Document:

8-K

Exhibit 10.1  

        PURCHASE
AGREEMENT (this “Agreement”), dated as of March 3rd, 2009, by and among
Global N.R.G. Pacific Ltd., Company No. 513973289, an Israeli corporation (the
“Company” or the “Seller”), and - Presaco
Investments Limited, a company registered in Cyprus (“Buyer”), and Global
Energy Inc., Company No. 860951473, a Company registered in Nevada (the
“Guarantor”). 

SUMMARY OF TRANSACTIONS  

        The
Company is engaged, directly and through its Subsidiary, in the business of community
castor farming for oil and the development of governmental lands for castor oil, in
Ethiopia (the “Business”). The Company owns all of the issued and
outstanding capital stock of Global Energy Ethiopia Ltd. (1,000 shares paid up in full),
an Ethiopian private limited company (“Subsidiary”) of which one (1)
share is held in escrow by Mr. Yanai Man. The Guarantor is the controlling shareholder of
the Seller. The Parties desire that Buyer purchase, and the Company sell to Buyer, all of
the assets and Business of the Company, which is mainly the capital stock owned by the
Company of the Subsidiary, for the consideration set forth below, all upon the terms and
subject to the satisfaction of the conditions set forth in this Agreement. 

        To
effect such transactions and in consideration of the mutual covenants, representations,
warranties and agreements hereinafter set forth the parties hereto agree as follows: 

ARTICLE I

SALE OF STOCK AND
ASSETS  

    1.01       Capital
Stock Sale. Upon the terms and subject to the satisfaction of the
conditions contained in this Agreement, at the Closing the Company will sell, transfer
and deliver to Buyer, and Buyer will purchase and acquire from the Company, the stock
capital of the Subsidiary in full, meaning 1000 Shares (hereinafter the “Transferred
Stock”), free and clear of all Liens.  

    1.02       Company
Assets Being Sold. Upon the terms and subject to the satisfaction of the
conditions contained in this Agreement, the Company agrees to sell and transfer to Buyer,
and Buyer agrees to purchase, at the Closing, free and clear of all Liens, all of the
Company’s right, title, and interest in and to all of Company’s property and
assets in connection with the Business, tangible or intangible, of every kind and
description, wherever located as detailed hereinafter (“Company Assets”).  

		    (a)       Contracts
and Commitments. The Company shall solely transfer to the Buyer
the rights, title and interest of the Company in, to and under all pending and
executory contracts, agreements, commitments and understandings as set forth on
Schedule 1.02a (collectively the “Contracts”). It is hereby
clarified that any other contracts to which the Company is a party to and which
are not detailed on Schedule 1.02a, shall not be endorsed to the Buyer, and any
of the rights, title and interest of the Company in any such contracts shall
not be transferred to the Buyer;  

		    (b)       Books
and Records. All general, financial and personnel           records,
ledgers, sales invoices, accounts and payable records, files, books and
          documents, correspondence and other files and records, and sales records,
          including all of the Company’s sales and credit records, literature and
          customer lists related to the Business (whether in the form of hard copies or
          computer printouts or computer files);  

		    (c)       Proprietary
Rights. The goodwill, processes, designs,           formulae, trade
secrets, know-how, ideas, research and development,           manufacturing and
production processes and techniques, technical data,           copyrightable works,
engineering notebooks, confidential information, software           marketing and
technical information solely in connection with the           Subsidiary as it
appears on Company’s internet           website having the following
URL:           http://www.global-nrg.biz/introduction.html) as further detailed in Schedule
1.02C (but explicitly excluding the trademark “Global Energy           Pacific”),  and
all related intellectual property rights, and           the software as detailed in Schedule
1.02C used in the Group Companies to           manage, control and supervise the
Business in general, and the Community Farming           activities in particular (the
“Project”), including data of           approximately 20,000 farmers included
in the Project (“Proprietary           Rights”) of the Company for the
Business, including without limitation           all right, title and interest in and to
the names “Global Energy           Ethiopia” (“GEE Trademark”);  

		    (d)       Intangible
Assets. The Business of the Company as a going           concern and the
goodwill thereof; and all rights, if any, under express or           implied warranties
from manufacturers, suppliers and vendors which are related           to the Business or
the Transferred Assets;  

	 	
The
“Company Assets” together with the Transferred Stock being collectively referred
to as the “Transferred  Assets” and/or the
“Assets”. 

    1.03       Liabilities.
For the removal of any doubt it is hereby clarified that Buyer shall assume no
obligations or liabilities of the Company or with respect to the Company and the
Transferred Assets. Any debts, liabilities, payables, obligations, costs and expenses of
any nature whatsoever, whether known or unknown, asserted or unasserted, absolute or
contingent, mature or immature, or conditional or unconditional (“Liabilities”)
of the Company of any kind or nature, whether known or unknown, asserted or unasserted
shall be retained, paid, performed and discharged solely by the Seller and/or Guarantor.
Following the Closing the Seller and Guarantor shall retain all the Liabilities of the
Seller (whether disclosed or not) and the liabilities of the Subsidiary which have not
been fully disclosed at the Audited Financial Statements and/or at Schedule 2.07 (“Retained
Liabilities”). For the avoidance of any doubt the sole Liabilities that the
Subsidiary shall have following the Closing are as listed in the Audited Financial
Statement and in Schedule 2.07.  

        The
transfer of the Assets pursuant to this Agreement shall not include the assumption of any
Liabilities whether related to the Assets or not. 

    1.04       Consideration.
Subject to the Closing, upon the terms and subject to the satisfaction of the conditions
contained in this Agreement, in consideration of the aforesaid sale and transfer of the
Transferred Assets free and clear from all Liens, Buyer will pay or cause to be paid to
Seller aggregate consideration of: 700,000 USA$ (seven hundred thousand USD), as
specified herein under Section 1.05 (the “Purchase Price”).  

    1.05        Installments.
The cash Purchase Price shall be paid in the following installments-  

		    (a)        US$595,000
(five hundred ninety five thousand USD) (85%) (“First
                    Installment”) at Closing. This amount shall be deposited in
escrow with                     Etti Koren, Adv. (“Escrow Agent”), and
shall be released to the                     Seller according to its instructions upon
the complete registration of the                     transaction and the share transfer
in Ethiopia.  

		    (b)        US$105,000
(one hundred and five thousand USD) (15%) (“Second                     Installment”)
shall at Closing also be deposited in escrow with the                     Escrow Agent
and shall be released to the Seller on March 1st, 2010.
                    Alternatively, upon the submission of a bank guarantee “on first
                    request” from a reputable bank, in the amount of the Second
Installment, by                     the Seller to the Buyer, the Second Installment shall
be released from Escrow                     Agent to the Seller.  

		    (c)        The
Buyer and the Purchaser shall provide the Escrow Agent with irrevocable
                    written instructions, attached hereto as Appendix C.  

    1.06       Set
Off. The Buyer may deduct and set off against any amount of Purchase Price
due under this Agreement any sums due from any of the Seller and/or Guarantor to the
Buyer under any provisions of this Agreement. With out derogating from Buyer’s
rights and remedies under this Agreement and the Law, Buyer may deduct from the Purchase
Price, its damages, as indemnification fee or otherwise, in the event of (1) Seller’s
breach of this Agreement; or (2) discovery by Buyer of any Liability, undisclosed and/or
not appearing in the Audited Financial Statements and/or Schedule 2.07 in the
Subsidiary; (3) any change to Liability disclosed in the Audited Financial Statements
and/or Schedule 2.07 which shall have an adverse effect on the net worth of the
Subsidiary; or (4) Schedule 2.07 containing any liabilities which were not accrued
in the ordinary course of business, as detailed in section 5.02(e)(ii).  

ARTICLE II

REPRESENTATIONS AND
WARRANTIES OF SELLER AND GUARANTOR  

        Seller
and Guarantor each jointly and severally hereby represent and warrant to Buyer, and
acknowledge that the Buyer is entering this Agreement in reliance thereon, subject to any
exceptions set forth in the Schedules hereto delivered upon the execution hereof, as
follows: 

    2.01       Organization;
Qualification. Each of the Company and the Subsidiary (hereinafter the
“Group Companies”) and the Guarantor is a corporation duly organized,
validly existing and in good standing under the Laws of its jurisdiction of
incorporation. Subsidiary has all requisite corporate power and authority to own, lease
and operate its properties and to carry on its business.  

    2.02       Capitalization
. The total authorized capital stock and the issued and outstanding capital
stock of the Subsidiary and the beneficial and record ownership thereof is as set forth
in the Subsidiary’s Incorporation documents, including Articles of Association and
memorandum, attached hereto as Schedule 2.02 hereof. No amendment has been made to the
Subsidiary’s Incorporation Documents attached hereto as Schedule 2.02. Other than
this Agreement and as set forth in Schedule 2.02, there is no subscription, option,
warrant, call, agreement or commitment relating to the issuance, sale, delivery or
transfer (including any right of conversion or exchange under any outstanding security or
other instruments) by the Subsidiary or by Seller, of capital stock of the Subsidiary.
The consummation of the transactions contemplated by this Agreement will not trigger any
rights of first refusal, demands, conversion rights or other agreements or arrangements
of any character or nature whatsoever under which the Subsidiary or Seller are or may be
obligated to issue or acquire their shares of capital stock or any other equity or
ownership interests and will not be subject to any preemptive rights, rights of first
refusal, subscription or similar rights.  

    2.03       Title
to Transferred Stock. Other than as set forth in Schedule 2.03, the
Company owns and at the Closing will own all outstanding share capital of the Subsidiary
free and clear of all Liens, including one (1) issued share, being held by Mr. Yanai Man
in escrow on behalf of the Company. Mr. Giancarlo Vilone is entitled to 50 shares,
representing 5% of the issued share capital of the Subsidiary. At the Closing the Company
will transfer, assign and deliver valid title to such shares of Transferred Stock to
Buyer, free and clear of all Liens, including the one (1) issued share held in escrow by
Mr Yanai Man on behalf of the Company. Other than the Subsidiary the Company has no
subsidiaries and does not own any equity interest in any other entity or have any
agreement or commitment to acquire any such interest.  

Neither Guarantor nor any of the
shareholders of the Seller owns any asset, property or right, tangible or intangible, that
is used in the Business of the Group Companies as currently conducted. 

    2.04       Authority
Relative to this Agreement. (a) Seller and Guarantor have all
necessary corporate power and authority to execute and deliver this Agreement, and each
other agreement, document, instrument or certificate which it shall deliver to the Buyer
at the Closing (“Seller’s Documents”) and to consummate the transactions
contemplated hereby, (b) this Agreement has been duly and validly executed and delivered
by each Seller and Guarantor and constitutes a valid and binding obligation of Seller and
Guarantor. The execution and delivery of this Agreement, the Seller’s Documents and
the consummation of the transactions contemplated hereby have been duly and validly
authorized by all requisite corporate action taken on the part of such Seller and
Guarantor and no other corporate proceedings are necessary.  

    2.05       Consents
and Approvals; No Violation. Other than as set forth in Schedule 2.03,
n either the execution and delivery of this Agreement by Seller and Guarantor nor the
sale by Seller of the Transferred Assets pursuant to this Agreement will (a) conflict
with or result in any breach of any provision of the Certificate of Incorporation or
By-Laws (or other similar governing documents) of any of the Group Companies; (b) require
any consent, approval, authorization or permit of, or filing with or notification to, any
Governmental Authority other than those that have been made or obtained; (c) violate,
result in a breach or default (or give rise to any penalty, or any right of termination,
cancellation, modification or acceleration) under the terms, conditions or provisions of
any note, bond, mortgage, indenture, license, lease, contract or other instrument or
obligation to which any of the Group Companies and/or the Guarantor is a party or by
which any of the Group Companies and/or the Guarantor or any of their assets may be
bound.  

    2.06        Financial
Statements. Seller has previously furnished or
made available to Buyer a true and correct copy of the audited financial statements of the
Subsidiary for the year ended December 31st, 2008 (collectively referred to hereinafter as
the “Audited Financial Statements”). A copy of such Audited Financial Statements
is attached to Schedule 2.06. The balance sheets included in the Audited Financial
Statements (including the related notes thereto) present fairly in all material respects
the financial position of the Subsidiary as of their respective dates, and the related
income statements included in the Audited Financial Statements (including the related
notes thereto) present fairly in all material respects the results of operations of the
Subsidiary for the periods then ended.  

    2.07       Undisclosed
Liabilities. The Subsidiary has no liabilities or obligations, secured or
unsecured (whether known or unknown, absolute, accrued, contingent or otherwise, and
whether due or to become due), which are in existence on the date hereof and have not
been fully reflected or reserved against in the Audited Financial Statements and in Schedule
2.07, which includes a complete list of all the Subsidiary’s assets, liabilities
and creditors as of the date of this Agreement.  

    2.08       Title
to Assets. Other than as set forth in Schedule 2.03, the Group Companies
each has valid title to, or a valid leasehold interest in and to, the Transferred Assets
they purport to own, free and clear of all Liens. The Transferred Assets constitute all
of the assets, properties, rights and interests necessary to conduct the Businesses in
substantially the same manner that have been conducted by the Group Companies. By virtue
of the deliveries made at the Closing, Buyer will obtain good and marketable title to the
Assets and the Business, free and clear of all Liens.  

    2.09       Proprietary
Rights. No one has asserted to any of the Group Companies that the operations of
the Group Companies or the Business or the Company and Subsidiary Intellectual Property
conflict with or infringe upon any Proprietary Rights owned by any other person. No
action, claim, suit, hearing, charge, complaint, demand, litigation, arbitration or
governmental investigation, indictment, proceeding or similar matter is pending or
outstanding, or, to Seller’s knowledge, is threatened or imminent, that seeks to
cancel, limit or challenge the validity, enforceability, ownership or use of any Company
and Subsidiary Proprietary Rights.  

    2.10       Real
Property Leases. None of the Group Companies owns any real property. Schedule 2.10 hereto
sets forth all real property leases under which any Group Company is presently a lessee,
sublessee or lessor of real property used in the Business. Seller has delivered or made
available to Buyer accurate and complete copies of all such leases.  

    2.11       Insurance.
All material policies, general liability, worker’s compensation and other forms of
insurance owned or held by and insuring any Group Company are set forth on Schedule
2.11 hereto. Such policies are in full force and effect. The Group Companies are not
in material breach or default thereunder and no written notice of cancellation or
termination has been received with respect to any such policy, which was not replaced on
substantially similar terms prior to the date of such cancellation or termination.  

    2.12       Labor
Matters. Each of the Group Companies is in compliance in all respects with all
applicable Laws respecting employment and employment practices, terms and conditions of
employment and wages and hours; (b) there is no unfair labor practice complaint against
any Group Company pending or to Seller’s knowledge threatened before any tribunal
with jurisdiction thereof; (c) to Seller’s knowledge there is no labor strike,
material dispute, slowdown or stoppage actually pending or threatened against or
affecting any Group Company; (d) none of the Group Companies is a party to, bound by, or
negotiating in respect of any collective bargaining agreement or any other similar
agreement with any labor union, association or works council; and (e) none of the Group
Companies has experienced any strike or work stoppage involving its employees.  

    2.13       Contracts
and Arrangements. Except as listed in Schedule 2.13 hereto, as it relates
to the Business, the Subsidiary is not a party to or bound by any contract (whether or
not in writing) or agreement relating to the Business, or the Transferred Assets
including an employment, consulting, compensation or similar agreement or understanding;
(b) indenture, mortgage, note, installment obligation, agreement or other instrument
relating to the borrowing of money; (c) contract for the purchase or sale of goods,
services, supplies or capital assets(d) joint venture, partnership or other contract
involving the sharing of profits or losses; (e) contract preventing or restricting the
Group Companies’ business activities in any location, including all non-competition
agreements that bind the Group Companies; (h) acquisition or divestiture agreement,
including such contracts relating to the acquisition by the Group Companies of the
outstanding capital stock, equity interests or substantially all of the assets of any
business enterprise;; and (j) commitments, agreements, arrangements or undertakings to
enter into any of the foregoing agreements.  

        Seller
has delivered or made available to Buyer accurate and complete copies of each contract set
forth on Schedule 2.13. The Subsidiary is not in breach or default with respect to
such contract; and (ii) to the Seller’s knowledge, no event has occurred which with
notice or lapse of time would constitute a material breach or default, or permit
termination, material modification, or acceleration, under any such contract. 

    2.14       Legal
Proceedings, Etc. There is no claim, action, proceeding or investigation which is
pending or, to Seller’s knowledge, any threatened claim, action, proceeding or
investigation, against or relating to any Group Company or the Transferred Assets before
any Governmental Authority.  

    2.15       Compliance
with Law. Each of the Group Companies has conducted its business in compliance in
all material respects with, and is in compliance in all material respects with, all
applicable Laws and Seller and the Subsidiary have not received any written notice
asserting any failure to comply with any applicable Law. Each of the Group Companies
holds all licenses, registrations, rights, permits and other governmental authorizations,
and has made all necessary governmental submissions, which are required in connection
with the conduct of the Business.  

    2.16        Employee
Benefits.  

		    (a)       Schedule
2.16 hereto lists each and all the Subsidiary’s employees           and their
compensation including base salary and base wages, bonus, incentive
          compensation, stock right, stock option, stock appreciation right, severance
          pay, retirement, pension, profit- sharing, stock bonus, salary continuation,
          tuition assistance, dependent care assistance, legal assistance, executive
          training, vacation, fringe benefit (cash and non-cash), group or individual
          health, medical, dental, vision, disability, life insurance or survivor benefit
          or similar plan, policy or arrangement of any kind whether written or oral,
          which covers any employee, self-employed individual or beneficiary of any
          employee or self-employed individual, whether active or retired, of the
          Subsidiary (each such plan being herein referred to as an “Employee
          Benefits”).  

		    (b)                 Each
of the Group Companies is in compliance in all material respects with the           terms
of the Employee Benefits and with the requirements of any and all laws,
          statutes, orders, decrees, rules and regulations, applicable to each such plan.
          None of the Group Companies has failed to make any contribution to, or to pay
          any amount due and owing, as required by applicable law or by the terms of any
          Employee as of the Closing Date, other than the liabilities in Schedule
          2.07.  

    2.17        Taxes.
In the case of each Group Company (each, for purposes of this Section 2.17, a “Taxpayer”),
(i) all Tax Returns (as hereinafter defined) required to be filed on or before the
Closing Date have been timely filed by or on behalf of the Taxpayer and all Taxes (Taxes
shall mean all taxes, charges, fees, levies or other assessments, including, without
limitation, income, gross receipts, excise, property, sales, transfer, gains, use, value
added, withholding, imposed by Ethiopia, Israel, or any state, local or foreign
government or subdivision or agency thereof; and such term shall include any interest,
penalties or additions to tax attributable to such assessment) whether or not shown to be
due, have been paid; (ii) all accruals or reserves for Taxes (if any) reflected in the
Audited Financial Statements are adequate to cover all Taxes accruing with respect to or
payable by a Taxpayer through the date thereof; (iii) all Tax Returns filed or required
to be filed on or before the Closing by each Taxpayer are or will be true, correct and
complete in all material respects; (iv) all claims, disclaimers and elections required to
be made on or before the Closing Date have been timely and validity made or on behalf of
each Taxpayer to the relevant Tax Authority; and (v) there are no legal proceedings
pending or to the best knowledge of the Seller threatened against any Taxpayer in respect
to any Taxes.  

    2.18       Inter
Company Group Transactions. There are no internal Company Group agreements,
guarantees granted, debts, Liabilities, between Subsidiary and each of Seller or
Guarantor (“Inter Company Transaction”). At the Closing the Seller shall have
no claims against the Subsidiary with connection to any such Inter Company Transaction,
and any such Inter Company Transaction, if such exists, shall be automatically annulled
upon the Closing.  

    2.19       Additional
Information. Schedule 2.19, to the extent not described on another
schedule to this Agreement, contains accurate lists and summary descriptions of the
following: (i) the names and addresses of every bank and other financial institution in
which the Subsidiary maintains an account (whether checking, savings or otherwise), lock
box or safe deposit box, and the account numbers and names of persons having signing
authority or other access thereto; (ii) the names of all persons authorized to borrow
money or incur or guarantee indebtedness on behalf of the Subsidiary; and (iii) the
current directors and officers of the Subsidiary.  

    2.20       Books
and Records. Seller delivered or made available true and complete copies of each
document, which should be reasonably handed over to Buyer or its counsel in connection
with their legal and accounting review of the Group Company, the Business and the
Transferred Assets. The books and records of the Group Company to which Buyer and its
representatives have been given access are the true books and records of the Group
Company and truly and fairly reflect the underlying facts and transactions in all
respects.  

    2.21       Complete
Disclosure. No representation or warranty by the Seller and/or Guarantor
in this Agreement or in the closing documents, and no exhibit, schedule, statement,
certificate, or other writing furnished to Buyer pursuant to this Agreement or in
connection with the transactions contemplated hereby, contains or will contain any untrue
statement of a material fact or omits or will omit a material fact necessary to make the
statements contained herein and therein not misleading in the context in which they were
made.  

    2.22       Transferred
Assets. The Seller hereby represents that it has no other assets in relation to
the Business other than the Transferred Assets, including but not limited to, any
contracts, machinery, equipment, inventories, licenses, permits and proprietary rights. 

ARTICLE III

REPRESENTATIONS AND
WARRANTIES OF BUYER  

    As an
inducement to Seller to enter into this Agreement, Buyer hereby represents and warrants
to Seller as follows:  

    3.01       Organization.
Buyer is a corporation duly organized, validly existing and in good standing under
the Laws of its jurisdiction of incorporation and has all requisite corporate power and
authority to own, lease and operate its properties and to carry on its business as now
conducted.  

    3.02       Authority
Relative to this Agreement. Buyer shall have all necessary corporate power and
authority to execute and deliver this Agreement and to consummate the transactions
contemplated hereby and thereby in accordance with the terms hereof and thereof. This
Agreement has been duly and validly executed and delivered by Buyer and (assuming due
authorization, execution and delivery by the Seller) constitutes a valid and binding
obligation of Buyer, enforceable against Buyer in accordance with its terms. The
execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby and thereby in accordance with the terms hereof and thereof have been
duly and validly authorized by all requisite action taken on the part of Buyer and no
other corporate proceedings on the part of Buyer are necessary to authorize this
Agreement or to consummate the transactions contemplated hereby and thereby in accordance
with the terms hereof and thereof.  

ARTICLE IV

COVENANTS PENDING
CLOSING  

    4.01       Conduct
of Business of the Group Companies Prior to the Closing. Except as consented to
by Buyer, during the period from the date of this Agreement to the Closing Date, Seller
will conduct, and will cause the Subsidiary to conduct, its business and operations in
the ordinary course of business. All information regarding the Group Companies will be
fully accessible to the Buyer. Without limiting the generality of the foregoing and
except in the ordinary course of business, Seller will not, and will not permit the
Subsidiary to (a) create, incur or assume any liability and/or indebtedness or
obligations; (b) sell, transfer, mortgage, encumber or otherwise dispose of any of the
assets of the Company, or the Subsidiary.  

    4.02       Preservation
of Business. Seller will use its best efforts to keep the Business and all
properties included as part of the Transferred Assets intact, including all present
operations, physical facilities and working conditions, and relationships and goodwill
with suppliers, customers, employees, and others having business dealings with Seller and
the Subsidiary.  

    4.03       Transferred
Employees and Employee Benefits. (i) Effective as of the Closing Date, the
Company shall have terminated all its employees of the Business in accordance with all
applicable Laws, and shall pay all wages, salaries and other employee benefits due to
said employees up to the Closing Date, other than the liabilities presented in Schedule
2.07, and shall retain at its cost and shall be responsible for any and all
obligations or Liabilities that arise in connection with the employment and/or
termination of such employees until the Closing Date, other than the liabilities
presented in Schedule 2.07. All employees shall sign a waiver, stating that they
have no claims to the Company and/or the Subsidiary in connection with their employment
and/or its termination, in the wording attached hereto as appendix B (“Waiver”).
Those employees of the Company as listed in Schedule 4.03, who accept employment
with Buyer (or its affiliates) at the Buyer’s sole discretion, are herein referred
to as the “Transferred Employees”. Buyer (or its affiliates) shall not
be required to employ any person for any length of time. Without the consent of Buyer,
Seller will not make any promises or commitments to any employee of the Business with
regard to his or her employment status with Buyer or the terms or conditions upon which
such employment might occur or be continued. Seller shall be responsible for any
liabilities for accrued and unused vacation, holiday and sick pay entitlements of any of
the employees in respect of the period prior to Closing under the Company’s
applicable policies, other than the liabilities presented in Schedule 2.07.  

		    (ii)        The
Seller shall procure that the Subsidiary shall pay all wages, salaries and
          other employee benefits due to its employees up to the Closing Date and shall
          retain at its cost and shall be responsible for any and all obligations or
          Liabilities that arise in connection with the employment of such employees
until           the Closing Date, other than the liabilities presented in Schedule 2.07.
          The Subsidiary’s employees shall continue to be employed by the
Subsidiary,           at the Buyer’s sole discretion. 

    4.04       Public
Announcements. Seller and Guarantor agree that none of them will make any press
releases or other public statements with respect to this Agreement, and thereby without
the prior written approval of the other parties except the minimum required under
applicable law or from publicly traded companies.  

    4.05       Confidentiality.
All information regarding the Group Companies the Business and the terms of this
Agreement shall be treated as the confidential information and the property solely of the
Buyer (following the Closing). The Guarantor and the Seller shall use their best efforts
to keep confidential all of such information, and shall not directly or indirectly use
such information. The obligation to keep such information confidential shall not apply to disclosures
required by Law.  

    4.06       Exclusivity.
From the date hereof until the Closing Date, the Guarantor and the Group Companies shall
not, and shall cause their officers, directors, representatives, agents and affiliates
not to enter into or negotiate, any written or oral agreement or understanding with any
Person (other than Buyer) regarding a sale of the Group Companies, any of their stock, or
any material amount or assets (other than inventory in the ordinary course of business)
or business, or a merger, consolidation, or re-capitalization involving the Group
Companies.  

ARTICLE V

THE CLOSING  

    5.01       Time
and Place of Closing. Upon the terms and subject to satisfaction or waiver of the
conditions contained in this Agreement, the closing of the transactions contemplated by
this Agreement (the “Closing”) will take place as of the close of
business on March 10th, 2009 at the offices of Buyer, at Ekkelgaarden 16, 3500 Hasselt
(Belgium). The effective time of the Closing is hereinafter referred to as the “Closing
Date”.  

        At
the Closing, the following shall occur simultaneously and no transaction shall be deemed
to have been completed or any document delivered until all such transactions have been
completed and all required documents delivered:  

    5.02        Deliveries
by Seller. At the Closing, Seller will deliver to Buyer, the following documents:  

		    (a)       Stock. Stock
certificates representing all of the shares of Transferred                     Stock,
accompanied by stock powers duly executed for transfer to Buyer;
                    including one (1) share held in escrow by Mr Yanai Man on behalf of
the Company,                     which shall be transferred to the Buyer or anyone on its
behalf, according to                     the Buyer’s instructions.  

		    (b)                           Minutes
of the Board of the Company approving the transfer in the Subsidiary, in
                    the wording attached hereto as Appendix A; and  

		    (c)                           Resignations
dated the Closing Date of all of the officers and directors of the
                    Subsidiary (except for any persons designated by Buyer prior to the
Closing Date                     to remain in office);  

		    (d)                           The
officer’s certificate as to the accuracy of the Seller’s
                    representations and warranties as of the date of this Agreement and
as of the                     Closing and as to its compliance with and performance of
its covenants and                     obligations to be performed or complied with at or
before the Closing;  

		    (e)                           The
Group Companies managements’ representation letters certifying:  

		    (i)                           the
correctness of the Audited Financial Statements, and declaring that only
                    bona fide transactions have taken place in the past within each of
the Group                     Companies.  

		    (ii)                           that
between the date of the signing of the Audited Financial Statements and the
                    date of this Agreement, only arm’s length transactions in the
ordinary                     course of business have taken place. In the event that Schedule
2.07 shall contain any unusual transactions, including any liabilities which were
                    not accrued in the ordinary course of business, the net liabilities
arising from                     any such transaction shall be deducted from the Purchase
Price.  

		    (iii)         that
no financial or any other commitments exist which were not disclosed in
writing to the Buyer.  

		    (f)                 Any
transfer documents as required by applicable Law, dated the Closing Date,
          transferring to the Buyer all of the Assets;  

		    (g)                 copies
of consents, permits, waivers, approvals, authorizations of, or           declarations or
filings with, or notifications to any Person or Governmental           Body;  

		    (h)                 an
opinion of the attorneys of Seller in the form attached hereto as Schedule 5.02(h) 

		    (i)                 release
documents evidencing the termination of all Liens on the Company and           Subsidiary’s
assets, including any and all Liens detailed in Schedule           2.03; It is
hereby clarified that the release of any and all Liens detailed           in Schedule
2.03 is a condition precedent to this Agreement – In the event           that any
such Liens are not released, or that their release is not registered,           by the
Closing Date (March 10th 2009) this Agreement shall become           null and
void, and the Seller shall pay the Buyer a penalty equal to 25% of the           Purchase
Price – US$175,000 (one hundred seventy five thousand USD).           However, in
case this term is exceeded with maximum three working days, and           Seller can
prove that this is due to Force Majeur, the penalty will not be due.           The Escrow
Agent will judge on the reasonabless of the “Force Major           issue”.  

		    (j)                 such
other documents as the Buyer shall reasonably request to effectuate the
          transactions contemplated by this Agreement.  

		    (k)       Employees.
(i) Waivers from all the Company’s employees; (ii) The           Transferred
Employees listed in Schedule 4.03 hereto           shall have entered
into employment agreements with the Buyer or any of its           affiliates,
satisfactory in form and substance to the Buyer and shall have           undertaken to be
employed by the Buyer for at least 12 months, and in the case           of Mr. Yanai Man
– three years, following the Closing Date. It is hereby           clarified that the
employment of any employees, shall be at the Buyer’s           sole discretion.  

		    (l)       Material
Adverse Change. Since the date of this Agreement, the Business           shall not
have suffered a Material Adverse Effect.  

	 	
All
other documents, instruments and writings required to be delivered by Seller at or prior
to the Closing Date pursuant to this Agreement or otherwise required in connection
herewith 

    5.03        Payment
by Buyer  

		    (a)        Upon
the Closing, subject to the fulfillment and delivery by the Seller of all
               of the above documents and fulfillment of all of Seller’s obligations
and                warranties under this Agreement, Buyer shall transfer to the Escrow
Agent the                Purchase Price in accordance with Section 1.05.  

		    (b)        Seller
shall provide the Escrow Agent with instructions with regards to the
               transfer of the Purchase Price in the form attached hereto as Schedule
5.03. 

ARTICLE VI

POST-CLOSING COVENANTS  

    6.01       Expenses.
Except as otherwise expressly provided herein, Sellers and Buyer shall each bear their
own costs and expenses incurred in connection with this Agreement.  

    6.02       Notification.
Between the date of this Agreement and the Closing Date, Seller will promptly notify
Buyer in writing if Seller becomes aware of any fact or condition that causes or
constitutes a breach of any of Seller’s or Guarantor’s representations and
warranties as of the date of this Agreement, or if Seller or Guarantor becomes aware of
the occurrence after the date of this Agreement of any fact or condition that would cause
or constitute a breach of any such representation or warranty, had such representation or
warranty been made as of the time of occurrence or discovery of such fact or condition  

    6.03        Indemnification.
Seller and Guarantor jointly and severally agree to save, defend and indemnify Buyer
against and hold them harmless from any and all claims, liabilities, losses, costs and
expenses, of every kind, nature and description, fixed or contingent (including, without
limitation, counsel’s fees and expenses in connection with any action, claim or
proceeding relating thereto or seeking enforcement of obligations hereunder) (“Losses”),
arising out of any breach of any representation, warranty, covenant or agreement made by
Seller and/or Guarantor under this Agreement. However, Seller and Guarantor shall in no
event be liable for indirect damages and loss of profits.  

    6.04       Use
of GEE Trademarks Name. Seller and Guarantor undertake that upon Closing, they
will not directly or indirectly, make any use of or publicize, the GEE Trademark or any
similar sounding name and any goodwill associated therewith for any purpose.  

    6.05       Referrals.
For one (1) year following the Closing, Seller and Guarantor must promptly refer to the
Buyer all enquiries relating to the Business and all orders relating to the Business,
including enquiries or orders for any services, business opportunities, offers,
proposals, granted in connection with the Business.  

    6.06       Non-Competition.
For the 5 (five) years following the Closing, the Seller and the Guarantor will not carry
on or hold an interest in any company, venture, entity or other business (other than a
minority interest in a publicly traded company) which competes with the Company’s
Business (including, without limitation, as a shareholder).  

ARTICLE VII

MISCELLANEOUS
PROVISIONS  

    7.01        Amendment
and Modification. This Agreement may be amended, modified or supplemented only
by a written instrument executed by all of the parties hereto. 

    7.02       Waiver
of Compliance. Except as otherwise provided in this Agreement, any failure of any
of the parties to comply with any obligation, covenant, agreement or condition herein may
be waived by the party entitled to the benefits thereof only by a written instrument
signed by the party granting such waiver, but any such waiver, or the failure to insist
upon strict compliance with any obligation, covenant, agreement or condition herein,
shall not operate as a waiver of, or estoppel with respect to, any subsequent or other
failure or breach.  

    7.03       Notices.
All notices and other communications hereunder shall be in writing and shall be deemed
given (i) on the date of delivery if delivered personally on the party to whom notice is
to be given, (ii) on the date of transmission if sent via facsimile transmission to the
facsimile number given below, and telephonic confirmation of receipt is obtained promptly
after completion of transmission, (iii) on the first Business Day after delivery to a
reputable overnight delivery service, or (iv) on the fifth day after mailing, if mailed
to the party to whom notice is to be given, by first class mail, registered or certified
(return receipt requested), postage prepaid and properly addressed, to the parties at the
following addresses (or at such other address as any party shall specify by like notice:  

		    (a)                 if
to Seller and Guarantor to:

	 	
Attention: 
Facsimile No.: 
 with a copy to: 

Attention:  Facsimile No.:  

		    (b)                 if
to Buyer to:

	 	
with
a copy to:  

    7.04       Assignment.
This Agreement and all of the provisions hereof shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors, personal
representatives, successors and permitted assigns, but neither this Agreement nor any of
the rights, interests or obligations hereunder shall be assigned by any party hereto
without the prior written consent of the other parties. Any purported assignment in
violation of the provisions hereof shall be void.  

    7.05       Governing
Law. This Agreement shall be governed, exclusively by the laws of the State of
Israel as to all matters, including but not limited to matters of validity, construction,
effect, performance and remedies.  

    7.06       Jurisdiction
. The parties agree that any action or proceeding relating in any way to this
Agreement shall be brought and enforced in the component courts located in Tel Aviv,
Israel.  

    7.07       Counterparts.
This Agreement may be executed in any number of counterparts and by facsimile, and by any
party on separate counterparts, each of which as so executed and delivered shall be
deemed an original, but all of which together shall constitute one and the same
instrument, and it shall not be necessary in making proof of this Agreement as to any
party hereto to produce or account for more than one such counterpart executed and
delivered by such party.  

    7.08        Interpretation.  

	 	
For
purposes of this Agreement: 

		    (a)                 (i)
“Business Day” shall mean a day other than a Saturday,           Sunday
or other day on which banks in the State of Ethiopia, Cyprus and/or           Israel are
required or authorized to close; (ii) “Governmental           Authority” shall
mean any federal, national, state, provincial,           municipal or other governmental
department, commission, board, bureau, agency or           instrumentality, or any court
or self-regulatory organization;           (iii)  “Laws” shall
mean any order, any federal,           national, state, provincial, local or other
statute, law, rule of common law, or           code of any kind of any Governmental
Authority, domestic or foreign, and the           rules, regulations, ordinances and
standards promulgated thereunder           (iv) “Liens” shall mean
any and all liens, encumbrances,           mortgages, charges, claims, restrictions,
options, pledges, security interests           or other similar interests, title defects,
tenancies (and other possessory           interests), easements, rights of way,
covenants, encroachments, rights of first           refusal or any restriction on
transfer and/or voting, preemptive rights,           judgments, conditional sale or other
title retention agreements and other           impositions or imperfections of title of
any nature whatsoever;           (v) “Material Adverse Effect” shall
mean a material           adverse effect on business, results of operations or financial
condition of the           Group Companies.  

    7.09       Entire
Agreement. This Agreement including the schedules, exhibits, documents,
certificates and instruments referred to herein and therein, embody the entire agreement
and understanding of the parties hereto in respect of the transactions contemplated by
this Agreement and supersede all prior agreements and understandings between the parties
with respect thereto. Except for any permitted assignees, successors or assigns of the
parties, no provision of this Agreement is intended to or shall be deemed to be for the
benefit of, or create any rights in favor of, any third party.  

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.  

			

By: /s/ Yanai Man
——————————————

Yanai Man
(COMPANY - SELLER) 

			

By: /s/ Yanai Man
——————————————

Yanai Man
[GUARANTOR] 

			

By: /s/ Louis Machiels
——————————————

Louis Machiels
[BUYER]Amended and Restated Executive Retention Agreement

 Exhibit 10.2 
 AMENDED AND RESTATED EXECUTIVE RETENTION AGREEMENT 
 THIS AMENDED AND RESTATED EXECUTIVE RETENTION AGREEMENT
by and between KĀDANT INC., a Delaware corporation (the “Company”), and William A. Rainville (the “Executive”) is made as of December 9, 2008 (the “Effective Date”). 
 WHEREAS, the Company and the Executive are parties to that certain Executive Retention Agreement dated as of August 8, 2001, as amended and restated
effective as of December 5, 2006 (the “Original Agreement”); 
 WHEREAS, the Board of Directors of the Company (the
“Board”) recognizes that, as is the case with many publicly-held corporations, the possibility of a change in control of the Company exists and that such possibility, and the uncertainty and questions which it may raise among key
personnel, may result in the departure or distraction of key personnel to the detriment of the Company and its stockholders; 
 WHEREAS, the
Board has determined that appropriate steps should be taken to reinforce and encourage the continued employment and dedication of the Company’s key personnel without distraction from the possibility of a change in control of the Company and
related events and circumstances; and 
 WHEREAS, the Board and the Executive intend that the Original Agreement comply with the provisions
of Section 409A of the Internal Revenue Code (the “Code”) and for that purpose desire to amend and restate the Original Agreement; and 
 NOW, THEREFORE, as an inducement for and in consideration of the Executive remaining in the Company’s employ, the Executive and the Company agree as follows: 
 1. Key Definitions. 
 As used herein,
the following terms shall have the following respective meanings: 
 1.1 “Change in Control” means an event or occurrence set
forth in any one or more of subsections (a) through (d) below (including an event or occurrence that constitutes a Change in Control under one of such subsections but is specifically exempted from another such subsection): 
 (a) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) 20% or more of either (i) the then-outstanding shares of common stock of the Company (the “Outstanding 

 
Company Common Stock”) or (ii) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (a), the following acquisitions shall not constitute a Change in Control: (i) any acquisition
by the Company, (ii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (iii) any acquisition by any corporation pursuant to a transaction
which complies with clauses (i) and (ii) of subsection (c) of this Section 1.1; or 
 (b) such time as the Continuing
Directors (as defined below) do not constitute a majority of the Board (or, if applicable, the Board of Directors of a successor corporation to the Company), where the term “Continuing Director” means at any date a member of the Board
(i) who was a member of the Board on the date of the execution of this Agreement or (ii) who was nominated or elected subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such
nomination or election or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Continuing Directors at the time of such nomination or election; provided, however, that there shall be
excluded from this clause (ii) any individual whose initial assumption of office occurred as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of
proxies or consents, by or on behalf of a person other than the Board; or 
 (c) the consummation of a merger, consolidation,
reorganization, recapitalization or statutory share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company in one or a series of transactions (a “Business Combination”),
unless, immediately following such Business Combination, each of the following two conditions is satisfied: (i) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 80% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction
owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the
same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively; and (ii) no Person (excluding the Acquiring Corporation or any
employee benefit plan (or related trust) maintained or sponsored by the Company or by the Acquiring Corporation) beneficially owns, directly or indirectly, 20% or more of the then outstanding shares of common stock of the Acquiring Corporation, or
of the combined voting power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors; or 
  

 2 

 (d) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 1.2 “Change in Control Date” means the first date during the Term (as defined in Section 2) on which a Change in
Control occurs. Anything in this Agreement to the contrary notwithstanding, if (a) a Change in Control occurs, (b) the Executive’s employment with the Company is terminated prior to the date on which the Change in Control occurs, and
(c) it is reasonably demonstrated by the Executive that such termination of employment (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in
connection with or in anticipation of a Change in Control, then for all purposes of this Agreement the “Change in Control Date” shall mean the date immediately prior to the date of such termination of employment. 
 1.3 “Cause” means the Executive’s willful engagement in illegal conduct or gross misconduct after the Change in Control Date which
is materially and demonstrably injurious to the Company. For purposes of this Section 1.3, no act or failure to act by the Executive shall be considered “willful” unless it is done, or omitted to be done, in bad faith and without
reasonable belief that the Executive’s action or omission was in the best interests of the Company. 
 1.4 “Good
Reason” means the occurrence, without the Executive’s written consent, of any of the events or circumstances set forth in clauses (a) through (g) below on or after the Change in Control Date. Notwithstanding the occurrence of
any such event or circumstance, such occurrence shall not be deemed to constitute Good Reason if, prior to the Date of Termination specified in the Notice of Termination (each as defined in Section 3.2(a)) given by the Executive in respect
thereof, such event or circumstance has been fully corrected within 30 days after notice thereof and the Executive has been reasonably compensated for any losses or damages resulting therefrom. 
 (a) the assignment to the Executive of duties inconsistent in any material respect with the Executive’s position (including status, offices, titles
and reporting requirements, including but not limited to a change in any of the foregoing that results in the Executive no longer being an officer of a public company), authority or responsibilities in effect immediately prior to the earliest to
occur of (i) the Change in Control Date, (ii) the date of the execution by the Company of the initial written agreement or instrument providing for the Change in Control or (iii) the date of the adoption by the Board of Directors of a
resolution providing for the Change in Control (with the earliest to occur of such dates referred to herein as the “Measurement Date”) or a material diminution in such position, authority or responsibilities; 
 (b) a reduction in the Executive’s annual base salary as in effect on the Measurement Date or as the same was or may be increased thereafter from
time to time; 
  

 3 

 (c) the failure by the Company to (i) continue in effect any material compensation or benefit plan
or program (including without limitation any life insurance, medical, health and accident or disability plan and any vacation or automobile program or policy) (a “Benefit Plan”) in which the Executive participates or which is applicable to
the Executive immediately prior to the Measurement Date, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan or program, (ii) continue the Executive’s
participation therein (or in such substitute or alternative plan) on a basis not materially less favorable than the basis existing immediately prior to the Measurement Date (iii) award cash bonuses to the Executive in amounts and in a manner
substantially consistent with past practice in light of the Company’s financial performance or (iv) continue to provide any material fringe benefit enjoyed by Executive immediately prior to the Measurement Date; 
 (d) a change by the Company in the location at which the Executive performs his or her principal duties for the Company to a new location that is both
(i) outside a radius of 50 miles from the Executive’s principal residence immediately prior to the Measurement Date and (ii) more than 30 miles from the location at which the Executive performed his or her principal duties for the
Company immediately prior to the Measurement Date; or a requirement by the Company that the Executive travel on Company business to a substantially greater extent than required immediately prior to the Measurement Date; 
 (e) the failure of the Company to obtain the agreement from any successor to the Company to assume and agree to perform this Agreement, as required by
Section 6.1; 
 (f) a material breach of this Agreement; or 
 (g) any failure of the Company to pay or provide to the Executive any portion of the Executive’s compensation or benefits due under any Benefit
Plan within seven days of the date such compensation or benefits are due, or any material breach by the Company of this Agreement or any employment agreement with the Executive. 
 The Executive’s right to terminate his or her employment for Good Reason shall not be affected by the Executive’s incapacity due to physical or
mental illness. 
 1.5 “Disability” means the Executive’s absence from the full-time performance of the
Executive’s duties with the Company for 180 consecutive calendar days as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected by the Company or its insurers and
acceptable to the Executive or the Executive’s legal representative. 
 2. Term of Agreement. This Agreement, and all rights and
obligations of the parties hereunder, shall take effect upon the Effective Date and shall expire upon the first 

  

 4 

 
to occur of (a) the expiration of the Term (as defined below) if a Change in Control has not occurred during the Term, (b) the date 24 months after
the Change in Control Date, if the Executive is still employed by the Company as of such later date, or (c) the fulfillment by the Company of all of its obligations under Sections 4 and 5.2 if the Executive’s employment with the Company
terminates within 24 months following the Change in Control Date. “Term” shall mean the period commencing as of the Effective Date and continuing in effect through December 31, 2011; provided, however, that commencing on
January 1, 2012 and each January 1, thereafter, the Term shall be automatically extended for one additional year unless, not later than 90 days prior to the scheduled expiration of the Term (or any extension thereof), the Company shall
have given the Executive written notice that the Term will not be extended. 
 3. Employment Status; Termination Following Change in
Control. 
 3.1 Not an Employment Contract. The Executive acknowledges that this Agreement does not constitute a contract of
employment or impose on the Company any obligation to retain the Executive as an employee and that this Agreement does not prevent the Executive from terminating employment at any time. If the Executive’s employment with the Company terminates
for any reason and subsequently a Change in Control shall occur, the Executive shall not be entitled to any benefits hereunder except as otherwise provided pursuant to Section 1.2. 
 3.2 Termination of Employment. 
 (a)
If the Change in Control Date occurs during the Term, any termination of the Executive’s employment by the Company or by the Executive within 24 months following the Change in Control Date (other than due to the death of the Executive) shall be
communicated by a written notice to the other party hereto (the “Notice of Termination”), given in accordance with Section 7. Any Notice of Termination shall: (i) indicate the specific termination provision (if any) of this
Agreement relied upon by the party giving such notice, (ii) to the extent applicable, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision
so indicated and (iii) specify the Date of Termination (as defined below). The effective date of an employment termination (the “Date of Termination”) shall be the close of business on the date specified in the Notice of Termination
(which date may not be less than 15 days or more than 120 days after the date of delivery of such Notice of Termination), in the case of a termination other than one due to the Executive’s death, or the date of the Executive’s death, as
the case may be. In the event the Company fails to satisfy the requirements of Section 3.2(a) regarding a Notice of Termination, the purported termination of the Executive’s employment pursuant to such Notice of Termination shall not be
effective for purposes of this Agreement. 
 (b) The failure by the Executive or the Company to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, 

  

 5 

 
respectively, hereunder or preclude the Executive or the Company, respectively, from asserting any such fact or circumstance in enforcing the
Executive’s or the Company’s rights hereunder. 
 (c) Any Notice of Termination for Cause given by the Company must be given
within 90 days of the occurrence of the event(s) or circumstance(s) that constitute(s) Cause. Prior to any Notice of Termination for Cause being given (and prior to any termination for Cause being effective), the Executive shall be entitled to a
hearing before the Board of Directors of the Company at which the Executive may, at the Executive’s election, be represented by counsel and at which the Executive shall have a reasonable opportunity to be heard. Such hearing shall be held on
not less than 15 days prior written notice to the Executive stating the Board of Directors’ intention to terminate the Executive for Cause and stating in detail the particular event(s) or circumstance(s) that the Board of Directors believes
constitutes Cause for termination. 
 (d) Any Notice of Termination for Good Reason given by the Executive must be given within 90 days of
the first occurrence of the event(s) or circumstance(s) that constitute(s) Good Reason. 
 4. Benefits to Executive.

 4.1 Stock Acceleration. If the Change in Control Date occurs during the Term, then, effective upon the Change in Control Date,
(a) each outstanding option to purchase shares of Common Stock of the Company held by the Executive shall become immediately exercisable in full and will no longer be subject to a right of repurchase by the Company and (b) each outstanding
restricted stock award shall be deemed to be fully vested and will no longer be subject to a right of repurchase by the Company. 
 4.2
Compensation. If the Change in Control Date occurs during the Term and the Executive’s employment with the Company terminates within 24 months following the Change in Control Date, the Executive shall be entitled to the following
benefits: 
 (a) Termination Without Cause or for Good Reason. If the Executive’s employment with the Company is terminated by
the Company (other than for Cause, Disability or Death) or by the Executive for Good Reason within 24 months following the Change in Control Date, then the Executive shall be entitled to the following benefits: 
 (i) the Company shall pay to the Executive in a lump sum in cash within 30 days after the Date of Termination the aggregate of the following amounts:

 (1) the sum of (A) the Executive’s base salary through the Date of Termination, (B) the annual bonus paid or payable
(including any bonus or portion thereof which has been earned but deferred) for the most recently 

  

 6 

 
completed fiscal year (if such bonus has not yet been paid), (C) the product of (x) the greater of (I) the annual bonus paid or payable to the
Executive (including any bonus or portion thereof which has been earned but deferred) for the most recently completed fiscal year and (II) the Executive’s target or reference bonus for the fiscal year in which the Date of Termination took place
and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365 and (D) the amount of any compensation previously deferred by the Executive
(together with any accrued interest or earnings thereon) and any accrued vacation pay, in each case to the extent not previously paid (the sum of the amounts described in clauses (A), (B), (C) and (D) shall be hereinafter referred to as
the “Accrued Obligations”); and 
 (2) the amount equal to (A) three multiplied by (b) the sum of (x) the
Executive’s highest annual base salary in any twelve-month period (on a rolling basis) during the five-year period prior to the Change in Control Date and (y) the greater of (I) the Executive’s highest annual bonus in any
twelve-month period (on a rolling basis) during the five-year period prior to the Change in Control Date and (II) the Executive’s target or reference bonus for the fiscal year in which the Change in Control took place. 
 (ii) for three years after the Date of Termination, or such longer period as may be provided by the terms of the appropriate plan, program, practice or
policy, the Company shall continue to provide benefits (including, without limitation, automobile, retirement, medical, dental, life insurance and disability benefits) to the Executive and the Executive’s family at least equal to those which
would have been provided to them if the Executive’s employment had not been terminated, in accordance with the applicable benefit plans in effect on the Measurement Date or, if more favorable to the Executive and the Executive’s family, in
effect generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies; provided, however, that if the Executive becomes reemployed with another employer and is eligible to receive a
particular type of benefits (e.g., medical benefits) from such employer on terms at least as favorable to the Executive and the Executive’s family as those being provided by the Company, then the Company shall no longer be required to provide
those particular benefits to the Executive and the Executive’s family; and provided further, however, that (A) if any particular benefits cannot be provided because of plan or regulatory restrictions, then the Company will pay to
the Executive an amount equal to the cost the Executive will incur in acquiring such benefits directly as a result of the Company not providing such benefits and (B) to the extent the Company determines that the Executive’s qualifying
event for purposes of continuation of medical benefits under COBRA occurs on the Executive’s Date of Termination, such period of continuation of benefits shall not be counted against or otherwise reduce the period for which the Company must
provide continuation of medical benefits under this Section 4.2(a)(ii) unless the Executive otherwise agrees; 
 (iii) to the extent
not previously paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits 

  

 7 

 
required to be paid or provided or which the Executive is eligible to receive following the Executive’s termination of employment under any plan,
program, policy, practice, contract or agreement of the Company and its affiliated companies (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”); and 
 (iv) Retirement Plan Benefits. If not already vested, the Executive shall be deemed fully vested as of the Measurement Date in any Company retirement
plans or other written agreements between the Executive and the Company relating to pay or other benefits upon retirement in which the Executive was a participant, party or beneficiary immediately prior to the Change in Control, and any additional
plans or agreements in which such Executive became a participant, party or beneficiary after the Change in Control and before the Date of Termination. In addition to the foregoing, for purposes of determining the amounts to be paid to the Executive
under such plans or agreements, the years of service with the Company and the age of the Executive under all such plans and agreements shall be deemed increased by thirty-six (36) months. For purposes of this Section 4.2 (a)(iv), the term
“plans” includes, without limitation, the Company’s qualified pension plan, non-qualified pension plans, profit-sharing plans and 401(k) plans, and any companion, successor or amended plans, and the term “agreements”
encompasses, without limitation, the terms of any offer letter leading to the Executive’s employment with the Company where the Executive was a signatory thereto, any written amendments to the foregoing and any subsequent amendments on such
matters. In the event the terms of the plans referenced in this Section 4.2 (a)(iv) do not for any reason coincide with the provisions of this Section 4.2 (a)(iv) (e.g., if plan amendments would cause disqualification of qualified plans),
the Executive shall be entitled to receive from the Company, under the terms of this Agreement, an amount equal to all amounts the Executive would have received , at the time the Executive would have received such amounts, had all such plans
continued in existence as in effect on the date of this Agreement after being amended to coincide with the terms of this Section 4.2 (a)(iv). 
 (b) Resignation without Good Reason; Termination for Death or Disability. If the Executive voluntarily terminates his or her employment with the Company within 24 months following the Change in Control Date, excluding a termination
for Good Reason, or if the Executive’s employment with the Company is terminated by reason of the Executive’s death or Disability within 24 months following the Change in Control Date, then the Company shall (i) pay the Executive (or
the Executive’s estate, if applicable), in a lump sum in cash within 30 days after the Date of Termination, the Accrued Obligations and (ii) timely pay or provide to the Executive the Other Benefits. 
 (c) Termination for Cause. If the Company terminates the Executive’s employment with the Company for Cause within 24 months following the
Change in Control Date, then the Company shall (i) pay the Executive, in a lump sum in cash within 30 days after the Date of Termination, the sum of (A) the Executive’s annual base salary through the Date of Termination and
(B) the amount of any compensation previously deferred by the Executive, in each case to the extent not previously paid, and (ii) timely pay or provide to the Executive the Other Benefits. 
  

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 4.3 Taxes. 
 (a) In the event that the Company undergoes a “Change in Ownership or Control” (as defined below), and thereafter, the Executive becomes eligible to receive “Contingent Compensation Payments” (as
defined below) the Company shall, as soon as administratively feasible after the Executive becomes so eligible determine and notify the Executive (with reasonable detail regarding the basis for its determinations) (i) which of the payments or
benefits due to the Executive following such Change in Ownership or Control constitute Contingent Compensation Payments, (ii) the amount, if any, of the excise tax (the “Excise Tax”) payable pursuant to Section 4999 of the
Internal Revenue Code of 1986, as amended (the “Code”), by the Executive with respect to such Contingent Compensation Payment and (iii) the amount of the “Gross-Up Payment” (as defined below) due to the Executive with
respect to such Contingent Compensation Payment. Within 30 days after delivery of such notice to the Executive, the Executive shall deliver a response to the Company (the “Executive Response”) stating either (A) that the Executive
agrees with the Company’s determination pursuant to the preceding sentence or (B) that the Executive disagrees with such determination, in which case the Executive shall indicate which payment and/or benefits should be characterized as a
Contingent Compensation Payment, the amount of the Excise Tax with respect to such Contingent Compensation Payment and the amount of the Gross-Up Payment due to the Executive with respect to such Contingent Compensation Payment. If the Executive
states in the Executive Response that the Executive agrees with the Company’s determination, the Company shall make the Gross-Up Payment to the Executive within three business days following delivery to the Company of the Executive Response. If
the Executive states in the Executive Response that the Executive disagrees with the Company’s determination, then, for a period of 15 days following delivery of the Executive Response, the Executive and the Company shall use good faith efforts
to resolve such dispute. If such dispute is not resolved within such 15-day period, such dispute shall be settled exclusively by arbitration in Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The Company shall, within three business days following delivery to the Company of the Executive Response, make to the Executive those Gross-Up Payments
as to which there is no dispute between the Company and the Executive regarding whether they should be made. The balance of the Gross-Up Payments shall be made within three business days following the resolution of such dispute. The amount of any
payments to be made to the Executive following the resolution of such dispute shall be increased by the amount of the accrued interest thereon computed at the prime rate announced from time to time by The Wall Street Journal compounded monthly from
the date that such payments originally were due. In the event that the Executive fails to deliver an Executive Response on or before the required date, the Company’s initial determination shall be final. The Gross-Up Payment shall be made no
later than the end of the Executive’s taxable year next following the Executive’s taxable year in which he paid the taxes related to the Gross-Up Payment. 
  

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 (b) For purposes of this Section 4.3, the following terms shall have the following respective
meanings: 
 (i) “Change in Ownership or Control” shall mean a change in the ownership or effective control of the Company or in
the ownership of a substantial portion of the assets of the Company determined in accordance with Section 280G(b)(2) of the Code. 
 (ii) “Contingent Compensation Payment” shall mean any payment (or benefit) in the nature of compensation that is made or supplied to a “disqualified individual” (as defined in Section 280G(c) of the Code) and that
is contingent (within the meaning of Section 280G(b)(2)(A)(i) of the Code) on a Change in Ownership or Control of the Company. 
 (iii)
“Gross-Up Payment” shall mean an amount equal to the sum of (i) the amount of the Excise Tax payable with respect to a Contingent Compensation Payment and (ii) the amount necessary to pay all additional taxes imposed on (or
economically borne by) the Executive (including the Excise Taxes, state and federal income taxes and all applicable withholding taxes) attributable to the receipt of such Gross-Up Payment. For purposes of the preceding sentence, all taxes
attributable to the receipt of the Gross-Up Payment shall be computed assuming the application of the maximum tax rates provided by law. 
 4.4 Outplacement Services. In the event the Executive is terminated by the Company (other than for Cause, Disability or Death), or the Executive terminates employment for Good Reason, within 24 months following the Change in Control
Date, the Company shall provide outplacement services through one or more outside firms of the Executive’s choosing up to an aggregate of $25,000 with such services to extend until the earlier of (i) 12 months following the termination of
Executive’s employment or (ii) the date the Executive secures full time employment. 
 4.5 Mitigation. The Executive shall
not be required to mitigate the amount of any payment or benefits provided for in this Section 4 by seeking other employment or otherwise. Further, except as provided in Section 4.2(a)(ii), the amount of any payment or benefits provided
for in this Section 4 shall not be reduced by any compensation earned by the Executive as a result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive to the Company or
otherwise. 
 4.6 Payments Subject to Section 409A. Subject to the provisions in this Section 4.6, any severance
payments or benefits under this Agreement shall begin only upon the date of the Employee’s “separation from service” (determined as set forth below) which occurs on or after the date of termination of the Employee’s employment.
The following rules shall apply with respect to distribution of the payments and benefits, if any, to be provided to the Employee under this Agreement: 
 (a) It is intended that each installment of the severance payments and benefits provided under this Agreement shall be treated as a separate “payment” for purposes of Section 409A of the Code and the
guidance issued thereunder (“Section 409A”). Neither the Company nor the Employee shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by
Section 409A. 
  

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 (b) If, as of the date of Employee’s “separation from service” from the Company, the
Employee is not a “specified employee” (within the meaning of Section 409A), then each installment of the severance payments and benefits shall be made on the dates and terms set forth in this Agreement. 
 (c) If, as of the date of the Employee’s “separation from service” from the Company, the Employee is a “specified employee”
(within the meaning of Section 409A), then: 
 (i) Each installment of the severance payments and benefits due under this Agreement
that, in accordance with the dates and terms set forth herein, will in all circumstances, regardless of when the separation from service occurs, be paid within the Short-Term Deferral Period (as hereinafter defined) shall be treated as a short-term
deferral within the meaning of Treasury Regulation § 1.409A-1(b)(4) to the maximum extent permissible under Section 409A. For purposes of this Agreement, the “Short-Term Deferral Period” means the period ending on the later of
the fifteenth day of the third month following the end of the Employee’s tax year in which the separation from service occurs and the fifteenth day of the third month following the end of the Company’s tax year in which the separation from
service occurs; and 
 (ii) Each installment of the severance payments and benefits due under this Agreement that is not described in
subsection (c)(i) above and that would, absent this subsection, be paid within the six-month period following the Employee’s “separation from service” from the Company shall not be paid until the date that is six months and one day
after such separation from service (or, if earlier, the Employee’s death), with any such installments that are required to be delayed being accumulated during the six-month period and paid in a lump sum on the date that is six months and one
day following the Employee’s separation from service and any subsequent installments, if any, being paid in accordance with the dates and terms set forth herein; provided, however, that the preceding provisions of this sentence
shall not apply to any installment of severance payments and benefits if and to the maximum extent that such installment is deemed to be paid under a separation pay plan that does not provide for a deferral of compensation by reason of the
application of Treasury Regulation § 1.409A-1(b)(9)(iii) (relating to separation pay upon an involuntary separation from service). Any installments that qualify for the exception under Treasury Regulation § 1.409A-1(b)(9)(iii)
must be paid no later than the last day of the Employee’s second taxable year following the taxable year in which the separation from service occurs. 
  

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 (d) The determination of whether and when the Employee’s separation from service from the Company
has occurred shall be made and in a manner consistent with, and based on the presumptions set forth in, Treasury Regulation § 1.409A-1(h). Solely for purposes of this paragraph (d), “Company” shall include all persons with whom the
Company would be considered a single employer under Section 414(b) and 414(c) of the Code. 
 (e) All reimbursements and in-kind
benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A to the extent that such reimbursements or in-kind benefits are subject to Section 409A, including, where applicable, the
requirements that (i) any reimbursement is for expenses incurred during the Employee’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar
year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is
incurred and (iv) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit. 
 (f) This
Agreement is intended to comply with the provisions of Section 409A and the Agreement shall, to the extent practicable, be construed in accordance therewith. The Company makes no representation or warranty and shall have no liability to the
Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A and do not satisfy an exemption from, or the conditions of, Section 409A. 
 5. Disputes. 
 5.1 Settlement of
Disputes; Arbitration. All claims by the Executive for benefits under this Agreement shall be directed to and determined by the Board of Directors of the Company and shall be in writing. Any denial by the Board of Directors of a claim for
benefits under this Agreement shall be delivered to the Executive in writing and shall set forth the specific reasons for the denial and the specific provisions of this Agreement relied upon. The Board of Directors shall afford a reasonable
opportunity to the Executive for a review of the decision denying a claim. Any further dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Boston, Massachusetts, in accordance with
the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. 
 5.2 Expenses. The Company agrees to pay as incurred, to the full extent permitted by law, all legal, accounting and other fees and expenses which the Executive may reasonably incur as a result of any claim or
contest (regardless of the outcome thereof) by the Company, the Executive or others regarding the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of 

  

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performance thereof (including as a result of any contest by the Executive regarding the amount of any payment or benefits pursuant to this Agreement), plus
in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code. 
 6.
Successors. 
 6.1 Successor to Company. The Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no such
succession had taken place. Failure of the Company to obtain an assumption of this Agreement at or prior to the effectiveness of any succession shall be a breach of this Agreement and shall constitute Good Reason if the Executive elects to terminate
employment, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. As used in this Agreement, “Company” shall mean the Company as defined
above and any successor to its business or assets as aforesaid which assumes and agrees to perform this Agreement, by operation of law or otherwise. 
 6.2 Successor to Executive. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Executive should die while any amount would still be payable to the Executive or the Executive’s family hereunder if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Executive’s estate. 
 7. Notice. All notices, instructions and other communications given hereunder or in connection herewith shall be in writing. Any such notice, instruction or communication shall be sent either (i) by registered or certified mail,
return receipt requested, postage prepaid, or (ii) prepaid via a reputable nationwide overnight courier service, in each case addressed to the Company, at One Technology Park Drive, Westford, Massachusetts 01886 and to the Executive at the
Executive’s principal residence as currently reflected on the Company’s records (or to such other address as either the Company or the Executive may have furnished to the other in writing in accordance herewith). Any such notice,
instruction or communication shall be deemed to have been delivered five business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent via a reputable nationwide
overnight courier service. Either party may give any notice, instruction or other communication hereunder using any other means, but no such notice, instruction or other communication shall be deemed to have been duly delivered unless and until it
actually is received by the party for whom it is intended. 
  

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 8. Miscellaneous. 
 8.1 Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force
and effect. 
 8.2 Injunctive Relief. The Company and the Executive agree that any breach of this Agreement by the Company is likely
to cause the Executive substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available, the Executive shall have the right to specific performance and injunctive relief.

 8.3 Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the internal
laws of the Commonwealth of Massachusetts, without regard to conflicts of law principles. 
 8.4 Waivers. No waiver by the Executive
at any time of any breach of, or compliance with, any provision of this Agreement to be performed by the Company shall be deemed a waiver of that or any other provision at any subsequent time. 
 8.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original but both of which together shall
constitute one and the same instrument. 
 8.6 Tax Withholding. Any payments provided for hereunder shall be paid net of any
applicable tax withholding required under federal, state or local law. 
 8.7 Entire Agreement. This Agreement sets forth the entire
agreement of the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer,
employee or representative of any party hereto in respect of the subject matter contained herein; and any prior agreement of the parties hereto in respect of the subject matter contained herein is hereby terminated and cancelled. 
 8.8 Amendments. This Agreement may be amended or modified only by a written instrument executed by both the Company and the Executive. 

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first set
forth above. 
  

	
	KĀDANT INC.
	
	 /s/ Thomas M. O’Brien

	By: Thomas M. O’Brien
	Executive Vice President and Chief Financial Officer
	
	EXECUTIVE
	
	 /s/ William A. Rainville

	William A. Rainville

  

 15

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