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| Nevada                                                                      | 86-0951473                             |
|-----------------------------------------------------------------------------|----------------------------------------|
| (State or Other Jurisdiction of  Incorporation or Organization)        | (IRS Employer Identification No.) |
|                                                                        |                                   |
| 16 Menachem Begin Street, Gama Building, 5th Floor,  Ramat Gan, Israel | 52681                                  |
| (Address of Principal Executive Offices)                                    |   (Zip Code)                 |

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|   |                                                   |                                                 |
|--------|--------------------------------------------------------|------------------------------------------------------|
|   | Large accelerated filer o Non-accelerated filer o | Accelerated filer o Smaller reporting company x |

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| PART I        |
|---------------|
|          |   |   |
| Item 1.       | Business | 1 |
| Item 1A.      | Risk Factors | 13 |
| Item 1B.      | Unresolved Staff Comments | 13 |
| Item 2.       | Properties | 13 |
| Item 3.       | Legal Proceedings | 13 |
| Item 4.       | [Removed and Reserved] | 13 |
|          |   |   |
| PART II       |
|          |   |   |
| Item 5.       | Market for Registrant's Common Equity, Related Stockholder Matters and Issuers Purchases of Equity Securities | 13 |
| Item 6.       | Selected Consolidated Financial Data | 18 |
| Item 7.       | Management's Discussion and Analysis of Financial Condition and Results of Operations | 18 |
| Item 7A.      | Quantitative and Qualitative Disclosures About Market Risk | 20 |
| Item 8.       | Financial Statements and Supplementary Data | F-1 |
| Item 9.       | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 21 |
| Item 9A.      | Controls and Procedures | 21 |
| Item 9B.      | Other Information | 22 |
|          |   |   |
| PART III      |
|          |   |   |
| Item 10.      | Directors, Executive Officers and Corporate Governance | 22 |
| Item 11.      | Executive Compensation | 25 |
| Item 12.      | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 29 |
| Item 13.      | Certain Relationships and Related Transactions, and Director Independence | 30 |
| Item 14.      | Principal Accountant Fees and Services | 32 |
|          |   |   |
| PART IV       |
|          |   |   |
| Item 15.      | Exhibits and Financial Statements | 33 |
|          |   |   |
| SIGNATURES    |   | 34 |
| EXHIBIT INDEX |   | 35 |

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Item 1.  Business

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|   | — | refinery residuals, such as petroleum coke, tar and paraffin, which cannot be used today, are environmentally harmful and very expensive to neutralize. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | used oil from engines, organic wastes, sewerage sludge and animal manures; and |
|--------|---------|--------------------------------------------------------------------------------|

|   | — | all types of waste biomass such as corn stover, sugar cane bagasse and other types of plant stalks and parts such as peal and husks that are left over after harvesting edible grains, juices and oils. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | “Terms of agreement” between us and Alphakat GmbH, dated May 2, 2007, agreeing to incorporate an equally-owned subsidiary which would be granted certain exclusive rights with respect to the KDV technology; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | “Shareholders’ Agreement” between us and Alphakat GmbH, dated July 10, 2007, agreeing on the terms of operation of Alphakat-Global Energy GmbH, the equally-owned subsidiary referenced in (1), above, and the scope of the rights with respect to the KDV technology granted to it; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)    | Incorporators’ agreement and articles of Alphakat-Global Energy GmbH, dated November 22, 2007, by which we and Alphakat GmbH incorporate Alphakat-Global Energy GmbH as equal shareholders, and by which Alphakat granted Alphakat-Global Energy GmbH certain rights with respect to the KDV technology.                                                                                                                                    |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (4)    | License agreement between Alphakat-Global Energy GmbH and Alphakat GmbH, dated March 11, 2010 and effective as of February 6 2008, by which Alphakat GmbH granted to Alphakat-Global Energy GmbH a license to commercialize, market, offer for sale, use and practice and make improvements to Alphakat GmbH's proprietary renewable diesel technology (the "Technology") on a world-wide basis other than in Mexico, Spain, Bulgaria and Italy.  |

| (1) | The right to sell and market KDV technology units worldwide, subject to rights previously granted to third parties to sell the KDV units in Bulgaria, Spain, Italy, Mexico, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The exclusive right to sell and market KDV technology in the United States and China. |
|-----|---------------------------------------------------------------------------------------|

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| (1) | the amount of convertible debentures we agreed to issue prior to a registration statement registering the shares of our common stock to be issued on conversion of the convertible debentures becoming effective was changed from $3,000,000 to $3,500,000; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | conversion price was changed from $2.20 to $1.25 for all debentures held by the lender; and |
|-----|---------------------------------------------------------------------------------------------|

| (3) | exercise price was changed from $2.50 and $2.35 to $1.25 for all warrants issued to the lender. |
|-----|-------------------------------------------------------------------------------------------------|

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| (1) | the lender agreed to defer payment of interest that had accrued on the $4,000,000 aggregate principal balance represented by the five secured convertible debentures held by it to a date as late as October 31, 2008, subject to further deferment, but only if we completed an offering of at least $1,500,000 in gross proceeds on or before October 31, 2008; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | the lender agreed to defer payment of the principal installments that were due on July 31, August 31, and September 30, 2008 until October 31, 2008, subject to further deferment, but only if we completed an offering of at least $1,500,000 in gross proceeds on or before October 31, 2008; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | the rate of interest to be charged on the aggregate principal amount of $4,000,000 pursuant to the convertible debentures was increased from 10% to 12%; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | we agreed to issue 1,000,000 restricted shares of our common stock to the lender (in addition to the 200,000 shares issued under the July 15, 2008 amending agreement). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | we would make a payment in the amount of $180,000 for interest accrued and unpaid on the aggregate principal amount of $4,000,000, to be paid directly from the gross proceeds of the offering, and a payment of an additional amount equal to 10% of the gross proceeds from the offering if we raised gross proceeds of between $2,200,000 and $3,900,000; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | we would make payments on account of the indebtedness represented by the convertible debentures in an amount equal to 50% of all cash flows generated by our Ethiopian subsidiary, Global Energy Ethiopia , in excess of the first $700,000 in cash flow, to be paid on each installment payment date set out on the revised installment payment schedule described in paragraph (5) below; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | we would reduce the conversion price of all secured convertible debentures issued and outstanding to the lender from $1.25 to $0.10 per share, in each case as already required by the terms of those secured convertible debentures; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | we would reduce the exercise price of all warrants held by the lender from $1.25 to $0.10 per share, and an increase in the number of shares of our common stock to be issued upon exercise of those warrants from 600,000 to 7,500,000 shares of our common stock, in each case as already required by the terms of those warrants; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | we would revise the repayment schedule for the debentures issued to the lender, and the Company Redemption Amount became dependent on the amount by which the total gross proceeds raised in the fall of 2008 private placement exceeded $2,200,000. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (1) | $180,000 for interest accrued and unpaid on the aggregate principal amount of $4,000,000, to be paid directly from the gross proceeds of the private placement; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | on account of the indebtedness represented by the debentures held by the lender, an amount equal to 50% of all cash flows generated by our Ethiopian operations in excess of the first $700,000 in cash flow, to be paid on each installment payment date set out above; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | monthly installment payments as follows: |
|-----|------------------------------------------|

| Installment Payment   |   | Company Redemption Amount |   | Company Conversion Amount |
|-----------------------|--------|---------------------------|--------|-------------------------------------|
| November 2008         |   | $ 0(1)                    |   | $ 25,000                            |
| December 2008         |   | $ 0(1)                    |   | $ 35,000                            |
| January 2009          |   | $ 10,000(1)               |   | $ 50,000                            |
| February 2009         |   | $ 10,000(1)               |   | $ 60,000                            |
| March 2009            |   | $ 10,000(1)               |   | $ 70,000                            |
| April 2009            |   | $ 10,000(1)               |   | $ 70,000                            |
| May 2009              |   | $ 10,000(1)               |   | $ 70,000                            |
| June 2009             |   | $ 10,000(1)               |   | $ 75,000                            |
| July 2009             |   | $ 10,000(1)               |   | $ 75,000                            |
| August 2009           |   | $ 10,000(1)               |   | $ 75,000                            |
| September 2009        |   | $ 10,000(1)               |   | $ 75,000                            |
| Each Month Thereafter |   | $ 225,000(2)              |   |                                |

|   | (1) Because the total gross proceeds raised in the private placement were $1,700,000, the variable redemption amount, which under the terms of the amending and restating agreement equals 4% of the amount of gross proceeds raised in the private placement that exceed $2,200,000, is $0. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) This amount may be paid at our discretion as a combination of the company redemption and company conversion amounts in accordance with the terms of the debentures held by the lender. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | The Existing Debentures terms would be modified as follows: |
|--------|--------|-------------------------------------------------------------|

|   | o | Payments.  All payments of principal and interest by the Company under the existing Debentures were to be deferred for a period of one year from the Effective Date.  Commencing the month preceding the one year anniversary of the Effective Date, the monthly payments to YA Global in the amount of $225,000 each were to resume. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Redemption.  The Company would have the option to redeem up to $3,000,000 of the outstanding principal and unpaid interest owing under the existing Debentures at any time with 15 days’ prior written notice to the Buyer at a redemption price equal to 115% of the amount being redeemed in accordance with the Amended and Restated Debenture. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Conversion Price.  The Conversion Price of the existing Debentures was to be reduced to the effective price of the Common Stock issued in connection with the Offering. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Warrants. The exercise price of the Warrants was to be reduced to the effective price of the Common Stock issued in connection with the Offering.  The number of shares underlying the Warrants shall not be changed, provided that warrants or other Common Stock purchase rights are not issued in connection with the Offering.  If any warrants or other Common Stock purchase rights are issued in connection with the Offering then the Company shall issue new warrants to the Buyer such that the proportion of warrant shares to the amount of the Buyer’s initial investment is equal to proportion of warrant shares to the amount of the new investment in the Offering.   Any such new warrants shall have an exercise price equal to the price of the Common Stock issued in connection with the Offering |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Buyer’s Lock up Provision. During any calendar month beginning with the month in which the Effective Date occurs and ending with the calendar month preceding the month in which the one-year anniversary of the Effective Date occurs, except for Excluded Sales (as defined below), the Buyer shall not sell shares of Common Stock for gross proceeds (measured by the quantity of shares sold multiplied by the sales price) of greater than (a) $50,000, or (b) 20% of the aggregate dollar traded volume traded during the preceding calendar month (as measured by multiplying the total volume traded in such month by the average price during such month according to Bloomberg LP).  For the purposes hereof the term “Excluded Sales” shall mean any sales by the Buyer at a price of five cents ($0.05) or more. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Global Energy provided a cash flow projection budget in a form acceptable to the YA Global, demonstrating that the Global Energy will have sufficient cash flows to fund its operations for a period of at least 12 months. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Global Energy made a cash payment under the existing debentures of $30,000. |
|--------|---------|-----------------------------------------------------------------------------|

----

|   | ● | Debentures.  Global Energy issued to YA Global two Secured Convertible Debentures (the “Amendedand Restated Debentures”) in exchange for the existing debentures. The total principal amount of the Amended and Restated Debentures together is equal to the total amounts outstanding under the existing debentures. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Debenture I is in a principal amount of $3.17 million, bears interest at 8% per annum and has a maturity date of 36 months from issuance, with an extension to 48 months if a "second financing milestone" is reached.  No payments are due for first 18 months (24 months if the "first financing milestone" is reached, and 36 months if the "second financing milestone" is reached), with $150,000 per month thereafter.  Payments can be made in cash or stock at a 5% discount to market price, provided shares can be resold.  This debenture is convertible into common stock at $.05 per share, and 80,000,000 shares have initially been reserved for this debenture.  Global Energy can redeem this debenture at anytime with a 15% redemption premium.  |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Debenture II is in a principal amount of $1.5 million, bears interest at 8% per annum (6% if the "first financing milestone" is reached, and 4% if the "second financing milestone" is reached) and has a maturity date of 36 months from issuance.  No payments are due until maturity.  This debenture is convertible into common stock at $.01 per share, and 190,000,000 shares have initially been reserved for this debenture.  Global Energy cannot redeem this debenture prior to maturity without YA Global's consent.   |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Warrants. The exercise price of the Warrants was reduced to $0.01 per share and the number of shares underlying the Warrants remains unchanged. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | YA Global’s Lock up.  Beginning on date of Agreement and ending on the earlier of (i) February 1, 2012 or (ii) upon an event of default, on any particular Trading Day, except for any sales by the YA Global at a price of seven and one half cents ($0.075) or more, YA Global may not sell such number of shares of Common Stock that would exceed 20% of the volume traded during such Trading Day, unless waived by Global Energy. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | "First Financing Milestone" means the raising of at least $1.5 million in gross proceeds from (i) the Transaction or (ii) any financing transaction resulting in cash proceeds to Global Energy  (provided that (a) such transaction does not violate any provisions of the YA Global financing documents or (b) YA Global consents to such transaction) (an "Approved Transaction"), and "Second Financing Milestone" means the raising of at least $2 million in gross proceeds from (i) the Transaction or (ii) any other Approved Offering on or before March 1, 2012. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 1A.  Risk Factors

Item 1B.  Unresolved Staff Comments

Item 2.  Properties

Item 3.  Legal Proceedings

Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuers Purchases of Equity Securities

|           |   | Low    |   |   | High   |   |
|----------------|--------|--------|--------|--------|--------|--------|
|           |   |   |   |   |   |   |
| 2009           |   |   |   |   |   |   |
|           |   |   |   |   |   |   |
| First Quarter  |   | $      | 0.01   |   |   | $      | 0.09 |   |
| Second Quarter |   | $      | 0.01   |   |   | $      | 0.041 |   |
| Third Quarter  |   | $      | 0.014  |   |   | $      | 0.0295 |   |
| Fourth Quarter |   | $      | 0.01   |   |   | $      | 0.0395 |   |
|           |   |   |   |   |   |   |   |   |
| 2010           |   |   |   |   |   |   |   |   |
|           |   |   |   |   |   |   |   |   |
| First Quarter  |   | $      | 0.02   |   |   | $      | 0.05 |   |
| Second Quarter |   | $      | 0.026  |   |   | $      | 0.07 |   |
| Third Quarter  |   | $      | 0.032  |   |   | $      | 0.0638 |   |
| Fourth Quarter |   | $      | 0.025  |   |   | $      | 0.049 |   |

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| Plan Category                                         |   | Number of Securities to be issued upon exercise of outstanding options, warrants and rights. (a) |   | Weighted average exercise price of outstanding options, warrants and rights. (b) |   | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a) (c) |
|-------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                  |   |                                                                                                                 |   |                                                                                                 |   |                                                                                                                                                                              |
| Equity compensation plansapproved by security holders |   | 20,905,021(1)                                                                                                        |   | 0.04                                                                                                 |   | 6,094,979(2)                                                                                                                                                                      |
|                                                  |   |                                                                                                                 |   |                                                                                                 |   |                                                                                                                                                                              |
| Equity compensation plans not                         |   |                                                                                                                 |   |                                                                                                 |   |                                                                                                                                                                              |
| approved by security holders                          |   |                                                                                                                 |   |                                                                                                 |   |                                                                                                                                                                              |

| (1) | On January 31, 2010, the Board of Directors approved the grant of 4,800,000 options to board members (not including options granted to Mr. Asi Shalgi), at an exercise price of US $0.0243 per share to US $0.0365. The options immediately vested. In addition, on the same date, the Board of Directors approved the grant of 9,000,000 options to Mr. Asi Shalgi, our CEO, at an exercise price of US $0.0243 per share to US $0.0365. 3,000,000 of such options were immediately vested, 3,000,000 vest on the first anniversary of grant and, 3,000,000 vest on the second anniversary of grant. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Options remaining available for future issuance under the share option plan, excluding securities reflected in column (a). |
|-----|----------------------------------------------------------------------------------------------------------------------------|

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Item 6.  Selected Consolidated Financial Data

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

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| Estimated Funding Required During the Next 12 Months |   |   |    |
|------------------------------------------------------|--------|--------|---------|
|                                                 |   |   |    |
| G&A Salaries                                     |   | $      | 240,000 |   |
| Other Operations                                     |   | $      | 360,000 |   |
| Total                                                |   | $      | 600,000 |   |

|   | 1) | Effective June 30, 2010, the Company adopted the amended guidance in ASC Topic 715, Compensation – Retirement Benefits, which expands disclosure requirements and requires entities to disclose investment policies and strategies, major categories of plan assets, fair value measurements for each major category of plan assets segregated by fair value hierarchy level as defined in ASC Topic 820, the effect of fair value measurements using Level 3 inputs on changes in plan assets for the period, and significant concentrations of risk within plan assets.  The adoption of this amended guidance required expanded disclosure in the notes to the Company’s consolidated financial statements but did not impact financial results. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | Effective July 1, 2010, the Company adopted the amended guidance in ASC Topic 810, Consolidations , which will change how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting or similar rights (known as variable interest entities or VIEs) should be consolidated. The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the other entity’s purpose and design and the reporting entity’s ability to direct the activities of the other entity that most significantly impact the other entity’s economic performance. This amended guidance will require a number of new disclosures including disclosures about the reporting entity’s involvement with VIEs, how its involvement with VIEs affects the reporting entity’s financial statements, and any significant changes in risk exposure due to that involvement.  The Company expects that the adoption of this amended guidance will not have significant impact on the Company's consolidated financial statements. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 3) | Effective July 1, 2010, the Company adopted the second phase of the amended guidance in ASC Topic 820, Fair Value Measurements and Disclosures, which requires the Company to disclose information in the reconciliation of recurring Level 3 measurements about purchases, sales, issuances and settlements on a gross basis, separately for assets and liabilities.  The Company expects that the adoption of this amended guidance will not have any impact on the Company's consolidated financial statements. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

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Item 8.  Financial Statements and Supplementary Data

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|                                                                                                                                | Page   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                |   |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                                                             | F-3    |
|                                                                                                                                |   |
| CONSOLIDATED FINANCIAL STATEMENTS  IN U.S. DOLLARS:                                                                       |   |
|    Balance Sheets – December 31, 2009 and 2010                                                                 | F-4    |
|    Statements of operations – Years ended December 31, 2009 and 2010                                           | F-5    |
|    Statements of changes in shareholders' equity (capital deficiency) - Years ended December 31, 2008, 2009 and 2010 | F6-7   |
|    Statements of cash flows - Years ended December 31, 2009 and 2010                                                 | F8-9   |
|    Notes to financial statements                                                                                     | F10-38 |

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GLOBAL ENERGY INC.

|                                                                                                                                                                                                                                 |   | December 31              |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                                                                                                                                                                 |   | 2010                     |    |   | 2009 |   |
|                                                                                                                                                                                                                                 |   | U.S dollars in thousands |    |
| A s s e t s                                                                                                                                                                                                                          |   |                     |    |   |   |   |
| CURRENT ASSETS:                                                                                                                                                                                                                      |   |                     |    |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                            |   | $                        | 128     |   |   | $ | 100 |   |
| Restricted cash                                                                                                                                                                                                                      |   |                     | -       |   |   |   | 105 |   |
| Advance to related party                                                                                                                                                                                                             |   |                     | 3,722   |   |   |   | 3,512 |   |
| Other accounts receivable                                                                                                                                                                                                            |   |                     | 43      |   |   |   | 47 |   |
|           T o t a l  current assets                                                                                                                                      |   |                     | 3,893   |   |   |   | 3,764 |   |
| LONG TERM DEPOSITS                                                                                                                                                                                                                   |   |                     |    |   |   |   |   |   |
| ADVANCE TO MINORITY INTEREST SHAREHOLDER                                                                                                                                                                                             |   |                     | 18      |   |   |   | 18 |   |
| PROPERTY PLANT AND EQUIPMENT, net of accumulated depreciation                                                                                                                                                                        |   |                     | 931     |   |   |   | 952 |   |
|           T o t a l  assets                                                                                                                                              |   | $                        | 4,842   |   |   | $ | 4,734 |   |
|                                                                                                                                                                                                                                 |   |                     |    |   |   |   |   |   |
| Liabilities net of capital deficiency                                                                                                                                                                                                |   |                     |    |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                                                                 |   |                     |    |   |   |   |   |   |
| Accounts payables                                                                                                                                                                                                                    |   | $                        | -       |   |   | $ | 133 |   |
| Accrued expenses                                                                                                                                                                                                                     |   |                     | 764     |   |   |   | 1,201 |   |
| Advance from third party                                                                                                                                                                                                             |   |                     | 3,725   |   |   |   | 3,512 |   |
| Short term loans                                                                                                                                                                                                                     |   |                     | -       |   |   |   | 138 |   |
| Short term loans from related parties                                                                                                                                                                                                |   |                     | 18      |   |   |   | 100 |   |
| Debentures convertible into shares                                                                                                                                                                                                   |   |                     | 4,875   |   |   |   | 4,600 |   |
| T o t a l  current liabilities                                                                                                                                                                                             |   |                     | 9,383   |   |   |   | 9,684 |   |
| ACCRUED SEVERENCE AND VACATION                                                                                                                                                                                                       |   |                     | 55      |   |   |   | 11 |   |
| MINORITY INTEREST                                                                                                                                                                                                                    |   |                     | 18      |   |   |   | 18 |   |
| T o t a l  liabilities                                                                                                                                                                                                     |   |                     | 9,455   |   |   |   | 9,713 |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                        |   |                     |    |   |   |   |   |   |
| CAPITAL DEFICIENCY:                                                                                                                                                                                                                  |   |                     |    |   |   |   |   |   |
| Share capital (Note 11) -Common shares of $0.001 par value each:Authorized: 750,000,000 shares at December 31, 2010 and 2009; Issued and outstanding: 235,665,471 and 126,548,373 shares at December 31, 2010 and 2009, respectively |   |                     | 236     |   |   |   | 127 |   |
| Additional paid-in capital                                                                                                                                                                                                           |   |                     | 4,496   |   |   |   | 2,064 |   |
| Warrants                                                                                                                                                                                                                             |   |                     | 1,215   |   |   |   | 1,215 |   |
|                                                                                                                                                                                                                                 |   |                     |    |   |   |   |   |   |
| Accumulated deficit during development stage                                                                                                                                                                                         |   |                     | (10,487 | ) |   |   | (8,312 | ) |
| Accumulated deficit before development stage                                                                                                                                                                                         |   |                     | (73     | ) |   |   | (73 | ) |
| T o t a l  capital deficiency                                                                                                                                                                                              |   |                     | (4,613  | ) |   |   | (4,979 | ) |
| T o t a l  liabilities net of capital deficiency                                                                                                                                                                           |   | $                        | 4,842   |   |   | $ | 4,734 |   |

----

GLOBAL 

|                                                                                                           |   | Year ended December 31                      |              |    | Cumulative from July 7,2005 throughDecember 31, |   |
|----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|-------------------|---------|-------------------------------------------------|--------|
|                                                                                                           |   | 2010                                        |              |    | 2009                                            |   |   | 2010 |   |
|                                                                                                           |   | U.S dollars in thousands, except share data |              |
| OPERATING EXPENSES -                                                                                           |   |                                        |              |    |                                            |   |   |   |   |
| General and Administrative expenses (*)                                                                        |   |                                        | (1,872            | )       |                                            | $      | (1,373 | ) |   | $ | (7,681 | ) |
| LOSS FROM OPERATIONS                                                                                           |   |                                        | (1,872            | )       |                                            | $      | (1,373 | ) |   |   | (7,681 | ) |
|                                                                                                           |   |                                        |              |    |                                            |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                                                                                        |   |                                        |              |    |                                            |   |   |   |   |   |   |   |
| Interest expenses                                                                                              |   |                                        | (413              | )       |                                            |   | (531 | ) |   |   | (2,199 | ) |
| Loss from operations of discontinued component                                                                 |   |                                        | -                 |    |                                            |   | - |   |   |   | (1,200 | ) |
| Gain on extinguishment of debts (note 8)                                                                       |   |                                        | 110               |    |                                            |   | - |   |   |   | 110 |   |
| Gain on sale of subsidiary                                                                                     |   |                                        | -                 |    |                                            |   |  484 |   |   |   | 484 |   |
| NET LOSS                                                                                                       |   | $                                           | (2,175            | )       |                                            | $      | (1,420 | ) |   | $ | (10,486 | ) |
|                                                                                                           |   |                                        |              |    |                                            |   |   |   |   |   |   |   |
|                                                                                                           |   |                                        |              |    |                                            |   |   |   |   |   |   |   |
| NET LOSS PER SHARE, BASIC AND DILUTED                                                                          |   | $                                           | (0.012            | )  |                                            | $      | (0.015 | )  |   |   |   |   |
|                                                                                                           |   |                                        |              |    |                                            |   |   |   |   |   |   |   |
| WEIGHTED AVERAGENUMBER OF     SHARES USED IN COMPUTING BASICAND DILUTED NET LOSS PER SHARE |   |                                        | 182,163,533  |    |                                            |   | 91,837,656  |   |   |   |   |   |

----

SHAREHOLDERS' 

|                                                                       |   | Share capital |        |   | Additionalpaid-in |   |   |    |   | Deficitaccumulatedduring thedevelopment |   |   | Deficitaccumulatedbefore thedevelopment |   |   |   Totalcapital |   |
|----------------------------------------------------------------------------|--------|---------------|-------------|--------|-------------------|--------|--------|---------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|---------------------|--------|
|                                                                       |   | Number        |        |   | Capital           |   |   | Capital |   | Warrants                                |   |   | stage                                   |   |   | stage               |   |   |  deficiency |   |
|                                                                       |   |          |        |   |              |   |   |    |   |                                    |   |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   |
| BALANCE AS OF JULY 7, 2005                                                 |   |          | 4,650,000   |   |              | $      | 5      |    |   | $                                       | 105    |   |                                    |   |   |                |   |   |   | $ | (73 | ) |   | $ | 37 |   |
| CHANGES DURING THE PERIOD FROM JULY 7,                                     |   |          |        |   |              |   |   |    |   |                                    |   |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   |
|   2005 THROUGH DECEMBER 31, 2008:                                |   |          |        |   |              |   |   |    |   |                                    |   |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   |
| Issuance of shares - net of issuance expenses                              |   |          | 75,537,764  |   |              |   | 75     |    |   |                                    | 931    |   |                                    | $      | 843    |                |   |   |   |   |   |   |   |   |   | 1,849 |   |
| Issuance of warrants                                                       |   |          |        |   |              |   |   |    |   |                                    |   |   |                                    |   | 246    |                |   |   |   |   |   |   |   |   |   | 246 |   |
| Issuance of shares and warrants - in relation with the debt extinguishment |   |          | 1,200,000   |   |              |   | 1      |    |   |                                    | 149    |   |                                    |   | 126    |                |   |   |   |   |   |   |   |   |   | 276 |   |
| Issuance of shares - in relation with conversion of debentures             |   |          | 314,070     |   |              |   | 1      |    |   |                                    | 24     |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   | 25 |   |
| Net loss for the period                                                    |   |          |        |   |              |   |   |    |   |                                    |   |   |                                    |   |   |                |   | $ | (6,892 | ) * |   |   |   |   |   |   | (6,640 | ) |
| Issuance of options for services                                           |   |          |        |   |              |   |   |    |   |                                    | 260    |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   | 260 |   |
| BALANCE AT DECEMBER 31, 2008                                               |   |          | 81,701,834  |   |              |   | 82     |    |   |                                    | 1,469  |   |                                    |   | 1,215  |                |   |   | (6,892 | ) |   |   | (73 | )  |   |   | (4,199 | )  |
| CHANGES DURING THE YEAR ENDED                                              |   |          |        |   |              |   |   |    |   |                                    |   |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009:                                                         |   |          |        |   |              |   |   |    |   |                                    |   |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of shares- net of issuance expenses                               |   |          | 15,263,700  |   |              |   | 15     |    |   |                                    | 137    |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   | 152 |   |
| Issuance of shares to extinguish debt                                      |   |          | 24,741,505  |   |              |   | 25     |    |   |                                    | 221    |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   | 246 |   |
| Share based compensation for services                                      |   |          | 1,000,000   |   |              |   | 1      |    |   |                                    | 11     |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   | 12 |   |
| Issuance of shares - in relation with conversion of debentures             |   |          | 3,841,334   |   |              |   | 4      |    |   |                                    | 61     |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   | 65 |   |
|  Net loss for the period                                              |   |          |        |   |              |   |   |    |   |                                    |   |   |                                    |   |   |                |   |   | (1,420 | ) |   |   |   |   |   |   | (1,420 | ) |
| Issuance of options for services                                           |   |          |        |   |              |   |   |    |   |                                    | 165    |   |                                    |   |   |                |   |   |   |   |   |   |   |   |   |   | 165 |   |
| BALANCE AT December 31, 2009                                               |   |          | 126,548,373 |   |              | $      | 127    |    |   | $                                       | 2,064  |   |                                    | $      | 1,215  |                |   | $ | (8,312 | ) |   | $ | (73 | ) |   | $ | (4,979 | ) |

----

|                                                           |   |          |        |   |       |   |   |    |   |   | Deficit     |   |   | Deficit     |   |   |    |   |
|----------------------------------------------------------------|--------|---------------|-------------|--------|------------|--------|--------|---------|--------|--------|-------------|--------|--------|-------------|--------|--------|---------|--------|
|                                                           |   |          |        |   |       |   |   |    |   |   | accumulated |   |   | accumulated |   |   |    |   |
|                                                           |   |          |        |   | Additional |   |   |    |   |   | during the  |   |   | before the  |   |   | Total   |   |
|                                                           |   | Share capital |        |   | paid-in    |   |   |    |   |   | development |   |   | development |   |   | capital |   |
|                                                           |   | Number        |        |   | capital    |   |   | Capital |   |   | warrants    |   |   | stage       |   |   | stage   |   |   | deficiency |   |
| BALANCE AT December 31, 2009                                   |   |          | 126,548,373 |   |       | $      | 127    |    |   | $      | 2,064       |   |   | $           | 1,215  |   |    | $      | (8,312 | ) |   | $ | (73 | ) |   | $ | (4,979 | ) |
| CHANGES DURING THE YEAR ENDED December 31, 2010 :         |   |          |        |   |       |   |   |    |   |   |        |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of shares- net of issuance expenses                   |   |          | 67,648,198  |   |       |   | 68     |    |   |   | 609         |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   | 677 |   |
| Issuance of shares in exchange for extinguishment of debt      |   |          | 1,200,000   |   |       |   | 1      |    |   |   | 38          |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   | 39 |   |
| Share based compensation for services                          |   |          | 32,337,500  |   |       |   | 32     |    |   |   | 1,003       |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   | 1,035 |   |
| Issuance of shares - in relation with conversion of debentures |   |          | 7,931,400   |   |       |   | 8      |    |   |   | 72          |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   | 80 |   |
|  Net loss for the period                                  |   |          |        |   |       |   |   |    |   |   |        |   |   |        |   |   |    |   | (2,175 | ) |   |   |   |   |   |   | (2,175 | ) |
| Issuance of options for services                               |   |          |        |   |       |   |   |    |   |   | 710         |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   | 710 |   |
| BALANCE AT December 31, 2010                                   |   |          | 235,665,471 |   |       | $      | 236    |    |   | $      | 4,496       |   |   | $           | 1,215  |   |    | $      | (10,487 | ) |   | $ | (73 | ) |   | $ | (4,613 | ) |

----

development 

|                                                                                                                |   | Year ended December 31   |   |   | Cumulativefrom July 7,2005 throughDecember 31, |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|------------------------------------------------|--------|
|                                                                                                                |   | 2010                     |   |   | 2009                                           |   |   | 2010 |   |
|                                                                                                                |   | U.S dollars in thousands |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                               |   |                     |   |   |                                           |   |   |   |   |
| Net loss for the period                                                                                             |   | $                        | (2,175 | )      |                                           | $      | (1,420 | ) |   | $ | (10,486 | ) |
| Adjustments required to reconcile net loss                                                                          |   |                     |   |   |                                           |   |   |   |   |   |   |   |
| to net cash used in operating activities:                                                                           |   |                     |   |   |                                           |   |   |   |   |   |   |   |
|     Depreciation                                                                                |   |                     | 21     |   |                                           |   | 10 |   |   |   | 66 |   |
|     Gain from sale of subsidiary                                                                |   |                     | -      |   |                                           |   | (484 | ) |   |   | (484 | ) |
|     Exchange differences on long term deposits                                                  |   |                     | -      |   |                                           |   | 3 |   |   |   | - |   |
|     Debt extinguishments                                                                        |   |                     | (110   | )      |                                           |   | - |   |   |   | (110 | ) |
|     Share based compensation expenses                                                           |   |                     | 1,712  |   |                                           |   | 164 |   |   |   | 2,138 |   |
| Increase in accrued interest on short term loan from related parties                                                |   |                     | 1      |   |                                           |   | 13 |   |   |   | 20 |   |
| Increase in accrued interest on short term loans                                                                    |   |                     | 13     |   |                                           |   | 39 |   |   |   | 46 |   |
|     Expenses in respect of the convertibles debentures                                          |   |                     | 385    |   |                                           |   | 449 |   |   |   | 1,917 |   |
|     Increase (decrease) Accrued severance and vacation                                          |   |                     | 44     |   |                                           |   | 6 |   |   |   | 55 |   |
|     Decrease (increase) in other accounts receivable and advance from supplier                  |   |                     | (204   | )      |                                           |   | 67 |   |   |   | (3,815 | ) |
|     Increase (decrease) in advance to minority shareholder                                      |   |                     | -      |   |                                           |   | - |   |   |   | - |   |
|     Increase (decrease) in accounts payables                                                    |   |                     | (158   | )      |                                           |   | 37 |   |   |   | 153 |   |
|     Increase (decrease) in other accounts payable accrued expenses andadvances from third party |   |                     | (199   | )      |                                           |   | 678 |   |   |   | 4,569 |   |
| Net cash used in operating activities                                                                               |   |                     | (670   | )      |                                           |   | (438 | ) |   |   | (5,931 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                               |   |                     |   |   |                                           |   |   |   |   |   |   |   |
| Lease deposits                                                                                                      |   |                     | -      |   |                                           |   | - |   |   |   | (18 | ) |
|     Proceeds from sale of subsidiary                                                            |   |                     | 105    |   |                                           |   | 588 |   |   |   | 693 |   |
| Payment for purchasing of property and equipment                                                                    |   |                     | -      |   |                                           |   | - |   |   |   | (1,379 | ) |
| Net cash used in investing activities                                                                               |   |                     | 105    |   |                                           |   |  588 |   |   |   | (704 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                               |   |                     |   |   |                                           |   |   |   |   |   |   |   |
| Issuance of shares - net of issuance expenses                                                                       |   |                     | 676    |   |                                           |   | 152 |   |   |   | 2,649 |   |
| Loans received from shareholders and related parties                                                                |   |                     | -      |   |                                           |   | - |   |   |   | 528 |   |
| Loans received from others                                                                                          |   |                     | -      |   |                                           |   | - |   |   |   | 316 |   |
| Debentures repaid                                                                                                   |   |                     | (30    | )      |                                           |   | (40 | ) |   |   | (70 | ) |
| Proceeds from debt issuance                                                                                         |   |                     | -      |   |                                           |   | - |   |   |   | 46 |   |
| Proceeds from issuance of convertible debentures and warrants netof issuance expenses                               |   |                     | -      |   |                                           |   | - |   |   |   | 3,720 |   |
| Loans repaid                                                                                                        |   |                     | (53    | )      |                                           |   | (440 | ) |   |   | (493 | ) |
| Net cash provided by (used in) financing activities                                                                 |   |                     | 593    |   |                                           |   | (328 | ) |   |   | 6,696 |   |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                    |   |                     | 28     |   |                                           |   | (178 | ) |   |   | 61 |   |
| CASH AND CASH EQUIVALENTS AT                                                                                        |   |                     |   |   |                                           |   |   |   |   |   |   |   |
| BEGINNING OF PERIOD                                                                                                 |   |                     | 100    |   |                                           |   | 278 |   |   |   | 68 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                                          |   | $                        | 128    |   |                                           | $      | 100 |   |   | $ | 129 |   |

----

|                                                     |   | Year ended December 31   |   |   | Cumulativefrom July 7,2005 throughDecember 31, |   |
|----------------------------------------------------------|--------|--------------------------|--------|--------|------------------------------------------------|--------|
|                                                     |   | 2010                     |   |   | 2009                                           |   |   | 2010 |   |
|                                                     |   | U.S dollars in thousands |   |
| Supplemental disclosure of cash flow information:        |   |                     |   |   |                                           |   |   |   |   |
| Cash paid during the period for:                         |   |                     |   |   |                                           |   |   |   |   |
| Interest                                                 |   | $                        | -      |   |                                           | $      | - |   |   | $ | 180 |   |
| Income taxes                                             |   | $                        | -      |   |                                           | $      | - |   |   | $ | - |   |
|                                                     |   |                     |   |   |                                           |   |   |   |   |   |   |   |
|                                                     |   |                     |   |   |                                           |   |   |   |   |   |   |   |
| NON-CASH TRANSACTION:                                    |   |                     |   |   |                                           |   |   |   |   |   |   |   |
| Conversion of loans payable into shares             |   |                     | -      |   |                                           |   | 246 |   |   |   | - |   |
| Conversion of debentures into shares                     |   |                     | 79     |   |                                           |   | - |   |   |   | - |   |
| Issuance of shares and warrants - to extinguishment debt |   |                     | -      |   |                                           |   | 65 |   |   |   | - |   |

----

stage 

|   | a. | Going concern considerations The accompanying financial statements have been prepared assuming that Global Energy Inc. ("the Company") will continue as a going concern. As of December 31, 2010, the Company had approximately $128 thousand in cash and cash equivalents, approximately $5,490 thousand in negative working capital, a shareholders’ deficit of approximately $4,613 thousand and an accumulated deficit during development stage of approximately $10,487 thousand. Management anticipates that the Company will continue to generate significant losses from operations for the foreseeable future, and that their business will require substantial additional investment that has not yet been secured. Management is continuing in the process of fundraising in the private equity markets as the Company will need to finance future activities and general and administrative expenses. These conditions raise substantial doubt about the Company's ability to continue as a going concern.These financial statements do not include any adjustments that may be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent on its ability to obtain additional financing as may be required and ultimately to attain profitability. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | General The Company was incorporated under the laws of the State of Nevada on February 16, 1999.The Company has been considered a development stage enterprise since July 7, 2005, as defined by the ASC Topic 915. The accompanying financial statements have disclosed cumulative amounts in the statements of operations and cash flows since the July 7, 2005 inception of becoming a development stage company until December 31, 2010.During May 2007, the Company established two subsidiaries in Israel: Global Fuel Israel Ltd. (“Fuel”), a fully owned subsidiary, and Global N.R.G. Pacific Ltd. (“Pacific”), of which the Company owns a 50.1% interest. In October, 2007, Pacific established a subsidiary in Ethiopia named Global Energy Ethiopia PLC (“Global Ethiopia”). Pacific and its consolidated company act as the agricultural arm of the Company's activities in the Bio-Diesel field.On October 8, 2008 the Company entered into an agreement with a related party, Yanai Man Projects Ltd. (“YMP”), with respect to the shares held by YMP in Pacific. The sole shareholder of YMP is also the CEO of Pacific. Pursuant to the agreement, the parties agreed that the Company would have the right at any time to purchase from YMP 44.9% of the share capital, for consideration of $150 thousand. The Company exercised this right of purchase on October 8, 2008 and therefore as of March 31, 2009 the Company held 95% of Pacific's share capital. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | General (continued): On March 3, 2009 this agreement with YMP was amended and it was agreed that the 95% of the shares of Pacific will remain the Company's but the sum of $150 thousand will not be paid. According to this amendment the $150 thousand was not presented in these financial statements as a liability.On March 18, 2009, Global Ethiopia was sold in consideration of $700 thousand. Immediately after the sale, Pacific's CEO resigned and YMP agreed to sell the remaining 5% of the share capital of Pacific to the Company in consideration for $12 thousand.On May 2, 2007, the Company entered into an agreement with AlphaKat GmbH (“AlphaKat”) in order to cooperate in commercialization of AlphaKat's technology of producing mineral diesel oil from municipal waste using machines that converts hydrocarbon waste into diesel oil invented for that purpose by AlphaKat ("KDV machines"). As of December 31, 2010 the Company paid AlphaKat an amount of $931 thousand on account of a KDV500 plant that has yet to be ordered. This amount is presented in the financial statements as an advance on account of acquisition of machinery as part of property plant and equipment. The total amount that the Company will have to pay for the KDV500 plant will be at least Euro 2.5 million (approximately $3.4 million).The final amount depends on the final configuration of the KDV500 and additional features that will be ordered.On July 10, 2007, the Company entered into an agreement with AlphaKat to incorporate and operate a company, named AlphaKat - Global Energy GmbH (“AGEI”). Each party holds 50% of the shares of AGEI. AGEI is to provide worldwide marketing and sales services of KDV machines in consideration of 10% sale commission. The Company is responsible to finance AGEI if such financing is required; AlphaKat has the right to object to any sale of KDV machines.The Company has consolidated AGEI.On February 6, 2008, AlphaKat and its President, Dr. Koch and AGEI, entered into agreements, which were amended on July 8, 2008, with Covanta Energy Corporation, a wholly owned subsidiary of Covanta Holding Corporation (“Covanta”), owner and operator of waste-to-energy and power generation projects. Under the terms of these agreements, Covanta has the exclusive right to purchase, use and make improvements to the KDV technology in the United States for household waste feedstock, and non-exclusive rights to use the KDV process in China, UK and the Republic of Ireland. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | General (continued): If Covanta's tests on its first unit are positive and it wishes to proceed further with its deployment of the KDV process it must begin by ordering five additional KDV500 units within twelve months of the commissioning date of the first KDV500 unit. Over a ten-year period, which begins on the commissioning date of its first unit, Covanta must order a total of 600 KDV 500 units or the equivalent in terms of production capacity.Covanta also granted the Company the right to fund and own up to 35% of each of Covanta’s KDV-based projects. In addition, Covanta has agreed to pay the Company an amount equal to 10% of the gross revenue of each of Covanta’s KDV-based projects, regardless of whether the Company invests in these projects or not.On July 8, 2008, Covanta purchased a KDV500 unit through AGEI. Until December 31, 2010 Covanta had paid $3,725 thousand on account of the purchased KDV 500 unit, according to the payment schedule. This amount was advanced by AGEI to Alphakat and is presented in these financial statements as a liability to Covanta ("Advance from third party") and as an asset ("Advance to related party").On November 23, 2010, the parties signed the Second Amendment to the February 6, 2008 License Agreement between Alphakat-Global Energy GmbH and Covanta, which incorporated changes from an earlier amendment. Pursuant to the Second Amendment, the license rights of Covanta were amended to provide that Covanta, with certain limited exceptions for “Carve-Out Projects”, would have the exclusive right to use the Technology in the United States throughout the term of the original agreement subject to meeting its minimum purchase requirements. As a result of this Second Amendment, permissible feedstock now includes all materials capable of being processed by the Technology. In addition, the term of the original agreement was extended to July 1, 2030.American Renewable Diesel ("American") is a special purpose company owned and managed by Trianon Partners. On February 6, 2008, AGEI and American executed an agreement granting to American the right to sell and use the KDV technology for all types of feedstocks, except for household waste in five states in the U.S.: Texas, California, New York, New Jersey and Florida. Similar to the business arrangement with Covanta, the Company has the right to fund and own up to 51% of each of American’s KDV-based projects. As of December 31, 2010, no such KDV-based projects were initiated. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | General (continued): On November 11, 2008, the Company entered into a joint venture agreement with S.C. Supercom S.A. ("Supercom"), a Romanian company engaged in the business of collecting (and landfilling) municipal solid waste in and around the City of Bucharest, and S.C. Target Group S.R.L. ("Target"), a Romanian company. The Company and Supercom agreed to incorporate a legal entity in Romania under the name Super Energy S.A. ("Super Energy"), to engage in converting municipal solid waste into synthetic diesel fuel in Romania using the KDV technology.The initial share capital of Super Energy S.A. is to be 51% held by us and 49% held by Supercom, with each contributing 5% of their shares to Target Group upon incorporation of Super Energy S.A. so that the share capital of Super Energy S.A. would be held in the following manner: our company - 46%, Supercom - 44%, and Target Group 10%. Initially, the board of directors of Super Energy S.A. will be comprised of four board members, with each of Supercom and the Company entitled to appoint two.All projects undertaken under this agreement are to be financed by Supercom providing 100% of the required equity via a special purpose vehicle, and Super Energy S.A. reimbursing Supercom for investments made on its behalf.As of December 31, 2010 and as of the date of the approval of these financial statements, no such KDV-based projects were initiated.On March 9, 2008, the Company entered into a Memorandum of Understanding ("MOU") with Shaanxi ShenMu SanJian Coal Chemical Co. Ltd. ("Shaanxi"), a company located in the People's Republic of China, to initiate the KDV project in that region. Completion of the transaction based on this MOU is subject to due diligence, further negotiation and testing. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Functional Currency The financial statements of foreign subsidiaries have been prepared in U.S. dollars, as the dollar is their functional currency.  A substantial portion of the foreign subsidiaries financing and costs are incurred in dollars.  The Company’s management believes that the dollar is the primary currency of the economic environment in which the foreign subsidiaries operate.Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into U.S. dollars in accordance with ASC Topic 830 “Foreign Currency Matters”.  All transaction gains and losses of the remeasured, monetary balance sheet items are reflected in the statement of operations as financial income or expense, as appropriate and were immaterial to date. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | d. | Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries mentioned above, and the accounts of the 50% owned entity (AGEI) which is a variable interest entity and the Company is the primary beneficiary. All significant intercompany transactions and balances have been eliminated in consolidation. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | Cash equivalents Cash equivalents are short-term highly liquid investments which include short term bank deposit (up to three months from date of deposit), that are not restricted as to withdrawals or use that are readily convertible to cash with maturities of three months or less as of the date acquired. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Assets are depreciated using the straight-line method over their estimated useful lives. The annual depreciation is as follows: leasehold improvements are amortized over the term of the lease which is shorter than the estimated useful life of the improvements. Computers, software and electronic equipment are depreciated over three years. Tools and equipment are depreciated over five years. Furniture is depreciated over fourteen years. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | long-lived assets The Company's long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. During the years ended December 31, 2010, 2009 and 2008, no impairment losses have been identified. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h. | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates and assumptions are utilized in the calculation of valuation of derivatives, convertible senior notes, valuation of investments, other than temporary impairment of investments and valuation allowances on deferred tax assets. Actual results may differ from those estimates. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | i. | Derivative financial instruments (“derivatives”) All derivatives are recognized on the balance sheet at their fair value. On the date that the Company enters into a derivative contract, it designates the derivative, for accounting purposes, as: (1) hedging instrument, or (2) non-hedging instrument. Any changes in fair value are to be reflected as current gains or losses or other comprehensive gains or losses, depending upon whether the derivative is designated as a hedge and what type of hedging relationship exists. Changes in fair value of non-hedging instruments are carried to “financial expenses-net” on a current basis. To date, the Company did not have any contracts that qualify for hedge accounting. The Company entered into convertible debentures agreement in which a derivative instrument is “embedded”. Embedded derivative is separated from the host contract and carried at fair value when (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and (2) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument. |
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|   | j. | Fair Value of Financial Instruments FASB ASC 820 defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements.  Fair value is defined under FASB ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  Valuation techniques used to measure fair value under FASB ASC 820-10-55 must maximize the use of observable inputs and minimize the use of unobservable inputs.  In accordance with ASC 820, the carrying value of cash, cash equivalents and accounts payable approximates fair value due to the short-term maturity of these instruments.  The standard also describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data.Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. |
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|   | j. | Fair Value of Financial Instruments (continue) The following table represents the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2010: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|-------|--------|
| Convertible debentures |   |    | -      |   |    |   | -      |    |   |   | 4,875 |   |   |   | 4,875 |   |
| Accrued expenses       |   |    | -      |   |    |   | -      |    |   |   | 764   |   |   |   | 764 |   |
| Short term loans       |   |    | -      |   |    |   | -      |    |   |   | 18    |   |   |   | 18 |   |
| Total liabilities      |   |    | -      |   |    |   | -      |    |   |   | 5,657 |   |   |   | 5,657 |   |

|   | k. | Share-based payments The Company accounts for awards classified as equity awards using the grant-date fair value method. The fair value of share-based payment transactions is recognized as expense over the requisite service period, net of estimated forfeitures. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule using the graded vesting attribution method.The fair value of share-based payments was estimated on the date of grant using the Black-Scholes option pricing model based on the following weighted average assumptions: |
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|                    |   | Year ended December 31, 2008 |         |   | Year ended December 31, 2009 |   |   | Year ended December 31, 2010 |   |
|-------------------------|--------|------------------------------|--------------|--------|------------------------------|--------|--------|------------------------------|--------|
| Dividend yield          |   |                         | 0            | %      |                         |   | 0      | %                            |   |   | 0 | % |
| Risk-free interest rate |   |                         | 1.89% - 2.30 | %      |                         |   | 1.89   | %                            |   |   | 1.38% - 1.56 | % |
| Expected term (years)   |   |                         | 5 – 10 |   |                         |   | 5      |                         |   |   | 3 |   |
| Volatility              |   |                         | 230% - 263   | %      |                         |   | 357    | %                            |   |   | 333% - 370 | % |

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|   | k. | Share-based payments (continue) Historical data is used to estimate pre-vesting option forfeitures and record stock-based compensation expense only on those awards that are expected to vest. The Company uses its own historical exercise activity and extrapolates the life cycle of options outstanding to arrive at its estimated expected term for new option grants. The Company uses its own volatility history based on its stock’s trading history .The Company accounts for equity instruments issued to third party service providers (non-employees) in accordance with the fair value using the Black-Scholes option-pricing model. The fair value of the options granted is revalued over the related service periods and recognized over the vesting period. |
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|   | l. | Net Loss Per Share Net loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of common shares outstanding during the period. Diluted net loss per share is based upon the weighted average number of common shares and of common shares equivalents outstanding when dilutive. Common shares equivalents include: (i) outstanding stock options under the Company’s Long-Term Incentive Plan and warrants which are included under the treasury share method when dilutive, and (ii) Common shares to be issued under the assumed conversion of the Company’s outstanding convertible debentures, which are included under the if-converted method when dilutive. The computation of diluted net loss per share for the years ended December 31, 2010, and 2009, does not include common share equivalents, since such inclusion would be anti-dilutive. |
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|   | m. | Deferred income taxes Deferred taxes are determined utilizing the asset and liability method based on the estimated future tax effects of differences between the financial accounting and tax bases of assets and liabilities under the applicable tax laws. Deferred tax balances are computed using the tax rates expected to be in effect when those differences reverse. A valuation allowance in respect of deferred tax assets is provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has provided a full valuation allowance with respect to its deferred tax assets. |
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|   | n. | Comprehensive loss The Company has no component of comprehensive income loss other than net loss. |
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|   | o. | Segments All of the Company’s producing operations which expected to generate revenues are located in the United States and its only business is the development of the KDV process. As of the date of these financial statements no revenues have been generated. As a result, management views all of the Company’s business and operations to be one segment. |
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|   | p. | Newly issued accounting pronouncements: |
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|   | a. | Effective June 30, 2010, the Company adopted the amended guidance in ASC Topic 715, Compensation– Retirement Benefits, which expands disclosure requirements and requires entities to disclose investment policies and strategies, major categories of plan assets, fair value measurements for each major category of plan assets segregated by fair value hierarchy level as defined in ASC Topic 820, the effect of fair value measurements using Level 3 inputs on changes in plan assets for the period, and significant concentrations of risk within plan assets.  The adoption of this amended guidance required expanded disclosure in the notes to the Company’s consolidated financial statements but did not impact financial results |
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|   | b. | Effective July 1, 2010, the Company adopted the amended guidance in ASC Topic 810, Consolidations , which will change how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting or similar rights (known as variable interest entities or VIEs) should be consolidated. The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the other entity’s purpose and design and the reporting entity’s ability to direct the activities of the other entity that most significantly impact the other entity’s economic performance. This amended guidance will require a number of new disclosures including disclosures about the reporting entity’s involvement with VIEs, how its involvement with VIEs affects the reporting entity’s financial statements, and any significant changes in risk exposure due to that involvement.  The Company expects that the adoption of this amended guidance will not have significant impact on the Company's consolidated financial statements. |
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|   | c. | Effective July 1, 2010, the Company adopted the second phase of the amended guidance in ASC Topic 820, Fair Value Measurements and Disclosures, which requires the Company to disclose information in the reconciliation of recurring Level 3 measurements about purchases, sales, issuances and settlements on a gross basis, separately for assets and liabilities.  The Company expects that the adoption of this amended guidance will not have any impact on the Company's consolidated financial statements. |
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|                      |   | December 31              |   |
|---------------------------|--------|--------------------------|--------|
|                      |   | 2010                     |   |   | 2009 |   |
|                      |   | U.S dollars in thousands |   |
| Prepaid expenses          |   | $                        | 26     |   |   | $ | 25 |   |
| Governmental Institutions |   |                     | 15     |   |   |   | 4 |   |
| Other receivable          |   |                     | 2      |   |   |   | 18 |   |
|                      |   | $                        | 43     |   |   | $ | 47 |   |

|                                            |   | December 31              |   |
|-------------------------------------------------|--------|--------------------------|--------|
|                                            |   | 2010                     |   |   | 2009 |   |
|                                            |   | U.S dollars in thousands |   |
| Cost:                                           |   |                     |   |   |   |   |
| Advances on account of                          |   |                     |   |   |   |   |
| acquisition of machinery                        |   | $                        | 931    |   |   | $ | 931 |   |
| Computer software and electronic equipment      |   |                     | 6      |   |   |   | 6 |   |
| Furniture                                       |   |                     | 21     |   |   |   | 21 |   |
| Leasehold improvements                          |   |                     | -      |   |   |   | - |   |
|                                            |   |                     | 958    |   |   |   | 958 |   |
| Less, accumulated depreciation and amortization |   |                     | 27     |   |   |   | 6 |   |
|                                            |   | $                        | 931    |   |   | $ | 952 |   |

|                           |   | December 31              |   |
|--------------------------------|--------|--------------------------|--------|
|                           |   | 2010                     |   |   | 2009 |   |
|                           |   | U.S dollars in thousands |   |
| Accrued expenses               |   | $                        | 725    |   |   | $ | 1,130 |   |
| Employees and payroll accruals |   |                     | 38     |   |   |   | 69 |   |
| Government authorities         |   |                     | 1      |   |   |   | 2 |   |
|                           |   | $                        | 764    |   |   | $ | 1,201 |   |

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|                            |   | December 31              |   |
|---------------------------------|--------|--------------------------|--------|
|                            |   | 2010                     |   |   | 2009 |   |
|                            |   | U.S dollars in thousands |   |
| Loan from third party (a)       |   |                     | -      |   |   |   | 88 |   |
| Loan from other third party (b) |   |                     | -      |   |   |   | 50 |   |
|                            |   | $                        | -      |   |   | $ | 138 |   |

|   | (a) | On October 26, 2008, Pacific entered into a Loan Agreement (the “Agreement”) with a third party ("the Lender"). The lender is the brother of one of the controlling shareholders of Carrigain Investment Ltd, which is the controlling shareholder of the Company. It was agreed that the Lender shall loan Pacific an aggregate of $400 thousand, with $300 thousand being transferred to Pacific in three equal installments during October and November 2008 and $100 thousand will remain on-call. The loan bears no interest. On May 2009 an amount of $128 thousand was repaid by Pacific. On April 8, 2010 the Lender and Mr. Yuval Ganot signed an agreement for the assignment of the loan to Mr. Ganot. Based on the agreement Mr. Ganot would pay the Lender the amount of 120 NIS thousands (USD 32 thousands) for the assignment of the remaining loan's balance and the remaining balance of the loan (USD 56 thousands) was extinguished and was recorded as an income from extinguishment of debt. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | On July 9, 2008, Pacific entered into a term sheet for a loan with another third party ("term sheet"). It was agreed in the term sheet that the third party will loan Pacific an amount of $400 thousand in consideration for an ownership interest in the share capital of Pacific and collaborations in projects in Ethiopia and non competition understandings in some parts of Ethiopia. On July, 2008, the third party loaned Pacific an amount of $100 thousand to be repaid no later than November 30, 2008 and entitled the third party to 1% of the share capital of Pacific. Since it was not repaid, according to the term sheet, this amount bears a weekly interest rate of 1% from the repayment date until the actual date of repayment and entitles the third party to 2% of the share capital of Pacific. On May 3, 2010 the Company and the third party agreed on terms for settlement of the remaining balance of the loan as of such date (USD 63 thousands). According to the settlement agreement the Company would pay USD 23 thousands and the remaining balance of the loan would be extinguish. Accordingly the Company recorded an income from extinguishment of debt in the amount of USD 40 thousands. |
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|                              |   | 2010                     |   |   | 2009   |   |
|-----------------------------------|--------|--------------------------|--------|--------|--------|--------|
|                              |   | U.S dollars in thousands |   |
| Loan from a shareholder (a)       |   |                     | -      |   |   | $      | 82 |   |
| Loans from other shareholders (b) |   |                     | 18     |   |   |   | 18 |   |
|                              |   | $                        | 18     |   |   | $      | 100 |   |

|   | (a) | Loans to Pacific from a shareholder and a related party bear interest at an annual rate of 4% and were due on January 1, 2009. According to the terms of the agreement with the shareholder, since the loan was not repaid on January 1, 2009, the remaining loan bears interest at a monthly rate of 3% from that date. On May 3, 2010 the Company and the related party agreed on terms for settlement of the remaining balance of the loan as of such date (USD 83 thousands). According to the settlement agreement the Company would pay USD 30 thousands and would issue 1,200,000 shares of the Company and the remaining balance of the loan would be extinguish. The shares issued were valued based on the price of the share as of the settlement date and accordingly the Company recorded an income from extinguishment of debt in the amount of USD 15 thousands. |
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|   | (b) | The Company borrowed $18 thousand from four shareholders of the Company on May 4, 2006. The loans are unsecured, non-interest bearing and due on demand. |
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|   | ● | The private investor agreed to purchase the fourth installment of $1 million in two equal installments, the first installment was on the date of the amendment and the last $0.5 million was due after a registration statement for the underlying shares is declared effective by the SEC. On May 13, 2008, the registration statement was declared effective and the investor purchased the last installment; |
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|   | ● | The applicable conversion price was reduced from $2.20 to $1.25 for all debentures outstanding; |
|--------|---------|-------------------------------------------------------------------------------------------------|

|   | ● | The exercise prices of the warrants were reduced from $2.50 and $2.35 to $1.25. |
|--------|---------|---------------------------------------------------------------------------------|

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|   | ● | The Company issued the Investor 200,000 restricted shares of its common stock (the restriction is on their trade-ability for the first 180 days after registration): |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The applicable conversion price was reduced from $1.25 to the price of shares that were to be issued in the offering, for all Debentures outstanding (since the offering ultimately did not take place, the applicable conversion price was not reduced); |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The exercise price of the warrants was reduced from $1.25 to the same exercise price of warrants that were to be issued in the offering. The amount of warrants was also adjusted (increased) according to the proportion between the exercise price before the offering and the exercise price afterwards (since the offering ultimately did not take place, the exercise price and number of warrants was not changed). |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The applicable conversion price was further reduced to the price of shares that were to be issued in the offering, for all Debentures outstanding (since the shares were eventually sold in the offering at the price of $0.1 per share, the new applicable conversion price is $0.1); |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The exercise price of the warrants was further reduced to the same exercise price of warrants that were to be issued in the offering. The amount of warrants were also adjusted (increased) according to the proportion between the exercise price before the offering and the exercise price after (since the shares were eventually sold in the offering at the price of $0.1 per share, the new exercise price is $0.1 and the warrants increased from 600,000 to 7,500,000); |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ● | The Company issued the Investor 1,000,000 restricted shares of its common stock (the restriction is on their tradeability for the first 180 days after registration); |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The interest rate on the Debentures was increased from 10% to 12% as of that date; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | ● | The Company paid an amount of $180 thousand as interest directly from the proceeds of the offering (see Note 12a) to the debenture investors; |
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|   | ● | The repayment schedule of the Debentures was revised and commenced in November 2008. |
|--------|---------|--------------------------------------------------------------------------------------|

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|   | a.  | All outstanding debentures with YA will be consolidated into a single debenture. |
|--------|----------|----------------------------------------------------------------------------------|

|   | b.  | The Company will make initial payment of $50,000 to YA, of which $20,000 has already been paid. |
|--------|----------|-------------------------------------------------------------------------------------------------|

|   | c.  | Interest and principal payments to YA under the current Debentures will be deferred for one year. |
|--------|----------|---------------------------------------------------------------------------------------------------|

|   | d.  | The Company will have the option to redeem up to $3 million of the debenture at 115% of the amount being redeemed with 5 days prior notice. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | e.  | After the first year, the monthly payment will be $225,000. |
|--------|----------|-------------------------------------------------------------|

|   | f.  | Conversion price of the debentures and the exercise price of the warrants will be reduced to be equal to the price of stock issued in the capital raise. |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g.  | There will be a partial lockup for one year limiting the number of shares of the Company’s common stock that YA can sell at prices less than 5 cents in any particular month. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Global Energy provided a cash flow projection budget in a form acceptable to YA Global, demonstrating that the Global Energy will have sufficient cash flows to fund its operations for a period of at least 12 months. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Global Energy made a cash payment under the existing debentures of $30,000. |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | Debentures.  Global Energy issued to YA Global two Secured Convertible Debentures (the “Amended and Restated Debentures”) in exchange for the existing debentures. The total principal amount of the Amended and Restated Debentures together is equal to the total amounts outstanding under the existing debentures. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Debenture I is in a principal amount of $3.17 million, bears interest at 8% per annum and has a maturity date of 36 months from issuance, with an extension to 48 months if a "second financing milestone" is reached.  No payments are due for first 18 months (24 months if the "first financing milestone" is reached, and 36 months if the "second financing milestone" is reached), with $150,000 per month thereafter.  Payments can be made in cash or stock at a 5% discount to market price, provided shares can be resold.  This debenture is convertible into common stock at $.05 per share, and 80,000,000 shares have initially been reserved for this debenture.  Global Energy can redeem this debenture at anytime with a 15% redemption premium.  |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | - | Debenture II is in a principal amount of $1.5 million, bears interest at 8% per annum (6% if the "first financing milestone" is reached, and 4% if the "second financing milestone" is reached) and has a maturity date of 36 months from issuance.  No payments are due until maturity.  This debenture is convertible into common stock at $.01 per share, and 190,000,000 shares have initially been reserved for this debenture.  Global Energy cannot redeem this debenture prior to maturity without YA Global's consent. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Warrants. The exercise price of the Warrants was reduced to $0.01 per share and the number of shares underlying the Warrants remains unchanged. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | YA Global’s Lock up.  Beginning on date of Agreement and ending on the earlier of (i) February 1, 2012 or (ii) upon an event of default, on any particular Trading Day, except for any sales by the YA Global at a price of seven and one half cents ($0.075) or more, YA Global may not sell such number of shares of Common Stock that would exceed 20% of the volume traded during such Trading Day, unless waived by Global Energy. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | "First Financing Milestone" means the raising of at least $1.5 million in gross proceeds from (i) the Transaction or (ii) any financing transaction resulting in cash proceeds to Global Energy  (provided that (a) such transaction does not violate any provisions of the YA Global financing documents or (b) YA Global consents to such transaction) (an " Approved Transaction "), and " Second Financing Milestone " means the raising of at least $2 million in gross proceeds from (i) the Transaction or (ii) any other Approved Offering on or before March 1, 2012. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                            |   | Warrants |      |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractual Life in Years |   |
|-------------------------------------------------|--------|----------|-----------|--------|---------------------------------|--------|--------|------------------------------------------------------|--------|
|                                            |   |     |      |   |                            |   |   |                                                 |   |
| Balance – December 31, 2008 - outstanding |   |     | 7,500,000 |   |                            | $      | 0.01   |                                                 |   |   | 3.50 |   |
| Balance – December 31, 2008 - exercisable |   |     | 7,500,000 |   |                            | $      | 0.01   |                                                 |   |   | 3.50 |   |
|                                            |   |     |      |   |                            |   |   |                                                 |   |   |   |   |
| Granted                                         |   |     | -         |   |                            | $      | -      |                                                 |   |   |   |   |
| Exercised                                       |   |     | -         |   |                            | $      | -      |                                                 |   |   |   |   |
| Forfeited/Cancelled                             |   |     | -         |   |                            | $      | -      |                                                 |   |   |   |   |
| Balance – December 31, 2009 - outstanding |   |     | 7,500,000 |   |                            | $      | 0.01   |                                                 |   |   | 2.50 |   |
| Balance – December 31, 2009 - exercisable |   |     | 7,500,000 |   |                            | $      | 0.01   |                                                 |   |   | 2.50 |   |
|                                            |   |     |      |   |                            |   |   |                                                 |   |   |   |   |
| Granted                                         |   |     | -         |   |                            | $      | -      |                                                 |   |   |   |   |
| Exercised                                       |   |     | -         |   |                            | $      | -      |                                                 |   |   |   |   |
| Forfeited/Cancelled                             |   |     | -         |   |                            | $      | -      |                                                 |   |   |   |   |
| Balance – December 31, 2010 - outstanding |   |     | 7,500,000 |   |                            | $      | 0.01   |                                                 |   |   | 1.50 |   |
| Balance – December 31, 2010 - exercisable |   |     | 7,500,000 |   |                            | $      | 0.01   |                                                 |   |   | 1.50 |   |

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|   | a. | Fuel leases office in Tel Aviv, Israel, from Mr. Yuval Ganot under operating lease agreement, which expires at September 2011. The monthly rent is approximately $1 thousand. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Under the agreement signed with AlphaKat (see Note 1b) with regard to commercialization of AlphaKat technology of producing mineral diesel oil from municipal waste, the Company agreed to: 1) Provide financial support for the project, 2) Purchase up to three KDV 500 turbines for implementation in Poland, the United States and Israel, 3) Start a regulatory process, including filing of permit applications and 4) Monthly payments of €10 thousand to AlphaKat for consulting (until December 31, 2010, the Company paid AlphaKat an amount of $931 thousand on account of the first KDV500 turbine). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Under a joint venture agreement signed with Supercom to engage in converting municipal solid waste into synthetic diesel fuel in Romania using the KDV technology, the Company is obligated to submit to Super Energy a detailed contract for the purchase of the KDV system ("the First System") which shall detail the price, payment terms, timetable and manufacturer guaranties. In addition, the Company will guaranty the supply of the necessary catalizator in connection with the First System for a period of at least ten years and AGEI will guarantee together with the producer of the equipment the good function of the installation to the established parameters, respectively processing municipal solid waste and producing 500 liters of diesel per hour. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | On June 15, 2009 The Company entered into an agreement with Cypress Partners LLC whereby Cypress was retained as the Company's financial advisor, placement agent, and arranger for debt and equity financing and business combinations. The Company paid Cypress a retainer of 500,000 shares of the Company's stock. The Company is required to pay Cypress a milestone fee of 1,500,000 shares of the Company's stock upon receipt of a term sheet from a potential purchaser and a fee of 8% of the transaction at closing and warrants to purchase Company stock with a value equal to the 8% fee. The agreement can be terminated after 15 days notice. The fee arrangement continues for 12 months after termination. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | a. | Common shares The Company's shares are traded on the Over-The-Counter Bulletin Board.Common stock confers on its investors the right to receive notice to participate and vote in general meetings of the Company, the right to a share in the excess of assets upon liquidation of the Company, and the right to receive dividends, if declared.On July 15, 2008, the Company issued 200,000 restricted shares to the Debenture investors, see also Note 9.On September 22, 2008, the Company issued an additional 1,000,000 restricted shares to the Debenture investors, see also Note 9.On September 30, 2008, the Company entered into a Securities Purchase Agreement with twenty-seven accredited investors for the sale of 30 units at a purchase price of $50 thousand per unit for total consideration of $1,500 thousand. Each unit consists of 500,000 shares of common shares and 500,000 share purchase warrants exercisable at $0.10 for a period of five years. As finders fee, in connection with the securities purchase agreement, the Company paid $389 thousand, as well as issued 1,500,000 share purchase warrants fully vested exercisable at $0.10 to the placement agent.The net consideration was allocated to the shares and warrants issued based on relative fair value. The value allocated to all warrants estimated by using the Black-Scholes option-pricing model is $744 thousand and was based on the following assumptions: dividend yield of 0%; expected volatility of 206%; risk-free interest rate of 3.91%; and expected term of 5 years.On November 4, 2008, as part of the brokered private placement that took place on September 30, 2008 (see above), the Company sold an additional 4 units at a purchase price of $50 thousand per unit for total consideration of $200 thousand. Each unit consists of 500,000 shares of common shares and 500,000 share purchase warrants exercisable at $0.10 for a period of five years. As finders fee, in connection with the securities purchase agreement, the Company paid $47 thousand, as well as issued 200,000 share purchase warrants fully vested exercisable at $0.10 to the placement agent.The net consideration was allocated to the shares and warrants issued based on relative fair value. The value allocated to all warrants estimated by using the Black-Scholes option-pricing model is $99 thousand and was based on the following assumptions: dividend yield of 0%; expected volatility of 209%; risk-free interest rate of 3.51%; and expected term of 5 years.On December 5, 2008, $25 thousand of the principal amount of Debentures were converted into 314,070 shares of the Company |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | a. | Common shares (continued): On January 5, 2009, $35 thousand of the Principal amount of Debenture were converted into 1,228,070 shares of the Company (a conversion price of $0.0285 per share).On March 5, 2009, $10 thousand of the Principal amount of Debenture were converted into 1,052,632 shares of the Company (a conversion price of $0.0095 per share).On July 6, 2009, $10 thousand of the Principal amount of Debenture were converted into884,956 shares of the Company (a conversion price of $0.0113 per share).On September 6, 2009, $10 thousand of the principal amount of debentures were converted into 675,676 shares of our common stock of the Company (a conversion price of $0.0148 per share).As to the issuance of warrants, see Note 8.As to issuance of shares after the balance sheet date, see Note 16.On September 22, 2009, $247,415 of the principal amount of loans were converted into 24,741,505 shares of our common stock of the Company (at a conversion price of $0.01 per share). On June 25, 2009, the Company entered into an agreement under which it issued 500,000 shares valued at $0.012 per share reflecting an aggregate value of $6,000 for consideration of financial advisor services provided. On June 25, 2009, the Company issued 500,000 shares valued at $0.012 per share reflecting an aggregate value of $6,000 as a fee relating to a loan.On September 10, 2009, the Company entered into a Securities Purchase Agreement (the “Agreement”) with Yuval Ganot, an accredited investor and Noam Elimelech Ltd. (the “Investor”). Subject to the terms of the Agreement, on the closing date (the “Closing Date”) and on the 15th day of each calendar month subsequent to the Closing Date, for a period of sixteen months (each such day, a “Subsequent Closing”), the Investor shall purchase a total aggregate amount of up to 150,000,000 but not less than 100,000,000 of the Registrant’s shares of Common Stock (the “Shares”) in exchange for an aggregate purchase price of up to $1,500,000. The effective purchase price is $0.01 per share. The proceeds from the Agreement shall be used for general working capital. Pursuant to the terms of the Agreement, the Investor may, at his sole and absolute discretion, elect not to purchase all or a part of the portion of the shares scheduled to be purchased on the final Subsequent Closing (50,000,000 Shares). |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | a. | Common shares (continued): The agreement with the Investor was amended on March 15, 2010, 150,000,000 shares have been placed in escrow pending receipt of the investment. During the year ended December 31, 2010 and 2009 the investor invested $659,815 and $152,637, respectively which entitled the investor to 65,981,532 and 15,263,700 shares, respectively, from the shares held in escrow. Accordingly these 65,981,532 and 15,263,700 shares were reported as issued and outstanding as of December 31, 2010 and December 31, 2009, respectively. After the balance sheet date, the investor completed the Subsequent Closing by purchasing an additional 50,000,000 Shares for total consideration of $500,000. See note 16 for further information.As detailed in note 6 above, pursuant to an agreement with a related party, dated May 3, 2010, in respect of the outstanding debt of $83 thousands due to him, the company agreed to pay an aggregate sum of $30 thousands and issue 1.2 million shares of Global Energy Inc. These shares were issued on June 1, 2010 and were valued at $38,400 based on the closing price of the Company’s stock on the date of grant.On June 1, 2010, the Company issued to current and former members of its Board of Directors 5,160,000 shares of common stock for director fees valued at $165,120. The fair value of the shares was determined based on the closing price of the Company’s stock on the date of grant.On June 1, 2010 the Company issued to Mr. Asi Shalgi a total of 11,425,000 shares of common stock for salary and expenses in the amount of $365,600. The fair value of the shares was determined based on the closing price of the Company’s stock on the date of grant.On June 1, 2010 the Company issued to a consultant 5,000,000 shares in lieu of cash fees owed to him in connection with his services in the YA Global investment in Global Energy under the Consulting Services, Compensation Agreement and Non Circumvent Agreement with the Company, dated May 22, 2008, and 6,600,000 shares in lieu of cash fees owed to him under his Consulting Agreement with Global Energy, dated January 1, 2009. These shares were valued at $371,200 based on the closing price of the Company’s stock on the date of grant.On June 1, 2010 the Company issued to a consultant 1,000,000 shares for his services to Global Energy in connection with the investment in Global Energy made by Yuval Ganot and Noam Elimelech Ltd. These shares were valued at $32,000 based on the closing price of the Company’s stock on the date of grant.On June 1, 2010, the Company issued to Yuval Ganot a total of 3,152,500 shares for salary and expenses owed to Mr. Ganot under his employment agreement with the Company. These shares were valued at $100,880 based on the closing price of the Company’s stock on the date of grant. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | Stock option plan In 2007, the Company established the 2007 share option plan, which provides for the issuance of up to 8,500,000 of the Company's common shares. In March 2009, the Company increased the total number of shares reserved for issuance under the share option plan to 12,150,000 shares. In April 2010, effective January 31, 2010, the Company increased the total number of shares reserved for issuance under the share option plan to 27,000,000 shares.Grant of stock-based awards is administrated by the compensation committee of the board of directors of the Company which also establishes the terms of the awards.The following table presents the Company’s stock option and warrants activity for employees, officers and directors of the Company for the years ended December 31, 2007 through 2010: |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                    |   | Number of Options and warrants |       |   | Weighted Average Exercise Price |   |
|---------------------------------------------------------|--------|-------------------------------------|------------|--------|---------------------------------|--------|
| Outstanding at December 31, 2007                        |   |                                | 5,055,021  |   |                            |   | 0.01 |   |
| Granted                                                 |   |                                | 4,900,000  |   |                            |   | 1.08 |   |
| Exercised                                               |   |                                | -          |   |                            |   | - |   |
| Forfeited or expired                                    |   |                                | 2,200,000  |   |                            |   | 2.20 |   |
| Outstanding at December 31, 2008                        |   |                                | 7,755,021  |   |                            |   | 0.07 |   |
| Granted                                                 |   |                                | 2,750,000  |   |                            |   | 0.175 |   |
| Exercised                                               |   |                                | -          |   |                            |   | - |   |
| Forfeited or expired                                    |   |                                | 2,650,000  |   |                            |   | 0.175 |   |
| Outstanding at December 31, 2009                        |   |                                | 7,855,021  |   |                            |   | 0.07 |   |
| Granted                                                 |   |                                | 13,800,000 |   |                            |   | 0.03 |   |
| Exercised                                               |   |                                | -          |   |                            |   | - |   |
| Forfeited or expired                                    |   |                                | 750,000    |   |                            |   | 0.175 |   |
| Outstanding at December 31,2010                         |   |                                | 20,905,021 |   |                            |   | 0.040 |   |
| Number of options exercisable at December 31, 2010 |   |                                | 13,641,266 |   |                            |   |   |   |
| Number of options exercisable at December 31, 2009 |   |                                | 3,753,552  |   |                            |   |   |   |

----

|                 |   |   | Options and warrants Outstanding |       |   | Vested and Exercisable                              |   |
|----------------------|--------|--------|----------------------------------|------------|--------|-----------------------------------------------------|--------|
|  Exercise Price |   |   | Number of Option                 |       |   | Weighted Average Remaining Contractual Life (Years) |   |   | Number of Option |   |   | Weighted Average Exercise Price |   |
| 0.010                |   |   |                             | 5,055,021  |   |                                                |   | 6.25 |   |   |   | 3,791,266 |   |   |   | 0.010 |   |
| 0.0243               |   |   |                             | 4,600,00   |   |                                                |   | 2.02 |   |   |   | 4,600,000 |   |   |   | 0.0243 |   |
| 0.0304               |   |   |                             | 4,600,00   |   |                                                |   | 2.02 |   |   |   | 1,600,000 |   |   |   | 0.0304 |   |
| 0.0365               |   |   |                             | 4,600,00   |   |                                                |   | 2.02 |   |   |   | 1,600,000 |   |   |   | 0.0365 |   |
| 0.150                |   |   |                             | 683,333    |   |                                                |   | 8.00 |   |   |   | 683,333 |   |   |   | 0.150 |   |
| 0.175                |   |   |                             | 683,333    |   |                                                |   | 8.00 |   |   |   | 683,333 |   |   |   | 0.175 |   |
| 0.200                |   |   |                             | 683,333    |   |                                                |   | 8.00 |   |   |   | 683,333 |   |   |   | 0.200 |   |
|                 |   |   |                             | 20,905,021 |   |                                                |   |   |   |   |   | 13,641,266 |   |   |   |   |   |

----

|   | c. | Options to service providers: On April 13, 2010, the Company signed an agreement with Messrs. Ori Ackerman and Amnon Dradik and Intarpina Ltd. the brokers who introduced Noam Elimelech Ltd to the Company.  Under the terms of the agreement, the Company agreed to pay an aggregate of $60,000 payable over 10 months and to issue options to acquire an aggregate of 5,000,000 shares at an exercise price of $.01 per share. Such options vest in full upon the grant date of which, 2,500,000 expire after one year and the remaining 2,500,000 options expire after 18 month. Using the Black-Scholes option pricing model assuming a 1.37% risk free interest rate, 0% dividend yield, expected term of 1-1.5 years and 261% volatility, the Company has estimated the fair value of such options to be approximately $138,000. On August 20, 2010, 1,666,666 of such options were exercised into Company shares for total consideration of $16,667. A summary of the status of the stock options granted to non-employees as of December 31, 2009 and 2008, and changes during the year ended on those dates, is presented below: |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                    |   | Number of Options and warrants |      |   | Weighted Average Exercise Price |   |
|---------------------------------------------------------|--------|-------------------------------------|-----------|--------|---------------------------------|--------|
| Outstanding at December 31, 2007                        |   |                                | 400,000   |   |                            |   | 0.01 |   |
| Granted                                                 |   |                                | 226,415   |   |                            |   | 1.25 |   |
| Exercised                                               |   |                                | -         |   |                            |   | - |   |
| Forfeited or expired                                    |   |                                | 200,000   |   |                            |   | 0.01 |   |
| Outstanding at December 31, 2008                        |   |                                | 426,415   |   |                            |   | 0.67 |   |
| Granted                                                 |   |                                | 1,000,000 |   |                            |   | 0.02 |   |
| Exercised                                               |   |                                | -         |   |                            |   | - |   |
| Forfeited or expired                                    |   |                                | -         |   |                            |   | - |   |
| Outstanding at December 31, 2009                        |   |                                | 1,426,415 |   |                            |   | 0.21 |   |
| Granted                                                 |   |                                | 5,000,000 |   |                            |   | 0.01 |   |
| Exercised                                               |   |                                | 1,666,666 |   |                            |   | 0.01 |   |
| Forfeited or expired                                    |   |                                | -         |   |                            |   | - |   |
| Outstanding at December 31,2010                         |   |                                | 4,759,749 |   |                            |   | 0.071 |   |
| Number of options exercisable at December 31, 2010 |   |                                | 4,759,749 |   |                            |   |   |   |
| Number of options exercisable at December 31, 2009 |   |                                | 426,415   |   |                            |   |   |   |

----

|                             |   | 2010   |   |   | 2009   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|
| Deferred tax assets:             |   |   |   |   |   |   |
| Net operating loss carry-forward |   | $      | 2,401  |   |   | $      | 2,909 |   |
| Valuation allowance              |   |   | (2,401 | )      |   |   | (2,909 | ) |
|                             |   | $      | 0      |   |   | $      | 0 |   |

|                                   |   | U.S dollarsin thousands |   |
|----------------------------------------|--------|-------------------------|--------|
| Valuation allowance, December 31, 2009 |   | $                       | 2,909  |   |
| Decrease                               |   |                    | (498   | ) |
| Valuation allowance, December 31, 2010 |   | $                       | 2,401  |   |

----

|                                  |   | December 31, 2010 |    |   | December 31, 2009 |   |
|---------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
| Options:                              |   |              |    |   |              |   |
| Weighted average number, in thousands |   |              | 13,281  |   |              |   | 5,180 |   |
| Weighted average exercise price       |   | $                 | 0.05    |   |              | $      | 0.10 |   |
| Warrants:                             |   |              |    |   |              |   |   |   |
| Weighted average number, in thousands |   |              | 7,500   |   |              |   | 7,500 |   |
| Weighted average exercise price       |   | $                 | 0.01    |   |              | $      | 0.01 |   |
| Convertible Debt:                     |   |              |    |   |              |   |   |   |
| Weighted average number, in thousands |   |              | 205,970 |   |              |   | 460,000 |   |
| Weighted average Conversion price     |   | $                 | 0.04    |   |              | $      | 0.01 |   |

----

----

Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9A.  Controls and Procedures

|   | — | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and asset dispositions; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | — | provide reasonable assurance that transactions are recorded as necessary to permit the preparation of our financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | provide reasonable assurance regarding the prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on our financial statements. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 9B.  Other Information

| Name                             |   | Age    |   | Position |
|----------------------------------|--------|--------|--------|----------|
|                             |   |   |   |     |
| Directors and Executive Officers |   |   |   |     |
| Asi Shalgi                       |   |   | 57     |     | President, Chief Executive Officer, Director |
| Shlomo Zakai                     |   |   | 42     |     | Treasurer and Chief Financial Officer |
| Avner Raanan(1) (4)              |   |   | 60     |     | Director |
| Amir Elbaz(1) (2) (4)            |   |   | 34     |     | Director |
| Nissan Caspi(1) (3)              |   |   | 53     |     | Director |
| Yuval Ganot                      |   |   | 39     |     | Director |

----

----

| Name         |   | Number of Late Insider Reports |   | Number of Transactions Not Reported on a Timely Basis |   | Failure to File Requested Forms |
|--------------|--------|-------------------------------------|--------|-----------------------------------------------------------------|--------|--------------------------------------|
| Asi Shalgi   |   | 2                                   |   | 2                                                               |   | 0                                    |
| Yuval Ganot  |   | 10                                  |   | 9                                                               |   | 0                                    |
| Avner Raanan |   | 2                                   |   | 2                                                               |   | 0                                    |
| Nissan Caspi |   | 2                                   |   | 2                                                               |   | 0                                    |
| Amir Elbaz   |   | 2                                   |   | 2                                                               |   | 0                                    |

----

Item 11.  Executive Compensation

| SUMMARY COMPENSATION TABLE            |   |
|---------------------------------------|--------|
| Name And Principal Position |   | Year |   | Salary ($) |   | Bonus ($) |   | Stock Awards ($) |   |   | Option Awards ($) |   | Non-Equity Incentive Plan Compensation ($) |   | Nonqualified Deferred Compensation Earnings($) |   | All other Compensation |   | Total ($) |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asi Shalgi                            |   | 2010 |   |   | 89,974 | (2) | Nil |   | 365,600 | (3) |   | 263,136 | (4) |   | Nil |   | Nil |   | Nil |   | 718,710 |   |
| President, CEO and Director(1)        |   | 2009 |   |   | 150,000 |   | Nil |   | Nil |   |   | 234,478 |   |   | Nil |   | Nil |   | Nil |   | 384,478 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Alex Werber(5)                        |   | 2010 |   |   | 7,500 | (2) | Nil |   | Nil |   |   | Nil |   |   | Nil |   | Nil |   | Nil |   | 7,500 |   |
| CFO                                   |   | 2009 |   |   | 47,000 |   | Nil |   | Nil |   |   | 4,999 | (6) |   | Nil |   | Nil |   | Nil |   | 51,999 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shlomo ZakaiCFO                       |   | 2010 |   |   | 10,500 | (2) | Nil |   | Nil |   |   | Nil |   |   | Nil |   | Nil |   | Nil |   | 10,500 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Yuval Ganot                           |   | 2010 |   |   | 74,487 | (2) | Nil |   | 100,880 | (7) |   | 27,270 | (8) |   | Nil |   | Nil |   | Nil |   | 202,637 |   |
| Director                              |   | 2009 |   | Nil |   | Nil |   | Nil |   |   | Nil |   |   | Nil |   | Nil |   | Nil |   | Nil |   |

| (1)  | Mr. Shalgi did not receive any compensation as a director of our company. |
|-----------|---------------------------------------------------------------------------|

| (2)  | Actual compensation was paid in NIS. The conversion between NIS and Dollar was made pursuant to the official representative rate of exchange of the US$ as published by the Bank of Israel on the payment date |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | On June 1, 2010, the Company issued to Mr. Asi Shalgi, our President and CEO, a total of 11,425,000 shares of common stock in lieu of unpaid salary and expenses in the amount of $114,250 accrued from April 2009 under his employment agreement with Global Energy. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)  | On January 31, 2010, we granted to Mr. Shalgi, up to nine million stock options, with three million granted at an exercise price of $0.0243 per share to be vested immediately, three million granted at an exercise price of $0.0304 per share to be vested on January 1, 2011, and three million granted at an exercise price of $0.0365 per share to be vested on January 1, 2012.   5,055,021 options were issued to Mr. Shalgi on April 30, 2007. These options began vesting on April 30, 2008. The monetary value of these options is computed in accordance with U.S. Generally Accepted Accounting Principles. An amount of $4,564 relates to option awards granted in 2007 and the remaining $258,572 relates to the option awards granted in 2010. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (5)    | On April 15, 2010, Mr. Alex Werber resigned from his position as CFO of the Company.                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                               |
| (6)    | 750,000 options were issued to Mr. Alex Werber on January, 2009. The monetary value of these options is computed in accordance with U.S. Generally Accepted Accounting Principles. |

| (7) | On June 1, 2010, the Company issued to Yuval Ganot a total of 3,152,500 shares of common stock in lieu of unpaid salary and expenses in the amount of $31,525 owed to Mr. Ganot under his employment agreement with the Company. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | On January 31, 2010, the Board of Directors approved the grant of 600,000 options to Yuval Ganot at an exercise price of US $0.0243 to US $0.0365 per share. The options were granted for his service on the Board and immediately vested.  The monetary value of these options is computed in accordance with U.S. Generally Accepted Accounting Principles. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  OPTION AWARDS        |   | STOCK AWARDS                                                                                             |   |
|----------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
| Name                       |   |   Number of Securities Underlying Unexercised Options (#) Exercisable |   |   Number of Securities Underlying Unexercised Options (#) Unexercisable |   |   Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |   |   Option Exercise Price ($) |   |   Option Expiration Date |   |   Number of Shares or Units of Stock That Have Not Vested ($) |   |   Market Value of Shares or Units of Stock That Have Not Vested ($) |   |   Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |   |   Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#) |   |
|                       |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asi Shalgi President,      |   | 3,791,266                                                                                                |   | 1,263,755 |   | Nil  |   | $0.01  |   | April 30, 2017  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   |
|  CEO and Director (1) |   | 3,000,000                                                                                                |   | 6,000,000 |   | Nil  |   | $0.0243 to $0.0365 |   | January 31, 2015 |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   |
|                       |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Yuval Ganot Director (2)   |   | 600,000                                                                                                  |   | Nil |   | Nil  |   | $0.0243 to $0.0365 |   | January 31, 2013 |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   |

| (1)    | Asi Shalgi was granted 5,055,021 stock options on April 30, 2007 to vest at a rate of 25% per year beginning April 30, 2008. Effective January 31, 2008, the expiration date of the options was extended to April 30, 2017.On January 31, 2010, the Board of Directors approved the grant of 9,000,000 options to the CEO at an exercise price of US $0.0243 per share to US $0.0365. 3,000,000 of such options immediately vested, 3,000,000 vest on the first anniversary of grant and, 3,000,000 vest on the second anniversary of grant. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| (2)    | On January 31, 2010, the Board of Directors approved the grant of 600,000 options to Yuval Ganot, at an exercise price of US $0.0243 per share to US $0.0365. The options immediately vested.                                                                                                                                                                                                                                                                                                                                                |   |

----

| DIRECTOR COMPENSATION (1) |
|---------------------------|
| Name                      | Fees Earned or Paid in Cash ($) | Stock Awards  ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation  ($) | Non-Qualified Deferred Compensation Earnings ($) | All Other Compensation | Total ($) |
|                      |   |   |   |   |   |   |   |
| Avner Raanan              |   |   | 10,939 |   | Nil |   |   | 81,811 | (2) | Nil |   |   | Nil |   | Nil |   |   | 92,750 |   |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nissan Caspi              |   |   | 6,639 |   | Nil |   |   | 54,540 | (2) | Nil |   |   | Nil |   | Nil |   |   | 61,179 |   |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amir Elbaz                |   |   | 6,000 |   | Nil |   |   | 54,540 | (2) | Nil |   |   | Nil |   | Nil |   |   | 60,540 |   |

| (1) | For the fiscal year ended December 31, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (2) | On January 31, 2010, we granted to each of board members Amir Elbaz and Nissan Caspi, 1,200,000 stock options, with one third of the options granted at an exercise price of $0.0243, one third at an exercise price of $0.0304 and one third at an exercise price of $0.0365.  In addition, our board member Avner Ra'anan was granted an aggregate of 1,800,000 stock options, a third of which will be exercisable at each of these exercise prices indicated above. The monetary value of these option awards was computed in accordance with U.S Generally Accepted Accounting principles. |   |

----

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

|   | — | each beneficial owner of more than 5% of our outstanding common stock; |
|--------|---------|------------------------------------------------------------------------|

|   | — | each of our executive officers; |
|--------|---------|---------------------------------|

|   | — | each of our directors; and |
|--------|---------|----------------------------|

|   | — | all of our executive officers and directors as a group. |
|--------|---------|---------------------------------------------------------|

| Name:(1)                                                    |   | Shares Beneficially Owned |        |
|-------------------------------------------------------------|--------|---------------------------|-------------|
|                                                        |   | Number                    |        |   | Percent(2) |   |
|                                                        |   |                      |        |   |   |   |
| Naftali Mendelovits(3)                                      |   |                      | 113,712,718 |   |   |   | 27.2 | % |
| Tomer Katz(4)                                               |   |                      | 35,334,169  |   |   |   | 10.1 | % |
| Carrigain Investment Ltd.(5)                                |   |                      | 15,671,118  |   |   |   | 5.0 | % |
| YA Global Investments L.P.(6)                               |   |                      | 71,876,782  |   |   |   | 18.6 | % |
| Asi Shalgi (8)                                              |   |                      | 77,442,479  |   |   |   | 20.7 | % |
|    President, CEO, Secretary, and Director        |   |                      |        |   |   |
| Shlomo Zakai                                                |   |                      | -           |   |   |   | *- | % |
| Treasurer and CFO                                           |   |                      |        |   |   |   |   |   |
| Avner Raanan (9)                                            |   |                      | 3,561,667   |   |   |   | 1.1 | % |
|    Director                                       |   |                      |        |   |   |
| Nissan Caspi(10)                                            |   |                      | 7,384,779   |   |   |   | 2.3 | % |
|    Director                                       |   |                      |        |   |   |   |   |   |
| Amir Elbaz(11)                                              |   |                      | 14,803,333  |   |   |   | 4.7 | % |
|    Director                                       |   |                      |        |   |   |   |   |   |
| Yuval Ganot(12)                                             |   |                      | 3,752,500   |   |   |   | 1.2 | % |
|    Director                                       |   |                      |        |   |   |   |   |   |
| Noam Elimelech Ltd. (13)                                    |   |                      | 150,000,000 |   |   |   | 47.7 | % |
|                                                        |   |                      |        |   |   |   |   |   |
| All executive officers and directors as a group (6 persons) |   |                      | 92,704,758  |   |   |   | 25.6 | % |

|   | * Less than 1%. |
|--------|-----------------|

----

| (1) | Except as otherwise indicated, addresses are 16 Menachem Begin Street, Gama Building, 5th Floor, Ramat Gan, 52681, Israel. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (2) | Based on 314,420,239 shares of our common stock issued and outstanding as of March 30, 2011. Beneficial ownership is determined in accordance with the rules of the Commission and generally includes voting or investment power with respect to securities. Except as otherwise indicated, we believe that the beneficial owners of shares of our common stock listed above, based on information furnished by such owners, have sole investment and voting power with respect to such shares, subject to community property laws where applicable. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Consists of 10,000,000 shares owned directly and 103,712,718 shares underlying certain convertible debentures and warrants purchased by U-Trend Ltd. from YA Global Investments, L.P. in a securities purchase agreement dated November 10, 2010 (the "SPA"), according to a Schedule 13D filed February 17, 2011.  Mr. Mendelovits is sole shareholder, sole director, and CEO of U-Trend Ltd., his address is Chief Executive Officer, U-Trend Ltd., 94 Em Ha'Moshavot St., Petach Tikva 49130, Israel, and he and U-Trend Ltd. disclaim group membership with Tomer Katz, according to that 13D.  |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Consists of shares underlying certain convertible debentures received by Mr. Katz as compensation for certain entrepreneurial and brokerage services for U-Trend Ltd. in connection with the SPA, according to a Schedule 13D filed February 17, 2011.  Mr. Katz's address is Esslinggasse 13 top 10, 1010 Vienna, Austria, and he disclaims group membership with Mr. Mendelovitz and U-Trend Ltd., according to that 13D.                                                                                                                                                                          |
| (5) | To the company knowledge, Carrigain Investment Ltd. is controlled jointly by Ariel Malik and Zeev Bronfeld each holding 50% of its common shares. Effectively, therefore, each of Mr. Malik and Mr. Bronfeld beneficially owns 6.4% of our common stock. Carrigain Investment Ltd.‘s address is Jasmine Court, Regent Street, Belize City, Belize.                                                                                                                                                                                                                                                            |

| (6) | All investment decisions of, and control of, YA Global Investments, L.P. are held by its investment advisor, Yorkville Advisors, LLC.  Mark Angelo, the portfolio manager of Yorkville Advisors, makes the investment decisions on behalf of Yorkville Advisors, LLC.  The address for YA Global Investments, L.P. is 101 Hudson Street, Suite 3700, Jersey City, NJ 07302. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Consists of (i) 18,122,168 shares held directly; (ii) 3,791,266 options which Mr. Shalgi may exercise within 60 days, as follows: Mr. Shalgi was granted 5,055,021 options on April 30, 2007, to be vested to him at a rate of 25% per year beginning on April 30, 2008. 3,791,266 of these options are exercisable within 60 days of March 28, 2011; (iii) An additional 3,000,000 options which Mr. Shalgi may exercise within 60 days as follows: on January 31, 2010, the Board of Directors approved the grant of 9,000,000 options to Mr. Shalgi at an exercise price of US $0.0243 per share to US $0.0365. 3,000,000 of such options 3,000,000  immediately vested; and (iv) 52,529,045 shares owned by others who have agreed to grant Mr. Shalgi the right to vote such shares, as follows: 27,075,000 shares of Carrigain Investment Ltd., 4,048,322 shares of Ariel Malik, 12,920,000 shares of Amir Elbaz, 1,320,000 shares of Avner Raanan, and 7,165,723 shares of Yanai Man. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | 350,000 options were granted on December 6, 2007 and began vesting on December 6, 2008. The options have an exercise price of $2.20 per share and expire on December 6, 2017. The grant date fair value of the common shares underlying the options was $0.55 per common share. On December 29, 2008 the exercise price was changed as follows: (i) 1/3 of the options are exercisable at a price of $0.15 per share; (ii) 1/3 of the options are exercisable at a price of $0.175 per share; and (iii) 1/3 of the options are exercisable at a price of $0.20 per share, providing an average exercisable price of $0.178 This reprising is subject to receipt of a pre-ruling from the Israeli Tax Authority. On December 29, 2008 400,000 additional options were granted to be vested on January 1, 2011 with the following exercise price: (i) 1/3 of the options are exercisable at a price of $0.15 per share; (ii) 1/3 of the options are exercisable at a price of $0.175 per share; and (iii) 1/3 of the options are exercisable at a price of $0.20 per share, providing an average exercisable price of $0.178.  On January 31, 2010, the Board of Directors approved the grant of 1,800,000 options at an exercise price of US $0.0243 per share to US $0.0365. The options immediately vested. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | 650,000 of the options granted to Mr. Elbaz on December 29, 2008 are exercisable within 60 days of March 28, 2011. On January 31, 2010, the Board of Directors approved the grant of 1,200,000 options at an exercise price of US $0.0243 per share to US $0.0365. The options immediately vested. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | 650,000 of the options granted to Mr. Elbaz on December 29, 2008 are exercisable within 60 days of March 28, 2011.  On January 31, 2010, the Board of Directors approved the grant of 1,200,000 options at an exercise price of US $0.0243 per share to US $0.0365. The options immediately vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12) | On January 31, 2010, the Board of Directors approved the grant of 600,000 options at an exercise price of US $0.0243 per share to US $0.0365. The options immediately vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| (13) | Noam Elimelech Ltd. is a company wholly owned by Yuval Ganot. On September 10, 2009, we entered into a Securities Purchase Agreement with Noam Elimelech Ltd. and Mr. Ganot, which agreement is described in “Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuers Purchases of Equity Securities ” - Recent Sales of Unregistered Securities ”. Under the terms of the Agreement Noam Elimelech Ltd. is to invest in us for a period of sixteen months and is to purchase a total aggregate amount of up to 150,000,000 but not less than 100,000,000 of our shares of Common Stock.  On March 30, 2010, Noam Elimelech Ltd. completed its purchase of a total of 150,000,000 shares under the Securities Purchase Agreement. |   |

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Item 13.  Certain Relationships and Related Transactions, and Director Independence

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|   | — | $5,000 per month. Such fee shall be paid monthly. Mr. Elbaz agreed to defer up to 80% of the monthly fees due to him to a later date in which we could afford paying him his earned fees. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | Lump sum of $6,000 for services rendered during November and December 2008. |
|--------|---------|-----------------------------------------------------------------------------|

|   | — | We will issue Mr. Elbaz 150,000 shares of our common stock as part of additional consideration. Such shares shall be issued on or before August 1, 2009. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 14.  Principal Accountant Fees and Services

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|               |   | Fiscal Year Ended December 31, |
|--------------------|--------|-------------------------------------|
|               |   | 2010                                |   | 2009 |
|               |   | (in thousands)                      |
|               |   |                                |   |   |
| Audit Fees         |   | $                                   | 35 |   |   | $ | 35 |   |
| Audit-Related Fees |   | $                                   | - |   |   | $ | - |   |
| Tax Fees           |   | $                                   | 2 |   |   | $ | 5 |   |
| All Other Fees     |   | $                                   | - |   |   | $ | - |   |
| Total              |   | $                                   | 37 |   |   | $ | 40 |   |

Item 15.  Exhibits and Financial Statements

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SIGNATURES

| GLOBAL ENERGY INC. (Registrant)   By: /s/ Asi Shalgi —————————————— Asi Shalgi President, Chief Executive Officer and Director Date: March 31, 2011 |     /s/ Shlomo Zakai —————————————— Shlomo Zakai Treasurer and Chief Financial Officer Date: March 31, 2011 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Signature                                                                                                                               |   | Title                                                                                                       |   | Date           |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                                                    |   |                                                                                                        |   |           |
| /s/ Asi Shalgi——————————————Asi Shalgi              |   | President, Chief Executive Officer & Director (principal executive officer)                        |   | March 31, 2011 |
|                                                                                                                                    |   |                                                                                                        |   |           |
| /s/ Shlomo Zakai——————————————Shlomo Zakai          |   | Treasurer & Chief Financial Officer (principal financial officer and principal accounting officer) |   | March 31, 2011 |
|                                                                                                                                    |   |                                                                                                        |   |           |
| /s/ Avner Raanan——————————————Avner Raanan          |   | Director                                                                                                    |   | March 31, 2011 |
|                                                                                                                                    |   |                                                                                                        |   |           |
| /s/ Nissan Caspi——————————————Nissan Caspi          |   | Director                                                                                                    |   | March 31, 2011 |
|                                                                                                                                    |   |                                                                                                        |   |           |
| /s/ Amir Elbaz——————————————Amir Elbaz              |   | Director                                                                                                    |   | March 31, 2011 |
|                                                                                                                                    |   |                                                                                                        |   |           |
| /s/ Yuval Ganot——————————————Yuvul  Ganot |   | Director                                                                                                    |   | March 31, 2011 |

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EXHIBIT INDEX

| Exhibit Number |   | Description |
|----------------|--------|-------------|

| 3.1 |   | Articles of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to the Registrant’s to the Registrant’s current report on Form 8-K filed with the Commission on January 1, 2009). |
|-----|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 |   | Bylaws (incorporated by reference to Exhibit 3.(II) to the Registrant’s Form 10-SB12G as filed with the Commission on November 10, 1999, file number 000-28025). |
|-----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 |   | Specimen Certificate for shares of Common Stock (incorporated by reference to exhibit 4.1 to the registrants registration statement on Form SB-2 filed with the Commission on December 5, 2007). |
|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 |   | Shareholder Agreement with Alphakat GMBH (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K field with the Commission on July 13, 2007). |
|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 |   | Term sheet with Alphakat GMBH (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K field with the Commission on July 13, 2007). |
|------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 |   | Securities Purchase Agreement between the Registrant and the Buyer listed on Schedule I attached thereto (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on July 12, 2007). |
|------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 |   | Warrants GEYI-1-1 and GEYI-1-2 (incorporated by reference to Exhibits 10.2 and 10.3 to the Registrant’s current report on Form 8-K filed with the Commission on July 12, 2007). |
|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 |   | Registration Rights Agreement between the Registrant and the Buyer listed on Schedule I attached thereto (incorporated by reference to Exhibit 10.4 to the Registrant’s current report on Form 8-K filed with the Commission on July 12, 2007). |
|------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6 |   | Securities Purchase Agreement between the Registrant and Cornell Capital Partners, LP (incorporated by reference to Exhibit 10.5 to the Registrant’s current report on Form 8-K filed with the Commission on July 12, 2007). |
|------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 |   | Stock Option Plan (incorporated by reference to Exhibit 99 to the Registrant’s current report on Form 8-K filed with the Commission on May 21, 2007). |
|------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8 |   | Employment Agreement with Alex Werber (incorporated by reference to Exhibit 99.1 to the Registrant’s current report filed on Form 8-K on May 15, 2007). |
|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9 |   | Employment Agreement with Asi Shalgi (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on May 2, 2007). |
|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10 |   | Promissory Note dated September 1, 2006 to the order of Emerdale Enterprises Ltd. (incorporated by reference to Exhibit 10.1 the Registrant’s current report on Form 8-K filed with the Commission on September 11, 2006). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 |   | Amended and Restated Secured Convertible Debenture No. GEYI-1-1 (incorporated by reference to Exhibit 10.1 the Registrant's current report on Form 8-K filed with the Commission on October 26, 2007). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12 |   | Secured Convertible Debenture No. GEYI-1-2 (incorporated by reference to Exhibit 10.2 the Registrant's current report on Form 8-K filed with the Commission on October 26, 2007). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 |   | Secured Convertible Debenture No. GEYI-1-3 (incorporated by reference to Exhibit 10.8 to the Registrant's current report on Form 8-K filed with the Commission on December 7, 2007). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10.14 |   | Business and Royalty Agreement, dated as February 6, 2008, between Global Energy Inc. and Covanta Energy Corporation (portions omitted pursuant to a request for confidential treatment). (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed on February 12, 2008). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15 |   | License Agreement, dated as of February 6, 2008, between AlphaKat – Global Energy GmbH and Covanta Energy Corporation (portions omitted pursuant to a request for confidential treatment). (incorporated by reference to Exhibit 10.2 to the Registrant’s current report on Form 8-K filed on February 12, 2008). |
|-------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16 |   | Business and Development Agreement, dated as February 6, 2008, between Global Energy Inc. and Renewable Diesel, LLC. (incorporated by reference to Exhibit 10.3 to the Registrant’s exhibit to our current report on Form 8-K filed on February 12, 2008). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17 |   | License Agreement, dated as of February 6, 2008, between AlphaKat – Global Energy GmbH and American Renewable Diesel, LLC (portions omitted pursuant to a request for confidential treatment). (incorporated by reference to Exhibit 10.4 to the Registrant’s our current report on Form 8-K filed on February 12, 2008). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18 |   | Business and Royalty Agreement with Covanta Energy Corporation (incorporated by reference to Exhibit 10.24 to the Registrant’s annual report on Form 10-K filed on March 31, 2008) |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.19 |   | License Agreement between AlphaKat-Global Energy GmbH and Covanta Energy Corporation (incorporated by reference to Exhibit 10.25 to the Registrant’s annual report on Form 10-K filed on March 31, 2008) |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.20 |   | Business and Development Agreement with Renewable Diesel, LLC (incorporated by reference to Exhibit 10.26 to the Registrant’s annual report on Form 10-K filed on March 31, 2008) |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.21 |   | License Agreement between AlphaKat-Global Energy GmbH and American Renewable Diesel, LLC (incorporated by reference to Exhibit 10.27 to the Registrant’s annual report on Form 10-K filed on March 31, 2008) |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22 |   | Irrevocable Transfer Agent Instructions – Exhibit D to Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K/A filed on February 26, 2008). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23 |   | Amended and Restated Irrevocable Transfer Agent Instructions dated March 20, 2008. (incorporated by reference to Exhibit 10.34 to the Registrant's registration statement on Form S-1/A filed on April 14, 2008). |
|-------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.24 |   | Amended and Restated Irrevocable Transfer Agent Instructions dated March 20, 2008. (incorporated by reference to Exhibit 10.34 to the Registrant's registration statement on Form S-1 filed on May 1, 2008). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.25 |   | Business and Royalty Agreement with Covanta Energy Corporation (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K/A filed with the Commission on April 8, 2008; note that portions of the agreement have been omitted pursuant to a request for confidential treatment).                                                                                  |
|-------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.26 |   | First Amendment to February 6, 2008 Business and Royalty Agreement with Covanta Energy Corporation, dated November 23, 2010 (incorporated by reference to Exhibit 10.3 to the Registrant’s current report on Form 8-K filed with the Commission on November 29, 2010).                                                                                                                 |
| 10.27 |   | License Agreement between AlphaKat-Global Energy GmbH and Covanta Energy Corporation (incorporated by reference to Exhibit 10.2 to the Registrant’s current report on Form 8-K/A filed with the Commission on April 8, 2008; note that portions of the agreement have been omitted pursuant to a request for confidential treatment).                                                            |
| 10.28 |   | Second Amendment to February 6, 2008 License Agreement between AlphaKat-Global Energy GmbH and Covanta Energy Corporation, dated November 23, 2010 (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on November 29, 2010; note that portions of the agreement have been omitted pursuant to a request for confidential treatment). |

----

| 10.29 |   | Business and Development Agreement with Renewable Diesel, LLC (incorporated by reference to Exhibit 10.3 to the Registrant’s current report on Form 8-K/A filed with the Commission on April 8, 2008).                                                                                                                                     |
|-------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.30 |   | First Amendment to February 6, 2008 Business and Development Agreement between Global Energy Inc. and Renewable Diesel, LLC, dated November 23, 2010 (incorporated by reference to Exhibit 10.4 to the Registrant’s current report on Form 8-K filed with the Commission on November 29, 2010).                                  |
| 10.31 |   | License Agreement between AlphaKat-Global Energy GmbH and American Renewable Diesel, LLC (incorporated by reference to Exhibit 10.4 to the Registrant’s current report on Form 8-K/A filed with the Commission on April 8, 2008; note that portions of the agreement have been omitted pursuant to a request for confidential treatment).  |
| 10.32 |   | Second Amendment to February 6, 2008 License Agreement between AlphaKat-Global Energy GmbH and American Renewable Diesel, LLC, dated November 23, 2010 (incorporated by reference to Exhibit 10.2 to the Registrant’s current report on Form 8-K filed with the Commission on November 29, 2010).                                               |

| 10.33 |   | Secured Convertible Debenture No. GEYI-1-4 (incorporated by reference to Exhibit 10.9 to the Registrant's current report on Form 8-K filed with the Commission on March 26, 2007). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.34 |   | Amendment to the Securities Purchase Agreement, dated March 20, 2008 (incorporated by reference to Exhibit 10.10 to the Registrant’s current report on Form 8-K filed with the Commission on March 26, 2007). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.35 |   | Amendment no. 1 to Amended and Restated Secured Convertible Debenture No. GEYI-1-1 and Amendment No. 1 to Warrant (incorporated by reference to Exhibit 10.11 to the Registrant’s current report on Form 8-K filed with the Commission on March 26, 2008). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.36 |   | Amendment no. 1 to Secured Convertible Debenture No. GEYI-1-2 1 and Amendment No. 1 to Warrant (incorporated by reference to Exhibit 10.12 to the Registrant’s current report on Form 8-K filed with the Commission on March 26, 2007). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.37 |   | Amendment no. 1 to Secured Convertible Debenture No. GEYI-1-3 (incorporated by reference to Exhibit 10.13 to the Registrant's current report on Form 8-K filed with the Commission on March 26, 2007). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.38 |   | Secured Convertible Debenture No. GEYI-1-5 (incorporated by reference to Exhibit 10.14 to the Registrant's current report on Form 8-K filed with the Commission on May 15, 2008). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.39 |   | Consulting Services, Compensation Agreement and Non-Circumvent Agreement with Amir Elbaz dated May 22, 2008 (incorporated by reference to Exhibit 10.14 to the Registrant’s current report on Form 8-K filed with the Commission on May 30, 2008). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.40 |   | Terms of Agreement dated June 2, 2008 between the Registrant and S.C. Supercom S.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on June 19, 2008). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.41 |   | Letter Agreement dated July 15, 2008, by and between the Registrant and YA Global Investments, L.P. (incorporated by reference to Exhibit 10.1 to the Registrant’s quarterly report for the quarterly period ended September 30, 2008 on Form 10-Q filed with the Commission on November 19, 2008). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.42 |   | Letter Agreement dated September 22, 2008, by and between the Registrant and YA Global Investments, L.P. (incorporated by reference to Exhibit 10.2 to the Registrant’s quarterly report for the quarterly period ended September 30, 2008 on Form 10-Q filed with the Commission on November 19, 2008). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.43 |   | Consent Letter Agreement dated August 7, 2009, by YA Global Investments, L.P. (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on August 13, 2009). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.44 |   | Letter from YA Global Investments, L.P., dated September 2, 2009 (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on September 10, 2009). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.45 |   | Consent Letter Agreement dated March 8, 2010, by and between the Registrant and YA Global Investments, L.P. (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on March 15, 2010). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.46 |   | Amended and Restated Debenture, dated March 8, 2010, from Global Energy to YA Global in the original principle amount of $3,175,116. (incorporated by reference to Exhibit 10.2 to the Registrant’s current report on Form 8-K filed with the Commission on March 15, 2010). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.47 |   | Amended and Restated Debenture, dated March 8, 2010, from Global Energy to YA Global in the original principle amount of $1.5 million. (incorporated by reference to Exhibit 10.3 to the Registrant’s current report on Form 8-K filed with the Commission on March 15, 2010). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.48 |   | Terms of Loan Agreement dated October 26, 2008, by and between the Registrant, Mr. Aviram Malik and Global N.R.G. Pacific Ltd. (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on October 30, 2008). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.49 |   | Joint Venture Agreement dated November 12, 2008, by and between the Registrant, S.C. Supercom S.A. and S.C. Target Group S.R.L. (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on November 20, 2008). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.50 |   | Form of Securities Purchase Agreement used in connection with the private placement offering of Global Energy Inc. that closed in two tranches on September 30, 2008 and October 4, 2008 (incorporated by reference to Exhibit 10.62 to the Registrant’s registration statement on Form S-1 filed on January 1, 2009) |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.51 |   | Form of Registration Rights Agreement used in connection with the private placement offering of Global Energy Inc. that closed in two tranches on September 30, 2008 and October 4, 2008 (incorporated by reference to Exhibit 10.63 to the Registrant’s registration statement on Form S-1 filed on January 1, 2009) |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.52 |   | Purchase Agreement, dated March 3, 2009 between Global Energy Inc., Global N.R.G. Pacific Ltd. and Presaco Investments Ltd. (incorporated by reference to Exhibit 10.1 to the Registrant's current report on Form 8-K filed with the Commission on March 10, 2009). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.53 |   | Agreement to Service Operation between Alphakat – Global Energy GmbH and Waste 2 Oil GmbH. (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on May12, 2009). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.54 |   | Security Purchase Agreement dated September 10, 2009 between Global Energy, Inc. and Yuval Ganot (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on September 15, 2009). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.55 |   | Amendment dated December 23, 2009 to a Security Purchase Agreement dated September 10, 2009 between Global Energy, Inc. and Yuval Ganot (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on December 29, 2009). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.56 |   | Employment Agreement, dated as of September 10, 2009, by and between Yuval Ganot and Global Energy, Inc. (incorporated by reference to Exhibit 10.59 to the Registrant’s annual report on Form 10-K filed with the Commission on April 15, 2010). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.57 |   | Consulting Agreement, dated as of January 1, 2009, by and between Amir Elbaz and Global Energy, Inc. (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on May 27, 2009). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.58 |   | Agreement, dated as of April 13, 2010, between Global Energy, Inc. and Messrs. Ori Ackerman and Amnon Dradik and Intarpina Ltd. (unofficial translation into English) (incorporated by reference to Exhibit 10.60 to the Registrant’s annual report on Form 10-K filed with the Commission on April 15, 2010). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.1 |   | List of Subsidiaries of the Registrant (incorporated by reference to Exhibit 21.1 to the Registrant’s annual report on Form 10-K filed with the Commission on April 15, 2010). |
|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.1* |   | Power of Attorney (included on signature page). |
|-------|--------|-------------------------------------------------|

| 31.1* |   | Rule 13a-14(a)/15d-14(a) Certification, executed by Asi Shalgi, Chief Executive Officer, President and Director. |
|-------|--------|------------------------------------------------------------------------------------------------------------------|

| 31.2* |   | Rule 13a-14(a)/15d-14(a) Certification, executed by Shlomo Zakai, Treasurer and Chief Financial Officer. |
|-------|--------|----------------------------------------------------------------------------------------------------------|

| 32.1* |   | Section 1350 Certifications, executed by Asi Shalgi, Chief Executive Officer, President and Director, and Shlomo Zakai, Treasurer and Chief Financial Officer. |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----