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|                                     |                |
|------------------------------------------|---------------------|
| Nevada                                   | 86-0951473          |
| (State or Other Jurisdiction of          | (IRS Employer       |
| Incorporation or Organization)           | Identification No.) |
|                                     |                |
| 35 Shaul Hamelech Street, 5th Floor,     | 61181               |
| Tel Aviv, Israel                         | (Zip Code)          |
| (Address of Principal Executive Offices) |                |

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|   Large accelerated filer oNon-accelerated filer o |   | Accelerated filer oSmaller reporting company x |
|---------------------------------------------------------|--------|------------------------------------------------|

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|          |                                                                                                               |     |
|---------------|--------------------------------------------------------------------------------------------------------------------|----------|
| PART I        |
|          |                                                                                                               |     |
| Item 1.       | Business                                                                                                           | 1        |
| Item 1A.      | Risk Factors                                                                                                       | 11       |
| Item 1B.      | Unresolved Staff Comments                                                                                          | 12       |
| Item 2.       | Properties                                                                                                         | 12       |
| Item 3.       | Legal Proceedings                                                                                                  | 12       |
| Item 4.       | [Removed and Reserved]                                                                                             |     |
|          |                                                                                                               | 12       |
| PART II       |
|          |                                                                                                               |     |
| Item 5.       | Market for Registrant's Common Equity, Related Stockholder Matters and Issuers Purchases of Equity Securities |  12 |
| Item 6.       | Selected Consolidated Financial Data                                                                               | 16       |
| Item 7.       | Management's Discussion and Analysis of Financial Condition and Results of Operations                         |  16 |
| Item 7A.      | Quantitative and Qualitative Disclosures About Market Risk                                                         | 18       |
| Item 8.       | Financial Statements and Supplementary Data                                                                        | 18       |
| Item 9.       | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                          |  19 |
| Item 9A(T).   | Controls and Procedures                                                                                            | 19       |
| Item 9B.      | Other Information                                                                                                  | 19       |
|          |                                                                                                               |     |
| PART III      |
|          |                                                                                                               |     |
| Item 10.      | Directors, Executive Officers and Corporate Governance                                                             | 20       |
| Item 11.      | Executive Compensation                                                                                             | 22       |
| Item 12.      | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                |  26 |
| Item 13.      | Certain Relationships and Related Transactions, and Director Independence                                     |  28 |
| Item 14.      | Principal Accountant Fees and Services                                                                             | 30       |
|          |                                                                                                               |     |
| PART IV       |
|          |                                                                                                               |     |
| Item 15.      | Exhibits and Financial Statements                                                                                  | 30       |
|          |                                                                                                               |     |
| SIGNATURES    |                                                                                                               | 31       |
| EXHIBIT INDEX |                                                                                                               | 32       |

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 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; |
|--------|---------|----------------------------------------------------------------------------|

|   | — | 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; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | glycerin. |
|--------|---------|-----------|

| (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 and the scope of the rights with respect to the KDV technology granted to it; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (3) | Incorporators’ agreement and articles of Alphakat-Global Energy GmbH, dated November 22, 2007, by which we and Alphakat 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 on a world-wide basis other than in Mexico, Spain, Bulgaria and Italy.  |

| (1) | The non-exclusive right to sell and market KDV technology units worldwide, subject to rights previously granted to third parties to sell the KDV units Bulgaria, Spain, Portugal, Italy, Mexico, and Canada, and to co-operate in establishing plants using the KDV technology in Spain and 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. |
|-----|-------------------------------------------------------------------------------------------------|

| (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; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (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. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (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. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | 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 “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.  A form of this debenture with the full terms and conditions is attached hereto as Exhibit 10.2. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | 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.  A form of this debenture with the full terms and conditions is attached hereto as Exhibit 10.3. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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

----

.  Unresolved Staff Comments

Item 3.  Legal Proceedings

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

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|           |   | Low    |   |   | High    |   |
|----------------|--------|--------|--------|--------|---------|--------|
| 2008           |   |   |   |   |    |   |
|           |   |   |   |   |    |   |
| First Quarter  |   | $0.30  |   |   | $0.80   |   |
| Second Quarter |   | $0.40  |   |   | $0.72   |   |
| Third Quarter  |   | $0.10  |   |   | $0.55   |   |
| Fourth Quarter |   | $0.02  |   |   | $0.48   |   |
|           |   |   |   |   |    |   |
| 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 |   |

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| (1) | Our board of directors adopted an equity compensation plan, the 2007 Share Option Plan, on May 15, 2007, under which a total of 8,500,000, shares of our common stock have been authorized for issuance, On March 31, 2009, our board of directors approved the increase of the number of shares reserved for issuance under the Plan from 8,500,000 shares to 12,150,000 shares. The following summary information is presented for stock options authorized for issuance on an aggregate basis as of December 31, 2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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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      |   |                                                                                                                 | 9,281,436 |   |                                                                                                 |   | 0.91   |                                                                                                                                                                              |   |   | 2,868,564 |   |
|                                                       |   |                                                                                                                 |      |   |                                                                                                 |   |   |                                                                                                                                                                              |   |   |   |   |
| Equity compensation plans not approved by security holders |   |                                                                                                                 |      |   |                                                                                                 |   |   |                                                                                                                                                                              |   |   |   |   |

Item 6.  Selected Consolidated Financial Data

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| Estimated Funding Required During the Next 12 Months |
|------------------------------------------------------|
|                                                 |   |   |   |
| G&A Salaries                                     |   | $ | 240,000 |   |
| Other Operations                                     |   | $ | 480,000 |   |
| Total                                                |   | $ | 720,000 |   |

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|   | 1) | The Company adopted an accounting standard update regarding the determination of the useful life of intangible assets. As codified in ASC 350-30-35, this update amends the factors considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under intangibles accounting. It also requires a consistent approach between the useful life of a recognized intangible asset under prior business combination accounting and the period of expected cash flows used to measure the fair value of an asset under the new business combinations accounting (as currently codified under ASC 850). The update also requires enhanced disclosures when an intangible asset’s expected future cash flows are affected by an entity’s intent and/or ability to renew or extend the arrangement. The adoption did not have a material impact on the Company’s financial statements. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | The Company adopted a new accounting standard for subsequent events, as codified in ASC 855-10. The update modifies the names of the two types of subsequent events either as recognized subsequent events (previously referred to in practice as Type I subsequent events) or non-recognized subsequent events (previously referred to in practice as Type II subsequent events). In addition, the standard modifies the definition of subsequent events to refer to events or transactions that occur after the balance sheet date, but before the financial statements are issued (for public entities). The update did not result in significant changes in the practice of subsequent event disclosures, and therefore the adoption did not have a material impact on the Company’s financial statements. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3) | The Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 105-10, Generally Accepted Accounting Principles – Overall (“ASC 105-10”). ASC 105-10 establishes the FASB Accounting Standards Codification (the “Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants. All guidance contained in the Codification carries an equal level of authority. The Codification superseded all existing non-SEC accounting and reporting standards. All other non-grandfathered, non-SEC accounting literature not included in the Codification is non-authoritative. The FASB will not issue new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. Instead, it will issue Accounting Standards Updates (“ASUs”). The FASB will not consider ASUs as authoritative in their own right. ASUs will serve only to update the Codification, provide background information about the guidance and provide the bases for conclusions on the change(s) in the Codification. References made to FASB guidance throughout this document have been updated for the Codification. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4) | The Company adopted FASB ASU No. 2009-05, Fair Value Measurements and Disclosures (Topic 820) (“ASU 2009-05”). ASU 2009-05 provided amendments to ASC 820-10, Fair Value Measurements and Disclosures – Overall, for the fair value measurement of liabilities. ASU 2009-05 provides clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using certain techniques. ASU 2009-05 also clarifies that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of a liability. ASU 2009-05 also clarifies that both a quoted price in an active market for the identical liability at the measurement date and the quoted price for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required are Level 1 fair value measurements. Adoption of ASU 2009-05 did not have a material impact on the Company’s results of operations or financial condition. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

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|                                                               | Page          |
|--------------------------------------------------------------------|---------------|
|                                                               |          |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM            | F - 3         |
|                                                               |          |
| CONSOLIDATED FINANCIAL STATEMENTS  IN U.S. DOLLARS:      |          |
| Balance Sheets                                                     | F - 4         |
| Statements of operations                                           | F - 5         |
| Statements of changes in shareholders' equity (capital deficiency) | F - 6         |
| Statements of cash flows                                           | F - 7         |
| Notes to financial statements                                      | F - 8- F - 34 |

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CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                                                                                              |   | December 31              |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                              |   | 2009                     |   |   | 2008 |   |
|                                                                                                                                                                                                                                                              |   | U.S dollars in thousands |   |
| A s s e t s                                                                                                                                                                                                                                                       |   |                     |   |   |   |   |
| CURRENT ASSETS:                                                                                                                                                                                                                                                   |   |                     |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                                                         |   | $                        | 100    |   |   | $ | 278 |   |
| Restricted cash                                                                                                                                                                                                                                                   |   |                     | 510    |   |   |   |   |   |
| Advance to related party                                                                                                                                                                                                                                          |   |                     | 3,512  |   |   |   | 3,550 |   |
| Other accounts receivable                                                                                                                                                                                                                                         |   |                     | 47     |   |   |   | 146 |   |
|           T o t a l  current assets                                                                                                                                                                   |   |                     | 3,764  |   |   |   | 3,974 |   |
| LONG TERM DEPOSITS                                                                                                                                                                                                                                                |   |                     |   |   |   |   | 3 |   |
| ADVANCE TO MINORITY INTEREST SHAREHOLDER                                                                                                                                                                                                                          |   |                     | 18     |   |   |   | 18 |   |
| PROPERTY PLANT AND EQUIPMENT, net of accumulated depreciation                                                                                                                                                                                                     |   |                     | 952    |   |   |   | 1,342 |   |
|           T o t a l  assets                                                                                                                                                                           |   | $                        | 4,734  |   |   | $ | 5,337 |   |
|                                                                                                                                                                                                                                                              |   |                     |   |   |   |   |   |   |
| Liabilities net of capital deficiency                                                                                                                                                                                                                             |   |                     |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                                                                                              |   |                     |   |   |   |   |   |   |
| Accounts payables                                                                                                                                                                                                                                                 |   | $                        | 133    |   |   | $ | 284 |   |
| Accrued expenses                                                                                                                                                                                                                                                  |   |                     | 1,201  |   |   |   | 550 |   |
| Advance from third party                                                                                                                                                                                                                                          |   |                     | 3,512  |   |   |   | 3,550 |   |
| Short term loans                                                                                                                                                                                                                                                  |   |                     | 138    |   |   |   | 321 |   |
| Short term loans from related parties                                                                                                                                                                                                                             |   |                     | 100    |   |   |   | 552 |   |
| Debentures convertible into shares                                                                                                                                                                                                                                |   |                     | 4,600  |   |   |   | 4,256 | * |
| T o t a l  current liabilities                                                                                                                                                                                                                          |   |                     | 9,684  |   |   |   | 9,513 |   |
| ACCRUED SEVERENCE AND VACATION                                                                                                                                                                                                                                    |   |                     | 11     |   |   |   | 5 |   |
| MINORITY INTEREST                                                                                                                                                                                                                                                 |   |                     | 18     |   |   |   | 18 |   |
| T o t a l  liabilities                                                                                                                                                                                                                                  |   |                     | 9,713  |   |   |   | 9,536 |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                                     |   |                     |   |   |   |   |   |   |
| CAPITAL DEFICIENCY:                                                                                                                                                                                                                                               |   |                     |   |   |   |   |   |   |
| Share capital (Note 11) -Common shares of $0.001 par value each:Authorized: 750,000,000 and 250,000,000 shares at December 31, 2009 and 2008, respectively; Issued and outstanding: 126,548,373 and 81,701,834 shares at December 31, 2009 and 2008, respectively |   |                     | 127    |   |   |   | 82 |   |
| Additional paid-in capital                                                                                                                                                                                                                                        |   |                     | 2,064  |   |   |   | 1,469 |   |
| Warrants                                                                                                                                                                                                                                                          |   |                     | 1,215  |   |   |   | 1,215 |   |
| Receivables in respect of shares issued                                                                                                                                                                                                                           |   |                     |   |   |   |   |   |   |
| Accumulated deficit during development stage                                                                                                                                                                                                                      |   |                     | (8,312 | ) |   |   | (6,892 | )* |
| Accumulated deficit before development stage                                                                                                                                                                                                                      |   |                     | (73    | ) |   |   | (73 | ) |
| T o t a l  capital deficiency                                                                                                                                                                                                                           |   |                     | (4,979 | ) |   |   | (4,199 | ) |
| T o t a l  liabilities net of capital deficiency                                                                                                                                                                                                        |   | $                        | 4,734  |   |   | $ | 5,337 |   |

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CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                             |   | Year ended December 31                      |       |    | Cumulative from July 7,2005 throughDecember 31, |   |
|------------------------------------------------------------------|--------|---------------------------------------------|------------|---------|-------------------------------------------------|--------|
|                                                             |   | 2009                                        |       |    | 2008                                            |   |   | 2007 |   |   | 2009 |   |
|                                                             |   | U.S dollars in thousands, except share data |       |
| OPERATING EXPENSES -                                             |   |                                        |       |    |                                            |   |   |   |   |   |   |   |
| General and Administrative expenses (*)                          |   | $                                           | (1,373     | )       |                                            | $      | (2,791 | )  |   | $ | (1,547 | )  |   | $ | (5,810 | ) |
|                                                             |   |                                        |       |    |                                            |   |   |   |   |   |   |   |   |   |   |   |
| FINANCIAL EXPENSES - NET **                                      |   |                                        | (531       | )       |                                            |   | (1,180 | )  |   |   | (404 | )  |   |   | (1,786 | ) |
| NET (LOSS) FROM CONTINUING OPERATIONS FOR THE PERIOD             |   | $                                           | (1,904     | )       |                                            | $      | (3,971 | ) |   | $ | (1,951 | ) |   | $ | (7,596 | ) |
| DISCONTINUED OPERATION:                                          |   |                                        |       |    |                                            |   |   |   |   |   |   |   |   |   |   |   |
|    Loss from operations of discontinued component |   |                                        | -          |    |                                            |   | (1,157 | )  |   |   | (43 | )  |   |   | (1,200 | ) |
| Gain on sale of subsidiary                                       |   |                                        | 484        |    |                                            |   |   |   |   |   |   |   |   |   | 484 |   |
| NET LOSS                                                         |   | $                                           | (1,420     | )       |                                            | $      | (5,128 | )  |   | $ | (1,994 | )  |   | $ | (8,312 | ) |
|                                                             |   |                                        |       |    |                                            |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS PER SHARE, BASIC AND DILUTED                            |   | $                                           | (0.015     | )  |                                            | $      | (0.075 | )  |   | $ | (0.04 | )  |   |   |   |
|                                                             |   |                                        |       |    |                                            |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGENUMBER OF                                        |   |                                        |       |    |                                            |   |   |   |   |   |   |   |   |   |   |   |
| SHARES USED IN COMPUTING BASIC                                   |   |                                        | 91,837,656 |    |                                            |   | 67,669,862 |   |   |   | 48,206,454 |   |   |   |   |   |
| AND DILUTED NET LOSS PER SHARE                                   |   |                                        |       |

| * In the year ended December 31, 2009 - includes $165 thousand share-based compensation (31.12.2008 - $150 thousand). |
|-----------------------------------------------------------------------------------------------------------------------|

----

SHAREHOLDERS' EQUITY (CAPITAL DEFICIENCY

|                                                                                   |   |          |        |   |       |   |   |    |   |   | 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 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 | ) |

----

STATEMENTS OF CASH FLOWS

|                                                                                   |   |                     |      |   | Cumulative   |   |
|----------------------------------------------------------------------------------------|--------|--------------------------|-----------|--------|--------------|--------|
|                                                                                   |   |                     |      |   | from July 7, |   |
|                                                                                   |   |                     |      |   | 2005 through |   |
|                                                                                   |   | Year ended December 31   |      |   | December 31, |   |
|                                                                                   |   | 2009                     |      |   | 2008         |   |   | 2007 |   |   | 2009 |   |
|                                                                                   |   | U.S dollars in thousands |      |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                  |   |                     |      |   |         |   |   |   |   |   |   |   |
| Net loss for the period                                                                |   | $                        | (1,420    | )      |         | $      | (5,128 | ) |   | $ | (1,994 | ) |   | $ | (8,312 | ) |
| Adjustments required to reconcile net loss to net cash used in operating activities:   |   |                     |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                           |   |                     | 10        |   |         |   | 35 |   |   |   | 2 |   |   |   | 47 |   |
| Gain from sale of subsidiary                                                           |   |                     | (484      | )      |         |   |   |   |   |   |   |   |   |   | (484 | ) |
| Exchange differences on long term deposits                                             |   |                     | 3         |   |         |   | (3 | ) |   |   |   |   |   |   |   |   |
| Share based compensation expenses                                                      |   |                     | 164       |   |         |   | 150 |   |   |   | 110 |   |   |   | 424 |   |
| Increase (decrease) accrued interest on Short term loan from related parties      |   |                     | 13        |   |         |   |   |   |   |   |   |   |   |   | 19 |   |
| Increase (decrease) accrued interest on Short term loan                                |   |                     | 39        |   |         |   |   |   |   |   |   |   |   |   | 33 |   |
| Expenses in respect of the convertibles debentures                                     |   |                     | 449       |   |         |   | 1,009 |   |   |   | 403 |   |   |   | 1,532 | * |
|                                                                                   |   |                     |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) Accrued severance and vacation                                     |   |                     | 6         |   |         |   | 5 |   |   |   |   |   |   |   | 11 |   |
| Decrease (increase) in other accounts receivable and advance from supplier             |   |                     | 67        |   |         |   | (3,491 | ) |   |   | (187 | ) |   |   | (3,611 | ) |
| Increase (decrease) in advance to minority shareholder                                 |   |                     |      |   |         |   | 2 |   |   |   | (2 | ) |   |   |   |   |
| Increase in accounts payables                                                          |   |                     | 37        |   |         |   | 101 |   |   |   | 173 |   |   |   | 311 |   |
| Increase (decrease) in accrued expenses and advance from supplier                 |   |                     | 678       |   |         |   | 3,794 |   |   |   | 317 |   |   |   | 4,768 |   |
| Net cash used in operating activities                                                  |   |                     | (438      | )      |         |   | (3,526 | ) |   |   | (1,178 | ) |   |   | (5,571 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                  |   |                     |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
|   Lease deposits                                                                  |   |                     |      |   |         |   |   |   |   |   | (18 | ) |   |   | (18 | ) |
| Proceeds from sale of subsidiary                                                       |   |                     | 588       |   |         |   |   |   |   |   |   |   |   |   | 588 |   |
|   Payment for purchasing of property and equipment                                |   |                     |      |   |         |   | (854 | ) |   |   | (525 | ) |   |   | (1,379 | ) |
| Net cash used in investing activities                                                  |   |                     |  588 |   |         |   | (854 | ) |   |   | (543 | ) |   |   | (809 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                  |   |                     |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of shares - net of issuance expenses                                          |   |                     | 152       |   |         |   | 1,414 |   |   |   | 390 |   |   |   | 1,973 |   |
| Loans received from shareholders and related parties                                   |   |                     |      |   |         |   | 528 |   |   |   |   |   |   |   | 528 |   |
| Loans received from others                                                             |   |                     |      |   |         |   | 316 |   |   |   |   |   |   |   | 316 |   |
| Debentures repaid                                                                      |   |                     | (40       | )      |         |   |   |   |   |   |   |   |   |   | (40 | ) |
| Proceeds from debt issuance                                                            |   |                     |      |   |         |   |   |   |   |   |   |   |   |   | 46 |   |
| Proceeds from issuance of convertible debentures and warrants net of issuance expenses |   |                     |      |   |         |   | 930 |   |   |   | 2,790 |   |   |   | 3,720 |   |
| Loans repaid                                                                           |   |                     | (440      | )      |         |   |   |   |   |   |   |   |   |   | (440 | ) |
| Net cash provided by (used in) financing activities                                    |   |                     | (328      | )      |         |   | 3,188 |   |   |   | 3,180 |   |   |   | 6,103 |   |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                       |   |                     | (178      | )      |         |   | (1,192 | ) |   |   | 1,459 |   |   |   | 32 |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                       |   |                     | 278       |   |         |   | 1,470 |   |   |   | 11 |   |   |   | 68 |   |
|     CASH AND CASH EQUIVALENTS AT END OF PERIOD                          |   | $                        | 100       |   |         | $      | 278 |   |   | $ | 1,470 |   |   | $ | 100 |   |
| NON-CASH TRANSACTION:                                                                  |   |                     |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of loans payable into shares                                           |   |                     | 246       |   |         |   |   |   |   | $ | 28 |   |   |   |   |   |
| Conversion of debentures into shares                                                   |   |                     |      |   |         | $      | 25 |   |   |   |   |   |   |   |   |   |
| Issuance of shares and warrants - in relation with debt extinguishment                 |   |                     | 65        |   |         | $      | 276 |   |   |   |   |   |   |   |   |   |

| *After giving retroactive effect to the adoption of FASB ASC 470-20, as further described in note 8. |
|------------------------------------------------------------------------------------------------------|

----

FINANCIAL STATEMENTS

| NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES: |
|-------------------------------------------|

|   | a. | Going concern considerations |
|--------|----|------------------------------|

|   | b. | General |
|--------|----|---------|

----

| NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued): |
|-------------------------------------------------------|

|   | b. | General (continued): |
|--------|----|----------------------|

----

| NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued): |
|-------------------------------------------------------|

|   | b. | General (continued): |
|--------|----|----------------------|

----

| NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued): |
|-------------------------------------------------------|

|   | b. | General (continued): |
|--------|----|----------------------|

|   | c. | Functional Currency |
|--------|----|---------------------|

----

| NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued): |
|-------------------------------------------------------|

----

| NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued): |
|-------------------------------------------------------|

|   |  i. | Derivative financial instruments (“derivatives”) |
|--------|----------|--------------------------------------------------------------|

----

| NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued): |
|-------------------------------------------------------|

----

| NOTE 2 - OTHER ACCOUNTS RECEIVABLE: |
|-------------------------------------|

|                      |   | December 31              |   |
|---------------------------|--------|--------------------------|--------|
|                      |   | 2009                     |   |   | 2008 |   |
|                      |   | U.S dollars in thousands |   |
| Prepaid expenses          |   | $                        | 25     |   |   | $ | 69 |   |
| Governmental Institutions |   |                     | 4      |   |   |   | 14 |   |
| Other receivable          |   |                     | 18     |   |   |   | 63 |   |
|                      |   | $                        | 47     |   |   | $ | 146 |   |

| NOTE 3 - PROPERTY AND EQUIPMENT: |
|----------------------------------|

|                                                                                       |   | December 31              |   |
|--------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                       |   | 2009                     |   |   | 2008 |   |
|                                                                                       |   | U.S dollars in thousands |   |
| Cost:                                                                                      |   |                     |   |   |   |   |
|         Advances on account of acquisition of machinery |   | $                        | 931    |   |   | $ | 931 |   |
| Construction in progress                                                                   |   |                     |   |   |   |   | 194 |   |
| Tools and equipment                                                                        |   |                     |   |   |   |   | 128 |   |
| Motor Cycles                                                                               |   |                     |   |   |   |   | 32 |   |
| Computer software and electronic equipment                                                 |   |                     | 6      |   |   |   | 42 |   |
| Furniture                                                                                  |   |                     | 21     |   |   |   | 37 |   |
| Leasehold improvements                                                                     |   |                     |   |   |   |   | 15 |   |
|                                                                                       |   |                     | 958    |   |   |   | 1,379 |   |
| Less, accumulated depreciation and amortization                                            |   |                     | 6      |   |   |   | 37 |   |
|                                                                                       |   | $                        | 952    |   |   | $ | 1,342 |   |

| NOTE 4 – ACCRUED EXPENSES: |
|----------------------------------|

|                           |   | December 31              |   |
|--------------------------------|--------|--------------------------|--------|
|                           |   | 2009                     |   |   | 2008 |   |
|                           |   | U.S dollars in thousands |   |
| Accrued expenses               |   | $                        | 1,130  |   |   | $ | 445 |   |
| Employees and payroll accruals |   |                     | 69     |   |   |   | 102 |   |
| Government authorities         |   |                     | 2      |   |   |   | 3 |   |
|                           |   | $                        | 1,201  |   |   | $ | 550 |   |

----

| GLOBAL ENERGY INC. |
|--------------------|

|                            |   | December 31              |   |
|---------------------------------|--------|--------------------------|--------|
|                            |   | 2009                     |   |   | 2008 |   |
|                            |   | U.S dollars in thousands |   |
| Loan from third party (a)       |   |                     | 88     |   |   |   | 216 |   |
| Loan from other third party (b) |   |                     | 50     |   |   |   | 105 |   |
|                            |   | $                        | 138    |   |   | $ | 321 |   |

|   |  (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. |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (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. |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| GLOBAL ENERGY INC. |
|--------------------|

|                                 |   | 2009                     |   |   | 2008   |   |
|--------------------------------------|--------|--------------------------|--------|--------|--------|--------|
|                                 |   | U.S dollars in thousands |   |
| Loan from a shareholder (a)          |   | $                        | 82     |   |   | $      | 178 |   |
| Loans from other shareholders (b)    |   |                     | 18     |   |   |   | 18 |   |
| Loan from a related party (c)        |   |                     |   |   |   |   | 156 |   |
| Loans from other related parties (c) |   |                     |   |   |   |   | 200 |   |
|                                 |   | $                        | 100    |   |   | $      | 552 |   |

|   | (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.  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Loans received from related parties and were back to back with loans the related parties received from a bank. The bank loans were granted for one month and have revolved each month. The interest rate is variable and is determined each month by the bank. As of December 31, 2008, the interest rate was 7%. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE 7 - ADVANCE TO MINORITY INTEREST SHAREHOLDER: |
|----------------------------------------------------|

----

|   | · | 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; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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. |
|--------|--------|---------------------------------------------------------------------------------|

----

|   | · | 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 eventually 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 eventually 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); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | 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; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The repayment schedule of the Debentures was revised and commenced in November 2008. |
|--------|--------|--------------------------------------------------------------------------------------|

----

|   | On August 7, 2009 the Company and YA Global Investment L.P. (YA) entered into an agreement whereby subject to our satisfaction of certain condition, YA has consented to our completion of a capital raise of at least $650,000 on or before September 3, 2009. In connection with this consent, the following agreements will become effective upon completion of the capital raise: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The notes are secured by a pledge on all of the Company's assets. |
|--------|-------------------------------------------------------------------|

----

| NOTE 9 - COMMITMENTS AND CONTINGENCIES: |
|-----------------------------------------|

|   | a. | Fuel currently leases office in Tel Aviv, Israel, under operating lease agreement, which expires at September 30, 2010. The monthly rent is approximately $1 thousand. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The Company gave guarantees to all of Pacific's loans (approximately $650 thousand), see notes 5 and 6. |
|--------|----|---------------------------------------------------------------------------------------------------------|

|   | c. | 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, 2009, the Company paid AlphaKat an amount of $931 thousand on account of the first KDV500 turbine). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | 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 proceeding 500 liters of diesel per hour. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | 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. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| NOTE 10 - SHARE CAPITAL: |
|--------------------------|

|   | 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 October 24, 2006, the Company issued 1,331,764 common shares at a price per share of $0.01 for an aggregate consideration of $13 thousand. On February 7, 2007, the Company issued 17,031,000 common shares at a price per share of $0.01 for consideration of approximately $170 thousand. On April 30, 2007, the Company issued a total of 40,175,000 common shares at a price per share of $0.01 for consideration of approximately $402 thousand of which approximately $47 thousand was paid in cash, $28 thousand was paid by conversion of $28 thousand promissory note and approximately $327 thousand was paid via the issuance of non interest notes receivables having maturities up to one year. An amount of $150 thousand was collected in 2008, the rest was collected in previous years. 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. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| NOTE 10 - SHARE CAPITAL (continued): |
|--------------------------------------|

|   | a. | Common shares (continued): 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 CompanyOn 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 into 884,956 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 14a.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). The agreement with the Investor has been amended on March 15, 2010, see Note 14b. 150,000,000 shares have been placed in escrow pending receipt of the investment. During 2009 the investor invested $152,637 which entitles the investor to 15,263,700 shares from the shares held in escrow. Accordingly these 15,263,700 shares are reported as issued and outstanding.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. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| NOTE 10 - SHARE CAPITAL (continued): |
|--------------------------------------|

|   | 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 2007, the Company granted 5,055,021 stock options exercisable for ten years at an exercise price of $0.01 per share, to the CEO, the options vest in four equal batched over a period of four years from the date of the option, provided that the CEO is still the Company's employee. The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model. The option-pricing model requires a number of assumptions, of which the most significant are, expected stock price volatility, and the expected option term.Expected volatility was based on the average of similar companies in the market due to insufficient trade volume of the share of the Company. The expected option term represents the contractual period of the stock options as defined in the option agreement. The Company has historically not paid dividends and has no foreseeable plans to do so. Risk-free interest rates are based on quoted H15 report of the Federal Reserve Board.The fair value of the Company's stock options granted to the CEO was estimated using the following weighted average assumptions: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    Risk free interest       |   | 4.63% |
|---------------------------------------|--------|-------|
|    Dividend yields          |   | 0     |
|    Volatility               |   | 250%  |
|    Expected term (in years) |   | 10    |

|   | The fair value of the options granted to the CEO using the Black-Scholes model is $0.01 per option.On May 7, 2007, the Company granted 400,000 stock options to a service provider for Investor Relations and Marketing Advisor services. 200,000 options were exercisable immediately at an exercise price of $0.01 per share. 200,000 additional options were intended to vest effective May 1, 2008, on a pro rata basis in the event the service provider was not to give services to the company until May 1, 2008. The agreement with the service provider was terminated as of January 1, 2008, and at that date 50,000 options were forfeited, another 150,000 options were vested and exercisable at an exercise price of $0.01 per share until they were canceled three month after the termination of the agreement, |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| NOTE 10 - SHARE CAPITAL (continued): |
|--------------------------------------|

| Risk free interest       |   | 3.34%  |
|--------------------------|--------|--------|
| Dividend yields          |   | 0      |
| Volatility               |   | 250%   |
| Expected term (in years) |   | 1 year |

| Risk free interest       |   | 3.93% |
|--------------------------|--------|-------|
| Dividend yields          |   | 0     |
| Volatility               |   | 230%  |
| Expected term (in years) |   | 10    |

| Risk free interest       |   | 1.45% |
|--------------------------|--------|-------|
| Dividend yields          |   | 0     |
| Volatility               |   | 263%  |
| Expected term (in years) |   | 9.1   |

----

| NOTE 10- SHARE CAPITAL (continued): |
|-------------------------------------|

| Risk free interest       |   | 2.66% |
|--------------------------|--------|-------|
| Dividend yields          |   | 0     |
| Volatility               |   | 208%  |
| Expected term (in years) |   | 4     |

| Risk free interest       |   | 1.45% |
|--------------------------|--------|-------|
| Dividend yields          |   | 0     |
| Volatility               |   | 263%  |
| Expected term (in years) |   | 5     |

| Risk free interest       |   | 1.89% |
|--------------------------|--------|-------|
| Dividend yields          |   | 0     |
| Volatility               |   | 357%  |
| Expected term (in years) |   | 5     |

|     Risk free interest |   | 17%  |
|---------------------------------------|--------|------|
| Dividend yields                       |   | 0    |
| Volatility                            |   | 407% |
| Expected term (in years)              |   | 2    |

----

| NOTE 10 - SHARE CAPITAL (continued): |
|--------------------------------------|

|                                                                                                                |   | Year ended December 31, |      |
|---------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                                                                                |   | 2009                    |      |   | 2008 |   |
|                                                                                                                |   |                    |      |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                                                                                |   | Number                  |      |   | average |   |   | Number |   |   | average |   |
|                                                                                                                |   | of                      |      |   | exercise |   |   | of |   |   | exercise |   |
|                                                                                                                |   | options                 |      |   | price |   |   | options |   |   | price |   |
|                                                                                                                |   |                    |      |   |  $ |   |   |   |   |   |   |   | $  |   |
|                                                                                                                |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |
| Options outstanding at       beginning of year                                   |   |                    | 7,755,021 |   |   |   | 0.01 |   |   |   | 5,055,021 |   |   |   | 0.01 |   |
| Changes during the year:                                                                                            |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Granted - at an exercise       price above market price                        |   |                    | 2,750,000 |   |   |   | 0.175 |   |   |   | 4,900,000 |   |   |   | 1.08 |   |
| Forfeited                                                                                                           |   |                    | 2,650,000 |   |   |   | 0.175 |   |   |   | 2,200,000 |   |   |   | 2.20 |   |
| Options outstanding at end    of year                                                                |   |                    | 7,855,021 |   |   |   | 0.07 |   |   |   | 7,755,021 |   |   |   | 0.07 |   |
| Options exercisable at end     of year                                                          |   |                    | 3,753,552 |   |   |   |   |   |   |   | 1,263,755 |   |   |   |   |   |
| Weighted average fair     value of options granted     during the year |   |  $                 | 0.01      |   |   |   |   |   |   |  $ | 0.30 |   |   |   |   |   |

|         |                                                                                                                                      |   |        |      |      | Weighted    |   |   |     |   |   |            |   |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-----------|-----------|-------------|--------|--------|----------|--------|--------|-----------------|--------|
|         |                                                                                                                                      |   |        |      |      | Average     |   |   | Weighted |   |   |            |   |
| Range of     |                                                                                                                                      |   |        |      |      | Remaining   |   |   | average  |   |   |            |   |
| exercise     |                                                                                                                                      |   | Number      |      |      | Contractual |   |   | exercise |   |   | Aggregate       |   |
| prices       |                                                                                                                                      |   | outstanding |      |      | Life        |   |   | price    |   |   | intrinsic value |   |
| $            |                                                                                                                                      |   |        |      |      |        | Years  |   |     |   | $      |            |   |   | $ |   |
|         |                        0.01 |   |        |      | 5,055,021 |        |   |   | 7.33     |   |   |            | 0.01   |   |   |   | 98,067 |   |
| 0.15 to 0.20 |                                                                                                                                      |   |        | 2,800,000 |      |        |   | 7.55   |     |   |   | 0.175           |   |   |   | - |   |
|         |                                                                                                                                      |   |        |      | 7,855,021 |        |   |   | 7.41     |   |   |            | 0.07   |   |   |   | - |   |

----

| NOTE 10 - SHARE CAPITAL (continued): |
|--------------------------------------|

|     |                                                                                                                                            |   |        |   |      | Weighted    |   |   |     |   |                                                                                                                                                     |            |   |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|-----------|-------------|--------|--------|----------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|--------|
|     |                                                                                                                                            |   |        |   |      | Average     |   |   | Weighted |   |                                                                                                                                                     |            |   |
| Range of |                                                                                                                                            |   |        |   |      | Remaining   |   |   | average  |   |                                                                                                                                                     |            |   |
| exercise |                                                                                                                                            |   | Number      |   |      | Contractual |   |   | exercise |   |                                                                                                                                                     | Aggregate       |   |
| prices   |                                                                                                                                            |   | exercisable |   |      | Life        |   |   | price    |   |                                                                                                                                                     | intrinsic value |   |
| $        |                                                                                                                                            |   |        |   |      |        | Years  |   |     |   |                           $ |            |   |   |                          $ |   |
|     |                         0.01 |   |        |   | 2,527,511 |        |   |   | 7.33     |   |                                                                                                                                                     |            | 0.01   |   |   |   | 49,034 |   |
|     |                        0.175 |   |        |   | 1,226,042 |        |   |   | 6.89     |   |                                                                                                                                                     |            | 0.175  |   |   |   | - |   |
|     |                                                                                                                                            |   |        |   | 3,753,552 |        |   |   | 7.19     |   |                                                                                                                                                     |            | 0.064  |   |   |   | - |   |

|                                                                                                                              |   | Year ended December 31 |      |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-----------|
|                                                                                                                              |   | 2009                   |      |   | 2008 |   |
|                                                                                                                              |   |                   |      |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                                                                                              |   | Number                 |      |   | average |   |   | Number |   |   | average |   |
|                                                                                                                              |   | of                     |      |   | exercise |   |   | of |   |   | exercise |   |
|                                                                                                                              |   | options                |      |   | price |   |   | options |   |   | price |   |
|                                                                                                                              |   |                   |      |   |  $ |   |   |   |   |   |   |   |                $ |   |
|                                                                                                                              |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |
| Options outstanding at    beginning of year                                                                        |   |                   | 426,415   |   |   |   | 0.01 |   |   |   | 400,000 |   |   |   | 0.01 |   |
| Changes during the year -   granted - at an exercise        price above market price |   |                   | 1,000,000 |   |   |   | 0.02 |   |   |   | 226,415 |   |   |   | 1.25 |   |
| Forfeited                                                                                                                         |   |                   |      |   |   |   |   |   |   |   | 200,000 |   |   |   | 0.01 |   |
| Options outstanding at end   of year                                                                                    |   |                   | 1,426,415 |   |   |   | 0.21 |   |   |   | 426,415 |   |   |   | 0.67 |   |
| Options exercisable at end   of year                                                                                    |   |                   | 426,415   |   |   |   |   |   |   |   | 426,415 |   |   |   |   |   |

----

| NOTE 10 - SHARE CAPITAL (continued): |
|--------------------------------------|

|     |                                                                                                                                                                                |   |        |   |      | Weighted    |   |   |     |   |   |            |   |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|-----------|-------------|--------|--------|----------|--------|--------|-----------------|--------|
|     |                                                                                                                                                                                |   |        |   |      | Average     |   |   | Weighted |   |   |            |   |
|     |                                                                                                                                                                                |   |        |   |      | Remaining   |   |   | average  |   |   |            |   |
| exercise |                                                                                                                                                                                |   | Number      |   |      | Contractual |   |   | exercise |   |   | Aggregate       |   |
| prices   |                                                                                                                                                                                |   | outstanding |   |      | Life        |   |   | price    |   |   | intrinsic value |   |
| $        |                                                                                                                                                                                |   |        |   |      |        | Years  |   |     | $      |   |            | $      |   |
|     |                               1.25 |   |        |   | 226,415   |        |   |   | 1.39     |   |   |            | 1.25   |   |   |   | - |   |
|     |                               0.01 |   |        |   | 200,000   |        |   |   | 1.33     |   |   |            | 0.01   |   |   |   | 3,880 |   |
|     |                               0.02 |   |        |   | 1,000,000 |        |   |   | 1.42     |   |   |            | 0.02   |   |   |   | 9,400 |   |
|     |                                                                                                                                                                                |   |        |   | 1,426,415 |        |   |   | 1.40     |   |   |            | 0.19   |   |   |   | - |   |

----

|                                                                       |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|       Deferred tax assets:                   |   |   |   |   |   |   |
|        Net operating loss carry-forward |   | $      | 2,909  |   |   | $      | 2,274 |   |
|        Valuation allowance                   |   |   | (2,909 | )      |   |   | (2,274 | ) |
|                                                                       |   | $      | 0      |   |   | $      | 0 |   |

|                                                           |   | U.S dollarsin thousands |   |
|----------------------------------------------------------------|--------|-------------------------|--------|
|     Valuation allowance, December 31, 2009 |   | $                       | 2,274  |   |
|     Increase                                    |   |                    | 635    |   |
|     Valuation allowance, December 31, 2009 |   | $                       | 2,909  |   |

----

|                                  |   | December 31, 2009 |    |   | December 31, 2008 |   |
|---------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
| Options:                              |   |              |    |   |              |   |
| Weighted average number, in thousands |   |              | 5,180   |   |              |   | 5,515 |   |
| Weighted average exercise price       |   | $                 | 0.10    |   |              | $      | 0.17 |   |
| Warrants:                             |   |              |    |   |              |   |   |   |
| Weighted average number, in thousands |   |              | 7,500   |   |              |   | 6,912 |   |
| Weighted average exercise price       |   | $                 | 0.01    |   |              | $      | 0.05 |   |
| Convertible Debt:                     |   |              |    |   |              |   |   |   |
| Weighted average number, in thousands |   |              | 460,000 |   |              |   | 10,055 |   |
| Weighted average Conversion price     |   | $                 | 0.01    |   |              | $      | 0.58 |   |

----

| NOTE 13- SUBSEQUENT EVENTS: |
|-----------------------------|

|   | o | 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. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | o | 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.   |
|----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  -             | 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. |
|----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | o | 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. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | "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. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 9. 
 Changes in 

|   | — | 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. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Other Information

----

Corporate Governance

|   | Name                             | Age    |   | Position                              |
|--------|----------------------------------|--------|--------|---------------------------------------|
|   |                             |   |   |                                  |
|   | Directors and Executive Officers |   |   |                                  |
|   | Asi Shalgi                       | 55     |   | President, Chief Executive Officer,   |
|   | Alex Werber                      | 54     |   | Treasurer and Chief Financial Officer |
|   | Avner Raanan(1) (4)              | 59     |   | Director                              |
|   | Amir Elbaz(1) (2) (4)            | 39     |   | Director                              |
|   | Nissan Caspi(1) (3)              | 52     |   | Director                              |
|   | Yuval Ganot                      | 38     |   | Director                              |

----

|   | (1) Member of the Audit Committee. |
|--------|------------------------------------|

|   | (2) Chairman of the Compensation Committee and member of the Audit Committee. |
|--------|-------------------------------------------------------------------------------|

|   | (3) Chairman of the Audit Committee. |
|--------|--------------------------------------|

|   | (4) Member of the Compensation Committee. |
|--------|-------------------------------------------|

----

| Name        | Number of Late Insider Reports | Number of Transactions Not Reported on a Timely Basis | Failure to File Requested Forms |
|-------------|-------------------------------------|-----------------------------------------------------------------|--------------------------------------|
| Asi Shalgi  | None                                | None                                                            | 1                                    |
| Yuval Ganot | None                                | None                                                            | 1                                    |

----

Compensation

| SUMMARY COMPENSATION TABLE                                          |
|---------------------------------------------------------------------|
|                                                                |
| Name AndPrincipalPosition                                           | Year | Salary($) | Bonus($) | StockAwards($) | OptionAwards($) | Non-EquityIncentivePlanCompensation($) | NonqualifiedDeferredCompensationEarnings($) | All otherCompensation | Total($) |
|                                                                |   |   |   |   |   |   |   |   |   |
| Asi Shalgi                                                          |   |   |   | 2009 |   |   | 150,000 |   |   | Nil |   |   | Nil |   |   | 234,478 | (2) |   | Nil |   |   | Nil |   |   | Nil |   |   | 384,478 |   |
| President, CEOand Director(1)                                       |   |   |   |  2008 |   |   |  147,394 |   |   |  Nil |   |   |  Nil |   |   |  20,010 |  (3) |   |  Nil |   |   |  Nil |   |   |  Nil |   |   |  167,404 |   |
| Alex Werber                                                         |   |   |   | 2009 |   |   | 47,000 |   |   | Nil |   |   | Nil |   |   | 4,999 |   |   | Nil |   |   | Nil |   |   | Nil |   |   | 51,999 |   |
| CFO                                                                 |   |   |   | 2008 |   |   | 78,000 |   |   | Nil |   |   | Nil |   |   | Nil |   |   | Nil |   |   | Nil |   |   | Nil |   |   | 78,000 |   |
| Yossi Raz                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| VP for Project                                                      |   |   |   | 2009 |   |   | 168,427 |   |   | Nil |   |   | Nil |   |   | Nil |   |   | Nil |   |   | Nil |   |   | 20,302 | (6) |   | 188,729 |   |
| Development andCTO(4)                                               |   |   |   |  2008 |   |   |  108,667 |  (5) |   |  Nil |   |   |  Nil |   |   |  Nil |   |   |  Nil |   |   |  Nil |   |   |  Nil |   |   |  108,667 |   |
| Yanai Man,CEO of GlobalNRG. Pacific Ltd.and GlobalEnergyEthiopia(7) |   |   |   | 20092008 |   |   | Nil168,682 |   |   | NilNil |   |   | NilNil |   |   | NilNil |   |   | NilNil |   |   | NilNil |   |   | NilNil |   |   | Nil168,682 |   |

|  (1) |  Mr. Shalgi did not receive any compensation as a director of our company.                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (2)       | 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.  The amount of $9,478 relates to option awards granted in 2007.  |

| (3) | 5,055,021 options were issued to Mr. Shalgi on April 30, 2007. The monetary value of these options is computed in accordance with U.S. Generally Accepted Accounting Principles. These options began vesting on April 30, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Mr. Raz was appointed as VP for Project Development and CTO on November 1, 2007. Mr. Raz resigned from these positions on November 1, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. Raz received $20,302 as a success fee. |
|-----|--------------------------------------------|

| (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) | Effective April 1, 2009, Mr. Yanai Man resigned from his position as CEO of Global NRG. Pacific Ltd. The shares of Global Energy Ethiopia were sold to Presaco Investments Ltd. on March 18, 2009. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END |
|----------------------------------------------------|
|  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                                         |   |   |   |   |   |   |   |   |   | April 30, |   |   |   |   |   |   |   |   |
| President,                                         |   | 2,527,511 |   | 2,527,511 |   | Nil  |   | $0.01  |   | 2017  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |
| CEO and Director (1)                               |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Alex Werber                                        |   |   |   |   |   |   |   |   |   | January 1, |   |   |   |   |   |   |   |   |
| Treasurer and                                      |   | 484,375  |   | 265,625  |   | Nil  |   | $0.175 |   | 2014 |   | Nil  |   | Nil  |   | Nil  |   | Nil  |
| CFO  (2)                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Yossi Raz                                          |   |   |
| VP for Project                                     |   |   |
| Development andCTO                                 |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Yanai Man,                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CEO of Global                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NRG. Pacific                                       |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |   | Nil  |
| Lt. and Global  Energy Ethiopia          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (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.  |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | 750,000 options were issued to Mr. Alex Werber on January, 2009 to vest at a rate of approximately 2.08% per month beginning May 2007.                                                                                            |   |

----

| 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              |   |   |   | 12,000 |   |   | Nil |   | 127,394 |   | (2) | Nil |   | Nil |   | Nil |   | 139,394 |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Yuval Ganot(3)            |   |   |   | Nil |   |   | Nil |   | Nil |   |   | Nil |   | Nil |   | Nil |   | Nil |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nissan Caspi              |   |   |   | 12,000 |   |   | Nil |   | 46,225 |   | (5) | Nil |   | Nil |   | Nil |   | 58,225 |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amir Elbaz                |   |   |   | 12,000 |   |   | Nil |   | 46,225 |   | (5) | Nil |   | Nil |   | Nil |   | 58,225 |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Hezy Ram(4)               |   |   |   | 12,000 |   |   | Nil |   | Nil |   | (6) | Nil |   | Nil |   | Nil |   | 12,000 |

----

| (1) | For the fiscal year ended December 31, 2009. |
|-----|----------------------------------------------|

| (2) | 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 repricing 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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | In November 2009, we elected Yuval Ganot to serve on our Board of Directors. |
|-----|------------------------------------------------------------------------------|

| (4) | As of December 31, 2009,  Hezy Ram resigned from our board of directors. |
|-----|------------------------------------------------------------------------------------|

| (5) | On December 29, 2008 Messrs. Elbaz and Caspi were granted 650,000 options 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. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Upon Mr. Ram's resignation from the Board, his vested options terminated. |
|-----|---------------------------------------------------------------------------|

----

Security Ownership 

|   | — | 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) |   |
|                                                        |   |                      |       |   |   |
| Carrigain Investment Ltd.(3)                                |   |                      | 42,000,000 |   |   |   | 3.0 | % |
| YA Global Investments L.P.(4)                               |   |                      | 7,050,105  | (5) |   |   | 4.99 | (5)% |
| Asi Shalgi (6)                                              |   |                      | 9,174,679  |   |   |   | 6.5 | % |
| President, CEO, Secretary, and Director                     |   |                      |       |   |
| Alex Werber                                                 |   |                      | 578,125    |   |   |   | * | % |
| Treasurer and CFO                                           |   |                      |       |   |   |   |   |   |
| Avner Raanan (7)                                            |   |                      | 308,333    |   |   |   | * | % |
| Director                                                    |   |                      |       |   |
| Nissan Caspi(8)                                             |   |                      | 216,667    |   |   |   | * | % |
| Director                                                    |   |                      |       |   |   |   |   |   |
| Amir Elbaz(9)                                               |   |                      | 216,667    |   |   |   | * | % |
| Noam Elimelech Ltd. (10)                                    |   |                      | 27,000,000 |   |   |   | 19.1 | % |
| Director                                                    |   |                      |       |   |
|                                                        |   |                      |       |   |
| All executive officers and directors as a group (7 persons) |   |                      | 25,788,170 |   |   |   | 18.2 | % |

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

| (1) | Except as otherwise indicated, addresses are 35 Shaul Hamelech Street, 5th Floor, Tel Aviv, 61181, Israel. |
|-----|------------------------------------------------------------------------------------------------------------|

| (2) | Based on 141,284,673 shares of our common stock issued and outstanding as of April 12, 2010. 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) | 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 25.8% of our common stock. Carrigain Investment Ltd.‘s address is Jasmine Court, Regent Street, Belize City, Belize. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | 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. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Consists of (i) zero shares of common stock currently held, and (ii) 7,050,105 shares of common stock currently issuable pursuant to (A) an 8% convertible debenture issued on March 8, 2010 in the original principal amount of $3.17 million which is convertible by YA Global Investments, L.P. into common stock at a conversion price equal to $0.05 per share, (B) an 8% convertible debenture issued on March 8, 2010 in the original principal amount of $1.5 million which is convertible by YA Global Investments, L.P. into common stock at a conversion price equal to $0.01 per share, and (C) warrants to purchase up to an additional 7,500,000 shares of common stock at an exercise price of $0.01 per share.  Pursuant to provisions in the convertible debentures and the warrants, YA Global Investments, L.P. does not have the right to acquire within sixty days, through the conversion of the convertible debentures or through the exercise of the warrants such number of shares which after giving effect to such exercise or conversion would cause the aggregate number of shares beneficially owned by YA Global and its affiliates (as determined in accordance with Section 13(d) of the Securities Act of 1934, as amended, and the rules promulgated thereunder) to exceed 4.99% of the total outstanding shares of the Company. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (6) | 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. 2,527,511 of these options are exercisable within 60 days of April 12, 2010. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | 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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | 216,667 of the options granted to Mr. Caspi on December 29, 2008 are exercisable within 60 days of April 12, 2010. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (9)  | 216,667 of the options granted to Mr. Elbaz on December 29, 2008 are exercisable within 60 days of April 12, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10) | 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 Ltdis 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. |   |

----

 and Related 

----

|   | — | $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. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Accountant Fees and Services

|               |   | Fiscal Year Ended December 31, |
|--------------------|--------|-------------------------------------|
|               |   | 2009                                |   | 2008 |
|               |   | (in thousands)                      |
|               |   |                                |   |   |
|               |   |                                |   |   |
| Audit Fees         |   | $                                   | 35 |   |   | $ | 90 |   |
| Audit-Related Fees |   | $                                   | - |   |   | $ | - |   |
| Tax Fees           |   | $                                   | 5 |   |   | $ | 2 |   |
| All Other Fees     |   | $                                   | - |   |   | $ | - |   |
| Total              |   | $                                   | 40 |   |   | $ | 92 |   |

Financial Statements

----

SIGNATURES

| GLOBAL ENERGY INC. (Registrant)   By: /s/ Asi Shalgi —————————————— Asi Shalgi President, Chief Executive Officer and Director Date: April 15, 2010 |     /s/ Alex Werber —————————————— Alex Werber Treasurer and Chief Financial Officer Date: April 15, 2010 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Signature                                                                                                                            |   | Title                                                                                                       |   | Date           |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                                                 |   |                                                                                                        |   |           |
| /s/ Asi Shalgi—————————————— Asi Shalgi     |   | President, Chief Executive Officer & Director (principal executive officer)                        |   | April 13, 2010 |
|                                                                                                                                 |   |                                                                                                        |   |           |
| /s/ Alex Werber—————————————— Alex Werber   |   | Treasurer & Chief Financial Officer (principal financial officer and principal accounting officer) |   | April 14, 2010 |
|                                                                                                                                 |   |                                                                                                        |   |           |
| /s/ Avner Raanan—————————————— Avner Raanan |   | Director                                                                                                    |   | April 13, 2010 |
|                                                                                                                                 |   |                                                                                                        |   |           |
| /s/ Nissan Caspi—————————————— Nissan Caspi |   | Director                                                                                                    |   | April 15, 2010 |
|                                                                                                                                 |   |                                                                                                        |   |           |
| /s/ Amir Elbaz—————————————— Amir Elbaz     |   | Director                                                                                                    |   | April 14, 2010 |
|                                                                                                                                 |   |                                                                                                        |   |           |
| /s/ Yuval Ganot—————————————— Yuval Ganot   |   | Director                                                                                                    |   | April 15, 2010 |

----

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 |   | Term sheet with Cornell Capital Partners, LP (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on June 1, 2007). |
|------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8 |   | 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). |
|------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9 |   | 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). |
|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10 |   | Consulting Service Agreement with Yossi Raz (incorporated by reference to Exhibit 10.1 to the Registrant’s current report filed on Form 8-K on May 11, 2007). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 |   | 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). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12 |   | Form of Subscription Agreement (incorporated by reference to Exhibit 10.2 to the Registrant’s current report on Form 8-K filed with the Commission on February 9, 2007). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 |   | Form of Subscription Agreement (incorporated by reference to Exhibit 10.1 to the Registrant’s current report Form 8-K filed with the Commission on October 30, 2006). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14 |   | Form of Subscription Agreement (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed on May 2, 2007) |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15 |   | 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). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16 |   | 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). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.17 |   | 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). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18 |   | 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). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.19 |   | 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). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.20 |   | 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). |
|-------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.21 |   | 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). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22 |   | 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). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23 |   | 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) |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.24 |   | 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) |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.25 |   | 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) |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.26 |   | 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) |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.27 |   | 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). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.28 |   | 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). |
|-------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.29 |   | 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). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.30 |   | 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). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.31 |   | 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). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.32 |   | 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). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.33 |   | 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). |
|-------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.34 |   | 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). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.35 |   | 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). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.36 |   | 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). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10.37 |   | 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). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.38 |   | 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). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.39 |   | 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). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.40 |   | Consulting Agreement with the Resultz Media Group Corp. dated May 22, 2008 (incorporated by reference to Exhibit 10.1 to the Registrant's current report on Form 8-K filed with the Commission on May 30, 2008). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.41 |   | 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). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.42 |   | 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). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.43 |   | 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). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.44 |   | 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). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.45 |   | 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). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.46 |   | 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). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.47 |   | 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). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.48 |   | 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). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.49 |   | 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). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.50 |   | Letter Agreement dated October 8, 2008, by and between the Registrant and Yanai Man Projects Ltd. (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed with the Commission on October 14, 2008). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.51 |   | 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). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.52 |   | 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). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.53 |   | 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) |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.54 |   | 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) |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10.55 |   | 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). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.56 |   | 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). |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.57 |   | 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). |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.58 |   | 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). |
|-------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.59* |   | Employment Agreement, dated as of September 10, 2009, by and between Yuval Ganot and Global Energy, Inc. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

| 10.60 |   | 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). |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.60* |   | 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). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.1* |   | List of Subsidiaries of the Registrant. |
|-------|--------|-----------------------------------------|

| 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 Alex Werber, Treasurer and Chief Financial Officer. |
|-------|--------|---------------------------------------------------------------------------------------------------------|

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

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