2006 EQUITY INCENTIVE PLAN
The purpose of this 2006 Equity Incentive Plan (the “Plan”) of Kadant Inc. (the “Company”) is to advance the interests of
the Company and its stockholders by enhancing the Company’s ability to attract, retain and motivate persons (such as
employees, officers and directors of, and consultants to, the Company and its subsidiaries) who are expected to make
significant contributions to the future growth and success of the Company and its subsidiaries. The Plan is intended to
accomplish these goals by enabling the Company to offer such persons equity ownership opportunities or performance-based
stock incentives in the Company, or any combination thereof (“Awards”), that are intended to align their interests with those of
the Company’s stockholders and to encourage them to continue in the service of the Company and to pursue the long-term
growth, profitability and financial success of the Company.
The Plan will be administered by the Board of Directors of the Company (the “Board”). The Board shall have full power to
interpret and administer the Plan, including full authority to:
Any interpretation by the Board of the terms and provisions of the Plan or any Award thereunder and the administration
thereof, and all action taken by the Board, shall be final, binding and conclusive on all parties and any person claiming under or
through any party. No director shall be liable for any action or determination made in good faith.
The Board may, to the full extent permitted by law, delegate any or all of its responsibilities under the Plan to a committee
(the “Committee”) appointed by the Board and consisting of independent members of the Board. All references in the Plan to
the “Board” shall mean the Board or a Committee of the Board to the extent that the Board’s powers or authority under the Plan
have been delegated to such Committee.
The Plan was adopted by the Board on March 7, 2006, sub