Exhibit 10.1
CHANGE IN TERMS AGREEMENT
Principal
$2,000,000.00 | Loan Date
11-09-2010 | Maturity
12-01-2011 | Loan No.
67777 | Call / Coll | Account | Officer
JMW | Initials |
References in the boxes above are for Lender’s use only and do not limit the applicability of the documents to any particular loan or item. Any items above containing “***” has been omitted due to text length limitations. |
| Borrower: | American Power Group, Inc.
2503 East Poplar
Algona, IA 50511 | Lender: | Iowa State Bank
Main Office
5 E. Call St.
Algona IA, 50511 |
| |
| Principal Amount: $2,000,000.00 | Date of Agreement: December 19, 2011 |
DESCRIPTION OF EXISTING INDEBTEDNESS.Promissory Notedated November 9, 2010,inthe original loan amountof$2,000,000.00.
DESCRIPTION OFCOLLATERAL. This noteissecuredbySecurity Agreements dated 03-04-2010, 1-4-2010,10-21-2009, 9-21-2009, 9-9-2009, 11-9-2010 & Guaranty from GMTI (2,000,000 shares of GMTI) & $300,000 CD).
DESCRIPTION OF CHANGEINTERMS. Lenderhereby extends maturity datefrom December 1,2011 to April 1, 2012.
The Note will requiremonthly interestpaymentsthatwill commence on 01/01/12 & continue until maturity.
This extension will require accrued interest totaling $11,947.69 to be paid current as of 12-19-11.
All unpaid principal and accrued interest will be due on April 1, 2012.
All othertermstoremain thesame.
CONTINUING VALIDITY. Exceptas expressly changed by this Agreement, the terms of the original obligationorobligations,including all agreements evidenced or securing the obligation(s), remain unchangedandin full force and effect. Consent byLenderto this AgreementdoesnotwaiveLender's right to strictperformanceof the obligation(s) as changed, nor obligateLendertomakeany future changeinterms. Nothingin thisAgreement will constituteasatisfaction oftheobligation(s). Itisthe intention of Lender toretain asliable parties allmakersand endorsers oftheoriginal obligation(s),includingaccommodation parties, unless a party is expressly releasedby Lender inwriting. Anymakeror endorser,includingaccommodationmakers,will notbe releasedby virtue ofthisAgreement. If anypersonwho signedtheoriginal obligationdoesnot signthisAgreement below, then all persons signing below acknowledgethatthis Agreement is given conditionally, based ontherepresentation to Lender that thenon-signingpartyconsents to the changes and provisions ofthisAgreement or otherwise will not bereleasedbyit.This waiver applies notonlyto anyinitialextension, modification or release,butalsotoall such subsequentactions.
PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT. BORROWER AGREES TO THE TERMS OF THE AGREEMENT.
BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THISCHANGEIN TERMS AGREEMENT AND ALL OTHER DOCUMENTS RELATING TO THIS DEBT.
BORROWER:
AMERICAN POWER GROUP, INC.
By: /s/ Charles E. Coppa
Charles E. Coppa, CFO/Treasurer/Secretary of
AmericanPower Group, Inc.
LENDER:
IOWA STATE BANK
X /s/ Jason Wartick
Jason Wartick, Vice President
