the Tokyo District Court as the court of first instance,
in respect of any controversy or claim arising out of, relating to or in
connection with this Agreement.

         25.      Descriptive Headings.

         The descriptive headings of this Agreement are inserted for reference
only and do not constitute a part of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first written above.

ITOCHU Corporation                                            ENER1, Inc.

By:      __________________________         By:      __________________________

Name:    __________________________         Name:    __________________________

Title:   __________________________         Title:   __________________________

                                       10

                                   SCHEDULE 14

                               License AgreementsExhibit 10.6

                              EMPLOYMENT AGREEMENT

         This Agreement is made as of the 8th day of September, 2003, between
Ener1, Inc., a Florida corporation (the "Company") and Kevin P. Fitzgerald, a
resident of Florida, having an address of 4779 Collins Avenue, #1804, Miami,
Florida 33140 (the "Executive").

                                    RECITALS

         WHEREAS, the Company desires to employ the Executive as its Chairman of
the Board of Directors and Chief Executive Officer, and the Executive desires to
serve as the Company's Chairman and Chief Executive Officer, on the terms and
conditions hereinafter set forth.

         NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, the parties hereto, each intending to be legally bound hereby,
 agree as follows:

1. Employment. The Company hereby employs the Executive as its full
time Chairman and Chief Executive Officer, and the Executive accepts such
employment for the term of employment specified in Section 3 below (the
"Employment Term"). During the Employment Term, the Executive shall, subject to
the direction of the Board of Directors of the Company, oversee and direct the
operations of the Company and perform such other duties as may from time to time
be assigned to him by the Board of Directors.

2.    Performance.  The Executive shall perform the duties, undertake the
responsibilities and exercise the authority customarily performed, undertaken
and exercised by persons situated in a similar executive capacity. The Executive
shall report to the Board of Directors of the Company. The Executive agrees to
devote his best efforts and all of his business time to the performance of his
duties hereunder during the Employment Term As Chairman and Chief Executive
Officer, the Executive is expected to provide his services at the Company's
headquarters in Fort Lauderdale, Florida, except when traveling on business on
behalf of the Company. The Executive may spend an average of one day per month
performing services for Edison Advisors, LLC. The Executive may also serve as a
director for other companies, provided that he advises the Company of same and
there is no conflict between his service thereon and his duties hereunder.
Specifically, without limiting the foregoing, the Executive may remain on the
Board of Directors for Edison Advisors, LLC.

3. Employment Term.  The Employment Term shall begin on September 8, 2003
and continue through December 31, 2005 (the "Employment Term"). The Executive's
employment with the Company during the Employment Term shall be subject to
termination in accordance with the terms of this Agreement. This Agreement shall
renew automatically as provided in Section 8 unless terminated by either party
hereto in accordance with the terms hereof.

                                       1

4.       Compensation.

                  a) Salary.  i) During the Employment Term, the Company
shall pay to the Executive a base salary, payable in equal semi-monthly
installments, subject to withholding and other applicable taxes, at an annual
rate of Two Hundred Fifty Thousand Dollars ($250,000).

                         ii)      If and when an aggregate of an additional
$3,000,000 is invested in the Company (as debt or equity, pursuant to the
purchase of securities, the exercise of warrants or options or otherwise) from
investors other than the shareholders of Ener1 Group, Inc., the Company will
increase the permanent annual base salary of the Executive by $100,000.

                         iii)     Additional increases in the Executive's
salary will be based on performance of the Executive and determined by the
Company's Board of Directors on a calendar year basis. Such increases will be
not less than 10% per year. In no event may the Executive's salary be decreased
below its then-current level.

               b) Bonuses.  i) During the Employment Term, in addition to
the annual base salary payable to the Executive, the Executive shall have the
opportunity to earn a bonus equal to up to 100% of the Executive's base salary,
based on performance criteria approved by the Board of Directors. Any bonus
under this Subsection (i) will be paid to the Executive at the same time as
other annual bonuses (if any) are paid to the other executive officers of the
Company. The amount of any bonus will be determined, and the bonus will be paid,
promptly following the calendar year end. The bonuses for partial calendar years
will be pro rated.

                           ii)    In addition to any bonuses payable under
Subsection (i) immediately above, the Company will pay a bonus of $250,000 to
the Executive when the market capitalization of the Company reaches $200 million
based on a rolling 30 day average of the closing price of the Company's stock,
as indicated by the Over-the-Counter Bulletin quotations for the Compan's
stock, or such other quotation system to which the Company's stock is subject at
the time or as reported by any exchange on which the Company's stock is listed
at the time. Such bonus will be paid in cash. If, at the time that he bonus
payment is due, the Company lacks sufficient cash to pay the bonus, it will pay
the bonus in the form of a non-interest bearing promissory note payable in one
year or when the Company has sufficient cash to pay the bonus, whichever is
earlier. "Sufficient cash" for purposes of the previous sentence means cash
equal to operating expenses for a six month period, based on the highest
operating expenses for the three months preceding the month in which the bonus
payment is due.

                           iii)     The Company shall immediately pay to the
Executive a sign-on bonus equal to 300,000 shares of the Company's common stock.
The shares shall be registered pursuant to a Registration Statement on Form S-8
(or any successor form) filed by the Company with the Securities and Exchange
Commission.
                  c)       Stock Options.  i) The Company will grant to
Executive options to purchase all or any part of an aggregate of shares of
common stock of the Company equal to Three Percent (3%) of the outstanding
common stock of the Company (computed as of the date of this Agreement), at a
purchase price of $0.30 per share. It is agreed that the outstanding shares of
common stock for purposes of calculating the number of options is 323,890,520
shares. The options will vest in equal installments on the first day of each
month for the 36 months after the date of commencement of service, will expire
in ten (10) years, and be further subject to the terms, conditions and
provisions of the Company Stock Option Plan adopted in 2002 and to such
conditions as are established in the Stock Option Agreement to be approved by
the Company's Board of Directors, provided that the Company shall cause its
Stock Option Plan and the Stock Option Agreement to conform to the option terms
set forth herein.

                                       2

                           ii)      On December 31, 2004, the Company will grant
to the Executive additional options equal to One Percent (1%) of the then common
stock of the Company determined on a fully-diluted basis with an exercise price
per share equal to $500 million divided by the number of shares of common stock
outstanding determined on a fully-diluted basis at the time of the option grant.
Such options will vest ratably in equal installments on the first day of each
month for the 24 months after the date of grant and expire in ten years.

                           iii)     On December 31, 2005, the Company will grant
to the Executive additional options equal to One Half Percent (0.5%) of the then
outstanding common stock of the Company determined on a fully-diluted basis with
an exercise price per share equal to $1 billion divided by the number of shares
of common stock outstanding determined on a fully-diluted basis at the time of
the option grant. Such options will vest ratably in equal installments on the
first day of each month for the 24 months after the date of grant and expire in
ten years.

                           iv)      If the Executive is terminated for any
reason (other than fraud, theft or other crimes of moral turpitude), the Company
(or the shareholders of Ener1 Group, Inc.), if requested by the Executive, will,
within sixty (60) days of such termination, pay to the Executive the "in the
money" value of all vested options granted by the Company to the Executive
hereunder. "In the money value," for purposes hereof, shall mean (x) the thirty
(30) day average of the closing price of the Company's stock on the
Over-the-Counter Bulletin Board quotation system (or other quotation system on
which the Company's stock is quoted or as reported by any exchange on which the
Company's stock is listed at the time) times the total number of shares that may
be purchased pursuant to the vested options, less (y) the exercise price(s) of
the shares that may be purchased pursuant to the vested options times the total
number of shares that may be purchased pursuant to the vested options.
Notwithstanding the foregoing, if the Executive becomes Chief Executive Officer
of another public company controlled (as defined below) by one or more Ener1
Group, Inc.'s shareholders (including the ultimate beneficial shareholders
thereof, as "Beneficial Ownership" is defined under Rule 13d-3 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or any successor
thereto), then all options then vested to the Executive shall remain in force
for the remainder of the original ten year exercise period. If this repurchase
right is not exercised, the options shall remain outstanding until each such
option expires on the tenth anniversary of the date of grant of such option,
unless exercised prior to such time. The term "control" means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of a person, whether through ownership of voting
securities, by contract or otherwise.

                                       3

                           v)       All options hereunder will: (A) if unvested,
vest immediately upon a change in control (as hereinafter defined) of either the
Company or Ener1 Group, Inc.; and (B) be adjusted for mergers, stock splits,
stock spin-offs, reverse stock splits and similar events. All shares subject to
options and other shares granted hereunder will have customary piggyback
registration and tag-along rights.

                           vi)      All shares of common stock issuable under
options to be granted under this Agreement shall be registered pursuant to a
Registration Statement on Form S-8 (or any successor form) filed by the Company
with the Securities and Exchange Commission.

                  d)  Other Benefits.  The Executive shall be entitled to
participate in all employee benefit plans now existing or hereinafter
established by the Company, including, but not limited to, medical/dental
insurance plans, group life and disability insurance plans, 401(k) Plan,
pension, profit sharing or bonus plans, Employee Stock Purchase Plan, and any
other employee benefit plan or arrangement as and when available to executive
officers of the Company. For the purpose of determining Long Term Disability and
Life Insurance Benefits, the Executive's compensation shall be equal to his base
salary. The Executive shall be entitled to sick leave (without loss of pay) in
accordance with the Company's policies as in effect from time to time.

5.      Expenses The Executive shall be reimbursed by the Company for all
reasonable expenses incurred by him in connection with the performance of his
duties hereunder in accordance with the policies established by the Board of
Directors from time to time and upon receipt of appropriate documentation. The
Executive shall be responsible for all of his travel and other expenses for
commuting to the Company's Fort Lauderdale headquarters from his home.

6.       Agreement Not to Compete. a)The Executive agrees that during the
Employment Term and during the Non-Competition Period (defined below) he will
not in any capacity, either separately, jointly, or in association with others,
directly or indirectly, as an officer, director, consultant, agent, employee,
owner, partner, stockholder or otherwise, engage or have a financial interest in
any business which competes with the Company in the United States (excepting
only the ownership of not more than 5% of the outstanding securities of any
class listed on an exchange or regularly traded in the over-the-counter market).
A business that is engaged in fuel cell, solar cell or battery energy-related
business shall be deemed to compete with the Company. The "Non-Competition
Period" shall mean the period ending two years after either (a) the termination
of the Executive's employment hereunder by the Company, provided that the
Company continues to comply with its obligations under Section 9(b) hereof
during such two year period, or (b) the termination of the Executive's
employment hereunder by virtue of the Executive's resignation, unless such
resignation is for Good Reason (as defined below). The Executive further agrees
that during the Non-Competition Period, except in connection with the
performance of services hereunder, he will not in any capacity, either
separately, jointly or in association with others, directly or indirectly,
solicit or contact on behalf of a business competitor of the Company any of the
Compan's employees, consultants, agents or suppliers, customers or prospects,
as shown by the Companys records, that were employees, consultants, agents,
suppliers, customers or prospects of the Company at any time during the year
immediately preceding the termination of employment hereunder. For purposes of
this Agreement, "Good Reason" shall mean the resignation of the Executive within
one year after the occurrence of any of the following events without Executive's
written consent: (a) a change in the Executive's status, title, position or
responsibilities (including reporting responsibilities) which, in the
Executive's reasonable judgment, does not represent a promotion from his status,
title, position or responsibilities as in effect immediately prior thereto; the
assignment to the Executive of any duties or responsibilities which, in the
Executive's reasonable judgment, are inconsistent with such status, title,
position or responsibilities; or any removal of the Executive from or failure to
reappoint or reelect him to any of such positions, except in connection with the
termination of his employment for Disability, Cause, as a result of his death or
by the Executive other than for Good Reason, (b) any reduction in the
Executive's salary, (c) the occurrence of a change in control, (d) Executive is
not reappointed as a member of the board of the Company, (e) this agreement is
not expressly assumed by a successor to the business and/or assets of the
Company, or (f) any material breach by the Company of this agreement.

                                       4

                  b)       If a court determines that the foregoing restrictions
are too broad or otherwise unreasonable under applicable law, including with
respect to time or space, the court is hereby requested and authorized by the
parties hereto to revise the foregoing restrictions to include the maximum
restrictions allowed under the applicable law. The Executive expressly agrees
that breach of the foregoing would result in irreparable injuries to the
Company, that the remedy at law for any such breach will be inadequate and that
upon breach of this provision, the Company, in addition to all other available
remedies, shall be entitled as a matter of right to seek injunctive relief in
any court of competent jurisdiction.

7. Secret Processes and Confidential Information. For the Employment
Term and thereafter, the Executive agrees to be bound by the terms and
conditions of the Company's Business Code of Conduct and the Confidentiality
Agreement executed this date by the Executive in favor of the Company.

8.       Termination.

                  a)       End of Term.  The employment of the Executive
hereunder, and this Agreement shall automatically continue on an annual basis,
at the end of the Employment Term, unless otherwise terminated in the manner
provided in this Section 8.

                  b)  Termination by the Company with Cause.  The Company shall
have the right at any time to terminate the Executive's employment hereunder
upon the occurrence of any of the following (any such termination being referred
to as a termination for "Cause"):

                           i)       the conviction of the Executive for any
crime involving embezzlement of funds or other proven deliberate and
premeditated act of dishonesty that is demonstrably and materially injurious to
the financial or business interests of the Company;

                           ii)      the conviction by the Executive of, or the
pleading by the Executive of nolo contendere to, a felony; or

                                       5

                           iii)     the willful breach by the Executive of any
material terms of this Agreement, which breach is not cured within thirty (30)
days subsequent to notice from the Company to the Executive specifying such
breach, provided, that no act or failure to act shall be considered willful
unless done or omitted to be done in bad faith and without reasonable belief
that the action or omission was in the best interests of the Company, and,
provided, further, that no termination of the Executive for Cause shall occur
until (x) there shall have been delivered to the Executive a copy of the written
resolution adopted by two thirds of the Board (excluding Executive for purposes
of determining this approval) in good faith at a duly called meeting thereof
setting forth that the Executive was guilty of the conduct set forth in any such
clause and specifying the particulars thereof in detail and (y) the Executive
shall have been provided an opportunity to be heard by the Board at such meeting
with 45 days' advance written notice thereof. Notwithstanding anything contained
in this Agreement to the contrary, no failure to perform by the Executive after
notice of termination is given by the Company shall constitute Cause for
purposes of this Agreement. The Executive shall be entitled to the assistance of
his counsel (at the expense of the Company) in contesting or otherwise disputing
in good faith any allegation or finding of such conduct in any Board meeting or
any subsequent judicial or other proceeding instigated by the Executive, the
Company, or any third party. Under no circumstances shall the Executive be
obligated to pay or reimburse the Company for any attorneys' fees and expenses
incurred by the Company.

                  c)       Termination Upon Death or Disability.  The
Executive's employment hereunder shall automatically terminate upon the
Executive's death or upon his inability to perform his duties hereunder by
reason of any mental, physical or other disability for a period of at least six
consecutive months, as determined by a qualified physician selected by the
Executive from a list of five physicians selected by the Company.

                  d)       Termination by the Company Without Cause.  The
Company shall have the right to terminate the Executive's employment at any time
 upon 30 days' notice for any reason without Cause.

                  e)    Resignation by the Executive. The Executive shall
have the right to resign his employment with the Company provided a 60 day
notice is given, at any time for any reason.

9.       Effect of Termination of Employment.

                  a)   With Cause; Resignation; Death or Disability.   If
the Executive's employment is terminated with Cause pursuant to Section 8(b), if
the Executive's employment is terminated by the death or disability of the
Executive pursuant to Section 8(c), or if the Executive elects to terminate his
employment other than for Good Reason, the Executive's salary and other benefits
specified in Section 4 shall cease at the time of such termination; provided,
however, that the Executive or his estate shall be paid for all accrued and
unused vacation and be entitled to continue to participate in the Company's
medical benefit plans to the extent required by law.  Further, in the event the
Executive's employment is terminated by the death or disability of the Executive
pursuant to Section 8(c), the Executive or his estate will be entitled to be
paid a prorata amount of bonus, if any, which would have been earned by the
Executive based upon the earnings of the Company as of the end of the quarter
during which the Executive's death or termination by disability occurred.

        b) Without Cause by the Company. i) If the Executive's employment is
terminated by the Company without Cause pursuant to Section 8(d), the
Executive's salary and other benefits specified in Section 4 shall cease at the
time of such termination, provided, however, that the Executive shall be
entitled to be paid for all accrued unused vacation and continue to participate
in the Company's medical benefit plan to the extent required by law.

      ii) Notwithstanding Subsection (i), the Executive shall be entitled to the
severance payments in the event of termination without Cause by the Company.
Such payments shall be equal to the Executive's bi-monthly base salary as of the
date of such termination, shall be paid to the Executive twice monthly at the
time of the Company's normal payroll payments and shall continue for a period of
two years from the date of such termination. Such payments are referred to
herein as the "Severance Pay."

        iii) The Executive shall not be required to mitigate the amount of any
payment provided for in this Section 9(b) by seeking other employment or
otherwise; provided, however, that if the Executive accepts any other employment
for compensation of any kind, deferred or otherwise, during such period during
which the said Severance Pay is being made, such Severance Pay shall terminate
and the Company shall be under no further obligations to the Executive therefor.

     iv) Also notwithstanding  Subsection (i) above, the Executive's entitlement
to any options granted  hereunder  shall be in accordance with Section  4(c)(iv)
hereof.

        10. Insurance The Company may purchase insurance on the life of the
Executive, and if it does so, the Executive shall cooperate fully by performing
all the reasonable requirements of the life insurer which are necessary
conditions precedent to the issuance of the life insurance policy issued by it.

         11.      Indemnification

a) If the Executive is made a party or threatened to be made a party to any
action, suit or proceeding, whether civil, criminal, administrative or
investigative (a "Proceeding"), by reason of the fact that the Executive is or
was a director or officer of the Company or any subsidiary thereof or is or was
serving at the request of the Company or any subsidiary thereof as a director,
officer, member, employee or agent of another person, the Executive shall be
indemnified and held harmless by the Company to the fullest extent authorized by
Florida law, as the same exists or may hereafter be amended, against all
damages, losses, judgments, liabilities, fines, settlements, and costs,
attorneys' fees and any expenses of establishing a right to indemnification
under this Agreement ("Expenses") incurred by the Executive in connection
therewith, and such indemnification shall continue after Executive has ceased to
be an officer, director, or agent, or is no longer employed by the Company and
shall inure to the benefit of his heirs, executors and administrators; provided,
however, that the Executive shall not be so indemnified for any Proceeding which
is adjudicated to have arisen out of his willful misconduct, bad faith, gross
negligence or reckless disregard of duty or his failure to act in good faith in
the reasonable belief that his action was in the best interests of the Company.
Expenses incurred by the Executive in connection with any Proceeding shall be
paid by the Company in advance upon the Executive's request and Executive's
delivery of an undertaking to reimburse the Company for Expenses with respect to
which the Executive is not entitled to indemnification. The right to
indemnification and the payment of Expenses incurred in defending a Proceeding
in advance of its final disposition hereunder shall not be exclusive of any
other right which the Executive may have or hereafter may acquire.

        b) The Executive shall give the Company notice of any claim made against
him for which indemnification could be sought under this Agreement, but the
failure of the Executive to give such notice shall not relieve the Company of
any liability the Company may have to the Executive except to the extent that
the Company is prejudiced thereby. In addition, the Executive shall give the
Company such information and cooperation as it may reasonably require and as
shall be within the Executive's power and at such time and places as are
convenient for the Executive.

    c) The Company will be entitled to participate in any Proceeding at its own
expense and, except as otherwise provided below, the Company will be entitled to
assume the defense thereof, with counsel reasonably satisfactory to the
Executive. The Executive also shall have the right to employ his own counsel in
such Proceeding if he reasonably concludes that failure to do so would involve a
conflict of interest between the Company and the Executive, and under such
circumstances the fees and expenses of such counsel shall be at the expense of
the Company.

        d) The Company shall not be liable to indemnify the Executive for any
amounts paid in settlement of any claim effected without its written consent.
The Company shall not settle any claim in any manner which would not include a
full and unconditional release of the Executive without the Executive's prior
written consent. Neither the Company nor the Executive will unreasonably
withhold or delay their consent to any proposed settlement.

        12. Insurance. Promptly after the date hereof, when the Company has
sufficient funds, it shall purchase and maintain a directors and officers $5
million liability insurance policy provided that such policy shall be purchased
not later than December 31, 2003.

     13. Notice. Any notices required or permitted hereunder shall be in writing
and shall be deemed to have been given when personally delivered or five (5)
days after deposit in the U.S. mail, sent by certified or registered mail,
postage prepaid, to the following addresses or such other address as to which
notice is given in the manner provided herein:

                  If to the Executive:

                           Kevin Fitzgerald
                           4779 Collins Avenue, #1804
                           Miami, Florida 33140

                  If to the Company:

                           Ener1, Inc.
                           550 W. Cypress Creek Road
                           Suite 120
                           Fort Lauderdale, FL 33309
                           Attn:  Mike Zoi

         14.      Definition of Change in Control

     For purposes of this Agreement, a "change in control" shall mean any of the
following events:

        a) i) Mike Zoi, Peter Novak and Boris Zingarevitch cease to Beneficially
Own in the aggregate at least fifty percent (50%) of the then-outstanding voting
securities of the Company or of a corporation beneficially directly or
indirectly owning all of the voting securities of the Company;

        ii) The individuals who, as of the date of this Agreement are members of
the Board (the "Incumbent Board"), cease for any reason to constitute at least
two-thirds of the members of the Board of Directors of the Company; provided,
however, that if the election, or nomination for election by the Company's
common stockholders, of any new director was approved by a vote of at least
two-thirds of the Incumbent Board, such new director shall, for purposes of this
Agreement, be considered as a member of the Incumbent Board; provided further,
however, that no individual shall be considered a member of the Incumbent Board
if such individual initially assumed office as a result of either an actual or
threatened "Election Contest" (as described in Rule 14a-11 promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board (a "Proxy Contest") including
by reason of any agreement intended to avoid or settle any Election Contest or
Proxy Contest; or

         iii)     The consummation of:

      A) A merger, consolidation or reorganization involving the Company, unless
such merger, consolidation or reorganization is a "Non-Control Transaction." A
"Non-Control Transaction" shall mean a merger, consolidation or reorganization
of the Company where:

        1) the stockholders of the Company, immediately before such merger,
consolidation or reorganization, own directly or indirectly immediately
following such merger, consolidation or reorganization, at least fifty percent
(50%) of the combined voting power of the outstanding voting securities of the
corporation resulting from such merger or consolidation or reorganization (the
"Surviving Corporation") in substantially the same proportion as their ownership
of the voting securities immediately before such merger, consolidation or
reorganization,

        2) the individuals who were members of the Incumbent Board immediately
prior to the execution of the agreement providing for such merger, consolidation
or reorganization constitute at least two-thirds of the members of the board of
directors of the Surviving Corporation, or a corporation beneficially directly
or indirectly owning a majority of the voting securities of the Surviving
Corporation, and

3) no person other than (i) the Company, (ii) any subsidiary, (iii) any
employee benefit plan (or any trust forming a part thereof) that, immediately
prior to such merger, consolidation or reorganization, was maintained by the
Company, or any subsidiary, or (iv) any person who, immediately prior to such
merger, consolidation or reorganization had Beneficial Ownership of fifty
percent (50%) or more of the then outstanding voting securities of the Company,
has Beneficial Ownership of fifty percent (50%) or more of the combined voting
power of the Surviving Corporation's then outstanding voting securities or its
common stock.

                B)      A complete liquidation or dissolution of the Company; or

                C)      The sale or other disposition of all or substantially
                        all of the assets of the Company to any person (other
                        than a transfer to a subsidiary).

         15.      General.

        a) Governing Law. The Terms of this Agreement shall be Governed by and
construed under the laws of the State of Florida without regard to its
principles of conflicts of laws.

        b) Assignability. The Executive may not assign his interest in or
delegate his duties under this Agreement. The Company may not assign the
Agreement or the rights and obligations hereunder without consent of the
Executive.

        c) Enforcement Costs. In the event that either the Company or the
Executive initiates an action or claim to enforce any provision or term of
this Agreement, the costs and expenses (including attorneys' fees) of the
prevailing party shall be paid by the other party, such party to be deemed
to have prevailed if such action or claim is concluded pursuant to a court
order or final judgment which is not subject to appeal, a settlement
agreement or dismissal of the principle claims.

        d) Binding Effect; Successors. This Agreement shall be binding upon
and inure to the benefit of the Company, its permitted successors and
assigns and the Executive, his representatives and heirs.

        e) Entire Agreement; Modification. This Agreement constitutes the
entire agreement of the parties hereto with respect to the subject matter
hereof and may not be modified or amended in any way except in writing by
the parties thereto.

f) Duration. Notwithstanding the term of employment hereunder, this
Agreement shall continue for so long as any obligations remain under this
Agreement.

         IN WITNESS THEREOF, the parties hereto have set their hands and seals
                        on the date first above written.
                                                     (Company)

                                          By:     ________________________
                                         Name:    ________________________
                                         Title:   _________________

                                         _______________________________
                                                    Kevin Fitzgerald

For purposes of Section 4(c), the undersigned hereby enters into this
Agreement on behalf of Ener1 Group, Inc., and the undersigned hereby
represents and warrants that he has the authority to enter into this
Agreement on behalf of Ener1 Group, Inc.

                                                     _______________________________
                                                     Mike Zoi

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