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  Exhibit 10.22    
    

NEITHER
THIS WARRANT NOR THE SHARES OF STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). NO SALE, TRANSFER OR OTHER DISPOSITION
OF THIS WARRANT OR SAID SHARES MAY BE EFFECTED WITHOUT (i) AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR (ii) AN OPINION OF COUNSEL FOR THE HOLDER, REASONABLY SATISFACTORY TO
THE COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED, EXCEPT THAT NO SUCH OPINION SHALL BE REQUIRED IF SUCH SALE IS PURSUANT TO RULE 144 PROMULGATED UNDER THE ACT. 

 WARRANT  

 TO PURCHASE
  SHARES OF SERIES B CONVERTIBLE PREFERRED STOCK  

        THIS CERTIFIES THAT, for good and valuable consideration received from Heller Financial Leasing, Inc., a
GE Company ("Warrantholder"), Warrantholder is entitled to subscribe for and purchase 67,366 shares (as adjusted pursuant to provisions hereof, the
"Shares") of the fully paid and non-assessable Series B Convertible Preferred Stock of A123
Systems, Inc., a Delaware corporation with its principal place of business at One Kingsbury
Avenue,
Watertown, MA 02472 (the "Company"), at an exercise price per share of $2.078192 (such price and such other price as shall
result, from time to time, from adjustments specified herein, is hereafter referred to as the "Exercise Price"), subject to the provisions and upon the
terms and conditions hereinafter set forth. As used herein, the term "Preferred Stock" or "Shares" shall
mean the Company's presently authorized Series B Convertible Preferred Stock, and any stock into or for which such Series B Convertible Preferred Stock may hereafter be converted or
exchanged pursuant to the Certificate of Incorporation of the Company as from time to time amended as provided by law and in such Certificate. As used herein, term "Grant
Date" shall mean February 24, 2005. The Company acknowledges that the cash consideration paid by Warrantholder for this
Warrant is $10.00 for income tax purposes, that such amount has been duly received by the Company, and that this Warrant is issued in connection with that certain financial accommodation entered into
by and between Company as the obligor and Warrantholder as the obligee thereunder (the "Financing Arrangement"). 

        In
the event that all preferred stock is mandated to be converted into Common Stock, this Warrant shall be exercisable solely for such Common Stock, and any reference throughout this
Warrant to shares of Preferred Stock shall be deemed to refer to the shares of Common Stock into which the Preferred Stock may be converted in accordance with the conversion formula set forth in the
Company's Articles of Incorporation, as amended from time to time. 

        1.    Term.    The purchase rights represented by this Warrant are exercisable, in whole or in part, at any time and
from time to time, from and after the Grant Date and on or prior to the seventh anniversary of the Grant Date. 

        2.    Method of Exercise; Net Issue Exercise.    

        2.1    Method of Exercise; Payment; Issuance of New Warrant.    The purchase rights represented by this Warrant may be
exercised by the Warrantholder, in whole or in part and from time to time, by the surrender of this Warrant (with the notice of exercise form attached hereto as  Exhibit A duly executed) at the
principal office of the Company and by the payment to the Company of an amount equal to the then applicable
Exercise Price per share multiplied by the number of Shares then being purchased. The Warrantholder shall be deemed to have become the holder(s) of record of, and shall be treated for all purposes as
the record holder(s) of, the Shares represented thereby (and such Shares shall be deemed to have been issued) immediately prior to the close of business 

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on
the date or dates upon which this Warrant is exercised. In the event of any exercise of the rights represented by this Warrant, certificates for the Shares so purchased shall be promptly delivered
to the holder hereof as soon as possible (and in any event within five business days of receipt of such notice) and, unless this Warrant has been fully exercised, a new warrant representing the
portion of the Shares, if any, with respect to which this Warrant shall not then have been exercised shall also be issued to the holder hereof as soon as possible (and in any event within such five
business day period). 

        2.2    Non-Cash Exercise.    

        (a)   In
lieu of payment in cash, the rights represented by this Warrant may also be exercised by a written notice of exercise in the form of  Exhibit A attached hereto, providing for the non-cash exercise
of this Warrant for the Shares equal to the value (as determined
below) of this Warrant (or the portion thereof being exercised), specifying that this non-cash exercise election has been made, and the net number of Shares to be issued after giving
effect to such non-cash exercise. In the event the Warrantholder makes such election, Company shall issue to the holder a number of shares computed using the following formula: 

					
	 	 	X =	 	Y(A-B)

    A
	

Where:	
 	

X =	
 	

the number of Shares to be issued to the holder
	 	 	Y =	 	the number of Shares purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (as of the date of such non-cash exercise)
	 	 	A =	 	the Fair Market Value of one Share of Preferred Stock (as of the date of such non-cash exercise) or, if this Warrant is exercisable for Common Stock on the date of exercise, the Fair Market Value of one
share of Common Stock
	 	 	B =	 	Exercise Price of one Share of Preferred Stock (as adjusted to the date of such non-cash exercise)

        (b)   For
purposes of this Section 2.2, the "Fair Market Value" of one share of the Company's Preferred Stock shall be
equal to the number of shares of Common Stock into which each share of Preferred Stock is convertible as of the date of the exercise, multiplied by the "Fair Market Value" of a share of Common Stock
(as determined pursuant to this Section 2.2). The Fair Market Value of one share of the Company's Common Stock shall be equal to either (i) if the exercise of this Warrant occurs in
connection with an initial public offering of the Company, then the Fair Market Value shall be equal to the "initial price to public" specified in the final prospectus with respect to the initial
public offering, or (ii) if the exercise of this Warrant occurs after an initial public offering of the Company but not in connection therewith, then the Fair Market Value shall be equal to the
average of the closing price(s) of the Company's Common Stock as quoted over the counter or on any exchange on which the Common Stock is listed as such closing prices are published in  The Wall Street Journal for the five trading days (or such lesser number of trading days as the stock may have been actually trading) ending on the day
prior to the date of determination of Fair Market Value. Notwithstanding the foregoing, if the Warrant is exercised in connection with a merger or sale of all or substantially all of the Company's
assets, Fair Market Value shall mean the value that would have been allocable to or received in respect of a Warrant Share had the Warrant been exercised prior to such merger or sale. If the Common
Stock is not traded Over-The-Counter or on an exchange, or if the Warrant is not exercised in connection with a merger or sale of all or substantially all of its assets, the
Fair Market Value shall be the amount most recently determined in good faith and in a commercially reasonable manner by the Company's board of directors to represent the fair market value per share of
the Common Stock (including without limitation a determination for purposes of granting common stock options). 

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        2.3    Exercise Into Common Stock.    Upon any exercise of this Warrant, at the election of the holder, this Warrant
may be exercised into the number of shares of Common Stock into which the Shares issuable upon such exercise are then convertible. 

        2.4    Automatic Exercise.    Immediately before the expiration or termination of this Warrant, to the extent this
Warrant is not previously exercised, and if the Fair Market Value of one share of whichever is
applicable of either (i) the Preferred Stock subject to this Warrant or (ii) the Company's Common Stock issuable upon conversion of the Preferred Stock subject to this Warrant, is
greater than the Exercise Price, then in effect as adjusted pursuant to this Warrant, then this Warrant shall be deemed automatically exercised pursuant to Section 2.2 above, even if not
surrendered. For purposes of such automatic exercise, the Fair Market Value of the Company's Common Stock upon such expiration shall be determined pursuant to Section 2.2 (b) above. To
the extent this Warrant or any portion thereof is deemed automatically exercised pursuant to this Section, the Company agrees to promptly notify the Warrantholder of the number of Shares, if any, the
holder hereof is to receive by reason of such automatic exercise. 

        2.5    Exercise in Connection with an Initial Public Offering, Sale or Merger.    Notwithstanding any other provision
hereof, if the exercise of all or any portion of this Warrant is made or to be made in connection with the occurrence of a public offering, sale or merger of the Company, the exercise of all or any
portion of this Warrant shall, at the election of the Warrantholder, be conditioned upon the consummation of the public offering, sale or merger of the Company, in which case such exercise shall not
be deemed to be effective until the consummation of such transaction. In the event that the transaction is not consummated within 45 days of the targeted date of the transaction, any such
exercise shall, at the election of the Warrantholder, be deemed rescinded. 

        3.    Stock Fully Paid; Reservation of Shares.    All Shares that may be issued upon the exercise of the rights
represented by this Warrant and Common Stock issuable upon conversion of the Preferred Stock will, upon issuance, be validly issued, fully paid and non-assessable, issued in compliance
with all applicable federal and state securities laws, and free from all taxes, liens and charges with respect to the issue thereof. During the period within which the rights represented by this
Warrant may be exercised, the Company will at all times have authorized and reserved for the purpose of issuance upon exercise of the purchase rights evidenced by this Warrant, a sufficient number of
shares of its Preferred Stock (and Common Stock issuable upon conversion of the Preferred Stock) to provide for the exercise of the rights represented by this Warrant. 

        4.    Adjustment of Exercise Price and Number of Shares.    The number of Shares purchasable upon the exercise of this
Warrant and the Exercise Price shall be subject to adjustment from time to time upon the occurrence of certain events, as follows: 

        (a)    Reclassification, Reorganization, Change or Conversion.    In case of any reclassification, reorganization,
change or conversion of securities of the class issuable upon exercise of this Warrant (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a
result of a subdivision or combination), then in any of these events, the Company shall execute a replacement warrant (a "New Warrant"), in form and substance reasonably satisfactory to the holder of
this Warrant, upon the exercise of which (and at a total purchase price under the New Warrant not to exceed that payable upon the exercise in full of this Warrant) the holder of the New Warrant shall
receive, in lieu of each Share receivable upon the exercise of this Warrant, the same kind and amount of shares of stock, other securities, money and property receivable by a holder of one share of
Preferred Stock upon such reclassification, reorganization, change or conversion. Such New Warrant shall provide for adjustments that shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 4. 

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The
provisions of this section (a) shall similarly apply to successive reclassifications, reorganizations, changes or conversions. 

        (b)    Merger or Sale.    In case of any (i) consolidation or merger of the Company with or into another
corporation or entity (other than a merger with another corporation or entity in which the Company is the surviving corporation and which does not result in any reclassification or change of
outstanding securities issuable upon exercise of this Warrant), or (ii) sale of all or substantially all of the assets of the Company, then in either of such events, the Company, or such
successor or purchasing corporation, as the case may be, shall execute a replacement warrant (a "New Warrant"), in form and substance substantially similar to the provisions of this Warrant in all
material respects, or the Company shall make appropriate provision without the issuance of a new Warrant, so that the Holder shall have the right to receive, at a total purchase price not to exceed
that payable upon the exercise of the unexercised portion of this Warrant, and in lieu of the shares of Preferred Stock theretofore issuable upon exercise of this Warrant, the kind and amount of
shares of stock, other securities, money and property receivable upon such reclassification, change, merger or sale by a holder of the number of shares of Preferred Stock then purchasable under this
Warrant, or in the case of such a merger or sale in which the consideration paid consists of all or in part of assets other than securities of the successor or purchasing corporation, at the option of
the Warrantholder, the securities of the successor or purchasing corporation having a value at the time of the transaction equivalent to the value of the Preferred Stock purchasable upon exercise of
this Warrant at the time of the transaction. The provisions of this section (b) shall similarly apply to successive mergers and sales. 

        (c)    Subdivisions or Combination of Shares: Stock Dividends.    In the event that the Company shall at any time
subdivide the outstanding shares of Preferred Stock, or shall issue a stock dividend on its outstanding shares of Preferred Stock, the number of Shares issuable upon exercise of this Warrant
immediately prior to such subdivision or immediately prior to the issuance of such stock dividend shall be proportionately increased, and the Exercise Price shall be proportionately decreased, and in
the event that the Company shall at any time combine the outstanding shares of Preferred Stock, the number of Shares issuable upon exercise of this Warrant immediately prior to such combination shall
be proportionately decreased, and the Exercise Price shall be proportionately increased, effective at the close of business on the date of such subdivision, stock dividend or combination, as the case
may be. 

        (d)    Issuance of Additional Shares.    Additional antidilution rights applicable to the Preferred Stock purchasable
hereunder are as set forth in the Company's Third Amended and Restated Certificate of Incorporation, as amended from time to time. 

        (e)    No Impairment.    The Company will not, by amendment of its Articles of Incorporation or any other
organizational or shareholder rights documents of the Company, or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or
any other voluntary action, seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the
carrying out of all the provisions of this Section 4 and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against
impairment. 

        (f)    Notices of Record Date.    In case at any time: 

        (i)    the
Company shall declare any dividend upon its Preferred Stock or Common Stock payable in cash or stock or make any other distribution to the holders of its Preferred
Stock or its Common Stock; 

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        (ii)   there
shall be any capital reorganization or reclassification of the capital stock of the Company, or a consolidation or merger of the Company with or into, or a sale
of all or substantially all its assets to another entity or entities; or 

        (iii)  there
shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company; 

then,
in any one or more of said cases, the Company shall give notice as provided in Section 11(f) hereunder as follows: (A) at least 10 days' prior written notice of the date on
which the books of the Company shall close or a record shall be taken for such dividend, distribution or subscription rights or for determining rights to vote in respect of any such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or winding up, and (B) in the case of any such reorganization, reclassification, consolidation, merger, sale,
dissolution, liquidation or winding up, at least 20 days' prior written notice of the date when the same shall take place. Such notice in accordance with the foregoing clause (A) shall
also specify, in the case of any such dividend, distribution or subscription rights, the date on which the holders of preferred stock or Common Stock shall be entitled thereto, and such notice in
accordance with the foregoing clause (B) shall also specify the date on which the holders of preferred stock or Common Stock shall be entitled to exchange their preferred stock or Common Stock
for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding up, as the case may be. 

        5.    Notice of Adjustments.    Whenever the Exercise Price shall be adjusted pursuant to the provisions hereof, the
Company shall within ten (10) days of such adjustment deliver a certificate signed on behalf of the Company by its chief financial officer to the holder of this Warrant setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the Exercise Price after giving effect to such adjustment. 

        6.    Fractional Shares.    No fractional shares of Preferred Stock or Common Stock will be issued in connection with
any exercise hereunder, but in lieu of such fractional shares the Company shall make a cash payment therefor upon the basis of the Exercise Price then in effect. 

        7.    Compliance with Securities Act; Disposition of Warrant or Shares of Preferred Stock.    

        (a)    Compliance with Securities Act.    The holder of this Warrant, by acceptance hereof, agrees that this Warrant,
the shares of Preferred Stock to be issued upon exercise hereof and the Common Stock to be issued upon the conversion of such Preferred Stock, are being acquired for investment purposes only and that
such holder will not offer, sell or otherwise dispose of this Warrant or any shares of Preferred Stock to be issued upon exercise hereof (or Common Stock to be issued upon the conversion of such
Preferred Stock) except under circumstances which will not result in a violation of the Securities Act of 1933, as amended (the "Act") and as permitted by Section 7(b) below. This Warrant and
all shares of Preferred Stock issued upon exercise of this Warrant (or Common Stock to be issued upon the conversion of such Preferred Stock) shall, unless registered under the Act, be stamped or
imprinted with a legend in substantially the following form: 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). NO SALE OR DISPOSITION MAY BE EFFECTED WITHOUT (i) AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR (ii) AN OPINION OF COUNSEL FOR THE HOLDER, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED, EXCEPT THAT NO SUCH OPINION
SHALL BE REQUIRED IF SUCH SALE IS PURSUANT TO RULE 144 PROMULGATED UNDER THE ACT.

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        (b)    Disposition of Warrant and Shares.    With respect to any offer, sale or other transfer or disposition of this
Warrant or any shares of Preferred Stock acquired pursuant to the exercise of this Warrant (or
Common Stock to be issued upon the conversion of such Preferred Stock) prior to registration of such Shares, the holder hereof and each subsequent holder of this Warrant agrees to give written notice
to the Company prior thereto, describing briefly the manner thereof, together with a written opinion of such holder's counsel (if reasonably requested by the Company and reasonably satisfactory to the
Company) to the effect that (i) such offer, sale or other transfer or disposition may be effected without registration or qualification of this Warrant or such shares of Preferred Stock (or
Common Stock to be issued upon the conversion of such Preferred Stock) under the Act as then in effect, and (ii) indicating whether or not under the Act this Warrant or the certificates
representing such shares of Preferred Stock or Common Stock to be sold or otherwise transferred or disposed of require any restrictive legend thereon in order to ensure compliance with the Act;  provided,
 however, that a written opinion of holder's counsel shall not be required in connection with
any sale pursuant to Rule 144. This Warrant or the certificates representing the shares of Preferred Stock or Common Stock thus transferred (except a transfer pursuant to Rule 144) shall
bear a legend as to the applicable restrictions on transferability in order to insure compliance with the Act, unless in the aforesaid opinion of counsel for the Company, such legend is not required
in order to insure compliance with the Act. Upon any valid transfer of this Warrant or portion thereof, Company agrees to reissue the Warrant (or Warrants in the case of a partial transfer) and/or the
Shares receivable upon the exercise hereof, and if the legend is not required, such re-issuance shall be without said legend. Nothing herein shall restrict the transfer of this Warrant (or
any portion hereof) or the certificates representing the shares of Preferred Stock acquired pursuant to the exercise of this Warrant (or Common Stock to be issued upon the conversion of such Preferred
Stock) by the initial holder hereof or any successor holder to (i) any affiliate of such holder, including without limitation any partnership affiliated with such holder, any partner of any
such partnership or any successor corporation to the holder hereof as a result of a merger or consolidation with or a sale of all or substantially all of the stock or assets of the holder,
(ii) any legal entity or natural person (hereinafter "Person") in a public offering pursuant to an effective registration statement under the Act, (iii) to any other Person to the extent
that the transfer to such Person is exempt from the registration requirements of the Act and such Person agrees in writing to be bound by all of the restrictions on transfer contained herein, or
(iv) any Person or Persons if the holder hereof shall also transfer or assign all or part of its interest in the Financing Arrangement and such Person agrees in writing to be bound by all of
the restrictions on transfer contained herein, provided, in each case, the Warrantholder complies with this Section 7. Any transfer described above must be made in compliance with all
applicable federal and state securities laws. The Company may issue stop transfer instructions to its transfer agent in connection with the foregoing restrictions. 

        8.    Warrantholder's Representations    

        (a)   The
Warrantholder acknowledges that it has had access to all material information concerning the Company which it has requested. The Warrantholder also acknowledges that
it has had the opportunity to, and has to its satisfaction, questioned the officers of the Company with respect to its investment hereunder. The Warrantholder represents that it understands that the
Warrant and the Preferred Stock (and the shares of Common Stock issuable upon conversion of the Preferred Stock) are speculative investments, that it is aware of the Company's business affairs and
financial condition and that it has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Warrant. The Warrantholder is purchasing the
Warrant and any Preferred Stock issued upon exercise thereof (and the shares of Common Stock issuable upon conversion of the Preferred Stock) for investment for its own account only and not with a
view to, or for resale in connection with, any "distribution" thereof in violation of the Act or applicable state securities laws. The Warrantholder further represents that it understands 

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that
the Warrant and Preferred Stock have not been registered under the Act or applicable state securities laws by reason of specific exemptions therefrom, which exemptions depend upon, among other
things, the bona fide nature of the Warrantholder's investment intent as expressed herein. The Warrantholder is an "accredited investor" as defined in Regulation D promulgated under the Act. 

        9.    Company's Representations

        As
a material inducement to the Warrantholder to purchase this Warrant, the Company hereby represents and warrants that: 

        (a)   The
Company shall have made all filings under applicable federal and state securities laws necessary to consummate the issuance of this Warrant pursuant to this
Agreement in compliance with such laws, except for such filings as may be made properly after the Grant Date. 

        (b)   The
Company has obtained any necessary waivers, consents or approvals required prior to the execution and delivery of this Warrant. 

        (c)   If there are parties to any investor's rights agreements whose consent or approval is required prior to the execution and delivery of this
Warrant, the Company and any such parties shall have entered into an amendment to each such investor's rights agreement providing for such consent and any required waivers, in
such form and substance acceptable to Warrantholder, and such amendment shall be in full force and effect as of the date hereof. 

        (d)   The
copies of any existing stock purchase agreements and investor's rights agreements and the Company's charter documents and bylaws which have been furnished to
Warrantholder or the
Warrantholder's counsel reflect all amendments made thereto at any time prior to the date hereof and are correct and complete. 

        (e)   As
of the date hereof, the authorized capital stock of the Company shall be as stated on the Capitalization Schedule attached hereto as  Exhibit B (the "Capitalization
Schedule") and made a part hereof. As of the date hereof, except
for this Warrant and except as set forth on the attached Capitalization Schedule, the Company shall not have outstanding any stock or securities convertible or exchangeable for any shares of its
capital stock or containing any profit participation features, nor shall it have outstanding any rights, warrants or options to subscribe for or to purchase its capital stock or any stock or
securities convertible into or exchangeable for its capital stock or any stock appreciation rights or phantom stock plans. The Capitalization Schedule truthfully and accurately summarizes the
following information with respect to all outstanding options and rights to acquire the Company's capital stock: the holder, the number of shares covered, the exercise price and the expiration date.
As of the date hereof, except as set forth on the Capitalization Schedule and/or the Company's Third Amended and Restated Certificate of Incorporation, the Company shall not be subject to any
obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its capital stock or any warrants, options or other rights to acquire its capital stock. As of the date
hereof, all of the outstanding shares of the Company's capital stock shall be validly issued, fully paid and nonassessable. 

        (f)    With
respect to the issuance of this Warrant or the issuance of the Preferred Stock upon exercise of the Warrant (and the shares of Common Stock issuable upon conversion
of the Preferred Stock), there are no statutory or contractual stockholders preemptive rights or rights of refusal, except for any such rights contained in any stock purchase agreement and/or
investor's rights agreements which have been waived. The Company has not violated any applicable federal or state securities laws in connection with the offer, sale or issuance of any of its capital
stock, and the offer, sale and issuance of this Warrant does not require registration under the Act or any applicable state securities laws. To the best of the Company's knowledge, there are no
agreements between the Company's stockholders with respect to the voting or transfer of the Company's capital stock or with respect to any other aspect of the Company's affairs, except for any stock
purchase agreements and any investor's rights agreements identified on the attached Capitalization Schedule. 

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        (g)   The
execution, delivery and performance of this Warrant has been duly authorized by the Company. This Warrant constitutes a valid and binding obligation of the Company,
enforceable in accordance with its terms. The execution and delivery by the Company of this Warrant, the issuance of the Preferred Stock upon exercise of this Warrant (and the shares of Common Stock
issuable upon conversion of the Preferred Stock), and the fulfillment of and compliance with the respective terms hereof and thereof by the Company, do not and shall not (i) conflict with or
result in a breach of the terms, conditions or provisions of, (ii) constitute a default under, (iii) result in the creation of any lien, security interest, charge or encumbrance upon the
Company's capital stock or assets pursuant to, (iv) give any third party the right to modify, terminate or accelerate any obligation under, (v) result in a violation of, or
(vi) require any authorization, consent, approval, exemption or other action by or notice or declaration to, or filing with, any court or administrative or governmental body or agency pursuant
to, the charter or bylaws of the Company or any subsidiary, or any law, statute, rule or regulation to which the Company or any subsidiary is subject, or any agreement, instrument, order, judgment or
decree to which the Company or any subsidiary is subject, except for any such filings required under applicable "blue sky" or state securities laws or required under Regulation D promulgated
under the Act. 

        10.    Company Financial Information.    

        Until
such time as the Company shall have satisfied all of its obligations under the Financing Arrangement, Company shall deliver to Warrantholder such financial information as is
required under the terms of the Financing Arrangement. From and after the date that the Company shall have satisfied all of its obligations under the Financing Arrangement, and notwithstanding any
other agreement to the contrary between the parties hereto, the Company shall deliver to the Warrantholder (so long as the Warrantholder holds all or any portion of the Warrant or any Preferred Stock
or any shares of Common Stock issuable upon conversion of the Preferred Stock) all of the financial and other information delivered or required to be delivered by the Company to any of its
stockholders. All such financial and other information shall be delivered pursuant to this Section 10 on a timely basis, but no later than 45 days after each fiscal quarter end for
quarterly statements and no later than 120 days after each fiscal year end for annual statements. 

        11.    Miscellaneous    

        (a)    Rights as Shareholders.    No holder of this Warrant, as such, shall be entitled to vote or receive dividends
or be deemed the holder of Preferred Stock (or Common Stock to be issued upon the conversion of such Preferred Stock) or otherwise be entitled to any voting or other rights as a shareholder of the
Company, until this Warrant shall have been exercised and the Shares purchasable upon the exercise shall have become deliverable, as provided herein. 

        (b)    Issuance Tax.    The issuance of certificates for shares of Preferred Stock upon exercise of this Warrant (or
Common Stock to be issued upon the conversion of such Preferred Stock) shall be made without charge to the holder hereof for any issuance tax in respect hereof, provided that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than that of the holder of this Warrant. 

        (c)    Modification and Waiver.    This Warrant and any provision hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the Company and the holder of this Warrant. 

        (d)    Attorneys' Fees.    In the event of an action, suit or proceeding brought under or in connection herewith, the
prevailing party therein shall be entitled to recover from, and the other party hereto agrees to pay, the prevailing party's costs and expenses in connection therewith, including reasonably attorneys'
fees. 

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        (e)    Notices.    All notices, demands or other communications required or permitted to be given or delivered under
or by reason of the provisions hereof shall be in writing and shall be deemed to have been given when (i) delivered personally to the recipient, (ii) sent via facsimile transmission,
(iii) the next business day after having been sent to the recipient by reputable overnight courier service (charges prepaid) or (iv) four business days after having been mailed to the
recipient by certified or registered mail, return receipt requested and postage prepaid. Such notices, demands and other communications shall be sent to the Warrantholder and to the Company at the
respective addresses and transmission numbers indicated on the signature page hereof, or to such other address or to the attention of such other person as the recipient party has specified by prior
written notice to the sending party. 

        (f)    Binding Effect on Successors.    This Warrant and the terms hereof shall be binding upon the Company's
successors and assigns. All covenants and agreements contained herein by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the
parties hereto. 

        (g)    Lost Warrants or Stock Certificates.    The Company covenants to the holder hereof that upon receipt of
evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant or any stock certificate issued upon exercise hereof or in replacement thereafter and, in
the case of any such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the Company and without requiring any bond, or in the case of any such mutilation upon
surrender and cancellation of such Warrant or stock certificate, the Company will make and deliver a replacement Warrant or stock certificate, of like tenor, in lieu of the lost, stolen, destroyed or
mutilated Warrant or stock certificate. 

        (h)    Registration Agreement.    Upon execution of the First Amendment To Second Amended And Restated Investor Rights
Agreement, the Warrantholder shall be entitled to certain rights set forth in that certain Investors' Rights Agreement (as the same may be amended from time to time, the "IRA") in effect as of Grant
Date among the Company and the parties thereto including the investors listed on any one or more Schedules thereto, on the terms and conditions set forth therein, as if such terms and conditions were
set forth in this Warrant. A copy of said IRA has been provided to the Warrantholder. 

        (i)    Lock-up.    Warrantholder agrees, in connection with the initial underwritten public offering of
the Company's securities pursuant to a registration statement under the Act, (i) not to sell, make short sale of, loan, grant any options for the purchase of, or otherwise dispose of any shares
of Common Stock held by Warrantholder without the prior written consent of the Company or the underwriters managing such initial underwritten public offering of the Company's securities for a period
of 180 days from the effective date of such registration, and (ii) to execute any agreement reflecting clause (i) above as may be requested by the Company or the managing
underwriters at the time of such offering. 

        (j)    Descriptive Headings.    The descriptive headings of the several paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. 

        (k)    Governing Law.    THIS WARRANT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE
PARTIES SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF DELAWARE. 

9

 

 SIGNATURE PAGE FOLLOWS:  

In Witness Whereof, this Warrant to purchase Preferred Stock has been duly executed as of the Grant Date hereinabove set forth.

							
	Issued By:	 	Accepted By:
	A123 Systems, Inc.	 	Heller Financial Leasing, Inc.
	By:	 	/s/ Michael Rubino

 	 	By:	 	/s/ Mark King

 
	Title:	 	VP Finance, CFO

 	 	Title:	 	Sr. Vice President

 
	 	 	Address for Notices: One Kingsbury Avenue

Watertown, MA 02472	 	 	 	Address for Notices:

500 West Monroe

Chicago, IL 60661

Attention: Portfolio Management,
	 	 	Fax:	 	 	 	GE Technology Lending

Fax: 312-441-7715

10

 
 EXHIBIT A  

Notice of Exercise  

	To:
	A123 Systems, Inc. ("Company")

One Kingsbury Avenue, Watertown, MA 02472

Attention: Chief Financial Officer

        [1.    The
undersigned hereby elects to
purchase                                    shares of Series
[            ] Convertible Preferred Stock of Company
pursuant to the terms of the attached Warrants, and tenders herewith payment of the purchase price of such shares in full.] 

        [1.    The
undersigned hereby elects to
purchase                                    shares of Series
[            ] Convertible Preferred Stock of Company
pursuant to a non-cash exercise of the Warrant as provided in Section 2.2 of the Warrant.] 

        2.     Check
here if applicable:                        The undersigned confirms that this exercise is made in connection with the occurrence
of a public offering, sale or merger of
the Company, and the undersigned further elects to condition this exercise of the Warrant upon the consummation of said public offering, sale or merger of the Company. This exercise shall not be
deemed to be effective until the consummation of such transaction. In the event that transaction is not consummated within 45 days of the targeted date of the transaction, the undersigned will
advise Company whether or not this exercise should be deemed rescinded. 

        2.     Please
issue a certificate or certificates representing said shares in the name of the undersigned or in such other name or names as are specified below: 

Heller
Financial Leasing, Inc.

500 West Monroe

Chicago, IL 60661 

        3.     The
undersigned represents that the aforesaid shares are being acquired for the account of the undersigned for investment and not with a view to, or for resale in
connection with, the distribution thereof and that the undersigned has no present intention of distributing such shares. 

					
	
	 	Heller Financial Leasing, Inc.
	
	 	 By:
	 	 
	
	 	 	 	

(Signature)
	
	 	 Its:
	 	 
	 	 	 	 	

 
	
	 	Date:	 	 
	 	 	 	 	

 

11

 
EXHIBIT
B

CAPITALIZATION SCHEDULE TABLE

A123 Systems, Inc. 

														
	 
	 	 
	 	 
	 	Number of Shares Reserved for Issuance Upon 	 
	Classes of Capital Stock 	 	Number of

Shares

Authorized 	 	Number of

Shares Issued

and Outstanding 	 	Exercise of Options,

Warrants, Other

Rights Agreements 	 	Conversion of

Convertible

Securities 	 
	 Common Stock
	 	 	31,000,000	 	 	5,784,750	 	 	2,215,250	 	 	 	 
	 Series A-l Preferred Stock
	 	 	2,925,000	 	 	2,925,000	 	 	 	 	 	 	 
	 Series A Preferred Stock
	 	 	8,322,500	 	 	8,300,000	 	 	22,500	 	 	 	 
	 Series B Preferred Stock
	 	 	9,691,116	 	 	9,623,750	 	 	67,366	 	 	 	 
	 Total Preferred Stock
	 	 	20,938,616	 	 	20,848,750	 	 	89,866	 	 	 	 

Total
Fully Diluted Outstanding Common Stock: 28,938,616 shares 

As
of the Grant Date and immediately thereafter, the authorized capital stock of the company shall be set forth in the above table. 

Pre-emptive
Rights and Rights of First Refusal With Respect to Company Securities under: 

	1.
	Stock
Purchase Agreement(s): None

	2.
	Stockholder
Agreement(s): Pursuant to the Company's investor's rights agreement, holders of the Company's preferred stock have the right to participate in
certain sales by the company of securities, including future equity financings. 

12

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  Exhibit 10.23    
    

 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUED UPON ITS

EXERCISE ARE SUBJECT TO THE RESTRICTIONS ON

TRANSFER SET FORTH IN SECTION 5 OF THIS WARRANT  

			
	Date of Issuance: February 8, 2008	 	Number of Shares: 45,000

(subject to adjustment)
	 	 	 
	Original Issue Date (as defined in subsection 2(a)): February 8, 2008	 	 

 
 

A123 SYSTEMS, INC.    
    
    COMMON STOCK PURCHASE WARRANT    
    
    (Void after February 8, 2013)    

        A123
Systems, Inc., a Delaware corporation (the "Company"), for value received, hereby certifies that Skadden, Arps, Slate, Meagher &
Flom LLP, or its registered assigns (the "Registered Holder"), is entitled, subject to the terms and conditions set forth below, to purchase from the Company, at any time or from time to time
on or after the date of issuance and on or before 5:00 p.m. (Boston time) on February 8, 2013, 45,000 shares of Common Stock, $0.001 par value per share, of the Company ("Common Stock"),
at a purchase price of $8.15 per share. The shares purchasable upon exercise of this Warrant, and the purchase price per share, each as adjusted from time to time pursuant to the provisions of this
Warrant, are hereinafter referred to as the "Warrant Shares" and the "Purchase Price," respectively. 

        1.    Exercise.    

        (a)    Exercise for Cash.    The Registered Holder may, at its option, elect to exercise this Warrant, in whole or in
part and at any time or from time to time, by surrendering this Warrant, with the purchase form appended hereto as Exhibit I duly executed by or
on behalf of the Registered Holder, at the principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in full, in lawful money of the
United States, of the Purchase Price payable in respect of the number of Warrant Shares purchased upon such exercise. 

        (b)    Cashless Exercise.    

        (i)    The
Registered Holder may, at its option, elect to exercise this Warrant, in whole or in part and at any time or from time to time, on a cashless basis, by surrendering
this Warrant, with the purchase form appended hereto as Exhibit I duly executed by or on behalf of the Registered Holder, at the principal office of the Company, or at such other office or
agency as the Company may designate, by canceling a portion of this Warrant in payment of the Purchase Price payable in respect of the number of Warrant Shares purchased upon such exercise. In the
event of an exercise pursuant to this subsection 1(b), the number of Warrant 

 

Shares
issued to the Registered Holder shall be determined according to the following formula: 

				
	 	X = Y(A-B)

A    	 	 
	

 	

Where: X =	

 	

the number of Warrant Shares that shall be issued to the Registered Holder;
	
 	

Y =	
 	

the number of Warrant Shares for which this Warrant is being exercised (which shall include both the number of Warrant Shares issued to the Registered Holder and the number of Warrant Shares subject to the portion of the Warrant being cancelled in
payment of the Purchase Price);
	
 	

A =	
 	

the Fair Market Value (as defined below) of one share of Common Stock; and
	
 	

B =	
 	

the Purchase Price then in effect.

        (ii)   The
Fair Market Value per share of Common Stock shall be determined as follows: 

        (1)   If
the Common Stock is listed on a national securities exchange, the Nasdaq National Market or another nationally recognized trading system as of the Exercise Date, the
Fair Market Value per share of Common Stock shall be deemed to be the average of the high and low reported sale prices per share of Common Stock thereon on the trading day immediately preceding the
Exercise Date (provided that if no such price is reported on such day, the Fair Market Value per share of Common Stock shall be determined pursuant to
clause (2)). 

        (2)   If
the Common Stock is not listed on a national securities exchange, the Nasdaq National Market or another nationally recognized trading system as of the Exercise Date,
the Fair Market Value per share of Common Stock shall be deemed to be the amount most recently determined by the Board of Directors of the Company (the "Board") to represent the fair market value per
share of the Common Stock (including without limitation a determination for purposes of granting Common Stock options or issuing Common Stock under any plan, agreement or arrangement with employees of
the Company); and, upon request of the Registered Holder, the Board (or a representative thereof) shall, as promptly as reasonably practicable but in any event not later than 10 business days after
such request, notify the Registered Holder of the Fair Market Value per share of Common Stock and furnish the Registered Holder with reasonable documentation of the Board's determination of such Fair
Market Value. Notwithstanding the foregoing, if the Board has not made such a determination within the three-month period prior to the Exercise Date, then (A) the Board shall make, and shall
provide or cause to be provided to the Registered Holder notice of, a determination of the Fair Market Value per share of the Common Stock within 20 business days of a request by the Registered Holder
that it do so, and (B) the exercise of this Warrant pursuant to this subsection l(b) shall be delayed until such determination is made and notice thereof is provided to the Registered
Holder. 

        (c)    Exercise Date.    Each exercise of this Warrant shall be deemed to have been effected immediately prior to the
close of business on the day on which this Warrant shall have been surrendered to the Company as provided in subsection 1(a) or 1(b) above (the "Exercise Date"). At such time, the person or
persons in whose name or names any certificates for Warrant Shares shall be issuable upon such exercise as provided in subsection 1(d) below shall be deemed to have become the holder or holders
of record of the Warrant Shares represented by such certificates. 

2

 

        (d)    Issuance of Certificates.    As soon as practicable after the exercise of this Warrant in whole or in part, and
in any event within 10 business days thereafter, the Company, at its expense, will cause to be issued in the name of, and delivered to, the Registered Holder, or as the Registered Holder (upon payment
by the Registered Holder of any applicable transfer taxes) may direct: 

        (i)    a
certificate or certificates for the number of full Warrant Shares to which the Registered Holder shall be entitled upon such exercise plus, in lieu of any fractional
share to which the Registered Holder would otherwise be entitled, cash in an amount determined pursuant to Section 3 hereof; and 

        (ii)   in
case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the
number of Warrant Shares equal (without giving effect to any adjustment therein) to the number of such shares called for on the face of this Warrant minus the number of Warrant Shares for which this
Warrant was so exercised (which, in the case of an exercise pursuant to subsection 1(b), shall include both the number of Warrant Shares issued to the Registered Holder pursuant to such partial
exercise and the number of Warrant Shares subject to the portion of the Warrant being cancelled in payment of the Purchase Price). 

        2.    Adjustments.    

        (a)    Adjustment for Stock Splits and Combinations.    If the Company shall at any time or from time to time after
the date on which this Warrant was first issued (or, if this Warrant was issued upon partial exercise of, or in replacement of, another warrant of like tenor, then the date on which such original
warrant was first issued) (either such date being referred to as the "Original Issue Date") effect a subdivision of the outstanding Common Stock, the Purchase Price then in effect immediately before
that subdivision shall be proportionately decreased. If the Company shall at any time or from time to time after the Original Issue Date combine the outstanding shares of Common Stock, the Purchase
Price then in effect immediately before the combination shall be proportionately increased. Any adjustment under this paragraph shall become effective at the close of business on the date the
subdivision or combination becomes effective. 

        (b)    Adjustment for Certain Dividends and Distributions.    In the event the Company at any time, or from time to
time after the Original Issue Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in
additional shares of Common Stock, then and in each such event the Purchase Price then in effect immediately before such event shall be decreased as of the time of such issuance or, in the event such
a record date shall have been fixed, as of the close of business on such record date, by multiplying the Purchase Price then in effect by a fraction: 

        (1)   the
numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business
on such record date, and 

        (2)   the
denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution; 

PROVIDED, HOWEVER, that if such record date shall have been fixed and such dividend is not fully paid or
if such distribution is not fully made on the date fixed therefor, the Purchase Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Purchase Price
shall be adjusted pursuant to this paragraph as of the time of actual payment of such dividends or distributions. 

3

 

        (c)    Adjustment in Number of Warrant Shares.    When any adjustment is required to be made in the Purchase Price
pursuant to subsections 2(a) or 2(b), the number of Warrant Shares purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal
to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Purchase Price in effect immediately prior to such adjustment, by
(ii) the Purchase Price in effect immediately after such adjustment. 

        (d)    Adjustments for Other Dividends and Distributions.    In the event the Company at any time or from time to time
after the Original Issue Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of
the Company (other than shares of Common Stock) or in cash or other property (other than regular cash dividends paid out of earnings or earned surplus, determined in accordance with generally accepted
accounting principles), then and in each such event provision shall be made so that the Registered Holder shall receive upon exercise hereof, in addition to the number of shares of Common Stock
issuable hereunder, the kind and amount of securities of the Company, cash or other property which the Registered Holder would have been entitled to receive had this Warrant been exercised on the date
of such event and had the Registered Holder thereafter, during the period from the date of such event to and including the Exercise Date, retained any such securities receivable during such period,
giving application to all adjustments called for during such period under this Section 2 with respect to the rights of the Registered Holder. 

        (e)    Adjustment for Reorganization.    If there shall occur any reorganization, recapitalization, reclassification,
consolidation or merger involving the Company in which the Common Stock is converted into or exchanged for securities, cash or other property (other than a transaction covered by
subsections 2(a), 2(b) or 2(d)) (collectively, a "Reorganization"), then, following such Reorganization, the Registered Holder shall receive upon exercise hereof the kind and amount of
securities, cash or other property which the Registered Holder would have been entitled to receive pursuant to such Reorganization if such exercise had taken place immediately prior to such
Reorganization. In any such case, appropriate adjustment (as determined in good faith by the Board) shall be made in the application of the provisions set forth herein with respect to the rights and
interests thereafter of the Registered Holder, to the end that the provisions set forth in this Section 2 (including provisions with respect to changes in and other adjustments of the Purchase
Price) shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities, cash or other property thereafter deliverable upon the exercise of this Warrant. 

        (f)    Certificate as to Adjustments.    Upon the occurrence of each adjustment or readjustment of the Purchase Price
pursuant to this Section 2, the Company at its expense shall, as promptly as reasonably practicable but in any event not later than 10 business days thereafter, compute such adjustment or
readjustment in accordance with the terms hereof and furnish to the Registered Holder a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or
other property for which this Warrant shall be exercisable and the Purchase Price) and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, as promptly
as reasonably practicable after the written request at any time of the Registered Holder (but in any event not later than 10 business days thereafter), furnish or cause to be furnished to the
Registered Holder a certificate setting forth (i) the Purchase Price then in effect and (ii) the number of shares of Common Stock and the amount, if any, of other securities, cash or
property which then would be received upon the exercise of this Warrant. 

        3.    Fractional Shares.    The Company shall not be required upon the exercise of this Warrant to issue any
fractional shares, but shall pay the value thereof to the Registered Holder in cash on the basis of the Fair Market Value per share of Common Stock, as determined pursuant to
subsection 1(b)(ii) above. 

4

 

        4.    Investment Representations.    The initial Registered Holder represents and warrants to the Company as follows: 

        (a)    Investment.    It is acquiring the Warrant, and (if and when it exercises this Warrant) it will acquire the
Warrant Shares, for its own account for investment and not with a view to, or for sale in connection with, any distribution thereof, nor with any present intention of distributing or selling the same;
and the
Registered Holder has no present or contemplated agreement, undertaking, arrangement, obligation, indebtedness or commitment providing for the disposition thereof. 

        (b)    Accredited Investor.    The Registered Holder is an "accredited investor" as defined in Rule 501(a)
under the Securities Act of 1933, as amended (the "Act"). 

        (c)    Experience.    The Registered Holder has made such inquiry concerning the Company and its business and
personnel as it has deemed appropriate; and the Registered Holder has sufficient knowledge and experience in finance and business that it is capable of evaluating the risks and merits of its
investment in the Company. 

        5.    Transfers, etc.    

        (a)    Restrictions On Transfer.    

        (i)    This
Warrant may not be assigned or delegated in any manner by the Registered Holder or any assignee thereof without the prior written consent of the Company; provided
however, that this Warrant may be assigned to an Affiliate of the Registered Holder without the prior written consent of the Company. For purposes hereof, "Affiliate" shall mean (a) any
individual, company or other entity that directly or through one or more intermediaries controls, is controlled by or is under common control by the Registered Holder or (b) any individual,
company or other entity who is a general partner, member, managing director, manager, officer, director or principal of the Registered Holder or any company that, directly or indirectly, owns or
controls the Registered Holder. As used in this paragraph, the term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of an individual, company or other entity, whether through ownership of voting securities, by contract or otherwise. 

        (ii)   The
Registered Holder shall not transfer any Warrant Shares, or any interest therein, to any person or entity that is a competitor of the Company, as determined by the
Board of Directors of the Company in its reasonable discretion, unless such transfer is made in connection with the sale of all or substantially all of the capital stock, assets or business of the
Company, by merger, consolidation, sale of assets or otherwise. 

        (iii)  This
Warrant and the Warrant Shares shall not be sold or transferred unless either (i) they first shall have been registered under the Act, or (ii) the
Company first shall have been furnished with an opinion of legal counsel, reasonably satisfactory to the Company, to the effect that such sale or transfer is exempt from the registration requirements
of the Act. Notwithstanding the foregoing, no registration or opinion of counsel shall be required for (i) a transfer by a Registered Holder which is an entity to a wholly owned subsidiary of
such entity, a transfer by a Registered Holder which is a partnership to a
partner of such partnership or a retired partner of such partnership or to the estate of any such partner or retired partner, or a transfer by a Registered Holder which is a limited liability company
to a member of such limited liability company or a retired member or to the estate of any such member or retired member, provided that the transferee in
each case agrees in writing to be subject to the terms of this Section 5, or (ii) a transfer made in accordance with Rule 144 under the Act. 

5

 

        (b)    Right of First Refusal.    

        (i)    If
the Registered Holder proposes to sell, assign, transfer, pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively, "transfer") any
Warrant Shares, then the Registered Holder shall first give written notice of the proposed transfer (the "Transfer Notice") to the Company. The Transfer Notice shall name the proposed transferee and
state the number of such Warrant Shares the Registered Holder proposes to transfer (the "Offered Shares"), the price per share and all other material terms and conditions of the transfer. For
30 days following its receipt of such Transfer Notice, the Company shall have the option to purchase all (but not less than all) of the Offered Shares at the price and upon the terms set forth
in the Transfer Notice. In the event the Company elects to purchase all of the Offered Shares (the Offered Shares to be purchased by the Company hereunder are referred to as the "Purchased Shares"),
it shall give written notice of such election to the Registered Holder within such 30-day period. Within 10 days after his receipt of such notice, the Registered Holder shall tender
to the Company at its principal offices the certificate or certificates representing the Purchased Shares, duly endorsed in blank by the Registered Holder or with duly endorsed stock powers attached
thereto, all in a form suitable for transfer of the Purchased Shares to the Company. Promptly following receipt of such certificate or certificates, the Company shall deliver or mail to the Registered
Holder a check in payment of the purchase price for the Purchased Shares; provided that if the terms of payment set forth in the Transfer Notice were other than cash against delivery, the Company may
pay for the Purchased Shares on the same terms and conditions as were set forth in the Transfer Notice. 

        (ii)   If
the Company does not elect to acquire all of the Offered Shares, the Registered Holder may, within the 30-day period following the expiration of the
option granted to the Company under paragraph (i) above, transfer the Offered Shares to the proposed transferee, provided that such transfer shall not be on terms and conditions more favorable
to the transferee than those contained in the Transfer Notice. Notwithstanding any of the above, all Offered Shares transferred to a third party pursuant to this Section 5(b) shall remain
subject to the right of first refusal and transfer restrictions set forth in this Section 5(b) and such transferee shall, as a condition to such transfer, deliver to the Company a written
instrument confirming that such transferee shall be bound by all of the terms and conditions of this Section 5(b). 

        (iii)  After
the time at which the Purchased Shares are required to be delivered to the Company for transfer to the Company pursuant to paragraph (i) above, the
Company shall not pay any dividend to the Registered Holder on account of such Purchased Shares or permit the Registered Holder to exercise any of the privileges or rights of a stockholder with
respect to such Purchased Shares, but shall, in so far as permitted by law, treat the Company as the owner of such Purchased Shares. 

        (iv)  This
Section 5(b) shall not apply to (i) any transfer pursuant to an effective registration statement filed by the Company under the Securities Act of
1933, as amended (the "Securities Act"); (ii) the sale of all or substantially all of the shares of capital stock of the Company (including pursuant to a merger or consolidation) or
(iii) any transfers to Affiliates. This Section 5(b) shall terminate upon the earlier of (i) the closing of the sale of shares of Common Stock in an underwritten public offering
pursuant to an effective registration statement filed by the Company under the Securities Act or (ii) an acquisition of the Company. 

6

 

        (c)    Legends, etc.    

        (i)    Each
certificate representing Warrant Shares shall bear legends substantially in the following form: 

"The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended, and may not be offered, sold or otherwise transferred, pledged or hypothecated
unless and until such securities are registered under such Act or an opinion of counsel satisfactory to the Company is obtained to the effect that such registration is not required. 

The
shares represented by this certificate are subject to a right of first refusal in favor of the Company, as provided in a certain subscription agreement with the Company." 

        (ii)   The
foregoing legends shall be removed from the certificates representing any Warrant Shares, at the request of the holder thereof, at such time as they become eligible
for resale pursuant to Rule 144(k) under the Act. The second legend above shall be removed from the certificates representing any Warrant Shares, at the request of the holder thereof, at such
time as the Company's right of first refusal terminates pursuant to paragraph (iv) of Section 5(b). 

        (iii)  The
Company will maintain a register containing the name and address of the Registered Holder of this Warrant. The Registered Holder may change its address as shown on
the warrant register by written notice to the Company requesting such change. 

        (iv)  The
Company shall not be required (i) to transfer on its books the Warrant or any of the Warrant Shares which shall have been sold or transferred in violation of
any of the provisions set forth in this Section 5, or (ii) to treat as owner of such Warrant or Warrant Shares or to pay dividends to any transferee to whom any such Warrant or Warrant
Shares shall have been so sold or transferred. 

        (v)   Subject
to the provisions of Section 5 hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant with a
properly executed assignment (in the form of Exhibit II hereto) at the principal office of the Company (or, if another office or agency has been
designated by the Company for such purpose, then at such other office or agency). 

        6.    No Impairment.    The Company will not, by amendment of its charter 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 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 against impairment. 

        7.    Notices of Record Date, etc.    In the event: 

        (a)   the
Company shall take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the
purpose of entitling or enabling them to receive any dividend or other distribution, or to receive 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 

        (b)   of
any capital reorganization of the Company, any reclassification of the Common Stock of the Company, any consolidation or merger of the Company with or into another
corporation 

7

 

(other
than a consolidation or merger in which the Company is the surviving entity and its Common Stock is not converted into or exchanged for any other securities or property), or any transfer of all
or substantially all of the assets of the Company; or 

        (c)   of
the voluntary or involuntary dissolution, liquidation or winding-up of the Company, 

then,
and in each such case, the Company will send or cause to be sent to the Registered Holder a notice specifying, as the case may be, (i) the record date for such dividend, distribution or
right, and the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer,
dissolution, liquidation or winding-up 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 other stock or securities at the
time deliverable 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, transfer, dissolution, liquidation or winding-up. Such notice shall be sent at least 10 business days prior to the record date
or effective date for the event specified in such notice. 

        8.    Reservation of Stock.    The Company will at all times reserve and keep available, solely for issuance and
delivery upon the exercise of this Warrant, such number of Warrant Shares and other securities, cash and/or property, as from time to time shall be issuable upon the exercise of this Warrant. 

        9.    Exchange or Replacement of Warrants.    

        (a)   Upon
the surrender by the Registered Holder, properly endorsed, to the Company at the principal office of the Company, the Company will, subject to the provisions of
Section 5 hereof, issue and deliver to or upon the order of the Registered Holder, at the Company's expense, a new Warrant or Warrants of like tenor, in the name of the Registered Holder or as
the Registered Holder (upon payment by the Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of shares of Common
Stock (or other securities, cash and/or property) then issuable upon exercise of this Warrant. 

        (b)   Upon
receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or
destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor. 

        10.    Agreement in Connection with Public Offering.    The Registered Holder agrees, in connection with the initial
underwritten public offering of the Company's securities pursuant to a registration statement under the Act, (i) not to sell, make short sale of, loan, grant any options for the purchase of, or
otherwise dispose of any shares of Common Stock held by the Registered Holder (other than any shares included in the offering) without the prior written consent of the Company or the underwriters
managing such initial underwritten public offering of the Company's securities for a period of 180 days from the effective date of such registration statement, and (ii) to execute any
agreement reflecting clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering. 

        11.    Notices.    All notices and other communications from the Company to the Registered Holder in connection
herewith shall be mailed by certified or registered mail, postage prepaid, or sent via a reputable nationwide overnight courier service guaranteeing next business day delivery, to the address last
furnished to the Company in writing by the Registered Holder. All notices and other communications from the Registered Holder to the Company in connection herewith shall be mailed by certified or
registered mail, postage prepaid, or sent via a reputable nationwide overnight courier service guaranteeing next business day delivery, to the Company at its principal office set forth below. 

8

 

If
the Company should at any time change the location of its principal office to a place other than as set forth below, it shall give prompt written notice to the Registered Holder and thereafter all
references in this Warrant to the location of its principal office at the particular time shall be as so specified in such notice. All such notices and communications shall be deemed delivered
(i) two business days after being sent by certified or registered mail, return receipt requested, postage prepaid, or (ii) one business day after being sent via a reputable nationwide
overnight courier service guaranteeing next business day delivery. 

        12.    No Rights as Stockholder.    Until the exercise of this Warrant, the Registered Holder shall not have or
exercise any rights by virtue hereof as a stockholder of the Company. Notwithstanding the foregoing, in the event (i) the Company effects a split of the Common Stock by means of a stock
dividend and the Purchase Price of and the number of Warrant Shares are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), and
(ii) the Registered Holder exercises this Warrant between the record date and the distribution date for such stock dividend, the Registered Holder shall be entitled to receive, on the
distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such exercise, notwithstanding the fact that such shares were not outstanding as of the close of business
on the record date for such stock dividend. 

        13.    Amendment or Waiver.    Any term of this Warrant may be amended or waived only by an instrument in writing
signed by the party against which enforcement of the change or waiver is sought. No waivers of any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to be, or
construed as, a further or continuing waiver of any such term, condition or provision. 

        14.    Section Headings.    The section headings in this Warrant are for the convenience of the parties and in no way
alter, modify, amend, limit or restrict the contractual obligations of the parties. 

        15.    Governing Law.    This Warrant will be governed by and construed in accordance with the internal laws of the
Commonwealth of Massachusetts (without reference to the conflicts of law provisions thereof). 

        16.    Facsimile Signatures.    This Warrant may be executed by facsimile signature. 

9

 

  
        EXECUTED as of the Date of Issuance indicated above. 

					
	 	 	A123 Systems, Inc.
	

 	
 	

By:	
 	

/s/ Michael Rubino

	 	 	Name:	 	Michael Rubino
	 	 	Title:	 	CFO, VP Finance & Adm.
	

ATTEST:	
 	

 	
 	

 
	

/s/ Eric Pyenson

	
 	

 	
 	

 

10

  EXHIBIT I  

 PURCHASE FORM  

							
	To:	 	

	 	Dated:	 	

        The
undersigned, pursuant to the provisions set forth in the attached Warrant (No.        ), hereby elects to purchase (check applicable
box): 

        o        shares
of the Common Stock of A123 Systems, Inc. covered by such Warrant; or 

        o    the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless
exercise procedure set forth in subsection 1(b). 

        The undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant. Such payment takes the form
of (check applicable box or boxes): 

	o
	$            in
lawful money of the United States; and/or

	o
	the
cancellation of such portion of the attached Warrant as is exercisable for a total of            
Warrant Shares (using a Fair Market Value of $            per share for purposes of this calculation) ; and/or

	o
	the
cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in
subsection 1(b), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 1(b). 

					
	 	 	Signature:	 	

	

 	
 	

Address:	
 	

	

 	
 	

 	
 	

  EXHIBIT II  

 ASSIGNMENT FORM  

        FOR
VALUE RECEIVED,                                    hereby sells,
assigns and transfers all of the rights of the undersigned under the attached Warrant (No.        ) with respect to the number of
shares of Common Stock of A123 Systems, Inc. covered thereby set forth below, unto: 

					
	Name of Assignee

 
	 	Address

 
	 	No. of Shares

 

	 
	 	 	 	 
	
	 	 	 	 
	
	 	 	 	 

 

							
	Dated:	 	

	 	Signature:	 	

	

Signature Guaranteed:	
 	

 	
 	

 
	

By:	
 	

	
 	

 	
 	

 

        The
signature should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature
guarantee medallion program) pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. 

QuickLinks

Exhibit 10.23

A123 SYSTEMS, INC. COMMON STOCK PURCHASE WARRANT (Void after February 8, 2013)

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