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<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:18.0pt;">UNITED STATES </font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:18.0pt;">SECURITIES AND EXCHANGE COMMISSION </font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">Washington, D.C. 20549
</font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:7.5pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">___________________</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:7.5pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:18.0pt;">FORM
8-K </font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:7.5pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">___________________</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:7.5pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:12.0pt;">CURRENT
REPORT </font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:12.0pt;">Pursuant
to Section</font></b><font face="times new roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font><b><font face="times new roman" lang=EN-US style="font-size:12.0pt;">13
OR 15(d) of The </font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:12.0pt;">Securities Exchange Act of 1934 </font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">Date
of Report (Date of earliest event reported):</font></b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">October
6, 2016</font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">___________________</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:18.0pt;">MECHANICAL
TECHNOLOGY, INCORPORATED </font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">(Exact name of registrant as specified
in charter) </font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:7.5pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

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  <td valign=bottom width="30%" style="padding:0in 0in 0in 0in;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" style="font-size:10.0pt;">New York</font></b></p>
  </td>
 <td valign=bottom width="5%" style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:7.5pt;">&nbsp;&nbsp;</font></p>
  </td>
 <td valign=bottom width="30%" style="padding:0in 0in 0in 0in;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" style="font-size:10.0pt;">000-06890</font></b></p>
  </td>
 <td valign=bottom width="5%" style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:7.5pt;">&nbsp;&nbsp;</font></p>
  </td>
 <td valign=bottom width="30%" style="padding:0in 0in 0in 0in;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" style="font-size:10.0pt;">14-1462255</font></b></p>
  </td>
 </tr>
<tr>
  <td valign=top width="30%" style="padding:0in 0in 0in 0in;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" style="font-size:10.0pt;">(State or other jurisdiction</font></b></p>
  <p align=center style="line-height:normal;margin-bottom:.55pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" style="font-size:10.0pt;">of
  incorporation)</font></b></p>
  </td>
 <td valign=bottom width="5%" style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">&nbsp;&nbsp;</font></p>
  </td>
 <td valign=top width="30%" style="padding:0in 0in 0in 0in;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" style="font-size:10.0pt;">(Commission File Number)</font></b></p>
  </td>
 <td valign=bottom width="5%" style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">&nbsp;&nbsp;</font></p>
  </td>
 <td valign=top width="30%" style="padding:0in 0in 0in 0in;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" style="font-size:10.0pt;">(IRS Employer</font></b></p>
  <p align=center style="line-height:normal;margin-bottom:.55pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" style="font-size:10.0pt;">Identification
  No.)</font></b></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">325
  Washington Avenue Extension, Albany, New York 12205</font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">(Address of principal executive offices)
(Zip Code) </font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;text-align:center;">&nbsp;</p>
<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.45pt;text-align:center;">
<b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">(518) 218-2550</font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">(Registrant&#8217;s telephone number,
including area code) </font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">___________________</font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" lang=EN-US style="font-size:7.5pt;">&nbsp;</font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (</font><u><font face="times new roman" lang=EN-US style="font-size:10.0pt;">see</font></u><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;"> </font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;">General Instruction A.2. below): </font></p>

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 <tr>
  <td valign=top width=4% style="padding:3.2pt 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;">
	&#9744;</p>
  </td>
 <td valign=top width=96% style="padding:3.2pt 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;">
	<font face="Times New Roman" style="font-size:10.0pt;">Written
  communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  </font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=4% style="padding:3.2pt 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;">
	&#9744;</p>
  </td>
 <td valign=top width=96% style="padding:3.2pt 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;">
	<font face="Times New Roman" style="font-size:10.0pt;">Soliciting
  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=4% style="padding:3.2pt 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;">
	&#9744;</p>
  </td>
 <td valign=top width=96% style="padding:3.2pt 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;">
	<font face="Times New Roman" style="font-size:10.0pt;">Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b)) </font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=4% style="padding:3.2pt 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;">
	&#9744;</p>
  </td>
 <td valign=top width=96% style="padding:3.2pt 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;">
	<font face="Times New Roman" style="font-size:10.0pt;">Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c)) </font></p>
  </td>
 </tr>
</table></div>

<div style="border:none;border-bottom:solid windowtext 1.5pt;padding:0in 0in 1.0pt 0in;">

<p style="border:none;line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;padding:0in;"><font face="times new roman" lang=EN-US style="font-size:9.0pt;">&nbsp;</font></p>

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<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">Section
1 &#8211; Registrant&#8217;s Business and Operations</font></b></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Item&#160; 1.01 &#160;&#160;&#160; Entry into a Material Definitive Agreement.</font></b></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">The information
provided in Item 3.03 below is hereby incorporated herein by reference.</font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">Section 3 &#8211;
Securities and Trading Markets</font></b></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Item&#160; 3.03 &#160;&#160;&#160; Material Modification to Rights of Security Holders.</font></b></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">On October 6, 2016 (the &#8220;Rights Dividend Declaration Date&#8221;), the Board of
Directors (the &#8220;Board&#8221;) of Mechanical Technology, Incorporated (the &#8220;Company&#8221;)
adopted a Section 382 rights plan (the &#8220;Rights Plan&#8221;) and declared a dividend
distribution of one Right (as defined below) for each outstanding share of
common stock, par value $0.01 per share (the &#8220;Common Stock&#8221;), of the Company to
shareholders of record at the close of business on October 19, 2016.</font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">The Board adopted the Rights Plan in an effort to protect against a
possible limitation on the Company&#8217;s ability to use its net operating loss
carryfowards (&#8220;NOLs&#8221;), which totaled over $51 million as of June 30, 2016.&#160; The
Company may utilize these NOLs in certain circumstances to offset future U.S.
taxable income and reduce its U.S. federal income tax liability, which may
arise even in periods when the Company incurs an accounting loss for reporting
purposes.&#160; The Company&#8217;s ability to use its NOLs, however, could be
substantially limited if an &#8220;ownership change,&#8221; as defined under Section 382 of
the Internal Revenue Code (the &#8220;Code&#8221;), occurred.&#160; In general, an ownership
change would occur if and when the percentage of ownership of Company stock by
one or more &#8220;5-percent shareholders&#8221; (as defined under IRC Section 382) has
increased by more than 50 percent at any time during the prior three years
(calculated on a rolling basis).&#160; These provisions can be triggered not only by
merger and acquisition activity but by normal market trading as well.&#160;&#160; The
Rights Plan is designed to deter trading that would result in an ownership
change that could lead to the loss of the NOLs and a resulting reduction in the
Company&#8217;s value. </font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">The Rights Plan is intended to act as a deterrent to any person
(together with all affiliates and associates of such person) acquiring
&#8220;beneficial ownership&#8221; (as defined in the Rights Plan) of 4.99% or more of the
outstanding shares of Common Stock without the approval of the Board (an
&#8220;Acquiring Person&#8221;).&#160; Shareholders who currently beneficially own 4.99% or more
of the outstanding Common Stock will not be deemed to be an Acquiring Person
unless they acquire one or more additional shares of Common Stock (unless upon
such acquisition they do not beneficially own 4.99% or more of the Common Stock
then outstanding). </font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">The Rights</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; On the Rights Dividend Declaration Date, the Board
authorized the issuance of one right (a &#8220;Right&#8221;) for each outstanding share of
Common Stock to the Company&#8217;s shareholders of record at the close of business
on October 19, 2016, and each share of Common Stock issued thereafter and prior
to the earlier of the Distribution Date (as defined below) and the expiration
of the Rights as set forth below.&#160; Subject to the terms, provisions and
conditions of the Rights Plan, if the Rights become exercisable, each Right
would represent the right to purchase from the Company one share of Common
Stock at a purchase price of $5.00 per share (the &#8220;Purchase Price&#8221;), subject to
adjustment as set forth below.&#160; Prior to exercise, however, a Right does not
give its holder any rights as a shareholder of the Company, including, without
limitation, the right to vote or to receive dividends. </font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Initial Exercisability</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; The Rights are
not exercisable until the earlier of (i) ten days after a public announcement
that a person has become an Acquiring Person or, if earlier, the date a
majority of the Board becomes aware of the existence of an Acquiring Person (a
&#8220;Stock Acquisition Date&#8221;) and (ii) ten business days (or such later date as may
be determined by the Board) after the commencement of, or the first public
announcement of the intent of any person to commence, a tender or exchange
offer by or on behalf of a person that, if completed, would result in such
person becoming an Acquiring Person.&#160; The date that the Rights become
exercisable under the Rights Plan is referred to as the &#8220;Distribution Date.&#8221; </font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Until the Distribution Date, the Common Stock certificates or book
entries in respect of such Common Stock will evidence the Rights.&#160; Any transfer
of the Common Stock prior to the Distribution Date will constitute a transfer
of the associated Rights.&#160; After the Distribution Date, separate Rights
certificates will be issued to record holders of Common Stock as of the close
of business on the Distribution Date, and the Rights may be transferred
separately from the </font><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">underlying shares of the Common
Stock, unless and until the Board has determined to effect an exchange pursuant
to the Rights Plan (as described below).</font></p>
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<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">&#8220;Flip-In&#8221; Event</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; In the event that a person,
other than a person expressly excluded under the Rights Plan, becomes an
Acquiring Person, each holder of a Right, other than Rights that are or, under
certain circumstances, were beneficially owned by the Acquiring Person (which
will thereupon become void), will from and after the Distribution Date have the
right to receive, upon exercise of a Right and payment of the then current
Purchase Price, a number of shares of Common Stock having a market value of two
times the Purchase Price (unless the transaction that gives rise to the adjustment
discussed herein is a transaction discussed under &#8220;Merger, etc.&#8221; immediately
below, in which case only the provisions discussed therein apply). </font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Merger, etc</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; If (i) the Company is acquired in a merger or other
business combination transaction where the Company is not the surviving
corporation, (ii) another entity consolidates with or merges into the Company
and the Company is the surviving corporation, and in connection with such
consolidation or merger all or part of the outstanding shares of Common Stock are
changed into or exchanged for stock or other securities of any other entity,
cash or any other property, or (iii) the Company sells or transfers assets
constituting more than 50% of its assets, cash flow or earning power,</font><font face=Calibri,sans-serif lang=EN-US style="font-size:10.0pt;"> </font><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">each holder of a Right will
from and after the Distribution Date have the right to receive, upon exercise
of a Right and payment of the then current Purchase Price, a number of shares
of common stock of the acquiring entity (or equivalent) having a market value
of two times the Purchase Price.</font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Exempted Persons</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; The Board recognizes that
there may be instances when an acquisition of shares of the Common Stock that
would cause a shareholder to become an Acquiring Person may not adversely
impact in any material respect the time period in which the Company could use
the NOLs or limit or impair the availability to the Company of the NOLs, or is
in the best interests of the Company despite the fact that such acquisition may
have such impact on the Company&#8217;s use of the NOLs.&#160; Accordingly, the Rights
Plan grants discretion to the Board to designate a person as an &#8220;exempt person&#8221;
under such circumstances.&#160; An &#8220;exempt person&#8221; will not become an Acquiring
Person with respect to the transaction for which the exemption was granted.&#160;
Any such exemption may be subject to limitations or conditions (including a
requirement that the requesting person agree that it will not acquire
beneficial ownership of shares of Common Stock in excess of the maximum number
and percentage of shares approved by the Board) as the Board may determine
necessary or desirable to provide for the protection of the NOLs.</font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Redemption</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; At any time before the earlier of a Stock Acquisition
Date or October 19, 2026, the Company may redeem the Rights in whole, but not
in part, at a price of $0.001 per Right (the &#8220;Redemption Price&#8221;), which payment
may be made in cash, shares of Common Stock or any other form of
consideration.&#160; In addition, the Company may redeem the Rights in whole, but
not in part, at the Redemption Price following a Stock Acquisition Date but
prior to an event described under &#8220;Merger, etc.,&#8221; under certain circumstances
as described in the Rights Plan.&#160;&#160; Immediately upon the Board&#8217;s determination
to redeem the Rights, the right to exercise the Rights will terminate, and the
only right of the holders of Rights thereafter will be to receive the
Redemption Price.&#160; </font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Exchange</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; At any time after a person becomes an Acquiring
Person and prior to the acquisition by the Acquiring Person of 50% or more of
the outstanding shares of Common Stock, the Board may exchange the Rights
(other than Rights that have become void), in whole or in part, at an exchange
ratio of one share of Common Stock per Right (subject to adjustment).&#160;
Immediately upon the Board&#8217;s action to exchange any Rights, the right to
exercise such Rights will terminate and the only right of the holders of Rights
will be to receive the number of shares of Common Stock equal to the number of
such Rights held by such holder multiplied by the exchange ratio.&#160; </font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Expiration</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; The Rights will expire on the earliest of the
following:&#160; </font></p>

<ul>
	<li>
	<p style="line-height:normal;margin-bottom:12.0pt;margin-right:0in;margin-top:0in;">
	<font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">the close of business on October 19, 2026;</font></p>
	</li>
	<li>
	<p style="line-height:normal;margin-bottom:12.0pt;margin-right:0in;margin-top:0in;">
	<font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">the redemption of the Rights;</font></p>
	</li>
	<li>
	<p style="line-height:normal;margin-bottom:12.0pt;margin-right:0in;margin-top:0in;">
	<font face="times new roman" lang=EN-US style="font-size:7.0pt;letter-spacing:-.15pt;">&nbsp;</font><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">the exchange of the Rights;</font></p>
	</li>
	<li>
	<p style="line-height:normal;margin-bottom:12.0pt;margin-right:0in;margin-top:0in;">
	<font face="times new roman" lang=EN-US style="font-size:7.0pt;letter-spacing:-.15pt;">&nbsp;</font><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">the close of business on the effective date of the
repeal of Section 382 if the Board determines that the Rights Plan is no longer
necessary or desirable for the preservation of the NOLs; or</font></p></li>
	<li>
	<p style="line-height:normal;margin-bottom:12.0pt;margin-right:0in;margin-top:0in;">
	<font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">the time at which the Board determines that the NOLs are
fully utilized or no longer available under Section 382 or that an ownership
change under Section 382 would not adversely impact in any material respect the
time period in which the Company could use the NOLs, or materially impair the
amount of the NOLs that could be used by the Company in any particular time
period, for applicable tax purposes.</font></p></li>
</ul>


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<p style="line-height:115%;margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face=Calibri,sans-serif lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>


</DIV>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_4"></a><a name="_bclPageBorder4"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Anti-Dilution Provisions</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; The number and
kind of shares covered by each Right, the Purchase Price and the number of
outstanding Rights will be adjusted to prevent dilution that may occur as a
result of certain events, including among others, a share dividend, a share
split or a reclassification or recapitalization of the Common Stock.&#160; The
Redemption Price will be similarly adjusted.&#160; With certain exceptions, no
adjustments to the Purchase Price will be required until cumulative adjustments
amount to at least 1% of the Purchase Price. </font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">No Fractional Shares or Rights</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; The Company is
not required to issue any fractional Rights or any fractional shares of Common
Stock upon exercise of any Rights.&#160; The Company may make a cash payment in lieu
of any fractional Rights or shares of Common Stock.</font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">Amendments</font></i><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">.&#160; Prior to the Distribution Date, the Board may
supplement or amend any provision of the Rights Plan in any respect without the
approval of the holders of the Rights.&#160; From and after the Distribution Date,
no supplement or amendment can adversely affect the interests of the holders of
the Rights. </font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">This summary description of the Rights does not purport to be complete
and is qualified in its entirety by reference to the Rights Plan, which is
attached as Exhibit 4.1 hereto and is incorporated herein by reference.</font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">The Company issued a press release regarding the adoption of the Rights
Plan, which is attached as Exhibit 99.1 hereto and is incorporated herein by
reference.</font></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">Section 9 &#8211; Financial
Statements and Exhibits</font></b></p>

<p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">Item 9.01
Financial Statements and Exhibits.</font></b></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:100%;">
 <tr>
  <td nowrap valign=bottom width=3% style="padding:0in 0in 0in 0in;">
  <p align=center style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" style="font-size:10.0pt;">(d)&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=14% style="padding:0in 0in 0in 0in;">
  <p align=center style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" style="font-size:10.0pt;">Exhibits</font></p>
  </td>
 <td nowrap valign=bottom width=3% style="padding:0in 0in 0in 0in;">
  <p align=center style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=80% style="padding:0in 0in 0in 0in;">
  <p align=center style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="times new roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td nowrap valign=top width=3% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=top width=14% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">Exhibit Number</font></p>
  </td>
 <td nowrap valign=top width=3% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:12.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 <td nowrap valign=top width=80% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">Description</font></p>
  </td>
 </tr>
<tr>
  <td nowrap valign=top width=3% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=top width=14% style="background:silver;padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">4.1</font></p>
  </td>
 <td nowrap valign=top width=3% style="background:silver;padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=80% style="background:silver;padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face style="font-size:10.0pt;">Rights Agreement, dated
  as of October 6, 2016, between Mechanical Technology, Incorporated and
  American Stock Transfer &amp; Trust Company, LLC, as Rights Agent.</font></p>
  </td>
 </tr>
<tr>
  <td nowrap valign=top width=3% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=top width=14% style="background:silver;padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
 <td nowrap valign=top width=3% style="background:silver;padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=80% style="background:silver;padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face style="font-size:10.0pt;">Press Release dated October
  6, 2016.&nbsp;</font></p>
  </td>
 </tr>
</table></div>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">&nbsp;</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">&nbsp;</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;letter-spacing:-.15pt;">&nbsp;</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></b></p>

<div align=center style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;">

<hr align=center noshade size=3 width="100%">

</div>




</div><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_5"></a><a name="_bclPageBorder5"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p align=center style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><u><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">SIGNATURES </font></u></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Pursuant
to the requirement of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<div align=center>

<table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:100%;">
 <tr style="page-break-inside:avoid;">
  <td valign=bottom width=49% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:7.5pt;">&nbsp;</font></p>
  </td>
 <td colspan=3 valign=bottom width=51% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">MECHANICAL
  TECHNOLOGY, INCORPORATED</font></p>
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:7.5pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td valign=bottom width=49% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:12.0pt;"><br>
  </font><font face="times new roman" style="font-size:10.0pt;">Date:
  October 6, 2016</font></p>
  </td>
 <td valign=bottom width=7% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">By:</font><font face="times new roman" style="font-size:7.5pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=4% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=40% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:12.0pt;"><br>
  </font><font face="times new roman" style="font-size:10.0pt;">/s/
  KEVIN G. LYNCH</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td valign=top width=49% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:7.5pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=top width=11% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
 <td valign=top width=40% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">Kevin
  G. Lynch</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td valign=top width=49% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:7.5pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=top width=11% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
 <td valign=top width=40% style="padding:0in 0in 0in 0in;">
  <p style="line-height:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="times new roman" style="font-size:10.0pt;">Chairman
  and Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

</div>

<div align=center style="line-height:normal;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;">

<p style="line-height: normal; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
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[{"type": "8-K", "sequence": "1", "filename": "mkty8k.htm", "secsgml_size_bytes": 46846}]
{"company-data": {"conformed-name": "MECHANICAL TECHNOLOGY INC", "cik": "0000064463", "assigned-sic": "3829", "irs-number": "141462255", "state-of-incorporation": "NY", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-06890", "film-number": "161925617"}, "business-address": {"street1": "325 WASHINGTON AVENUE EXTENSION", "city": "ALBANY", "state": "NY", "zip": "12205", "phone": "518-218-2500"}, "mail-address": {"street1": "325 WASHINGTON AVENUE EXTENSION", "city": "ALBANY", "state": "NY", "zip": "12205"}}
krightsagreement10062016fina.htm - Prepared by EDGARX.com
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
FORM
8-K
___________________
CURRENT
REPORT
Pursuant
to Section
13
OR 15(d) of The
Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
October
6, 2016
___________________
MECHANICAL
TECHNOLOGY, INCORPORATED
(Exact name of registrant as specified
in charter)
New York
000-06890
14-1462255
(State or other jurisdiction
of
  incorporation)
(Commission File Number)
(IRS Employer
Identification
  No.)
325
  Washington Avenue Extension, Albany, New York 12205
(Address of principal executive offices)
(Zip Code)
(518) 218-2550
(Registrant's telephone number,
including area code)
___________________
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (
see
General Instruction A.2. below):
☐
Written
  communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting
  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b))
☐
Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c))
Section
1 – Registrant's Business and Operations
Item  1.01     Entry into a Material Definitive Agreement.
The information
provided in Item 3.03 below is hereby incorporated herein by reference.
Section 3 –
Securities and Trading Markets
Item  3.03     Material Modification to Rights of Security Holders.
On October 6, 2016 (the "Rights Dividend Declaration Date"), the Board of
Directors (the "Board") of Mechanical Technology, Incorporated (the "Company")
adopted a Section 382 rights plan (the "Rights Plan") and declared a dividend
distribution of one Right (as defined below) for each outstanding share of
common stock, par value $0.01 per share (the "Common Stock"), of the Company to
shareholders of record at the close of business on October 19, 2016.
The Board adopted the Rights Plan in an effort to protect against a
possible limitation on the Company's ability to use its net operating loss
carryfowards ("NOLs"), which totaled over $51 million as of June 30, 2016.  The
Company may utilize these NOLs in certain circumstances to offset future U.S.
taxable income and reduce its U.S. federal income tax liability, which may
arise even in periods when the Company incurs an accounting loss for reporting
purposes.  The Company's ability to use its NOLs, however, could be
substantially limited if an "ownership change," as defined under Section 382 of
the Internal Revenue Code (the "Code"), occurred.  In general, an ownership
change would occur if and when the percentage of ownership of Company stock by
one or more "5-percent shareholders" (as defined under IRC Section 382) has
increased by more than 50 percent at any time during the prior three years
(calculated on a rolling basis).  These provisions can be triggered not only by
merger and acquisition activity but by normal market trading as well.   The
Rights Plan is designed to deter trading that would result in an ownership
change that could lead to the loss of the NOLs and a resulting reduction in the
Company's value.
The Rights Plan is intended to act as a deterrent to any person
(together with all affiliates and associates of such person) acquiring
"beneficial ownership" (as defined in the Rights Plan) of 4.99% or more of the
outstanding shares of Common Stock without the approval of the Board (an
"Acquiring Person").  Shareholders who currently beneficially own 4.99% or more
of the outstanding Common Stock will not be deemed to be an Acquiring Person
unless they acquire one or more additional shares of Common Stock (unless upon
such acquisition they do not beneficially own 4.99% or more of the Common Stock
then outstanding).
The Rights
.  On the Rights Dividend Declaration Date, the Board
authorized the issuance of one right (a "Right") for each outstanding share of
Common Stock to the Company's shareholders of record at the close of business
on October 19, 2016, and each share of Common Stock issued thereafter and prior
to the earlier of the Distribution Date (as defined below) and the expiration
of the Rights as set forth below.  Subject to the terms, provisions and
conditions of the Rights Plan, if the Rights become exercisable, each Right
would represent the right to purchase from the Company one share of Common
Stock at a purchase price of $5.00 per share (the "Purchase Price"), subject to
adjustment as set forth below.  Prior to exercise, however, a Right does not
give its holder any rights as a shareholder of the Company, including, without
limitation, the right to vote or to receive dividends.
Initial Exercisability
.  The Rights are
not exercisable until the earlier of (i) ten days after a public announcement
that a person has become an Acquiring Person or, if earlier, the date a
majority of the Board becomes aware of the existence of an Acquiring Person (a
"Stock Acquisition Date") and (ii) ten business days (or such later date as may
be determined by the Board) after the commencement of, or the first public
announcement of the intent of any person to commence, a tender or exchange
offer by or on behalf of a person that, if completed, would result in such
person becoming an Acquiring Person.  The date that the Rights become
exercisable under the Rights Plan is referred to as the "Distribution Date."
Until the Distribution Date, the Common Stock certificates or book
entries in respect of such Common Stock will evidence the Rights.  Any transfer
of the Common Stock prior to the Distribution Date will constitute a transfer
of the associated Rights.  After the Distribution Date, separate Rights
certificates will be issued to record holders of Common Stock as of the close
of business on the Distribution Date, and the Rights may be transferred
separately from the
underlying shares of the Common
Stock, unless and until the Board has determined to effect an exchange pursuant
to the Rights Plan (as described below).
"Flip-In" Event
.  In the event that a person,
other than a person expressly excluded under the Rights Plan, becomes an
Acquiring Person, each holder of a Right, other than Rights that are or, under
certain circumstances, were beneficially owned by the Acquiring Person (which
will thereupon become void), will from and after the Distribution Date have the
right to receive, upon exercise of a Right and payment of the then current
Purchase Price, a number of shares of Common Stock having a market value of two
times the Purchase Price (unless the transaction that gives rise to the adjustment
discussed herein is a transaction discussed under "Merger, etc." immediately
below, in which case only the provisions discussed therein apply).
Merger, etc
.  If (i) the Company is acquired in a merger or other
business combination transaction where the Company is not the surviving
corporation, (ii) another entity consolidates with or merges into the Company
and the Company is the surviving corporation, and in connection with such
consolidation or merger all or part of the outstanding shares of Common Stock are
changed into or exchanged for stock or other securities of any other entity,
cash or any other property, or (iii) the Company sells or transfers assets
constituting more than 50% of its assets, cash flow or earning power,
each holder of a Right will
from and after the Distribution Date have the right to receive, upon exercise
of a Right and payment of the then current Purchase Price, a number of shares
of common stock of the acquiring entity (or equivalent) having a market value
of two times the Purchase Price.
Exempted Persons
.  The Board recognizes that
there may be instances when an acquisition of shares of the Common Stock that
would cause a shareholder to become an Acquiring Person may not adversely
impact in any material respect the time period in which the Company could use
the NOLs or limit or impair the availability to the Company of the NOLs, or is
in the best interests of the Company despite the fact that such acquisition may
have such impact on the Company's use of the NOLs.  Accordingly, the Rights
Plan grants discretion to the Board to designate a person as an "exempt person"
under such circumstances.  An "exempt person" will not become an Acquiring
Person with respect to the transaction for which the exemption was granted. 
Any such exemption may be subject to limitations or conditions (including a
requirement that the requesting person agree that it will not acquire
beneficial ownership of shares of Common Stock in excess of the maximum number
and percentage of shares approved by the Board) as the Board may determine
necessary or desirable to provide for the protection of the NOLs.
Redemption
.  At any time before the earlier of a Stock Acquisition
Date or October 19, 2026, the Company may redeem the Rights in whole, but not
in part, at a price of $0.001 per Right (the "Redemption Price"), which payment
may be made in cash, shares of Common Stock or any other form of
consideration.  In addition, the Company may redeem the Rights in whole, but
not in part, at the Redemption Price following a Stock Acquisition Date but
prior to an event described under "Merger, etc.," under certain circumstances
as described in the Rights Plan.   Immediately upon the Board's determination
to redeem the Rights, the right to exercise the Rights will terminate, and the
only right of the holders of Rights thereafter will be to receive the
Redemption Price.
Exchange
.  At any time after a person becomes an Acquiring
Person and prior to the acquisition by the Acquiring Person of 50% or more of
the outstanding shares of Common Stock, the Board may exchange the Rights
(other than Rights that have become void), in whole or in part, at an exchange
ratio of one share of Common Stock per Right (subject to adjustment). 
Immediately upon the Board's action to exchange any Rights, the right to
exercise such Rights will terminate and the only right of the holders of Rights
will be to receive the number of shares of Common Stock equal to the number of
such Rights held by such holder multiplied by the exchange ratio.
Expiration
.  The Rights will expire on the earliest of the
following:
the close of business on October 19, 2026;
the redemption of the Rights;
the exchange of the Rights;
the close of business on the effective date of the
repeal of Section 382 if the Board determines that the Rights Plan is no longer
necessary or desirable for the preservation of the NOLs; or
the time at which the Board determines that the NOLs are
fully utilized or no longer available under Section 382 or that an ownership
change under Section 382 would not adversely impact in any material respect the
time period in which the Company could use the NOLs, or materially impair the
amount of the NOLs that could be used by the Company in any particular time
period, for applicable tax purposes.
Anti-Dilution Provisions
.  The number and
kind of shares covered by each Right, the Purchase Price and the number of
outstanding Rights will be adjusted to prevent dilution that may occur as a
result of certain events, including among others, a share dividend, a share
split or a reclassification or recapitalization of the Common Stock.  The
Redemption Price will be similarly adjusted.  With certain exceptions, no
adjustments to the Purchase Price will be required until cumulative adjustments
amount to at least 1% of the Purchase Price.
No Fractional Shares or Rights
.  The Company is
not required to issue any fractional Rights or any fractional shares of Common
Stock upon exercise of any Rights.  The Company may make a cash payment in lieu
of any fractional Rights or shares of Common Stock.
Amendments
.  Prior to the Distribution Date, the Board may
supplement or amend any provision of the Rights Plan in any respect without the
approval of the holders of the Rights.  From and after the Distribution Date,
no supplement or amendment can adversely affect the interests of the holders of
the Rights.
This summary description of the Rights does not purport to be complete
and is qualified in its entirety by reference to the Rights Plan, which is
attached as Exhibit 4.1 hereto and is incorporated herein by reference.
The Company issued a press release regarding the adoption of the Rights
Plan, which is attached as Exhibit 99.1 hereto and is incorporated herein by
reference.
Section 9 – Financial
Statements and Exhibits
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits
Exhibit Number
Description
4.1
Rights Agreement, dated
  as of October 6, 2016, between Mechanical Technology, Incorporated and
  American Stock Transfer & Trust Company, LLC, as Rights Agent.
99.1
Press Release dated October
  6, 2016.
SIGNATURES
Pursuant
to the requirement of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
MECHANICAL
  TECHNOLOGY, INCORPORATED
Date:
  October 6, 2016
By:
/s/
  KEVIN G. LYNCH
Name:
Kevin
  G. Lynch
Title:
Chairman
  and Chief Executive Officer