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  Exhibit 10.12    
    

        Lease Contract  

No. ZX HE-015 

Party A:    JIANGSU DAGANG CO., LTD
  Party B:    A123 Systems (Zhenjiang) Co. Ltd.  

Title of the leased premises:    No. 1 Normal workshop at the south side of the

processing area (1st & 2nd floors) 

Date for signature:    January 2006 

Lease Contract  

No. ZX HE—015 

Lessor
(hereinafter referred to as Party A): JIANGSU DAGANG CO., LTD

Lessee
(hereinafter referred to as Party B): A123 Systems (Zhenjiang) Co. Ltd.

        In
accordance with the Contract Law of the People's Republic of China and pertinent rules and regulations, Party A and Party B have reached an agreement through friendly consultation to
conclude the following contract: 

					
	Article 1.	 	Party A guarantees that the leased premises meets the requirements of State regulations for lease of premises.
	

Article 2.	

 	

 Location and size of the premises
	

 	
 	

(1)	
 	

Party A will lease to Party B the 1st and 2nd floors of the No. 1 normal workshop owned by Party A, which is located at the south side of Zhenjiang Export Processing Zone, with the postal address at No. 7,
Tonggang Road, Dagang, Zhenjiang, Jiangsu Province;
	

 	
 	

(2)	
 	

The size of the leased premises is 6694 square meters (Gross size) on the two floors.
	

Article 3.	
 	
Party A shall provide the valid proof of its right to lease and the business license, Party B shall provide its identification. Both parties can make copy of the foregoing documents for the record after examination. All
the copies can be used only for the lease.
	

Article 4.	
 	
Lease term and purpose
	

 	
 	

(1)	
 	

The lease term will last for thirty-six (36) months, which will be from 1 January 2006 to 31 December 2008.
	

 	
 	

(2)	
 	

Party B shall promise to only use the leased premises for manufacture and handling official business.
	

 	
 	

(3)	
 	

On expiration of lease term, Party B shall retrocede the leased premises on time.
	 	 	 	 	Party B must inform Party A in writing about the intention of renewing the contract within three months before expiration of this contract. The contract will be renewed with agreement of Party
A.
	

Article 5.	
 	
Rental and payment
	

 	
 	

(1)	
 	

The rental will be RMB 8 per month per square meter.
	

 	
 	

  a.	
 	

From 1 January 2006 to 30 September 2006, the rental will be RMB 8 per month per square meter × 3347 square meters = RMB 26776 per month;
	

 	
 	

  b.	
 	

From 1 October 2006 to 31 December 2008, the rental will be RMB 8 per month per square meter × 6694 = RMB 53552 per month;
	

 	
 	

(2)	
 	

The rental for leasing 630KVA × 2 transformer will be RMB 4000 per month; the lease term will be from 1 October 2005 to 31 December 2008.
	

 	
 	

(3)	
 	

The mode of payment is as follow:
	

 	
 	

 	
 	

The rental shall be paid in advance quarterly; Party A shall give Party B valid invoice.

	

Article 6.	
 	
Miscellaneous expenses and tax
	

 	
 	

(1)	
 	

Party A shall bear the following expenses:
	

 	
 	

 	
 	

the tax for property right of the land and buildings within the lease term.
	

 	
 	

(2)	
 	

Party B shall pay for the following expenses:
	

 	
 	

 	
 	

shall pay the rental on time and bear the costs of utilities such as water, electricity, estate management and so on.
	

Article 7.	
 	
Maintenance and use
	

 	
 	

(1)	
 	

Party A shall guarantee the leased premises are safe for use within the lease term. Party A shall be responsible for maintaining the part of premises and facilities invested by Party A, Party B shall be responsible for the maintenance of the other
parts.
	

 	
 	

 	
 	

Party A shall give 10-day written notice to Party B about the intention of maintenance; Party B shall provide active cooperation.
	

 	
 	

 	
 	

Party A shall provide maintenance service in time after Party B requiring.
	

 	
 	

 	
 	

Party A shall not responsible for maintaining the decoration made by Party B.
	

 	
 	

 	
 	

(page 2 is missed out)
	

 	
 	

(3)	
 	

Party A withdraws the leased premises early in breach of this contract.
	

 	
 	

(4)	
 	

Party A shall be responsible for compensating the loss suffered by Party B caused by flaw on the property right of the premises or illegally leasing the premises.
	

Article 12.	
 	
Liability of Party B for breach of this contract
	

 	
 	

(1)	
 	

Party A has right to terminate this contract and withdraw the leased premises, if Party B commits any one of the following acts. Party B shall pay a penalty, which will equal to 1% of total rental amount, to Party A. If the penalty is insufficient to
cover the loss suffered by Party A, Party B shall continue to compensate sufficiently.
	

 	
 	

  a.	
 	

Sublease or lend the premises to others without written agreement of Party A;
	

 	
 	

  b.	
 	

Alter the structure of the leased premises without written agreement of Party A or destroy the leased premises;
	

 	
 	

  c.	
 	

Change the use of the leased premises stipulated in this contract or engage in any illegal activity;
	

 	
 	

  d.	
 	

Fail to pay the rental for more than four (4) months.
	

 	
 	

(2)	
 	

Party B delays to pay for any expense stipulated foregoing in this contract ought to be paid by Party B within the lease term.
	

 	
 	

(3)	
 	

Party B terminates the contract by itself before expiration of the lease without agreement of Party A.
	

 	
 	

(4)	
 	

Party B shall retrocede the leased premises at the expiration of the lease. Fail to do so, Party B shall pay five times of daily rental to Party A as overdue fine for everyday delayed payment.

	

Article 13.	
 	
Exemption
	

 	
 	

(1)	
 	

Both parties shall not be responsible for any loss or non-performance of this contract caused by force majeure.
	

 	
 	

(2)	
 	

To terminate this contract for the foregoing reason, the rental shall be paid following actual use time. If the actual time is less than one month, the rental will be paid based on days with refund for any overpayment or a supplemental payment for
any deficiency.
	

 	
 	

(3)	
 	

The force majeure refers to "the objective condition which is unforeseeable, unavoidable and impassable".
	

Article 14.	
 	
Party A and Party B may stipulate supplementary clauses for any matter not mentioned herein by consensus. Any supplementary clause and addendum are integral part of this contract and are legally of equal
effect.
	

Article 15.	
 	
Settlement of dispute
	

 	
 	
Both parties shall deal with any dispute arising out of this contract by amicable negotiation. If negotiation is unsuccessful, both parties shall submit the dispute to Zhenjiang Arbitration Committee.
	

Article 16.	
 	
This contract is effective since being signed/sealed by both parties.
	

Article 17.	
 	
This contract with its addendum is in four copies, two for each party.

			
	Party A:	 	Party B:
	

JIANGSU DAGANG CO., LTD

(with official seal and signature of Legal representative)	
 	

A123 Systems (Zhenjiang) Co., Ltd

(with official seal and signature of Legal representative)
	 	 	6 January 2006

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  Exhibit 10.13    
    

 
 

  Lease Contract    
    

			
	Lessor:	 	Changzhou Hi-Tech Zone Export Processing Zone Investment Development Co., Ltd (Party A)
	

Address:	
 	

17th Floor, Administrative Center, No. 8 of Hengshan Road, Xinbei District, Changzhou
	

Lessee:	
 	

A123 Systems (China) Materials Co., Ltd
	

Address:	
 	

Changzhou Export Processing Zone, Jiangsu Province, China

Both
parties conclude the following contract in respect of leasing normal workshop for project supported by the second period increasing capital of A123 Systems (China)
Materials Co., Ltd: 

 Article 1. Premises: 

	(1)
	Location:    in the normal workshop area of Changzhou Hi-Tech Zone Export Processing
Zone 

Title
of workshop: A7 

	(2)
	Range for first lease term:    the west-side half of the second floor of the workshop
A7

	(3)
	Size (Gross size):    1640 square meters (see the floor plan in annex)

	(4)
	Structure:    reinforced concrete frame construction

	(5)
	Subordinates (three-phase electricity, water, sewerage and passage): 

See
the details in the handover list 

 Article 2. Use of the leased premises 

Both
parties agree that the leased premises will be used for industrial production and official business. Party B guarantees not to change the use unless obtaining consent of Party A. 

 Article 3. Lease term: three (3) years 

	(1)
	From
1 March 2007 to 28 February 2009.

	(2)
	Party
B may require to extent the lease term when the term is nearly expire. But a written notice must be sent to Party A within three (3) months
before expiration of the lease. Party A and Party B shall renew this contract or re-sign a new lease contract. 

 Article 4. Rental and payment 

	(1)
	Party
B shall pay rental and estate management fee to Party A. 

Rental:
RMB 12 per month per square meter; 

Management
fee: RMB 0.5 per month per square meter.  

	(2)
	Payment:

	a.
	Party
B shall pay RMB 59040 (equals to the rental for three months) to Party A as deposit within 14 days after this contract being executed, which
will be treated as rental after Party B entering into the leased premises.

	b.
	The
rental and estate management fee shall be paid every three months, and shall be settled up within 5 days at the beginning of every payment period.

	c.
	Party
A shall bear tax in respect of issuing invoice. 

	d.
	Payment
will be fulfilled in cash or by transfer, and the currency of settlement will be RMB. 

 Article 5. Transition of the leased premises 

	(1)
	Party
A shall transit the leased premises to Party B on the day of signing this contract.

	(2)
	The
leased premises will be treated as having been transited to Party B on the foregoing day, although Party B makes any delay.

	(3)
	Both
parties shall jointly check and examine the premises and its decoration and facilities during transition, and make a record. 

 Article 6. Decoration, building and adding new facility 

	(1)
	Party
B shall carefully keep the leased premises and facilities clean and safe, and shall not dismantle, decorate or change the leased premises without
agreement of Party A or any objective reason.

	(2)
	Party
B may decorate or re-build the leased premises under the condition of not changing original structure of the premises, and shall obtain
the agreement of Party A. Party B shall provide the plan of decoration and adding facilities to Party A, and bear all the related costs and expenses. On expiration of the lease, Party B may choose to
retrocede the workshop under its original condition or with the decoration to Party A.

	(3)
	Increase
of water and electricity supply and costs and expenses

	a.
	Party
B entrusts Party A to build electrical power unit with advanced fund of Party A in the name of Party B, and to supply 380 volts 800 KVA electrical
power to the power distribution room in the leased premises within 60 days after this contract being executed. Party B shall pay building fund and interests to Party A within 6 months
after using the electrical power unit. (refer to the loan rate of bank during the same period)

	b.
	Party
B shall not pay extra fee for extension supply by using water supplied through 100 millimeters water pipe provided by Party A; Party B will bear any
cost and expense for extra water use and apply to water company in zone. 

 Article 7. Rights and liabilities of both parties 

	(1)
	Party
A shall transit the leased premises to Party B within the time limit stipulated in this contract.

	(2)
	Party
A shall ensure the validity and integrality of the land use right and ownership of the premises, so that ensure that Party B can use the leased
premises without any interference of any third party.

	(3)
	Party
A shall complete the installation of electrical power unit and rebuild of workshop structure and facilities according to the schedule of Party B.

	(4)
	Party
A shall guarantee the safe use of the leased premises, and undertake any normal maintenance and management.

	(5)
	Party
A will be responsible for estate management of non-leased part of workshop and outside of workshop A7.

	(6)
	Party
B has right to start inside decoration and equipment installation after accepting the leased premises.

	(7)
	Party
B shall pay the rental following the stipulation of this contract.

	(8)
	Party
B shall carefully use and manage the leased premises, and shall not sublease or lend the premises, or shall not engage in any illegal activity or to
infringe upon public interest, or shall 

not
change the purpose of using the leased premises. Party B shall lawfully operate and be responsible for fire prevention and sanitation.  

	(9)
	Party
B will bear the cost and expense of water and electricity after accepting the workshop A7.

	(10)
	Party
B shall make the leased premises to be ready for transition back to Party A. 

 Article 8. Miscellaneous 

	(1)
	Party
A agrees to reserve sufficient space for 2-3 cooling tower for Party B within green belt on west side of the workshop A7.

	(2)
	After
performing this contract by Party B, Party A agrees to deduct the estate management fee should be paid by Party B from March 2007 to March 2008.

	(3)
	Party
A agrees to reserve the non-leased part of workshop for Party B for free for one year, and will not lease this part to any other
organization and/or individual.

	(4)
	Party
A agrees to reserve the development area (approximate 25 acres) on south side of the workshop A7 for Party B for free for one year, and
will not lease this area to any other organization and/or individual.

	(5)
	Party
A shall provide temporary electronic power to Party B to meet requirements of construction and installation before the formal electronic power supply
is available. 

 Article 9. Liability 

	(1)
	This
contract is effective after being executed; any party shall not be in breach (except for force majeure).

	(2)
	Party
A shall pay 5% of the first paid rental per day to Party B as an overdue fine. If Party A delays to transit the leased premises for more than
30 days, Party B has right to treat such situation as a severe breach of this contract and may unilaterally terminate this contract. In such circumstance, Party A shall return two times of
deposit paid by Party B, and shall return the rental paid by Party B.

	(3)
	Party
A shall make full compensation for any loss suffered by Party B resulting from being unable to use the leased premises in normal way caused by fault
of Party A.

	(4)
	......................(the
following terms are missed out) 

 
 

  Supplemental Agreement    
    

			
	Lessor:	 	Changzhou Hi-Tech Zone Export Processing Zone Investment Development Co., Ltd (Party A)
	

Lessee:	
 	

A123 Systems (China) Materials Co., Ltd

Both
parties make consent on the following terms and conditions as the supplementary of the lease contract (main contract) concluded on 16 January 2007: 

 Article 1. Premises: 

	(1)
	Location:    in the normal workshop area of Changzhou Hi-Tech Zone Export Processing
Zone 

Title
of workshop: A7 

	(2)
	Range for first lease term:    the office building and the 800 m2 workshop A7, both
of which are located at east side of the first floor of the workshop A7, and the eastern half side of the second floor of the workshop A7.

	(3)
	Size (Gross size):    2784 square meters (see the floor plan in annex)

	(4)
	Structure:    reinforced concrete frame construction 

 Article 2. Lease term: 33 months 

	(1)
	From
1 June 2007 to 28 February 2009.

	(2)
	Party
B may require to extent the lease term when the term is nearly expire. But a written notice must be sent to Party A within three (3) months
before expiration of the lease. Party A and Party B shall renew this contract or re-sign a new lease contract. 

 Article 3. Rental and payment 

	(3)
	Party
B shall pay rental and estate management fee to Party A. 

Rental:
RMB 12 per month per square meter; 

Management
fee: RMB 0.5 per month per square meter.  

	(4)
	Payment:

	a.
	Party
B shall pay RMB 33408 (equals to the rental for one months) to Party A as deposit within 14 days after this contract being executed, which will
be treated as rental after Party B entering into the leased premises.

	b.
	The
rental and estate management fee shall be paid every three (3) months, and shall be settled up within five (5) days at the beginning of
every payment period.

	c.
	Party
A shall bear tax in respect of issuing invoice.

	d.
	Payment
will be fulfilled in cash or by transfer, and the currency of settlement will be RMB. 

 Article 4. Miscellaneous 

	(1)
	Party
B shall be responsible for constructing the moisture barrier on the first floor with ointment materials, and each party shall bear a half of cost and
expense. Party A will bear the cost and expense no more than RMB 25000. Party A will complete the construction of the cement terrace and the installation of lighting of the first floor of the workshop
A7 within 10 days after Party B completing the construction of moisture barrier. The installation of the lighting on the first floor will refer to that on second floor. 

	(2)
	Party
A will provide 500 kw electrical power unit to Party B after the later leasing all foregoing floors. Party A holds the property right of the
electrical power unit, and both parties will decide the specific plan through negotiation.

	(3)
	Party
A agrees that Party B may rebuild the entrance doors at both east and west side of the first floor of the workshop A7, the north side entrance door,
and the landing platform at the east side of the workshop;

	a.
	Party
B shall provide written application and related drawings to Party A before rebuilding, and shall not start to rebuild until obtain the written
agreement from Party A.

	b.
	Party
B shall not destroy the structure of the workshop A7 by foregoing rebuilding.

	c.
	Party
B will bear all costs and expenses of rebuilding.

	d.
	Party
A will not be responsible for maintenance of the rebuilt entrance doors and other parts, Party B shall bear the cost and expense by itself.

	(4)
	Party
A guarantees to complete the construction of the green belt surrounding the workshop before the end of May. Party A will be responsible for planting
certain high conifers nearby cooling towers and for building the outdoor routeway entering into high pressure and low pressure power distribution room.

	(5)
	Goods
lift: after being accepted by Party B, Party A shall make routine maintenance and examination to the goods lift, and will be responsible for removing
any trouble not caused by artificial element. Party B will be responsible for daily operation and maintenance and any trouble caused by artificial element. Party A has right to supervise the operation
of the goods lift and to propose any necessary remedial measure. 

 Article 5. Operating requirement and maintenance of workshop 

	(1)
	Party
A will be responsible for the maintenance of the workshop and facilities during the least term. Party B should inform Party A about any damage and
fault occurred to workshop and facilities in time. Party A shall start to maintain after receiving the information from Party B. Party B may maintain by itself, if Party A fails to do so within two
days, and Party A will bear all the costs and expenses. Party B will be responsible for the operation of the facilities.

	(2)
	Party
B shall use the workshop and facilities by reasonable way during the lease term. Party B will be responsible for maintaining any damage or fault
caused by unreasonable use. If Party B fails to do so, Party A may undertake the maintenance and make Party B bear all the costs and expenses.

	(3)
	Party
A guarantee the workshop and facilities keeping safe and being fit for normal use. Party A will be responsible for examining and maintaining the
workshop and shall give notice to Party B three days in advance. Party B shall cooperate. Party A shall reduce any possible influence to the use of the workshop by Party B. 

 Article 6. Any matter not mentioned herein shall be performed by consulting the main contract. If there is any conflict between this Agreement
and the main contract, this Agreement shall be controlling. 

			
	Party A:	 	Party B:
	

Changzhou Hi-Tech Zone Export

Processing Zone Investment

Development Co., Ltd (Party A)

(with official seal and signature)	
 	

A123 Systems (China) Materials Co.,

Ltd

  

(with official seal and signature)
	

Date: 10 April 2007	
 	

Date: 10 April 2007

QuickLinks

Exhibit 10.13

Lease Contract

Supplemental Agreement

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