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<SEC-DOCUMENT>0000950123-09-004963.txt : 20090319
<SEC-HEADER>0000950123-09-004963.hdr.sgml : 20090319
<ACCEPTANCE-DATETIME>20090319112928
ACCESSION NUMBER:		0000950123-09-004963
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20090313
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090319
DATE AS OF CHANGE:		20090319

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FUEL TECH, INC.
		CENTRAL INDEX KEY:			0000846913
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL & COMMERCIAL FANS & BLOWERS & AIR PURIFYING EQUIP [3564]
		IRS NUMBER:				205657551
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33059
		FILM NUMBER:		09692692

	BUSINESS ADDRESS:	
		STREET 1:		512 KINGSLAND DRIVE
		CITY:			BATAVIA
		STATE:			IL
		ZIP:			60510
		BUSINESS PHONE:		6308454437

	MAIL ADDRESS:	
		STREET 1:		512 KINGSLAND DRIVE
		CITY:			BATAVIA
		STATE:			IL
		ZIP:			60510

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FUEL TECH N V
		DATE OF NAME CHANGE:	19930510
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>y75426e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>








<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of The Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>
Date of Report (Date of earliest event reported) March&nbsp;13, 2009</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>FUEL TECH, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">
(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="30%">&nbsp;</TD>
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    <TD width="30%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B><BR>
(State or other jurisdiction <BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>001-33059</B><BR>
(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>20-5657551</B><BR>
(IRS Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
<B>Fuel Tech, Inc.<BR>

27601 Bella Vista Parkway<BR>

Warrenville, IL 60555-1617<BR>

630-845-4500</B></DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>(Address and telephone number of principal executive offices)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provision:</B></DIV>

<DIV align="left" style="margin-top: 6pt">
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    <TD></TD>
</TR>

<TR>
    <TD><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
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    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</TD>
</TR>
</TABLE>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>













<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Section&nbsp;1 &#151; Registrant&#146;s Business and Operations</B>
</DIV>

<!-- link2 "Item&nbsp;1.01 Entry into a Material Definitive Agreement" -->

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;1.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Entry into a Material Definitive Agreement</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A. On February&nbsp;25, 2009, the Compensation and Nominating Committee (the &#147;Committee&#148;) of the Board
of Directors of Fuel Tech, Inc. (the &#147;Registrant&#148; or &#147;Fuel Tech&#148;):</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;finalized amendments to Fuel Tech&#146;s Corporate Incentive Plan (the &#147;CIP&#148;), including (a)
establishing the performance targets and employee group allocation percentages for potential annual
incentive awards for fiscal 2009 under the CIP, and (b)&nbsp;establishing the effectiveness of the 2009
CIP to be the earlier of the date the CIP is distributed to eligible employees or March&nbsp;15, 2009;
and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;compared Fuel Tech&#146;s actual financial performance for fiscal 2008 to the pre-determined
performance targets for fiscal 2008 under the CIP, and concluded that, because the minimum EBIT
performance target for fiscal 2008 had not been achieved, no incentive bonuses will be paid out
under the CIP for fiscal 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The discussion of the CIP set forth below does not purport to be complete and is qualified in
its entirety by reference to the Corporate Incentive Plan which is filed as Exhibit&nbsp;99.1 to this
Report.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">B. Fuel Tech&#146;s financial performance is measured under the CIP based upon three critical financial
metrics. These financial metrics, which are measured as of the end of each fiscal year, include
EBIT, revenues and backlog in Fuel Tech&#146;s air pollution control business segment. Specifically,
&#147;EBIT&#148; refers to the Registrant&#146;s earnings before interest expense, taxes, profit sharing
contributions, sales commissions and incentive pay, &#147;revenues&#148; refers to the Registrant&#146;s net sales
and &#147;backlog&#148; refers to customer orders for air pollution control equipment construction projects
that have not yet been recognized under the percentage of completion method of accounting for
revenue recognition in Fuel Tech&#146;s consolidated statements of income. The achievement of the
performance targets for EBIT, revenues and backlog each result in a percentage of EBIT being
contributed to an incentive pool. However, regardless of Fuel Tech&#146;s performance for the revenue
or backlog metrics, if the minimum level of EBIT is not achieved during the year under review, the
incentive pool is not funded and, consequently, no incentive bonuses are paid. If the minimum level
of EBIT is achieved for the year in review, then the percentage of EBIT set aside to fund the
incentive pool is based upon Fuel Tech&#146;s performance against the pre-established performance
targets in each of the EBIT, revenues and backlog categories.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">C. For fiscal 2009, the minimum and target incentive pool amounts have been established at $400,000
and $2,640,000. If the Committee determines the minimum EBIT performance target has been met for
fiscal 2009, all amounts in the incentive pool will be allocated among employees as follows:
Officers, 45.5%; MBO Employees 47.5% and Core Group, 7%.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">D. The following table sets forth the cash bonus opportunity for each of the Registrant&#146;s named
executive officers under the CIP for fiscal 2009 if Fuel Tech achieves the target bonus pool amount
under the CIP. The actual amounts of fiscal 2009 cash bonuses earned, if any, for the named
executive officers will be reported in the Registrant&#146;s proxy statement for its 2010 Annual Meeting
of Shareholders.</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Target(1)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John F. Norris Jr.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer and President
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">221,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John P. Graham
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer, Sr. Vice
President and Treasurer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">120,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stephen P. Brady (2)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sr. Vice President<B>&#151;</B>
Fuel Chem Sales
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">NA
</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael P. Maley(3)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sr. Vice President, International &#038;
Project Execution
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">NA
</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Volker Rummenhohl (4)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Catalyst Technologies
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">NA
</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Payouts under the CIP are dependent on overall corporate performance and achievement of
individual performance goals. Accordingly, only the target awards (assuming all individual
goals are met) are shown. Because the aggregate size of the potential Incentive Pool is
restricted only by the level of the Registrant&#146;s financial performance for the applicable
fiscal year, no estimates of maximum payout amounts have been included.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Brady is not eligible to participate in the CIP. Mr.&nbsp;Brady will be eligible to
receive certain sales commission payments in fiscal 2009 pursuant to the Officer Commission
Plan discussed below.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Maley resigned from the Registrant effective February&nbsp;13, 2009 as reported in the
Registrant&#146;s Current Report on Form 8-K filed February&nbsp;5, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Rummenhohl is not eligible to participate in the CIP pursuant to his employment
agreement with the Registrant.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">E. The Committee approved the Registrant&#146;s Senior Vice President Sales<B>&#151;</B>FUEL CHEM<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Sales
Commission Plan (the &#147;Officer Commission Plan&#148;). The Officer Commission Plan provides for sales
commission payments to be made to the Registrant&#146;s Senior Vice President, Fuel Chem Sales based
upon the sale of products and services relating to the Registrant&#146;s FUEL CHEM line of business.
Under the Officer Commission Plan, Fuel Tech will pay to such officer a commission equal to a
specified percentage of all commission payments made by Fuel Tech under the FUEL CHEM employee
sales commission plan. Mr.&nbsp;Brady is the Registrant&#146;s Senior Vice President, Fuel Chem Sales.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An amount equal to one-third of all commission otherwise payable to the officer under the
Officer Commission Plan (&#147;Contingent Commission&#148;) is withheld and only paid if predetermined
performance annual targets are met. The predetermined performance target is based upon net
revenues recognized from FUEL CHEM sales in the applicable fiscal year in the United States, Puerto
Rico, Jamaica and Canada. Notwithstanding the foregoing, all or a portion of the officer&#146;s
Contingent Commission may be paid, if (i)&nbsp;approved in writing at the sole discretion of the
Registrant&#146;s Chief Executive Officer, and (ii)&nbsp;the annual FUEL CHEM revenue budget has been
substantially, but not fully, achieved. The Contingent Commission is payable on or before March
31<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> of the following year in which the Contingent Commission is earned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The discussion of the Officer Commission Plan set forth above does not purport to be complete
and is qualified in its entirety by reference to the Officer Commission Plan which is filed as
Exhibit&nbsp;99.2 to this Report.
</DIV>
<!-- link2 "Item&nbsp;9.01 Financial Statements and Exhibits" -->

<DIV align="left" style="margin-top: 12pt">
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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;9.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;Exhibits</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
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    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>

<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Corporate Incentive Plan of Fuel Tech, Inc.</DIV></TD>
</TR>

<TR valign="bottom" style="font-size: 5pt"><!-- EI Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>

<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fuel Tech, Inc. Senior Vice President Sales &#151; FUEL CHEM Sales Commission Plan.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 " SIGNATURES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>Fuel Tech, Inc.</B><BR>
(Registrant)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: March 19, 2009&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ John P. Graham
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">John P. Graham&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Financial Officer,<BR>
Sr. Vice President and<BR>
Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>y75426exv99w1.htm
<DESCRIPTION>EX-99.1: CORPORATE INCENTIVE PLAN
<TEXT>
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<HEAD>
<TITLE>EX-99.1</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT 99.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>CORPORATE INCENTIVE PLAN</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>U.S. BASED EMPLOYEES</B></U>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>The Plan</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporate Incentive Plan (&#147;Incentive Plan&#148; or &#147;CIP&#148;) of Fuel Tech, Inc. a Delaware corporation,
including its wholly owned subsidiaries (the &#147;Company&#148;), is designed to provide employees with
financial incentives based on both assessed individual performance as well as company financial
results. Company financial results will be measured in terms of EBIT, Revenues and Air Pollution
Control (APC)&nbsp;segment backlog (&#147;APC Backlog&#148; or &#147;Backlog&#148;). The Plan is an annual bonus plan based
on successive fiscal year performance periods commencing January&nbsp;1, 2009, with payouts based on
each fiscal year&#146;s performance.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Plan Supersedes All Prior Incentive Compensation Programs</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Except for the Sales Group Commission Plans (as that term is defined below) and the Company&#146;s
&#147;Fuel Tech, Inc. Incentive Plan,&#148; as amended, this CIP supersedes and replaces all prior incentive
compensation programs for all regular, full-time and part-time U.S. based employees of the Company
and its wholly owned subsidiaries.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Eligibility</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subject to the exceptions stated below, all regular, full-time and part-time U.S. based employees
of the Company and its wholly owned subsidiaries are eligible to participate in this Incentive
Plan, as it may be amended or modified from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Sales Group (as that term is defined below) is not eligible to participate in the Incentive
Plan. Also ineligible, is any employee who has agreed to ineligibility via a separate written
agreement with the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The &#147;Sales Group&#148; means those United States or Canada employees of the Company whom the Company
selects to participate in the Company&#146;s then current FUEL CHEM Sales Commission Plan or APC Sales
Commission Plan (collectively, the &#147;Sales Group Commission Plans&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Eligible employees must be employed on the last day of a fiscal year (December&nbsp;31) in order to be
eligible for a payout under the Incentive Plan based on that fiscal year&#146;s performance. No amounts
will be deemed earned or payable under the Incentive Plan by any employee whose employment with the
Company ends on or before the last day of the fiscal year. An Eligible Employee deemed to be
eligible for a payout in accordance with the provisions of the Incentive Plan for a given fiscal
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">year, need not be employed on the day of a bonus payout under this Incentive Plan for such fiscal
year in order to be eligible for the payout.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding the preceding paragraph, if, during a fiscal year in which the Incentive Plan is in
effect, an Eligible Employee&#146;s employment with the Company is involuntarily terminated: (a)&nbsp;not for
cause by the Company, or (b)&nbsp;on account of the Eligible Employee&#146;s death, or (c)&nbsp;on account of the
Eligible Employee&#146;s disability (as that term is defined below), then to the extent and at the time
the Company determines there shall be a payout for that fiscal year under the Incentive Plan, the
affected Eligible Employee shall be eligible for a pro rata Incentive Plan payment (or, in the case
of death, to that employee&#146;s estate) in accordance with the applicable calculations of Section&nbsp;4,
&#147;Incentive Plan Payouts&#148; and subject to all the other provisions of the Incentive Plan. However,
for such pro rata payment calculations, only the normal employee wages, excluding bonuses or
severance payments, paid by the Company to the affected employee through that employee&#146;s separation
date from the Company shall be used in such pro rata payment calculations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Disability&#148; means that the Eligible Employee, after exhausting any applicable leave available
under the Company&#146;s policies, is unable because of physical or mental condition to perform the
essential functions of the Employee&#146;s position, with or without a reasonable accommodation.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Incentive Plan Payouts</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Incentive Plan payouts are based on Company and individual performance. An &#147;Incentive Pool&#148; is
created based on the Company&#146;s performance during the fiscal year. The amounts in the Incentive
Pool are then allocated among employee groups in specified percentages. The individual members of
each employee group are then awarded a portion of their group&#146;s allocation of the Incentive Pool on
or about March&nbsp;15 in the year following the fiscal year earned. The methodology for calculating
Incentive Plan payouts is more fully described below. Amounts shall be paid no later than the 15th
day of the third month following the end of the Eligible Employee&#146;s first taxable year in which the
right to the payment is no longer subject to a substantial risk of forfeiture.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(a.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>Establishing an Incentive Pool Based on Company Performance</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A percentage of EBIT is set aside in an Incentive Pool with respect to each fiscal year to provide
for bonus payments under this Incentive Plan based on performance in the following three
categories: (i)&nbsp;EBIT, (ii)&nbsp;Revenue and (iii)&nbsp;APC backlog. The percentage of EBIT that is set
aside based on the Company&#146;s achievement of financial targets for each of these three categories
shall be determined by the Committee after consideration of the recommendations of the Company&#146;s
Chief Executive Officer.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">No amounts shall be payable under this Incentive Plan for any fiscal year unless the Company has
achieved the established minimum threshold of EBIT for such fiscal year. Accordingly, if the
Company&#146;s financial performance for the fiscal year falls below the established minimum threshold
of EBIT, there is no payout under the Incentive Plan of any kind, regardless of the annual Revenue
or year-end APC Backlog amounts. Once the minimum EBIT threshold is met, EBIT contribution from
the Revenue and APC Backlog accomplishments are added into the Incentive Pool to the extent, if
any, that the applicable performance thresholds have been met.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Once the Company&#146;s minimum threshold of EBIT is met, the percentage of EBIT set aside in the
Incentive Pool for each performance category rises proportionally based on actual Company
performance using the guidelines established by the Committee.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(b.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>Allocating the Incentive Pool Among Employee Groups</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The money in the Incentive Pool with respect to each fiscal year shall be allocated among three
employee groups: (1)&nbsp;Officers, (2)&nbsp;MBO Employees and (3)&nbsp;the Core Group. The Core Group shall
consist of all Eligible Employees who have not been expressly designated by the Company to
participate in either the Officer or the MBO Employee groups.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The percentage values established for each employee group are reviewed and modified for each fiscal
year. The allocation percentages are determined with the intention of allowing each employee in
the Officer and MBO Employee groups to attain his or her target payout, and to allow employees in
the Core Group to participate in Company profitability, however, only if the Company as a whole
attains the required results established for the fiscal year.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(c.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>Rewarding Individual Performance</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The manner in which funds from the Incentive Pool are allocated among individual employees depends
on the employee group (Officer, MBO Employee, or Core) of which the individual is a member. The
methods of allocation for each employee group are as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(i)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Officer and MBO Employee Groups</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the Officer and MBO Employee participants, the individual payouts from their portion of the
Incentive Pool will be determined by (A)&nbsp;the percentage achievement of their personal goals as
established for the fiscal year, plus (B)&nbsp;their teamwork in helping achieve the overall corporate
results. More specifically, each employee in the Officer and MBO Employee groups is assigned a
target payout percentage. At the end of each fiscal year, each employee&#146;s performance is reviewed
relative to the goals that were established for the employee and relative to that employee&#146;s level
of participation in achieving overall corporate goals. Based on this review, an
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">employee may achieve anywhere from 0% to 200% of his or her target payout percentage.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(ii)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Core Group</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the Core Group of employees, payouts under this Incentive Plan will be determined by dividing
their annual compensation by the compensation of all others in that group. This calculation
determines the percentage of the pool dollars for that group allocated to the employee. Annual
compensation for exempt employees includes base salary. Annual compensation for non-exempt
employees includes pay for regular time plus overtime pay. This process will automatically prorate
employees who join the Company or one of its wholly owned subsidiaries throughout the year.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Definitions of Key Terms</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(a.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>APC Backlog</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For purposes of this Incentive Plan, the term &#147;APC Backlog&#148; refers generally to revenue to which
the Company has a legally binding, contractual right, and which is associated with its APC product
line, and that has not yet been recognized in the Company&#146;s profit and loss statement, but shall be
as determined by the Company, in its sole discretion.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(b.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>Committee</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The term &#147;Committee&#148; as used in this Incentive Plan means the Compensation &#038; Nominating Committee
of the Company&#146;s Board of Directors or such other Committee as may from time to time succeed to or
perform the functions of that Committee.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(c.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>EBIT</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For purposes of this Incentive Plan, the term &#147;EBIT&#148; refers generally to earnings before interest
expense, taxes, profit sharing plan contributions, sales commissions and incentive pay, but shall
be as determined by the Company, in its sole discretion, with the assistance of its accountants.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(d.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>Eligible Employee</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The term &#147;Eligible Employee&#148; means a regular full-time or part-time employee of Fuel Tech, Inc. or
one of its wholly owned subsidiaries that is eligible to participate in this Incentive Plan in
accordance with Paragraph&nbsp;3 above.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(e.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>MBO Employee</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As used in this Incentive Plan, the term &#147;MBO Employee&#148; refers to an employee who for the then
current fiscal year or portion thereof, as applicable, has been categorized to be a participant in
the MBO pool by the Company, in its sole discretion.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(f.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>Revenue</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For purposes of this Incentive Plan, the term &#147;Revenue&#148; refers to the Company&#146;s net sales, but
shall be as determined by the Company, in its sole discretion.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Other Conditions</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(a.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>No Alienation of Awards</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payouts under this Incentive Plan may not be assigned or alienated, except that payouts earned and
payable may be assigned under the laws of descent and distribution of the employee&#146;s domicile.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(b.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>No Right of Employment</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Neither the Incentive Plan nor any action taken under the Incentive Plan shall be construed,
expressly or by implication, as either giving to any participant the right to be retained in the
employ of the Company or any affiliate, or altering or limiting the employment-at-will relationship
between the Company and any employee.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(c.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>Taxes, Withholding</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company or any affiliate shall have the right to deduct from any payout under the Incentive
Plan any applicable federal, state or local taxes or other amounts required by applicable law,
rule, or regulation to be withheld with respect to such payment.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(d.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>Code Section&nbsp;409A</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Incentive Plan is intended to be exempt from or comply with Section&nbsp;409A of the Internal
Revenue Code of 1986, as amended, and the regulations promulgated thereunder.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Plan Administration; Effectiveness for any Fiscal Year</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(a.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>Administration</B></U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Incentive Plan shall be administered by or under the authority of the Committee which shall
have the full discretionary power to administer and interpret this Incentive Plan and to establish
rules for its administration.
</DIV>

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    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(b.) </B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><U><B>Effectiveness</B></U></TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Incentive Plan will not be deemed effective for any fiscal year until such time, if any, as the
determination of the Incentive Plan performance targets and Incentive Pool allocations contemplated
by Sections 4(a) and (b)&nbsp;above have been released for communication to Incentive Plan participants
which date shall be no later than March&nbsp;15<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> of each fiscal year.
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    <TD width="1%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Reservation of Rights, Governing Law, Contract Disclaimer</B></U></TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The Company reserves the right to amend or cancel the Incentive Plan in whole or in part at any
time without notice. There can be no guaranty that the Incentive Plan will be in effect in any
subsequent fiscal year. The Company also reserves the right to decide all questions and issues
arising under the Incentive Plan and its decisions are final. The Incentive Plan shall be
construed in accordance with and governed by the laws of the State of Illinois. The Incentive Plan
is a statement of the Company&#146;s intentions and does not constitute a guarantee that any particular
Incentive Plan payment amount will be paid. It does not create a contractual relationship or any
contractually enforceable rights between the Company or its wholly owned subsidiaries and the
employee.</B>
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<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>y75426exv99w2.htm
<DESCRIPTION>EX-99.2: OFFICER SALES COMMISSION PLAN
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 99.2</B>
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<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>FUEL TECH, INC.</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><U><B>Sr. Vice President Sales </B>&#151;</U> <U><B>FUEL CHEM<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> </B></U><BR>
<U><B>Sales Commission Plan</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. OBJECTIVES; EFFECTIVE DATE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <U>Objectives</U>. This Sr. Vice President Sales &#151; FUEL CHEM Sales Commission Plan
(&#147;Plan&#148;) describes the terms upon which Fuel Tech, Inc. (&#147;Fuel Tech&#148;) will compensate its Sr. Vice
President, FUEL CHEM Sales for the sale of products and services relating to its FUEL CHEM line of
business for sales occurring in the United States, Puerto Rico, Jamaica and Canada. The objective
of this Plan is to increase the revenues and profitability of Fuel Tech by providing compensation
incentives to the Sr. Vice President, FUEL CHEM Sales that reward results in new unit sales while
also promoting continuing sales relationships with existing customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <U>Effective Date</U>. This Plan shall be effective as of January&nbsp;1, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. DEFINITIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Commission&#148; &#151; means the commission paid to the Officer in accordance with this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Eligible Employee&#148; &#151; means any Fuel Tech employee eligible for participation in the Employee
Sales Commission Plan, as such plan may be amended in Fuel Tech&#146;s sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Employee Sales Commission Plan&#148; &#151; means the 2009 FUEL CHEM Employee Sales Commission Plan, as
such plan may be amended in Fuel Tech&#146;s sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Officer&#148; &#151; means Fuel Tech&#146;s Sr. Vice President, FUEL CHEM Sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Specified Percentage&#148; &#151; means the confidential percentage rate provided to the Officer together
with this Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. COMMISSION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.1 <U>Officer Commission</U>. Fuel Tech shall pay to the Officer a Commission equal to the
Specified Percentage of all commission payments by Fuel Tech to Eligible Employees
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">under the Employee Sales Commission Plan; provided, however, that Fuel Tech shall be entitled to
offset from such payments an amount equal to the Specified Percentage of any and all offsets made
to commission payments to Eligible Employees under the Employee Sales Commission Plan. Such
Commission shall be payable, if at all, in accordance with Paragraph&nbsp;4 below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. CALCULATION AND PAYMENT OF COMMISSIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1 <U>Payments</U>.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1 <U>Quarterly Payments</U>. Following the end of each calendar quarter during which
this Plan is in effect, Fuel Tech will (a)&nbsp;determine the aggregate amount of Commission due to the
Officer based upon Fuel Tech&#146;s then-current internal accounting records in accordance with GAAP,
and (b)&nbsp;pay the Officer two-thirds of the amount of such Commission from the prior calendar quarter
within forty-five (45)&nbsp;days, subject to any offsets (it being understood that the remaining
one-third of such Commission shall only be paid, if at all, in the manner contemplated by Paragraph
4.1.2 below).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2 <U>Annual Payment of Contingent Commission</U>. Fuel Tech shall hold back one-third of
the amount of all Commission otherwise payable to the Officer under Paragraph&nbsp;4.1.1 above (the
&#147;Contingent Commission&#148;). The Contingent Commission shall only be paid if, at the end of each
calendar year, the aggregate dollar value of all Net Revenues recognized in such year meets or
exceeds the annual FUEL CHEM revenue budget for the United States, Puerto Rico, Jamaica and Canada
for such year; provided, however, that all or a portion of the Contingent Commission may be paid,
if (a)&nbsp;approved in writing at the sole discretion of Fuel Tech&#146;s Chief Executive Officer, and (b)
the applicable annual FUEL CHEM revenue budget has been substantially, but not fully, achieved.
The Contingent Commission payable under this Plan, if any, shall be paid on or before March
31<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> of the following year in which the Contingent Commission is earned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. ADDITIONAL TERMS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.1 <U>Dispute Resolution</U>. Disagreements or disputes between Fuel Tech and the Officer
arising out of or relating to the interpretation of this Plan shall be submitted to the Chief
Executive Officer and Chief Financial Officer for resolution. Such officers shall decide the issue
in their sole and absolute discretion. Any such decision shall be final and binding. For the
avoidance of doubt, it is understood that the Officer shall not be entitled to participate in any
other incentive plan or arrangement offered by Fuel Tech.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.2 <U>Modification, Amendment or Termination</U>. This Plan is subject to modification,
amendment or termination at any time at the discretion of Fuel Tech. Fuel Tech shall
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provide the Officer with written notice of any such modification, amendment or termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.3 <U>Payout upon Termination of Employment</U>. If the Officer ceases to be employed by Fuel
Tech for any reason whatsoever, the Officer will be paid solely the amount of all Commissions
payable as of the last day of the calendar month immediately preceding the date of cessation of
employment. Such payment shall be made within 30&nbsp;days of the end of the Officer&#146;s employment. No
further amounts shall be due and payable to the Officer pursuant to this Plan after such payment.
The Officer shall not be entitled to receive payment of the Contingent Commission, or any portion
thereof, unless the Officer is employed by Fuel Tech through the end of the year to which such
Contingent Commission relates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.4 </B><U><B>No Effect on Employment</B></U><B>. This Plan is not intended to and does not in any way alter
the at-will nature of the Officer&#146;s employment with Fuel Tech, nor does it constitute a guarantee
of employment for a specified period. Employment with Fuel Tech is at will, which means that
either the Officer or Fuel Tech may terminate the employment relationship at any time, without or
without cause or prior notice. This Plan does not create a contractual relationship or any
contractually enforceable rights between the Company or its wholly owned subsidiaries and the
employee.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.5 </B><U><B>Disclaimer</B></U><B>. There is no guarantee that this Plan will be effective in subsequent
years, and, if effective, the terms, conditions and provisions of any such plan shall be determined
in the sole and absolute discretion of the Compensation and Nominating Committee of the Board of
Directors of Fuel Tech.</B>
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