Document:

Amended and Restated Employment Agreement

 EXHIBIT 10.41 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 This agreement (“Agreement”) is entered into as of the 26th day of March, 2007 by and between
CECO Environmental Corp., a Delaware corporation (“CECO”), and DAVID D. BLUM (the “Employee”). 
 RECITALS 
 CECO and Employee entered into an Employment Agreement as of May 30, 2006 (“Original
Agreement”) with an effective date of January 1, 2006 (“Effective Date”) and the parties desire to amend such Original Agreement as set forth herein; 
 CECO Group, Inc. (“CEC”) is a wholly-owned subsidiary of CECO; 
 CEC, CECO and the other
direct and indirect subsidiaries of CECO, including without limitation, The Kirk and Blum Manufacturing Company (“K&B” and collectively with all of the foregoing, the “Companies”) are engaged in the business of
acquiring and operating businesses that engage in engineering, designing, manufacturing or installation services in the air pollution control industry including without limitation of the foregoing, (a) fabrication and installation of industrial
ventilation, dust, fume and mist control systems, as well as automotive spray booth systems, industrial and process piping and other industrial sheet metal work, (b) fabrication of parts, subassemblies or customized products for air pollution
and non-air pollution applications from sheet, plate and structural steel, (c) the provision of standard and non-standard components for contractors and companies that design and/or install their own air pollution control equipment, or
(d) engineering services concentrated in the industrial ventilation area (the “Business”); 
 Employee has been
employed by CEC pursuant to an Employment Agreement, which expired as of the date hereof; 
 The parties desire that Employee be employed by
CECO to assist in the Business; 
 Such employment constitutes a confidential relationship wherein Employee will become familiar with and
aware of information as to the specific manner of doing business and the potential acquisition candidates of the Companies and their affiliates and future plans with respect thereto, all of which information is secret and proprietary and constitutes
valuable goodwill of the Companies and their affiliates; 
 Employee recognizes that the success of Companies’ Business is dependent
upon the maintenance of a number of proprietary trade secrets, including the identity of customers and potential acquisition candidates, the confidential information regarding and analysis of such candidates and the financial data of the Companies
or either of them or their affiliates, and that the protection of these proprietary trade secrets is of critical importance to the Companies; and 
 Employee recognizes that the Companies will sustain great loss and damage if he should violate the provisions of this Agreement. Further, monetary damages for such losses would be extremely difficult to measure and would therefore be likely
to be inadequate for any violation of this Agreement by Employee; 

 TERMS 
 For good and valuable consideration the parties hereby agree as follows: 
 1. Employment: 

Positions. During the term of this Agreement, the Employee agrees to serve as a Senior Vice President of CECO and the President of K&B, and
in such other positions which Employee shall agree to accept during the Term. Employee shall (i) report directly to the President of CECO, (ii) maintain the level of duties and responsibilities as in effect as of the Effective Date, or
such higher level of duties and responsibilities as Employee may be assigned during the Term and (iii) will perform such others duties as may be assigned to him from time to time by the board of directors, President or CEO of CECO. During his
employment, Employee shall devote his full time and best efforts to promote and further the business and services of CECO and the other Companies. Employee shall faithfully adhere to, execute and fulfill all policies established by CECO’s board
of directors. Employee shall not, during his employment hereunder, be engaged in any business or perform any services in any capacity other than for CECO or the other Companies, whether or not they interfere with his duties to CECO, without the
prior approval of the Board of Directors of CECO, except that no such approval shall be required with respect to volunteer activities for organizations with charitable purposes or passive investment activity; provided that such activities do not
interfere with his duties for CECO and are only occasionally during business hours. Without limiting the generality of any other provisions hereunder, under no circumstances shall Employee accept any form of remuneration from any business owner or
broker with respect to any matter related to the Business of the Companies. 
 2. Term. The Company hereby agrees to employ the
Employee and the Employee hereby agrees to serve the Company in accordance with the terms and conditions set forth herein, for a period commencing as of the Effective Date and ending December 31, 2008 (the “Initial Term”). Commencing
December 31, 2008, and each December 31 thereafter, the term of this Agreement shall automatically be extended for one (1) additional year (each, a “Renewal Term”), unless at least six months prior to the termination of the
then current term, the Company or the Employee shall have given notice in accordance with Section 14 hereof that it or he does not wish to extend the term of the Agreement. (The Initial Term and all the Renewal Terms are collectively sometimes
referred to as the “Term.”) 
 3. Compensation. During the Term, CECO shall compensate Employee as follows: 
 a. Salary. For his services during the Term, CECO shall pay to Employee a base salary (“Base Salary”) of $200,000 per year, payable in
accordance with CECO’s standard payroll practices, but no less frequently than in monthly installments, and which may be increased from time to time in the discretion of the board of directors of CECO. CECO agrees that Employee’s base
salary shall be reviewed no less frequently than once every 12 months. The payment of salary and any bonuses paid hereunder shall be subject to all federal, state and local withholding taxes, social security tax deductions and other general
obligations. Employee may be entitled to receive additional compensation from CECO in such form and only to the extent explicitly set forth below. 
  

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 b. Other Compensation. Employee shall be entitled to participate, on the same terms as other
non-union, executive employees of CECO, in any medical, dental or other health plan, 401(k) plan, stock option plan, profit-sharing plan and life insurance plan that CECO may adopt or maintain for such employees, any of which plans may be changed,
terminated or eliminated by CECO at any time in their sole discretion. 
 c. Reimbursement of Expenses. CECO shall reimburse Employee
for properly documented expenses that are incurred by Employee on behalf of CECO in accordance with corporate policies in effect from time to time. 
 d. Automobile Allowance. During the Term of Employee’s employment hereunder, Employee shall receive a monthly car allowance of $452 biweekly, or such greater amount as determined by the Compensation Committee of CECO. Such
allowance shall be treated as additional compensation for Employee and be reported on his Form W-2 as such. 
 e. Incentive Compensation
Agreement. Employee shall be eligible to participate in any CECO Incentive Compensation Program that CECO establishes, on such terms as are set forth in any such plan (“Bonus Compensation”). Notwithstanding anything contained herein to
the contrary, Bonus Compensation shall not be paid until the amount of Bonus Compensation, if any, is determined in accordance with the terms of such plan. 
 f. Right to Change Plans. CECO shall not be obligated to institute, maintain, or refrain from changing, amending, or discontinuing any benefit plan, program, or perquisite, so long as such changes are equally
applicable to all executive employees of CECO. 
 4. Vacation. Employee shall be entitled to four (4) weeks of paid vacation in
each full calendar year of employment at times mutually acceptable to Employee and CECO. Vacation shall be earned ratably over the course of a calendar year, and unused vacation time cannot be carried forward past December 31 of any year
without the prior written consent of CECO. 
 5. Termination by CECO. 
 a. Termination for Cause. CECO may terminate this Agreement at any time for Cause, in which case Employee shall be entitled to receive Base Salary
accrued through the date of such termination. Any of the following shall constitute “Cause”: 
 (i) any
material breach by Employee of any of the terms of this Agreement where such breach is not cured within thirty (30) days after written notice of such breach is delivered to Employee; 
 (ii) any breach by Employee of any of the terms of his non-competition agreement set forth in Section 9 with CECO or the Employee
Innovations and Proprietary Rights Assignment Agreement between Employee and CECO; 
 (iii) intoxication with alcohol or drugs
while on the premises of CECO or any of the Companies or any customer or potential customer to the extent that in the reasonable judgment of management, Employee is abusive or his ability to perform his duties and responsibilities under this
Agreement is impaired; 
  

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 (iv) conviction of a felony or any misdemeanor involving dishonesty, theft, the failure
to tell the truth, other unethical behavior, racial prejudice, drugs, alcohol, sexual misconduct or any other crime likely to result in public disparagement with respect to any of the Companies; 
 (v) intentional misappropriation of property belonging to CECO or any of the Companies; 
 (vi) illegal business practices in connection with any of CECO or the Companies’ businesses which could have a material adverse
effect on CEC’s, CECO’s, CECO’s or any of the Companies’ or their business or financial position or reputation; 
 (vii) excessive absence of Employee from his employment during usual business hours for reasons other than vacation, disability or sickness after written notice thereof is delivered to Employee describing the nature of such excess absences
and affording Employee one more opportunity to avoid excess absences; or 
 (viii) failure of Employee to obey directions of
the Board of Directors of CECO or chief executive officer of CECO, provided that Employee has been given written notice of such directions. 
 (c) Termination Without Cause. CECO may terminate the employment of Employee, and this Agreement, without Cause at any time, in which event CECO shall pay to Employee, in full satisfaction of CECO’s obligations to Employee under
this Agreement, the compensation accrued but unpaid, including without limitation an amount equal to the amount he would have received as Bonus Compensation upon its determination, pro rated through the date of the termination of his employment, and
shall continue to pay Base Salary for a period paid of twelve (12) months as if he had remained employed by CECO for such twelve (12) months. Subject to Section 16 herein, such amounts shall be earned and paid rateably over the
applicable period in accordance with CECO’s regular payroll practices. 
 (c) Breach by CECO. Employee may terminate his
employment with CECO if CECO shall (i) materially breach any of its obligations and responsibilities under this Agreement and such breach shall be continuing, (ii) relocate the location of Employee’s regular work place to a location
more than 35 miles from its current location in Cincinnati, Ohio (excluding travel in the course of performing Employee’s duties), (iii) demote the Employee to a less prestigious position without the mutual agreement of CECO and the
Employee, and (iv) materially reduce Employee’s Base Salary below $200,000 (collectively, “Breach by CECO”); provided, that, Employee shall not terminate his employment under this paragraph (c) unless he shall first
have delivered to CEC a written notice setting forth with particularity the basis for such termination and shall have given the Board of Directors of CEC an opportunity to meet with Employee and, if curable, to cure such breach within thirty
(30) days following delivery of such written notice. If Employee’s employment is terminated by reason of Breach by CECO, CECO shall pay the Employee his full accrued and unpaid compensation, including without limitation an amount equal to
the amount he would have received as Bonus Compensation upon its determination, pro rated through the date of such termination, and shall continue to pay Base Salary for a period of twelve (12) months as if he had remained employed by CECO for
such twelve (12) months. Subject to Section 16 herein, such amounts shall be earned and paid rateably over the applicable period in accordance with CECO’s regular payroll practices. 
  

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 6. Termination on Account of Death or Disability. If Employee dies during the Term, this Agreement
shall terminate, and CECO shall pay to the estate of Employee his accrued but unpaid compensation, including without limitation an amount equal to the amount he would have received as Bonus Compensation upon its determination, pro rated through the
date of his death. The Board of Directors of CECO may elect to terminate the engagement of Employee for “disability,” if Employee is no longer able to perform the duties of his position due to illness, accident or other physical or
mental condition and such disability is expected to continue, with or without interruption, for a period of six months, or such greater period as may be required by any applicable law. If the Board of Directors of CECO determines that Employee is so
disabled, it shall deliver notice to Employee and CECO shall pay to Employee his accrued but unpaid compensation, including without limitation an amount equal to the amount he would have received as Bonus Compensation upon its determination, pro
rated through the date of the termination of his employment hereunder in full satisfaction of CECO’s obligations to Employee under this Agreement. 
 7. Termination by Employee. Employee may terminate his employment at any time upon ninety (90) days prior written notice. If he does so other than as a result of a Breach by CECO, CECO shall pay to him the
Base Salary accrued but unpaid through the date of such termination of his employment in full satisfaction of CECO’s obligations to Employee under this Agreement. 
 8. a. Confidentiality. Except in the furtherance of the business of the Companies, during and at all times after Employee’s employment: 
 (i) Employee shall not disclose to any person or entity, without CECO’s prior written consent, any confidential or secret proprietary
information, whether prepared by him or others. 
 (ii) Employee shall not directly or indirectly use any such proprietary
information other than as directed by CECO in writing. 
 (iii) Employee shall not remove confidential or secret proprietary
information from the premises of CECO without the prior written consent of CECO. 
 Upon termination of his employment for whatever reason, with or without
Cause, Employee will promptly deliver to CECO all originals and copies (whether in note, memo or other document form or on video, audio or computer tapes or discs or otherwise) of confidential or secret proprietary information in his possession,
custody or control, whether prepared by him or others. 
 Confidential or secret proprietary information includes, but is not limited to: 
 (i) the name of any company or business, all or any substantial part of which is or at any time was a candidate for potential acquisition
by any of the Companies, together with all analyses and other information which any of the Companies has generated, compiled or otherwise obtained with respect to such candidate, business or potential acquisition, or with respect to the potential
effect of such acquisition on the business, assets, financial results or prospects of any of the Companies; 
 (ii) business,
pricing and management methods; 
  

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 (iii) finances, strategies, systems, research, surveys, plans, reports, recommendations
and conclusions; 
 (iv) names of, arrangements with, or other information relating to, the Companies’ customers,
equipment suppliers, manufacturers, financiers, owners or operators, representatives and other persons who have business relationships with the Companies or who are prospects for business relationships with any of the Companies; 
 (v) technical information, work products and know-how; and 
 (vi) cost, operating, and other management information systems, and other software and programming. 
 c. Employee Inventions. Employee shall enter into an Employee Innovations and Proprietary Rights Assignment Agreement in the form of Exhibit
A attached hereto. 
 9. Non-Compete; Non-Solicitation. 
 a. Non-Compete. Employee agrees that during the term of his employment and for a period of two (2) years following his termination of
employment with CECO for any or no reason he will not Participate in any Restricted Business in the Restricted Territory. 
 (i) For purposes of this Agreement, the term “Participate” means to have any direct or indirect interest in a Restricted Business, whether as an officer, director, member, manager, employee, partner, proprietor, agent,
representative, independent contractor, consultant, franchiser, franchisee, creditor, owner, advisor or otherwise, or to participate in the financing, operation, management or control of, any person, firm, partnership, corporation, entity or
business that engages or participates in a Restricted Business; provided, however, that the term “Participate” shall not include passive ownership of less than five percent (5%) of a class of stock of a publicly-held corporation which
is traded on a national securities exchange or in the over-the-counter market, provided that Employee may not sell any shares of such stock unless such shares of stock were held by Employee for a period of at least twelve (12) months; and

 (ii) For purposes of this Agreement, the term “Restricted Business” means any enterprise, business or venture
engaged in or which proposes to engage in the distribution, service, or sale of any products or services of the same type or nature as, or are otherwise competitive with, those which are distributed, serviced or sold by any of the Companies at any
time during the twelve (12) months prior to the termination of the Employee’s engagement with CECO; and 
 (iii) For
purposes of this Agreement, “Restricted Territory” shall mean anywhere worldwide. Employee acknowledges and agrees that with the use of technology that is available today, this worldwide restriction is reasonable and necessary because any
services or products that are or will be offered by the Companies are or will be for sale throughout the world. 
 b.
Non-Solicitation. Employee agrees that, during the time of Employee’s employment with CECO and for a period ending two (2) years after the termination of Employee’s employment for any reason whatsoever or for no reason, whether
voluntary or 

  

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involuntary, Employee will not (i) induce or attempt to induce any customer, supplier, licensee or business relation of any of the Companies to cease
doing business with the Companies, or in any way interfere with the relationship between any customer, supplier, licensee, or business relation of the Companies; or (ii) solicit, attempt to solicit, induce, encourage, hire or take any other
action that is intended to induce or encourage any then current employee or independent contractor to terminate his or her employment or consulting relationship with any of the Companies. 
 The covenants on the part of Employee contained in this Section 9 shall be construed as an agreement independent of any other provision in this
Agreement, and the existence of any claim or cause of action of Employee against CECO, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of this covenant. Employee acknowledges that part
of the consideration for the forgoing covenants is Employee’s compensation during the term of employment provided in the Agreement. Employee further acknowledges that the foregoing restrictions placed upon him are necessary and reasonable in
scope and duration to protect the goodwill of CECO, and that he will be in a position to earn a livelihood without violating the foregoing restrictions and that it has been made clear to him on behalf of CECO that his ability to earn a livelihood
without violating such restrictions is a material condition to his employment or continuation of his employment by CECO. 
 10. Damages,
etc. The parties acknowledge that monetary damages will be inadequate and the Companies will be irreparably damaged if the provisions of this Agreement are not specifically enforced. CECO shall be entitled, among other remedies, (a) without
any bond or other security being required, to an injunction restraining any violation of this Agreement by Employee and by any person or entity to whom Employee provides or proposes to provide any services in violation of this Agreement, and
(b) to require Employee to hold in a constructive trust, account for and pay over to CECO all compensation and other benefits which Employee shall derive as a result of any action or omission which is a violation of any provision of this
Agreement. 
 11. Enforceability. If any one or more of the provisions of this Agreement shall be held by a court of competent
jurisdiction or other authority to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby; such court or other authority
is hereby authorized and directed to modify or amend the invalid, illegal or unenforceable provision to the minimum extent necessary to render it valid and enforceable and to achieve as fully as lawful the intention of such provision, and such
provision, as so modified or amended, shall be valid and binding upon the parties. 
 12. Return of Property. All products, records,
designs, plans, manuals, “field guides”, memoranda, lists and other property delivered to Employee by or on behalf of any of the Companies or by their customers, including, but not limited to, customers obtained for any of them by
Employee, and all records compiled by Employee which pertain to the business of any of the Companies, or any of their customers, whether or not confidential, shall be and remain the property of the Companies, and be subject at all times to the
discretion and control of the Companies. Likewise, all correspondence with customers or representatives, reports, records, charts, advertising materials, and any data collected by Employee, or by or on behalf of any of the Companies or their
representatives, whether or not confidential, shall be delivered promptly to CECO without request by it upon termination of Employee’s employment. 
  

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 13. Suits Against the Companies. Both during and after the term of his employment hereunder,
Employee covenants that he will not bring suit or file counterclaims against the Companies or any of them for corporate misconduct, unless both of the following shall have occurred: (a) Employee shall have first made written demand to the Board
of Director of CEC to investigate and deal with such misconduct, and (b) such Board of Directors shall have failed within 30 days after the date of receipt of such demand to establish a Special Litigation Committee, consisting exclusively of
outside directors, to investigate and deal with such misconduct. Without limiting the generality of and to further implement the foregoing, Employee irrevocably and unconditionally consents at the option of either of the Companies to the entry of
temporary restraining orders and temporary and permanent injunctions, without posting bond or other security, against the filing of any action or counterclaim which is prohibited hereunder. The opinion of such Board of Directors shall be binding and
conclusive on the determination of which directors constitute “outside directors”, and the determination of the Special Litigation Committee shall be binding and conclusive on all matters relating to the actual or alleged misconduct which
is referred to it as aforesaid. 
 14. Cooperation in Proceedings. During and after the termination of Employee’s employment,
Employee shall for reasonable compensation consistent with his compensation from CECO cooperate fully and at reasonable times with any of the Companies in all litigation and regulatory proceedings with respect to which any of the Companies seeks
Employee’s assistance and as to which Employee has any knowledge or involvement. Without limiting the generality of the foregoing, Employee shall be available to testify at such litigations and other proceedings, and will cooperate with counsel
to the Companies in preparing materials and offering advice in such litigation and other proceedings. Except as required by law, and then only upon reasonable prior written notice to CECO, Employee shall not in any way cooperate or assist any person
or entity in any matter which is adverse to any of the Companies or to any person who was at any time an officer or director of any of the Companies. 
 15. Notices. All notices, requests, demands, claims, and other communications hereunder shall be in writing and will be deemed duly given when personally delivered, the next business day when deposited with
Federal Express or other nationally recognized overnight courier service delivery prepaid or five (5) business days after being sent by registered mail, return receipt requested, postage prepaid, and addressed to the intended recipient as set
forth below: 
 If to Employee: 
 David D. Blum 
 7925 Annesdale Dr. 
 Cincinnati, Ohio 45243 
  

					
	If to CECO:	 	Copy to:	 	
			
	 CECO Environmental Corp.
 3120 Forrer
Street
	 	 Leslie J. Weiss, Esq.
 Sugar, Friedberg &
Felsenthal
	 	

  

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	Cincinnati, Ohio 45209	 	30 North LaSalle Street	 	
	Attn: CEO	 	 Suite 3000
 Chicago, Illinois 60602
	 	

 Either party may change the address to which notices, requests, demands, claims, and other communications
hereunder are to be delivered by giving the other party notice in the manner herein set forth. 
 16. Compliance with IRC
Section 409A. Notwithstanding anything herein to the contrary, (i) if at the time of Employee’s termination of employment with CECO Employee is a “specified employee” as defined in Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or
additional tax under Section 409A of the Code, then CECO will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Employee) until
the date that is six months following Employee’s termination of employment with CECO (or the earliest date as is permitted under Section 409A of the Code) and (ii) if any other payments of money or other benefits due to Employee
hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A
of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible without any additional liability for CECO, in a manner, determined by the Compensation Committee of CECO, that does not cause such an accelerated
or additional tax. 
 17. Survival. The provisions of Sections 8 through 24 shall survive the termination of this Agreement.

 18. Other Agreements. Employee represents that he has furnished to CECO copies of all agreements which restrict or limit or could
restrict or limit his services for CECO at any time during the term. However, nothing in this Agreement shall be construed to render an opinion as to the interpretation or validity of any agreements with prior employers purporting to restrict or
limit Employee’s services for CECO. 
 19. Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Ohio without giving effect to any choice or conflict of law provision or rule, whether of the State of Ohio or any other jurisdiction, that would cause the application of the laws of any jurisdiction other than the State of
Ohio. In the event of any dispute or claim relating to arising out of Employee’s employment relationship with CECO, Employee’s stock options, his non-compete or the termination of Employee’s employment relationship with CECO
(including, without limitation of the foregoing, any claim of wrongful termination or age, sex disability, race or other discrimination), Employee and CECO agree that (i) all such disputes shall be fully and finally resolved by binding
arbitration conducted by the American Arbitration Association in Cincinnati, Ohio, and (ii) each waives his or its rights to have such dispute tried by a court or a jury. RIGHT TO TRIAL BY JURY IS WAIVED. However, Employee and CECO agree
that this arbitration provision shall not apply to any disputes or claims relating to or arising out of the misuse or misappropriation of CECO’s or any Companies’ trade secrets, proprietary information, other proprietary rights or
property. With respect to each such dispute, each of the parties submits to the jurisdiction of any state court sitting in Cincinnati, Ohio or the United States District Court for the Southern District of Ohio. 
  

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 20. Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of
the parties named herein and their respective heirs, legal representatives, successors and permitted assigns. Employee may not assign either this Agreement or any of Employee’s rights, interests or obligations hereunder. CECO may assign any or
all of its rights and interests hereunder to any person or entity that acquires the business of CECO or any Company, or to any entity with which such company merges or consolidates. 
 21. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together
will constitute one and the same agreement. 
 22. Headings. The section headings contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 
 23. Waiver. The waiver of a
breach of any provision of this Agreement shall not operate or be construed to be a waiver of any other provision or of a subsequent or prior breach of this Agreement. 
 24. Entire Agreement. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous negotiations, correspondence,
understandings and agreements between the parties regarding the subject matter of this Agreement, including the Original Agreement. This Agreement may not be amended or modified or any provision waived except in a writing signed by both parties and
supported by new consideration. 
 Executed as of the date first above set forth. 
  

			
	CECO ENVIRONMENTAL CORP.
		
	By:	 	 /s/ Dennis W. Blazer

	Its:	 	Vice President Finance and Administration and CFO
		
		 	 /s/ David D. Blum

		 	David D. Blum, Employee

  

 10Stock Option Agreement of Ronald E. Krieg

 EXHIBIT 10.42 
 STOCK OPTION AGREEMENT 
 CECO ENVIRONMENTAL CORP. 
 1997 STOCK OPTION PLAN 
 THIS
AGREEMENT is dated and made effective as of June 21, 2006 (“Effective Date”) by and between CECO ENVIRONMENTAL CORP., a Delaware corporation (the “Company”), and RONALD E. KRIEG (“Optionee”).

 WITNESSETH: 
 WHEREAS,
Optionee on the date hereof is a Director of the Company or one of its Subsidiaries; and 
 WHEREAS, the Company desires to grant a
non-qualified stock option to Optionee to purchase shares of the Company’s Common Stock pursuant to the Company’s 1997 Stock Option Plan, as amended (the “Plan”); and 
 WHEREAS, the Board of Directors of the Company has authorized the grant of a non-qualified stock option to Optionee at a price of $7.30 per share.

 NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the parties hereto agree as follows:

 1. Grant of Option. The Company hereby grants to Optionee as of the Effective Date the right and option (the
“Option”) to purchase up to fifteen thousand (15,000) shares of Option Stock (“Shares”) at an exercise price of $7.30 per share on the terms and conditions set forth herein and subject to the terms and
conditions of the Plan. 
 All capitalized terms not defined in this Agreement shall have the meaning set forth in the Plan. 
 2. Vesting, Exercisability and Duration. 
 a. Vesting and Exercise Period. The Option shall vest and become exercisable as follows: 
  

	 	(i)	5,000 options shall vest and become exercisable on June 21, 2007, provided that the Optionee is a member of the Board of Directors of the Company as of such date;

  

	 	(ii)	5,000 options shall vest and become exercisable on June 21, 2008, provided that the Optionee is a member of the Board of Directors of the Company as of such date; and

  

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	 	(iii)	5,000 options shall vest and become exercisable on June 21, 2009, provided that the Optionee is a member of the Board of Directors of the Company as of such date.

 Unvested options may not be exercised. 
 b. Expiration. The Option shall expire on the earlier of (i) the date sixty (60) days from the date that Optionee no longer is a director of the Company or any of its subsidiaries for any reason,
including without limitation, due to death or disability, or (ii) the close of business ten (10) years from the date of this Agreement, which is June 21, 2016 (the “Expiration Date”) and must be exercised, if at all,
on or before the Expiration Date. 
 c. Lapse Upon Expiration. To the extent that this Option is not exercised prior to the Expiration
Date, all rights of Optionee under this Option shall thereupon be forfeited. 
 3. Manner of Exercise. 
 a. General. The Option may be exercised only by Optionee (or other proper party in the event of death or incapacity), subject to the conditions of
the Plan and this Agreement, and subject to such other administrative rules as the Administrator deems advisable, by delivering written notice of exercise to the Company at its principal office, in the form attached hereto as Exhibit A. The notice
shall state the number of Shares exercised and shall be accompanied by payment in full of the Option price for all Shares exercised pursuant to the notice. Any exercise of the Option shall be effective upon receipt of such notice by the Company,
together with payment that complies with the terms of the Plan and this Agreement. The Option may be exercised with respect to any number or all of the shares as to which it can then be exercised and, if partially exercised, may be so exercised as
to the unexercised shares at any time and from time to time prior to expiration of the Option as provided in this Agreement. 
 b. Form of
Payment. Subject to approval by the Administrator, payment of the Option price by Optionee shall be in the form of cash, personal check, certified check, or where permitted by law and provided that a public market for the Company’s stock
exists: (i) through a “same day sale” commitment from Optionee and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD Dealer”) whereby Optionee irrevocably elects to exercise
the Option and to sell a portion of the Shares so purchased to pay for the exercise price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the exercise price directly to the Company; (ii) through a
“margin” commitment from Optionee and a NASD Dealer whereby Optionee irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the
amount of the exercise price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the exercise price directly to the Company; or (iii) by tender of shares of Common Stock of the Company already owned by
Optionee for a period of at least six (6) months prior to payment having a Fair Market Value on the date received by the Company equal to the exercise price for the Shares exercised. Optionee shall be solely responsible for any income or other
tax consequences from any payment for Shares with Optionee’s Common Stock of the Company. 
 c. Stock Transfer Records. Provided
that the notice of exercise and payment are in form and substance satisfactory to counsel for the Company, as soon as practicable after the effective exercise of all or any part of the Option, Optionee shall be recorded on the stock transfer books
of the Company as the owner of the Shares purchased, and the Company shall deliver to 

  

 2 

 
Optionee, or to the NASD Dealer, as the case may be, one or more duly issued stock certificates evidencing such ownership. All requisite original issue or
transfer documentary stamp taxes shall be paid by the Company. Optionee shall pay all other costs of the Company incurred to issue such Shares to such NASD Dealer. 
 Shares purchased pursuant to exercise hereunder: (i) may be deposited with a NASD Dealer designated by Optionee, in street name, if so provided in such exercise notice accompanied by all applications and forms
reasonably required by the Administrator to effect such deposit, or (ii) may be issued to Optionee and such other person, as joint owners with the right of survivorship, as is specifically described in such exercise notice. Optionee shall be
solely responsible for any income or other tax consequences of such a designation of ownership hereunder (or the severance thereof). 
 4.
Miscellaneous. 
 a. Rights to Employment and Rights as Shareholder. This Agreement shall not confer on Optionee any
right with respect to employment by the Company or any Subsidiary. Optionee shall have no rights as a shareholder with respect to Shares subject to this Option until such Shares are issued to Optionee upon the exercise of this Option. No adjustment
shall be made for dividends (ordinary or extra-ordinary, whether in cash, securities or other property), distributions or other rights for which the record date is prior to the date such shares are issued, except as provided in Section 11 of
the Plan. 
 b. Securities Law Compliance. The exercise of the Option and the issuance and transfer of Shares shall be subject to
compliance by the Company and Optionee with all applicable requirements of federal and state securities laws and with all applicable requirements of any securities exchange on which the Company’s Common Stock may be listed at the time of such
issuance or transfer. 
 c. Mergers, Recapitalization, Stock Splits, Etc. The provisions of Section 11 of the Plan, as amended
effective the Effective Date, shall govern all Options in the event of any reorganization, merger, consolidation, recapitalization, reclassification, change in par value, stock split-up, combination of shares or dividend payable in capital stock, or
other such transaction described under Section 11 of the Plan, and the Company reserves all discretion provided therein. 
 d.
Nontransferability. The Option may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of Optionee only by Optionee. The terms of the Option shall be binding
upon the executors, administrators, successors and assigns of Optionee. 
 e. 1997 Stock Option Plan. The Option evidenced by this
Agreement is granted pursuant to the Plan, as amended the Effective Date, a copy of which Plan has been made available to Optionee and is hereby incorporated into this Agreement. This Agreement shall be subject to and in all respects limited and
conditioned as provided in the Plan. The Plan governs this Option and, in the event of any questions as to the construction of this Agreement or in the event of a conflict between the Plan and this Agreement, the Plan shall govern, except as the
Plan otherwise provides. 
 f. Withholding. Optionee acknowledges that, upon exercise of all or any portion of this Option, the
Company shall have the right to require Optionee to pay to the Company an amount equal to the amount the Company is required to withhold as a result of such exercise federal and state income tax purposes. 
  

 3 

 g. Scope of Agreement. This Agreement shall bind and inure to the benefit of the Company and its
successors and assigns and Optionee and any successor or successors of Optionee permitted Section 4(d) of this Agreement. 
 h.
Interpretation. The Administrator shall have the sole discretion to interpret and administer the Plan. Any determination made by the Administrator with respect to any Option shall be final and binding on the Company and on all persons having
an interest in the Option granted under this Agreement and the Plan. 
 i. Entire Option. The Plan, as amended, is incorporated
herein by reference. This Agreement and the Plan constitute the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior understandings and agreements with respect to such subject
matter. 
 j. Successors and Assigns. The Company may assign any of its rights under the Option. The Option shall be binding
upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, the Option shall be binding upon Optionee and Optionee’s heirs, executors, administrators, legal
representatives, successors and assigns. 
 k. Market Standoff Agreement. Optionee, if requested by the Company and an underwriter of
Common Stock (or other securities) of the Company, agrees not to sell or otherwise transfer or dispose of any Common Stock (or other securities) of the Company held by Optionee during the period requested by the managing underwriter following the
effective date of a registration statement of the Company filed under the Securities Act, provided that all officers and directors of the Company are required to enter into similar agreements. Such agreement shall be in writing in a form
satisfactory to the Company and such underwriter. The Company may impose stop-transfer instructions with respect to the shares (or other securities) subject to the foregoing restriction until the end of such period. 
 l. Governing Law. The Option shall be governed by and construed in accordance with the internal laws of the State of Delaware, without regard
to that body of law pertaining to choice of law or conflict of law. 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year
first above written. 
  

							
	CECO ENVIRONMENTAL CORP.	 		 	OPTIONEE
				
	By:	 	 /s/ Phillip DeZwirek
	 		 	 /s/ Ronald E. Krieg

		 		 		 	Ronald E. Krieg
	Its:	 	CEO	 		 	

 The Grant set forth in this Agreement 
 has been approved by the Stock Option 
 Plan Committee of CECO Environmental 
 Corp. 1997 Stock Option Plan 
  

 5 

 EXHIBIT A 
 CECO ENVIRONMENTAL CORP. 
 1997 STOCK OPTION PLAN (the “Plan”) 
 STOCK OPTION EXERCISE AGREEMENT 
 I
hereby elect to purchase the number of shares of Common Stock of CECO ENVIRONMENTAL CORP. (the “Company”) as set forth below: 
  
 Optionee:                                     
                                        
                            
 Social Security Number:                                 
                                        
    
 Address:                                     
                                        
                              
                                       
                                       
                                        
      

			
	 Type of Option:
	  	  ̈   Incentive Stock
Option

		  	  ̈   Nonqualified
Stock Option

 Number of Shares Purchased:                               
                                    
 Purchase Price per Share:                                
                                        
   
 Aggregate Purchase Price:                                
                                        

 Date of Option Agreement:                                
                                        

Exact Name of Title to Shares:                             
                                    
                                       
                                        
                                        
      

  
 1. Delivery of
Purchase Price. Optionee hereby delivers to the Company the Aggregate Purchase Price, to the extent permitted in the Option Agreement (the “Option Agreement”), as follows (check as applicable and complete): 
  

	 ̈	in cash (by check) in the amount of $            , receipt of which is acknowledged by the Company;

 If the Committee allowed payment by other means in the Stock Option Agreement, add one or more of the following, as
applicable: 
  

	 ̈	by delivery of                      fully-paid, nonassessable and vested
shares of the Common Stock of the Company owned by Optionee for at least six (6) months prior to the date hereof (and which have been paid for within the meaning of SEC Rule 144), or obtained by Optionee in the open public market, and owned
free and clear of all liens, claims, encumbrances or security interests, valued at the current Fair Market Value of $             per share; 

  

	 ̈	through a “same-day-sale” commitment, delivered herewith, from Optionee and the NASD Dealer named therein, in the amount of
$            ; or 

  

	 ̈	through a “margin” commitment, delivered herewith from Optionee and the NASD Dealer named therein, in the amount of
$            . 

 2. Market Standoff Agreement. Optionee, if
requested by the Company and an underwriter of Common Stock (or other securities) of the Company, agrees not to sell or otherwise transfer or dispose of any Common Stock (or other securities) of the Company held by Optionee during the period
requested by the managing underwriter following the effective date of a registration statement of the Company filed under the Securities Act, provided that all officers and directors of the Company are required to enter into similar agreements. Such
agreement shall be in writing in a form satisfactory to the Company and such underwriter. The Company may impose stop-transfer instructions with respect to the shares (or other securities) subject to the foregoing restriction until the end of such
period. 
 3. Tax Consequences. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF OPTIONEE’S PURCHASE OR
DISPOSITION OF THE SHARES. OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED WITH ANY TAX CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR ANY TAX
ADVICE. 
  

 6 

 4. Entire Agreement. The Plan and Option Agreement are incorporated herein by reference. This Exercise Agreement,
the Plan and the Option Agreement constitute the entire agreement and understanding of the parties and supersede in their entirety all prior understandings and agreements of the Company and Optionee with respect to the subject matter hereof, and are
governed by Delaware law except for that body of law pertaining to choice of law or conflict of law. 
  

									
	 Date:
	 	  
	 		  	  
	  	
		 		 		  	Signature of Optionee	  	

  

 7

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