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_______________________________________________
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Item
1.01 Entry Into a Material Definitive Agreement.
On December 22, 2016, American DG Energy (the “Company”) entered into a Revolving Line of Credit Agreement (the “Credit Agreement”) with John N. Hatsopoulos for $3,000,000 and took down $850,000 from that line of credit. Mr. Hatsopoulos is the Co-Chief Executive Officer of the Company and a member of the board of directors. The Credit Agreement bears an interest of 6% per annum and the interest is to be paid on the last day of each quarter of the year and shall be paid in cash. The Credit Agreement matures on May 25, 2018. If the Company defaults
on the Credit Agreement the Company shall pay interest of 12% per annum on the amount the Company has defaulted on.
On December 23, 2016the Company also entered into a Debt Repayment Agreement with Trifon Natsis and Despina Pantopoulou Natsis (the “Debt Holders”). This Debt Repayment Agreement terminates the Company’s debt obligations as set out in an amended note agreement that was executed between the Company and the Debt Holders on August
9, 2016 (the “Note”). Under the Debt Repayment Agreement the Debt Holders agreed to accept payment from the Company of $3,058,943.00 as full repayment of the Note, thus terminating all obligations the Company had under the Note.
The foregoing descriptions are qualified by their entirety by reference to the full text of the Credit Agreement, the Debt Repayment Agreement, and the Note attached hereto respectively as Exhibit 10.1, 10.2, and 10.3 and incorporated herein by reference.
Item
1.02. Termination of a Material Definitive Agreement
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.