Document:

Exhibit
10.1

    

    AMERICAN
DG ENERGY INC.

    

    Audit
Committee Charter

    

    (as
amended October 13, 2009)

    Purpose

     

    The
purpose of the Audit Committee is to assist the Board of Directors in overseeing
the Company’s accounting and financial reporting processes and the audits of the
Company’s financial statements.

     

    Structure and
Membership

     

    Number.  Except
as otherwise permitted by the applicable Nasdaq rules, the Audit Committee shall
consist of at least three members of the Board of Directors.

     

    Independence. 
Except as otherwise permitted by the applicable Nasdaq rules, each member of the
Audit Committee shall be independent as defined by Nasdaq rules, meet the
criteria for independence set forth in Rule 10A-3(b)(l) under the Securities
Exchange Act (subject to the exemptions provided in Rule 10A-3(c) under such
Act), and not have participated in the preparation of the financial statements
of the Company or any current subsidiary of the Company at any time during the
past three years.

     

    Financial
Literacy.  Each member of the Audit Committee must be able to read
and understand fundamental financial statements, including the Company’s balance
sheet, income statement, and cash flow statement, at the time of his or her
appointment to the Audit Committee. In addition, at least one member must have
past employment experience in finance or accounting, requisite professional
certification in accounting, or any other comparable experience or background
which results in the individual’s financial sophistication, including being or
having been a chief executive officer, chief financial officer or other senior
officer with financial oversight responsibilities. Unless otherwise determined
by the Board of Directors (in which case disclosure of such determination shall
be made in the Company’s annual report filed with the Securities and Exchange
Commission), at least one member of the Audit Committee shall be an “audit
committee financial expert” (as defined by applicable Securities and Exchange
Commission rules).

     

    Chair.  Unless
the Board of Directors elects a Chair of the Audit Committee, the Audit
Committee shall elect a Chair by majority vote.

     

    Compensation. 
The compensation of Audit Committee members shall be as determined by the Board
of Directors. No member of the Audit Committee may receive, directly or
indirectly, any consulting, advisory or other compensatory fee from the Company
or any of its subsidiaries, other than fees paid in his or her capacity as a
member of the Board of Directors or a committee of the Board.

     

    Selection and
Removal.  Members of the Audit Committee shall be appointed by the
Board of Directors. The Board of Directors may remove members of the Audit
Committee from such committee, with or without cause.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    Authority and
Responsibilities

     

    General

    The Audit
Committee shall discharge its responsibilities, and shall assess the information
provided by the Company’s management and the independent auditor, in accordance
with its business judgment. Management is responsible for the preparation,
presentation, and integrity of the Company’s financial statements and for the
appropriateness of the accounting principles and reporting policies that are
used by the Company. The independent auditors are responsible for auditing the
Company’s financial statements and for reviewing the Company’s unaudited interim
financial statements. The authority and responsibilities set forth in this
Charter do not reflect or create any duty or obligation of the Audit Committee
to plan or conduct any audit, to determine or certify that the Company’s
financial statements are complete, accurate, fairly presented, or in accordance
with generally accepted accounting principles or applicable law, or to guarantee
the independent auditor’s report.

     

    Oversight
of Independent Auditors

     

    Selection.  The
Audit Committee shall be solely and directly responsible for appointing,
evaluating, retaining and, when necessary, terminating the engagement of the
independent auditor. The Audit Committee may, in its discretion, seek
stockholder ratification of the independent auditor it appoints.

    

    Independence. 
The Audit Committee shall take, or recommend that the full Board of Directors
take, appropriate action to oversee the independence of the independent auditor.
In connection with this responsibility, the Audit Committee shall obtain and
review a formal written statement from the independent auditor describing all
relationships between the auditor and the Company, including the disclosures
required by Independence Standards Board Standard No. 1. The Audit Committee
shall actively engage in dialogue with the auditor concerning any disclosed
relationships or services that might impact the objectivity and independence of
the auditor.

    

    Compensation. 
The Audit Committee shall have sole and direct responsibility for setting the
compensation of the independent auditor. The Audit Committee is empowered,
without further action by the Board of Directors, to cause the Company to pay
the compensation of the independent auditor established by the Audit
Committee.

    

    Preapproval of
Services.  The Audit Committee shall preapprove all audit services
to be provided to the Company, whether provided by the principal auditor or
other firms, and all other services (review, attest and non-audit) to be
provided to the Company by the independent auditor; provided, however, that de
minimis non-audit services may instead be approved in accordance with applicable
Securities and Exchange Commission rules.

    

    Oversight.  The
independent auditor shall report directly to the Audit Committee, and the Audit
Committee shall have sole and direct responsibility for overseeing the work of
the independent auditor, including resolution of disagreements between Company
management and the independent auditor regarding financial reporting. In
connection with its oversight role, the Audit Committee shall, from time to time
as appropriate, receive and consider the reports required to be made by the
independent auditor regarding:

    

    
      	
               
      

            	
              ·

            	
              critical
      accounting policies and practices;

            

    

     

    
      	
               

            	
              ·

            	
              alternative
      treatments within generally accepted accounting principles for policies
      and practices related to material items that have been discussed with
      Company management, including ramifications of the use of such alternative
      disclosures and treatments, and the treatment preferred by the independent
      auditor; and

            

    

     

    
      	
               
      

            	
              ·

            	
              other
      material written communications between the independent auditor and
      Company management.

            

    

     

    
      Audited
Financial Statements

    

     

    Review and
Discussion.  The Audit Committee shall review and discuss with the
Company’s management and independent auditor the Company’s audited financial
statements, including the matters about which Statement on Auditing Standards
No. 61 (Codification of Statements on Auditing Standards, AU §380) requires
discussion.

    

    Recommendation to Board
Regarding Financial Statements.  The Audit Committee shall consider
whether it will recommend to the Board of Directors that the Company’s audited
financial statements be included in the Company’s Annual Report on Form
10-K.

    

    Audit Committee
Report.  The Audit Committee shall prepare an annual committee
report for inclusion where necessary in the proxy statement of the Company
relating to its annual meeting of security holders.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Review of
Other Financial Disclosures

    

    Independent Auditor Review
of Interim Financial Statements.  The Audit Committee shall direct
the independent auditor to use its best efforts to perform all reviews of
interim financial information prior to disclosure by the Company of such
information and to discuss promptly with the Audit Committee and the Chief
Financial Officer any matters identified in connection with the auditor’s review
of interim financial information which are required to be discussed by
applicable auditing standards. The Audit Committee shall direct management to
advise the Audit Committee in the event that the Company proposes to disclose
interim financial information prior to completion of the independent auditor’s
review of interim financial information.

    

    Controls
and Procedures

     

    Oversight.  The
Audit Committee shall coordinate the Board of Directors’ oversight of the
Company’s internal control over financial reporting, disclosure controls and
procedures and code of conduct. The Audit Committee shall receive and review the
reports of the CEO and CFO required by Rule 13a-14 of the Securities Exchange
Act.

     

    Procedures for
Complaints.  The Audit Committee shall establish procedures for (a)
the receipt, retention and treatment of complaints received by the Company
regarding accounting, internal accounting controls or auditing matters and (b)
the confidential, anonymous submission by employees of the Company of concerns
regarding questionable accounting or auditing matters.

     

    Related-Party
Transactions.  The Audit Committee shall review all “related party
transactions” (defined as transactions required to be disclosed pursuant to Item
404 of Regulation S-K promulgated by the Securities and Exchange Commission) on
an ongoing basis, and all such transactions must be approved by the Audit
Committee.

     

    Additional
Powers.  The Audit Committee shall have such other duties as may be
delegated from time to time by the Board of Directors.

     

    Procedures and
Administration

     

    Meetings.  The
Audit Committee shall meet as often as it deems necessary in order to perform
its responsibilities, but at least once each calendar quarter. The Audit
Committee may also act by unanimous written consent in lieu of a meeting. The
Audit Committee shall periodically meet separately with (a) the independent
auditor and (b) Company management. The Audit Committee shall keep such records
of its meetings as it shall deem appropriate.

    

    Subcommittees.  The
Audit Committee may form and delegate authority to one or more subcommittees
(including a subcommittee consisting of a single member), as it deems
appropriate from time to time under the circumstances. Any decision of a
subcommittee to preapprove audit, review, attest or non-audit services shall be
presented to the full Audit Committee at its next scheduled
meeting.

    

    Reports to
Board.  The Audit Committee shall report regularly to the Board
of Directors.

    

    Charter.  At
least annually, the Audit Committee shall review and reassess the adequacy of
this Charter and recommend any proposed changes to the Board of Directors for
approval.

    

    Independent
Advisors.  The Audit Committee is authorized, without further
action by the Board of Directors, to engage such independent legal, accounting
and other advisors as it deems necessary or appropriate to carry out its
responsibilities. Such independent advisors may be the regular advisors to the
Company. The Audit Committee is empowered, without further action by the Board
of Directors, to cause the Company to pay the compensation of such advisors as
established by the Audit Committee.

    

    Investigations.  The
Audit Committee shall have the authority to conduct or authorize investigations
into any matters within the scope of its responsibilities as it shall deem
appropriate, including the authority to request any officer, employee or advisor
of the Company to meet with the Audit Committee or any advisors engaged by the
Audit Committee.

    

    Funding.  The
Audit Committee is empowered, without further action by the Board of Directors,
to cause the Company to pay the ordinary administrative expenses of the Audit
Committee that are necessary or appropriate in carrying out its
duties.

    
      
         

      

      
        3Exhibit
10.3

    

    AMERICAN
DG ENERGY INC.

    

    Nominating
and Governance Committee Charter

    

    The Nominating and Governance Committee
(the “Committee”) of the Board of Directors (the “Board”) of American DG Energy
Inc. (the “Company”) shall consist of a minimum of three (3)
directors.  In the event one or more vacancies on the Committee
temporarily reduce the number of members to two (2), actions taken by the two
members of the Committee will be deemed authorized actions of the
Committee.  Members of the Committee shall be appointed by the Board
and shall serve until the meeting of the Board occurring immediately after the
next following annual meeting of the stockholders, and until their successor are
duly elected and qualified, unless they are earlier removed by the Board acting
in its discretion.

    

    Purpose

     

    The purpose of the Committee shall
be:

     

    
      	
               
      

            	
              (1)

            	
              to
      assist the Board by recommending the composition of the Board and in
      identifying individuals qualified to become Board members, consistent with
      criteria approved by the Board;

            

    

     

    
      	
            	
              (2)

            	
              to
      advise the Board with respect to functions and structures of
      committees;

            

    

     

    
      	
               
      

            	
              (3)

            	
              to
      develop, recommend to the Board and implement corporate governance
      principles applicable to the
Company;

            

    

     

    
      	
               
      

            	
              (4)

            	
              to
      assist the Board in providing for planned succession of senior management
      positions;

            

    

     

    
      	
               
      

            	
              (5)

            	
              to
      develop and monitor a process to assess the effectiveness of the Board and
      to lead the Board in its annual review of the Board’s performance;
      and

            

    

     

    
      	
               
      

            	
              (6)

            	
              to
      develop and propose for consideration by the Board compensation policies
      for the Company’s non-employee directors that enable the Company to retain
      highly qualified individuals for such
positions.

            

    

     

    In
furtherance of this purpose, the Committee shall have the following authority
and responsibilities:

     

    
      	
               
      

            	
              1.

            	
              To
      lead the search for individuals qualified to become members of the Board,
      consistent with criteria approved by the Board and to recommend to the
      Board nominees to be presented for election as directors by shareholders
      at each annual meeting of shareholders.  The Committee shall
      select individuals as director nominees who have the highest personal and
      professional integrity, who shall have demonstrated exceptional ability
      and judgment and who shall be most effective, in conjunction with the
      other nominees to and members of the Board, in collectively serving the
      long-term interests of the
shareholders.

            

    

     

    
      	
               
      

            	
              2.

            	
              To
      review the Board’s committee structure and to recommend to the Board for
      its approval directors to serve as members of each
      committee.  The Committee shall review and recommend committee
      slates annually and shall recommend additional committee members to fill
      vacancies as needed.

            

    

     

    
      	
               
      

            	
              3.

            	
              To
      develop and recommend to the Board for its approval corporate governance
      guidelines.  The Committee shall review the guidelines on an
      annual basis, or more frequently if appropriate, and recommend changes as
      necessary.

            

    

     

    
      	
               
      

            	
              4.

            	
              To
      oversee the development and implementation of senior executive succession
      plans.

            

    

     

    
      	
               
      

            	
              5.

            	
              To
      develop and recommend to the Board for its approval an annual
      self-evaluation of the Board and its committees.  The Committee
      shall oversee the annual self-evaluation.  In addition, the
      Committee shall consider and evaluate other methods of assessing the
      effectiveness of the Board.

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              6.

            	
              To
      review annually the Company’s compensation package for non-employee
      directors to ensure that compensation to such persons is competitive and
      appropriate, and to recommend changes, when appropriate, to the Board for
      approval.

            

    

    

    Subcommittees

     

    The Committee shall have the authority
to delegate any of its responsibilities to subcommittees as the Committee may
deem appropriate in its sole discretion.

     

    Committee Membership
Qualifications

     

    All of the members of the Committee
shall meet the independence requirements of the corporate governance rules of
such national securities exchange on which the shares of Common Stock of the
Company are listed.

     

    Miscellaneous

     

    The Committee shall have the authority
to retain (or terminate) any search firm engaged to assist in identifying
director candidates, and to retain outside counsel and any other advisors as the
Committee may deem appropriate in its sole discretion.  The Committee
shall have sole authority to approve related fees and retention
terms.

    

    The
Committee shall report its actions and recommendations to the Board after each
Committee meeting and shall conduct and present to the Board an annual
performance evaluation of the Committee.  The Committee shall review
at least annually the adequacy of this charter and recommend any proposed
changes to the Board for approval.

     

    Adopted:                      August
31, 2009

    
      
         

      

      
        2

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