Exhibit 10.2
CHANGE IN TERMS AGREEMENT
Principal $250,000.00 | Loan Date 06-14-2011 | Maturity 11-28-2011 | Loan No. 68517 | 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: $250,000.00 | Date of Agreement: December 19, 2011 |
DESCRIPTION OF EXISTING INDEBTEDNESS.Promissory Notedated June 14,2011,inthe original loan amountof$250,000.00, for bridgenoteuntil capitalisraised.
DESCRIPTION OFCOLLATERAL. This noteissecuredbySEE ATTACHMENT "A" forNote68517.
Attachment "A"
For Note #68517
SECURITY AGREEMENT(S) DATED
02-25-2011, 03-04-2010, 1-4-2010, 1-4-2010,10-21-2009, 9-21-2009, 9-9-2009, 11-9-2010
Secured GuarantyfromGreenMan Technologies,Inc.dated 11-9-2010
Assignment of Stock dated11-9-2010 (2,000,000 shares of GMTI)
Assignment of Deposit dated11-9-2010 ($300,000.00C.D.)
Security Agreements(s) dated 7-27-2009, 7-24-2009
Secured Guaranty from M &RDevelopment,Inc.dated 6-14-2011
Real Estate Mortgage dated10-1-2010
Security Agreement dated 10-1-2010
Assignment of Stock dated10-1-2010(1,500,0OO shares of GMTI)
Stock Transfer Agreement dated 6-14-2011 fromGreenMan Technologies,Inc.OfficersandDirectors (500,000 shares of GMTI).
This note is considered cross-collateralized/cross-defaulted with all existing and futurecollateral/notesof American Power Group,Inc.andGreenMan Technologies, Inc.
American Power Group,Inc.
DESCRIPTION OF CHANGEINTERMS. Lenderhereby extends maturity datefrom November 28,2011 to April 1, 2012.
The note will requiremonthly interestpaymentsthatwill commence on 01/01/12 and continue until maturity.
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
