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<SEC-DOCUMENT>0000950123-09-071706.txt : 20091218
<SEC-HEADER>0000950123-09-071706.hdr.sgml : 20091218
<ACCEPTANCE-DATETIME>20091218060042
ACCESSION NUMBER:		0000950123-09-071706
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20091210
ITEM INFORMATION:		Entry into a Material Definitive Agreement
FILED AS OF DATE:		20091218
DATE AS OF CHANGE:		20091218

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:		091248535

	BUSINESS ADDRESS:	
		STREET 1:		27601 BELLA VISTA PARKWAY
		CITY:			WARRENVILLE
		STATE:			IL
		ZIP:			60555
		BUSINESS PHONE:		6308454433

	MAIL ADDRESS:	
		STREET 1:		27601 BELLA VISTA PARKWAY
		CITY:			WARRENVILLE
		STATE:			IL
		ZIP:			60555

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FUEL TECH N V
		DATE OF NAME CHANGE:	19930510
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>y81069e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<TITLE>e8vk</TITLE>
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<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) December&nbsp;10, 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%">
<!-- 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="30%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>001-33059</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>20-5657551</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction <BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(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: 12pt"><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="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
</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 -->
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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>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A. On December&nbsp;10, 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;) adopted Fuel Tech&#146;s 2010 Executive
Officer Incentive Plan (the &#147;EOIP&#148;), including establishing the financial performance threshold for
payout and the percentage of the incentive pool to be paid out to participants in the EOIP for
2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">B. Participation in the EOIP is limited to Fuel Tech&#146;s Chief Executive Officer, Chief Financial
Officer, and Executive Vice President of Marketing and Sales. The Committee, in its business
discretion, may subjectively decide to designate additional full-time senior management employees
to be Participants in the EOIP after consideration of the recommendations of Fuel Tech&#146;s Chief
Executive Officer. John F. Norris Jr. is the Registrant&#146;s Chief Executive Officer; John P. Graham
is the Registrant&#146;s Chief Financial Officer, and Robert E. Puissant is the Registrant&#146;s Executive
Vice President of Marketing and Sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">C. EOIP payouts are based on Fuel Tech&#146;s performance for three financial metrics &#151; EBIT (as that
term is defined in the EOIP), Revenues and APC Backlog. An &#147;Incentive Pool&#148; may or may not be
created dependent on Fuel Tech&#146;s financial performance pertaining to all or some of those metrics
during the fiscal year. If the Incentive Pool is created, each Participant is then awarded that
Participant&#146;s designated portion of the Incentive Pool on or about March&nbsp;15 in the year following
the fiscal year earned. The methodology for calculating EOIP payouts to Participants is more fully
described below. Amounts shall be paid no later than the 15th day of the third month following the
end of the Participant&#146;s first taxable year in which the right to the payment is no longer subject
to a substantial risk of forfeiture.
</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 EOIP based on performance in the following three categories: (i)
EBIT, (ii)&nbsp;Revenue and (iii)&nbsp;APC backlog. Under the EOIP, &#147;EBIT&#148; refers generally to earnings
before interest expense, income taxes, profit sharing plan contributions, sales commissions and
incentive pay; &#147;Revenue&#148; refers to Fuel Tech&#146;s net sales; and &#147;APC Backlog&#148; refers generally to
revenue to which Fuel Tech 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. The percentage of EBIT that is set aside based on Fuel Tech&#146;s actual level attained in
each of these three categories shall be determined by the Committee after consideration of the
recommendations of Fuel Tech&#146;s Chief Executive Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">No amounts are payable under the EOIP for any fiscal year unless Fuel Tech has achieved the
established minimum threshold of EBIT for such fiscal year. Accordingly, if Fuel Tech&#146;s financial
performance for the fiscal year falls below the established minimum threshold of EBIT, there is no
payout under the EOIP of any kind, regardless of the annual Revenue or year-end APC Backlog amounts
achieved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Once Fuel Tech&#146;s minimum threshold of EBIT is met, the percentage of EBIT set aside in the
Incentive Pool rises pro rata incrementally based on actual Company performance for the EBIT,
Revenues, and Backlog financial metrics subject to an overall Incentive Pool funding percentage
upper limit cap, all as shown in the chart below. The payout formula for a Participant is also
shown in the chart below.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><u>Executive Officer Incentive Plan Mechanics</u></B>
</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">Minimums</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">Increment</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"> (in thousands of dollars)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Funding %</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Value</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Incremental %</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">% Cap</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EBIT, as defined</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.188</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.125</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Backlog</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.125</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.25</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><u>Executive Officer Plan Incentive Summary</u></B>
</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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">Percentage of Pool</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EVP, Marketing &#038; Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">D. The actual amounts of fiscal 2010 cash bonuses earned, if any, for the Participants in the EOIP
will be reported in the Registrant&#146;s proxy statement for its 2011 Annual Meeting of Shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">E. On December&nbsp;10, 2009, 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;FUEL CHEM Officer Commission Plan&#148;). The FUEL CHEM
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 FUEL CHEM 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 2010 FUEL CHEM employee sales commission plan. Stephen P. Brady is the
Registrant&#146;s Senior Vice President, Fuel Chem Sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">An amount equal to one-third of all commission otherwise payable to the officer under the FUEL
CHEM Officer Commission Plan (&#147;FUEL CHEM 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
FUEL CHEM 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 FUEL CHEM Contingent Commission is payable on or
before March&nbsp;31<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> of the following year in which the FUEL CHEM Contingent Commission is
earned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">F. On December&nbsp;10, 2009, the Committee approved the Registrant&#146;s Senior Vice President Sales<B>&#151;</B>APC
Sales Commission Plan (the &#147;Officer Commission Plan&#148;). The APC Officer Commission Plan provides
for sales commission payments to be made to the Registrant&#146;s Senior Vice President, Air Pollution
Control Sales based upon the sale of products and services relating to the Registrant&#146;s air
pollution control line of business. Under the APC 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 2010 APC employee sales commission plan. William E. Cummings, Jr. is the
Registrant&#146;s Senior Vice President, APC 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 APC
Officer Commission Plan (&#147;APC Contingent Commission&#148;) is withheld and only paid if predetermined
performance annual targets are met. The predetermined performance target is based upon Fuel Tech&#146;s
annual APC budget for new sales bookings for such year in the United States and Canada.
Notwithstanding the foregoing, all or a portion of the APC 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
APC new order budget has been substantially, but not fully, achieved. The APC Contingent
Commission is payable on or before March&nbsp;31<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> of the following year in which the APC
Contingent Commission is earned.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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





<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: December 17, 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,
Sr. Vice President and
Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>




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