Document:

2010 Long-Term Incentive Plan

 Exhibit 10.8 

2010 LONG-TERM INCENTIVE PLAN 

OF THE BABCOCK & WILCOX COMPANY 

ARTICLE I 

Establishment, Objectives and Duration 

1.1 Establishment of the Plan. The Babcock & Wilcox Company, a corporation organized and existing under the laws of the
State of Delaware (hereinafter referred to as the “Company”), hereby establishes an incentive compensation plan to be known as the 2010 Long-Term Incentive Plan of The Babcock & Wilcox Company (hereinafter referred to as this
“Plan”), as set forth in this document. This Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units (each as hereinafter defined).

 This Plan shall become effective as of July 2, 2010 (the “Effective Date”) and shall remain in effect as provided in
Section 1.3 hereof. 
 1.2 Objectives. This Plan is designed to promote the success and enhance the value of the
Company by linking the personal interests of Participants (as hereinafter defined) to those of the Company’s stockholders, and by providing Participants with an incentive for outstanding performance. This Plan is further intended to provide
flexibility to the Company in its ability to motivate, attract and retain the employment and/or services of Participants. 

1.3 Duration. This Plan, as amended and restated, shall commence on the Effective Date, as described in Section 1.1 hereof,
and shall remain in effect, subject to the right of the Board of Directors (as hereinafter defined) to amend or terminate this Plan at any time pursuant to Article 15 hereof, until all Shares (as hereinafter defined) subject to it shall have
been purchased or acquired according to this Plan’s provisions; provided, however, that in no event may an Award (as hereinafter defined) be granted under this Plan on or after July 2, 2010. 

ARTICLE 2 

Definitions 
 As used in
this Plan, the following terms shall have the respective meanings set forth below: 
 2.1 “Award” means a grant
under this Plan of any Nonqualified Stock Option, Incentive Stock Option, Restricted Stock, Restricted Stock Unit, Performance Share or Performance Unit. 

2.2 “Award Agreement” means an agreement entered into by the Company and a Participant, setting forth the terms and
provisions applicable to an Award granted under this Plan. 
 2.3 “Award Limitations” has the meaning ascribed
to such term in Section 4.2. 
 2.4 “Beneficial Owner” or “Beneficial Ownership” shall
have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 
 2.5
“Board” or “Board of Directors” means the Board of Directors of the Company. 
 2.6 “Change in
Control” means the occurrence of a “change in control event” with respect to the Company as defined in Treasury Regulation 1.409A-3(i)(5) as it may be amended; provided however, in no event shall a Change in Control be deemed to
have occurred with respect to a Participant if the Participant is part of the purchasing group 

 
which consummates a transaction resulting in a Change in Control. A Participant shall be deemed “part of a purchasing group” for purposes of the preceding sentence if the Participant is
an equity participant in the purchasing company or group (except for: (i) passive ownership of less than three percent (3%) of the stock of the purchasing company; or (ii) ownership of equity participation in the purchasing company or
group which is otherwise not significant, as determined prior to the Change in Control by a majority of the non-employee continuing Directors). 

2.7 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 

2.8 “Committee” means the Compensation Committee of the Board, or such other committee of the Board appointed by the
Board to administer this Plan (or the entire Board if so designated by the Board by written resolution), as specified in Article 3 hereof. 

2.9 “Company” means The Babcock & Wilcox Company, a corporation organized and existing under the laws of the
State of Delaware, and, except where the context otherwise indicates, shall include the Company’s Subsidiaries and, except with respect to the definition of “Change in Control” set forth above and the application of any defined terms
used in such definition, any successor to any of such entities as provided in Article 18 hereof. 
 2.10
“Consultant” means a natural person who is neither an Employee nor a Director and who performs services for the Company or a Subsidiary pursuant to a contract, provided that those services are not in connection with the offer or sale
of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities. 

2.11 “Director” means any individual who is a member of the Board of Directors; provided, however, that any
member of the Board of Directors who is employed by the Company shall be considered an Employee under this Plan. 
 2.12
“Disability” in the case of an Employee, shall have the meaning ascribed to such term in the Company’s governing long-term disability plan. , as determined by the Committee in good faith, upon receipt of medical advice that the
Committee deems sufficient and competent, from one or more individuals selected by the Committee who are qualified to provide professional medical advice. 

2.13 “Economic Value Added” means net operating profit after tax minus the product of capital and the cost of capital.

 2.14. “Effective Date” shall have the meaning ascribed to such term in Section 1.1 hereof. 

2.15 “Employee” means any person who is employed by the Company. 

2.16 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. 

2.17 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 

2.18 “Fair Market Value” of a Share shall mean, as of a particular date, (a) if Shares are listed on a national
securities exchange, the closing sales price per Share on the consolidated transaction reporting system for the principal national securities exchange on which Shares are listed on that date, or, if no such sale is so reported on that date, on the
last preceding date on which such a sale was so reported, (b) if no Shares are so listed but are traded on an over-the-counter market, the mean between the closing bid and asked prices for Shares on that date, or, if there are no such
quotations available for that date, on the last preceding date for which such quotations are available, as reported by the National Quotation Bureau Incorporated, or (c) if no Shares are publicly traded, the most recent value determined by an
independent appraiser appointed by the Company for that purpose. 
 2.19 “Fiscal Year” means the year
commencing January 1 and ending December 31. 

 2.20 “Incentive Stock Option” or “ISO” means an Option to
purchase Shares granted under Article 6 hereof and which is designated as an Incentive Stock Option and is intended to meet the requirements of Code Section 422, or any successor provision. 

2.20 “Named Executive Officer” means a Participant who, as of the date of vesting and/or payout of an award is one of
the group of “covered employees” as defined in Section 162(m) of the Code and the regulations promulgated thereunder. 

2.21 “Nonqualified Stock Option” or “NQSO” means an option to purchase Shares granted under Article 6
hereof and which is not an Incentive Stock Option. 
 2.22 “Officer” means an Employee of the Company included
in the definition of “Officer” under Section 16 of the Exchange Act and rules and regulations promulgated thereunder or such other Employees who are designated as “Officers” by the Board. 

2.23 “Option” means an Incentive Stock Option or a Nonqualified Stock Option. 

2.24 “Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option, as
determined by the Committee. 
 2.25 “Participant” means an eligible Officer, Director, Consultant or Employee
who has been selected for participation in this Plan in accordance with Section 5.2. 
 2.26 “Performance-Based
Award” means an Award that is designed to qualify for the Performance-Based Exception. 
 2.27
“Performance-Based Exception” means the performance-based exception from the deductibility limitations of Code Section 162(m). 

2.28 “Performance Period” means, with respect to a Performance-Based Award, the period of time during which the
performance goals specified in such Award must be met in order to determine the degree of payout and/or vesting with respect to that Performance-Based Award. 

2.29 “Performance Share” means an Award designated as such and granted to an Employee, as described in Article 8 hereof.

 2.30 “Performance Unit” means an Award designated as such and granted to an Employee, as described in
Article 8 herein. 
 2.31 “Period of Restriction” means the period during which the transfer of Shares of
Restricted Stock is limited in some way (based on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, in its sole discretion) as set forth in the related Award Agreement,
and/or the Shares are subject to a substantial risk of forfeiture, as provided in Article 7 hereof. 
 2.32
“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Section 13(d) and 14(d) thereof, including a “group” (as that term is used in Section 13(d)(3) thereof).

 2.33 “Restricted Stock” means an Award designated as such and granted to a Participant pursuant to Article 7
hereof. 
 2.34 “Restricted Stock Unit” or “RSU” means a contractual promise to distribute to
a Participant one Share or cash equal to the Fair Market Value of one Share, determined in the sole discretion of the Committee, which shall be delivered to the Participant upon satisfaction of the vesting and any other requirements set forth in the
related Award Agreement. 

 2.35 “Retirement” shall have the meaning ascribed to such term by the
Committee, as set forth in the applicable Award Agreement. 
 2.36 “Shares” means the common stock, par value
$0.01 per share, of the Company. 
 2.37 “Subsidiary” means any corporation, partnership, joint venture,
affiliate or other entity in which the Company has a majority voting interest and which the Committee designates as a participating entity in this plan. 

2.38 “Vesting Period” means the period during which an Award granted hereunder is subject to a service or
performance-related restriction, as set forth in the related Award Agreement. 
 ARTICLE 3 

Administration 

3.1 The Committee. This Plan shall be administered by the Committee. The members of the Committee shall be appointed from time to
time by, and shall serve at the discretion of, the Board of Directors. 
 3.2 Authority of the Committee. Except as
limited by law or by the Articles of Incorporation or Amended and Restated By-Laws of the Company (each as amended from time to time), the Committee shall have full and exclusive power and authority to take all actions specifically contemplated by
this Plan or that are necessary or appropriate in connection with the administration hereof and shall also have full and exclusive power and authority to interpret this Plan and to adopt such rules, regulations and guidelines for carrying out this
Plan as the Committee may deem necessary or proper. The Committee shall have full power and sole discretion to: select Officers, Directors, Consultants and Employees who shall be granted Awards under this Plan; determine the sizes and types of
Awards; determine the time when Awards are to be granted and any conditions that must be satisfied before an Award is granted; determine the terms and conditions of Awards in a manner consistent with this Plan; determine whether the conditions for
earning an Award have been met and whether a Performance-Based Award will be paid at the end of an applicable performance period; determine the guidelines and/or procedures for the payment or exercise of Awards; and determine whether a
Performance-Based Award should qualify, regardless of its amount, as deductible in its entirety for federal income tax purposes, including whether a Performance-Based Award granted to an Officer should qualify as performance-based compensation. The
Committee may, in its sole discretion, accelerate the vesting or exercisability of an Award, eliminate or make less restrictive any restrictions contained in an Award, waive any restriction or other provision of this Plan or any Award or otherwise
amend or modify any Award in any manner that is either (a) not adverse to the Participant to whom such Award was granted or (b) consented to in writing by such Participant, and (c) consistent with the requirements of Code
Section 409A, if applicable. The Committee may correct any defect or supply any omission or reconcile any inconsistency in this Plan or in any Award in the manner and to the extent the Committee deems necessary or desirable to further this
Plan’s objectives. Further, the Committee shall make all other determinations that may be necessary or advisable for the administration of this Plan. As permitted by law and the terms of this Plan, the Committee may delegate its authority as
identified herein. 
 3.3 Delegation of Authority. To the extent permitted under applicable law, the Committee may
delegate to the Chief Executive Officer and to other senior officers of the Company its duties under this Plan pursuant to such conditions or limitations as the Committee may establish; provided however, the Committee may not delegate any authority
to grant Awards to a Director. 
 3.4 Decisions Binding. All determinations and decisions made by the Committee pursuant
to the provisions of this Plan and all related orders and resolutions of the Committee shall be final, conclusive and binding on all persons concerned, including the Company, its stockholders, Officers, Directors, Employees, Consultants,
Participants and their estates and beneficiaries. 

 ARTICLE 4 

Shares Subject to this Plan 

4.1 Number of Shares Available for Grants of Awards. Subject to adjustment as provided in Section 4.3 hereof, there is
reserved for issuance of Awards under this Plan ten million (10,000,000) Shares. Shares subject to Awards under this Plan that are cancelled, forfeited, terminated or expire unexercised, shall immediately become available for the granting of
Awards under this Plan. Additionally, The Committee may from time to time adopt and observe such procedures concerning the counting of Shares against this Plan maximum as it may deem appropriate. 

4.2 Limits on Grants in Any Fiscal Year. The following rules (“Award Limitations”) shall apply to grants of Awards under
this Plan: 
 (a) Options. The maximum aggregate number of Shares issuable pursuant to Awards of
Options that may be granted in any one Fiscal Year of the Company to any one Participant shall be one million two hundred thousand (1,200,000). 

(b) Restricted Stock and Restricted Stock Units. The maximum aggregate number of Shares subject to Awards of
Restricted Stock and RSUs that may be granted in any one Fiscal Year to any one Participant shall be one million two hundred thousand (1,200,000). 

(c) Performance Shares. The maximum aggregate number of Shares subject to Awards of Performance Shares that
may be granted in any one Fiscal Year to any one Participant shall be one million two hundred thousand (1,200,000). 

(d) Performance Units. The maximum aggregate cash payout with respect to Performance Units granted in any
one Fiscal Year to any one Participant shall be six million dollars, with such cash value determined as of the date of each grant. 

4.3 Adjustments in Authorized Shares. The existence of outstanding Awards shall not affect in any manner the right or power of the
Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the capital stock of the Company or its business or any merger or consolidation of the Company, or any issue of bonds,
debentures, preferred or prior preference stock (whether or not such issue is prior to, on a parity with or junior to the Shares) or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business
or any other corporate act or proceeding of any kind, whether or not of a character similar to that of the acts or proceedings enumerated above. 

If there shall be any change in the Shares of the Company or the capitalization of the Company through merger, consolidation,
reorganization, recapitalization, stock dividend, stock split, reverse stock split, split-up, spin-off, combination of shares, exchange of shares, dividend in kind or other like change in capital structure or distribution (other than normal cash
dividends) to stockholders of the Company, the Committee, in its sole discretion, in order to prevent dilution or enlargement of Participants’ rights under this Plan, shall adjust, in such manner as it deems equitable, as applicable, the number
and kind of Shares that may be granted as Awards under this Plan, the number and kind of Shares subject to outstanding Awards, the exercise or other price applicable to outstanding Awards, the Awards Limitations, the Fair Market Value of the Shares
and other value determinations applicable to outstanding Awards; provided, however, that the number of Shares subject to any Award shall always be a whole number. In the event of a corporate merger, consolidation, acquisition of property or
stock, separation, reorganization or liquidation, the Committee shall be authorized, in its sole discretion, to: (a) grant or assume Awards by means of substitution of new Awards, as appropriate, for previously granted Awards or to assume
previously granted Awards as part of such adjustment; (b) make provision, prior to the transaction, for the acceleration of the vesting and exercisability of, or lapse of restrictions with respect to, Awards and the termination of Options that
remain unexercised at the time of such transaction; (c) provide for the acceleration of the vesting and exercisability of Options and the cancellation thereof in exchange for such payment as the Committee, in its sole discretion, determines is
a reasonable approximation of the value thereof; (d) cancel any Awards and direct the Company to deliver to the Participants who 

 
are the holders of such Awards cash in an amount that the Committee shall determine in its sole discretion is equal to the fair market value of such Awards as of the date of such event, which, in
the case of any Option, shall be the amount equal to the excess of the Fair Market Value of a Share as of such date over the per-share exercise price for such Option (for the avoidance of doubt, if such exercise price is less than such Fair Market
Value, the Option may be canceled for no consideration); or (e) cancel Awards that are Options and give the Participants who are the holders of such Awards notice and opportunity to exercise prior to such cancellation. 

ARTICLE 5 

Eligibility and Participation 

5.1 Eligibility. Persons eligible to participate in this Plan include all Officers, Directors, Employees and Consultants, as
determined in the sole discretion of the Committee. 
 5.2 Actual Participation. Subject to the provisions of this Plan,
the Committee may, from time to time, select from all Officers, Directors, Employees and Consultants, those to whom Awards shall be granted and shall determine the nature and amount of each Award. No Officer, Director, Employee or Consultant shall
have the right to be selected for Participation in this Plan, or, having been so selected, to be selected to receive a future award. 

ARTICLE 6 

Options 

6.1 Grant of Options. Subject to the terms and provisions of this Plan, Options may be granted to Participants in such number,
upon such terms, at any time, and from time to time, as shall be determined by the Committee; provided, however, that ISOs may be awarded only to Employees. Subject to the terms of this Plan, the Committee shall have discretion in determining
the number of Shares subject to Options granted to each Participant. 
 6.2 Option Award Agreement. Each Option grant
shall be evidenced by an Award Agreement that shall specify the Option Price, the duration of the Option, the number of Shares to which the Option pertains, and such other provisions as the Committee shall determine that are not inconsistent with
the terms of this Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or an NQSO (provided that, in the absence of such specification, the Option shall be an NQSO). 

6.3 Option Price. The Option Price for each grant of an Option under this Plan shall be as determined by the Committee;
provided, however, that, subject to any subsequent adjustment that may be made pursuant to the provisions of Section 4.3 hereof, the Option Price shall be not less than one hundred percent (100%) of the Fair Market Value of a Share
on the date the Option is granted. Except as otherwise provided in Section 4.3 hereof, without prior stockholder approval no repricing of Options awarded under this Plan shall be permitted such that the terms of outstanding Options may not be
amended to reduce the Option Price and further Options may not be replaced or regranted through cancellation, in exchange for cash, other Awards, or if the effect of the replacement or regrant would be to reduce the Option Price of the Options or
would constitute a repricing under generally accepted accounting principles in the United States (as applicable to the Company’s public reporting). 

6.4 Duration of Options. Subject to any earlier expiration that may be effected pursuant to the provisions of Section 4.3
hereof, each Option shall expire at such time as the Committee shall determine at the time of grant; provided, however, that an Option shall not be exercisable later than the seventh (7th) anniversary date of its grant. 

6.5 Exercise of Options. Options granted under this Plan shall be exercisable at such times and be subject to such restrictions
and conditions as the Committee shall in each instance approve, which need not be the same for each grant or for each Participant. 

6.6 Payment. Any Option granted under this Article 6 shall be exercised by the delivery of a notice of exercise to the Company in
the manner prescribed in the related Award Agreement, setting forth the number of Shares with respect to which the Option is to be exercised, and either (i) accompanied by full payment of the Option

 
Price for the Shares issuable on such exercise or (ii) exercised in a manner that is in accordance with applicable law and the “cashless exercise” procedures (if any) approved by
the Committee involving a broker or dealer. 
 The Option Price upon exercise of any Option shall be payable to the Company in
full: (a) in cash; (b) by tendering previously acquired Shares valued at their Fair Market Value per Share at the time of exercise (provided that the Shares which are tendered must have been held by the Participant for at least six
(6) months prior to their tender); (c) by a combination of (a) and (b); or (d) any other method approved by the Committee, in its sole discretion. 

Subject to any governing rules or regulations, as soon as practicable after receipt of a notification of exercise and full payment, the
Company shall deliver to the Participant, in the Participant’s name, Share certificates in an appropriate amount based upon the number of Shares purchased under the Option. 

6.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the
exercise of an Option granted under this Plan as it may deem advisable, including, without limitation, restrictions under applicable U.S. federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then
listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. 
 6.8 Termination of
Employment, Service or Directorship. Each Option Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option following termination of the Participant’s employment, service or directorship
with the Company and/or its Subsidiaries. Such provisions shall be determined in the sole discretion of the Committee, shall be included in each Award Agreement entered into with a Participant with respect to an Option Award, need not be uniform
among all Options granted pursuant to this Article 6 and may reflect distinctions based on the reasons for termination. 

6.9 Transferability of Options. 

(a) Incentive Stock Options. No ISO granted under this Plan may be sold, transferred, pledged, assigned or
otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code or Title I of ERISA, or the regulations thereunder. Further, all ISOs
granted to a Participant under this Plan shall be exercisable during his or her lifetime only by such Participant. 

(b) Nonqualified Stock Options. Except as otherwise provided in a Participant’s Award Agreement, NQSOs
granted under this Plan may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code
or Title I of ERISA, or the regulations thereunder. Further, except as otherwise provided in a Participant’s Award Agreement, all NQSOs granted to a Participant under this Plan shall be exercisable during his or her lifetime only by such
Participant. 
 ARTICLE 7 

Restricted Stock 

7.1 Grant of Restricted Stock. Subject to the terms and provisions of this Plan, the Committee at any time, and from time to time,
may grant Shares as Restricted Stock (“Shares of Restricted Stock”) to Participants in such amounts as the Committee shall determine. 

7.2 Restricted Stock Award Agreement. Each Award of Restricted Stock shall be evidenced by an Award Agreement that shall specify
the Period of Restriction, the number of Shares of Restricted Stock granted, and such other provisions as the Committee shall determine. 

7.3 Transferability. Except as provided in the Participant’s related Award Agreement and/or this Article 7, the Shares of
Restricted Stock granted to a Participant under this Plan may not be sold, transferred, pledged, 

 
assigned or otherwise alienated or hypothecated until the end of the applicable Period of Restriction established by the Committee and specified in the related Award Agreement entered into with
that Participant, or upon earlier satisfaction of any other conditions, as specified by the Committee in its sole discretion and set forth in the Award Agreement. During the applicable Period of Restriction, all rights with respect to the Restricted
Stock granted to a Participant under this Plan shall be available during his or her lifetime only to such Participant. Any attempted assignment of Restricted Stock in violation of this Section 7.3 shall be null and void. 

7.4 Other Restrictions. The Committee may impose such other conditions and/or restrictions on any Shares of Restricted Stock
granted pursuant to this Plan as it may deem advisable, including, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock, restrictions based upon the achievement of specific
performance goals, time-based restrictions on vesting following the attainment of the performance goals and/or restrictions under applicable U.S. federal or state securities laws. 

To the extent deemed appropriate by the Committee, the Company may retain the certificates representing Shares of Restricted Stock in the
Company’s possession until such time as all conditions and/or restrictions applicable to such Shares have been satisfied or have lapsed. 

7.5 Removal of Restrictions. Except as otherwise provided in this Article 7, Shares of Restricted Stock covered by each Restricted
Stock Award made under this Plan shall become freely transferable by the Participant after all conditions and restrictions applicable to such Shares have been satisfied or have lapsed. 

7.6 Voting Rights. To the extent permitted by the Committee or required by law, Participants holding Shares of Restricted Stock
granted hereunder may exercise full voting rights with respect to those Shares during the applicable Period of Restriction. 

7.7 Dividends. During the applicable Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder
shall, unless the Committee otherwise determines, be credited with cash dividends paid with respect to the Shares, in a manner determined by the Committee in its sole discretion. The Committee may apply any restrictions to the dividends that it
deems appropriate. 
 7.8 Termination of Employment, Service or Directorship. Each Restricted Stock Award Agreement shall
set forth the extent to which the Participant shall have the right to receive unvested Shares of Restricted Stock following termination of the Participant’s employment, service or directorship with the Company and/or its Subsidiaries. Such
provisions shall be determined in the sole discretion of the Committee, shall be included in each Award Agreement entered into with a Participant with respect to Shares of Restricted Stock, need not be uniform among all Shares of Restricted Stock
granted pursuant to this Article 7 and may reflect distinctions based on the reasons for termination. 
 ARTICLE 8

 Performance Units and Performance Shares 

8.1 Grant of Performance Units/Shares. Subject to the terms of this Plan, Performance Units and Performance Shares may be granted
to Participants in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee. 

8.2 Value of Performance Units/Shares. Each Performance Unit shall have an initial value that is established by the Committee at
the time of grant. Each Performance Share shall have an initial value equal to one hundred percent (100%) of the Fair Market Value of a Share on the date of grant. The Committee shall set performance goals in its discretion that, depending on
the extent to which they are met, will determine the number and/or value of Performance Units/Shares which will be paid out to the Participant. 

8.3 Earning of Performance Units/Shares. Subject to the terms of this Plan, after the applicable Performance Period has ended, the
holder of Performance Units/Shares shall be entitled to receive payment of the number and 

 
value of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance goals have been
achieved. 
 8.4 Form and Timing of Payment of Performance Units/Shares. Subject to the provisions of Article 12 hereof,
Payment of earned Performance Units/Shares to a Participant shall be made no later than March 15 following the end of the calendar year in which such Performance Units/Shares vest, or as soon as administratively practicable thereafter if
payment is delayed due to unforeseeable events. Subject to the terms of this Plan, the Committee, in its sole discretion, may pay earned Performance Units/Shares in the form of cash or in Shares (or in a combination thereof) that have an aggregate
Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance Period. Any Shares issued or transferred to a Participant for this purpose may be granted subject to any restrictions that are
deemed appropriate by the Committee. 
 8.5 Termination of Employment, Service or Directorship. Each Award Agreement
providing for a Performance Unit/Share shall set forth the extent to which the Participant shall have the right to receive a payout of cash or Shares with respect to unvested Performance Unit/Shares following termination of the Participant’s
employment, service or directorship with the Company and/or its Subsidiaries. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with the Participant, need not be
uniform among all Awards of Performance Units/Shares granted pursuant to this Article 8 and may reflect distinctions based on the reasons for termination. 

8.6 Transferability. Except as otherwise provided in a Participant’s related Award Agreement, Performance Units/Shares may
not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code or Title I of ERISA, or the
regulations thereunder. Further, except as otherwise provided in a Participant’s related Award Agreement, a Participant’s rights with respect to Performance Units/Shares granted to that Participant under this Plan shall be exercisable
during the Participant’s lifetime only by the Participant. Any attempted assignment of Performance Units/Shares in violation of this Section 8.6 shall be null and void. 

ARTICLE 9 

Restricted Stock Units 

9.1 Grant of RSUs. Subject to the terms and provisions of this Plan, the Committee at any time, and from time to time, may grant
RSUs to eligible Participants in such amounts as the Committee shall determine. 
 9.2 RSU Award Agreement. Each RSU
Award to a Participant shall be evidenced by an RSU Award Agreement entered into with that Participant, which shall specify the Vesting Period, the number of RSUs granted, and such other provisions as the Committee shall determine in its sole
discretion. 
 9.3 Transferability. Except as provided in a Participant’s related Award Agreement, RSUs granted
hereunder may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code or Title I of
ERISA, or the regulations thereunder. Further, except as otherwise provided in a Participant’s related Award Agreement, a Participant’s rights with respect to an RSU Award granted to that Participant under this Plan shall be available
during his or her lifetime only to such Participant. Any attempted assignment of an RSU Award in violation of this Section 9.3 shall be null and void. 

9.4 Form and Timing of Delivery. If a Participant’s RSU Award Agreement provides for payment in cash, payment equal to the
Fair Market Value of the Shares underlying the RSU Award, calculated as of the last day of the applicable Vesting Period, shall be made in a single lump-sum payment. If a Participant’s RSU Award Agreement provides for payment in Shares, the
Shares underlying the RSU Award shall be delivered to the Participant. Such payment of cash or Shares shall be made no later than March 15 following the end of the calendar year during which the RSU Award vests, or as soon as practicable
thereafter if payment is delayed due to unforeseeable events. Such delivered Shares shall be freely transferable by the Participant. 

 9.5 Voting Rights and Dividends. During the applicable Vesting Period, Participants
holding RSUs shall not have voting rights with respect to the Shares underlying such RSUs. During the applicable Vesting Period, Participants holding RSUs granted hereunder shall, unless the Committee otherwise determines, be credited with dividend
equivalents, in the form of cash or additional RSUs (as determined by the Committee in its sole discretion), if a cash dividend is paid with respect to the Shares. The extent to which dividend equivalents shall be credited shall be determined in the
sole discretion of the Committee. Such dividend equivalents shall be subject to a Vesting Period equal to the remaining Vesting Period of the RSUs with respect to which the dividend equivalents are paid. 

9.6 Termination of Employment, Service or Directorship. Each RSU Award Agreement shall set forth the extent to which the
applicable Participant shall have the right to receive a payout of cash or Shares with respect to unvested RSUs following termination of the Participant’s employment, service or directorship with the Company and/or its Subsidiaries. Such
provisions shall be determined in the sole discretion of the Committee, shall be included in each Award Agreement entered into with a Participant with respect to RSUs, need not be uniform among all RSUs granted pursuant to this Article 9 and may
reflect distinctions based on the reasons for termination. 
 ARTICLE 10 

Performance Measures 

10.1 Performance Measures. Unless and until the Committee proposes and shareholders approve a change in the general performance
measures set forth in this Article 10, the attainment of which may determine the degree of payout and/or vesting with respect to Awards to Named Executive Officers which are designed to qualify for the Performance-Based Exception, the performance
measure(s) to be used for purposes of such grants shall be chosen from among the following alternatives: 
 (a)
Cash Flow; 
 (b) Cash Flow Return on Capital; 

(c) Cash Flow Return on Assets; 

(d) Cash Flow Return on Equity; 

(e) Net Income; 

(f) Return on Capital; 

(g) Return on Assets; 

(h) Return on Equity; 

(i) Share Price; 

(j) Earnings Per Share; 

(k) Earnings Before Interest and Taxes; 

(l) Earnings Before Interest, Taxes, Depreciation and Amortization; 

(m) Total and Relative Shareholder Return: ; 

(n) Operating Income; 

(o) Return on Net Assets; 

(p) Gross or Operating Margins; 

 (q) Safety; and 

(r) Economic Value Added or EVA. 

Subject to the terms of this Plan, each of these measures shall be defined by the Committee on a consolidated, group or division basis or
in comparison to one or more peer group companies or indices, and may include or exclude specified extraordinary items as defined by the Company’s auditors. 

10.2 Adjustments. The Committee shall have the sole discretion to adjust determinations of the degree of attainment of the
pre-established performance goals; provided, however, that Awards which are designed to qualify for the Performance-Based Exception and which are held by Named Executive Officers may not be adjusted upwards on a discretionary basis. The Committee
shall retain the discretion to adjust such Awards downward. 
 10.3 Compliance with Code Section 162(m). In the
event that applicable tax and/or securities laws or regulations change to permit Committee discretion to alter the governing performance measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to
make such changes without obtaining shareholder approval. In addition, in the event that the Committee determines that it is advisable to grant Awards to Named Executive Officers which shall not qualify for the Performance-Based Exception, the
Committee may make such grants without satisfying the requirements of Code Section 162(m) and the regulations issued thereunder. Any performance-based Awards granted to Officers or Directors that are not intended to qualify as qualified
performance-based compensation under Section 162(m) of the Code shall be based on achievement of such performance measure(s) and be subject to such terms, conditions and restrictions as the Committee shall determine. 

ARTICLE 11 

Beneficiary Designation 

Each Participant under this Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or
successively) to whom any benefit under this Plan is to be paid in case of the Participant’s death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall be
in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the
Participant’s death shall be paid to the Participant’s estate. 
 ARTICLE 12 

Deferrals 

The Committee may, in its sole discretion, permit selected Participants to elect to defer payment of some or all types of Awards, or may
provide for the deferral of an Award in an Award Agreement; provided, however, that the timing of any such election and payment of any such deferral shall be specified in the Award Agreement and shall conform to the requirements of Code
Section 409A(a)(2), (3) and (4) and the regulations and rulings issued thereunder. Any deferred payment, whether elected by a Participant or specified in an Award Agreement or by the Committee, may be forfeited if and to the extent
that the applicable Award Agreement so provides. 
 ARTICLE 13 

Rights of Employees, Directors and Consultants 

13.1 Employment or Service. Nothing in this Plan shall interfere with or limit in any way the right of the Company to terminate
any Participant’s employment or service at any time, nor confer upon any Participant any right to continue in the employ or service of the Company. 

13.2 No Contract of Employment. Neither an Award nor any benefits arising under this Plan shall constitute part of a
Participant’s employment contract with the Company or any Subsidiary, and accordingly, subject to the 

 
provisions of Article 15 hereof, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Board without giving rise to liability on the part
of the Company or any Subsidiary for severance payments. 
 13.3 Transfers Between Participating Entities. For purposes
of this Plan, a transfer of a Participant’s employment between the Company and a Subsidiary, or between Subsidiaries, shall not be deemed to be a termination of employment. Upon such a transfer, the Committee may make such adjustments to
outstanding Awards as it deems appropriate to reflect the change in reporting relationships. 
 ARTICLE 14 

Change in Control 

The treatment of outstanding Awards upon the occurrence of a Change in Control, unless otherwise specifically prohibited under applicable
laws, or by the rules and regulations of any governing governmental agencies or national securities exchanges shall be determined in the sole discretion of the Committee and shall be described in the Award Agreements and need not be uniform among
all Participants or Awards granted pursuant to this Plan. 
 ARTICLE 15 

Amendment, Modification and Termination 

15.1 Amendment, Modification, and Termination. The Board may at any time and from time to time, alter, amend, suspend or terminate
this Plan in whole or in part, provided, however, that shareholder approval shall be required for any amendment that materially alters the terms of this Plan or is otherwise required by applicable legal requirements. No amendment or
alteration that would adversely affect the rights of any Participant under any Award previously granted to such Participant shall be made without the consent of such Participant. 

15.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee may make adjustments in the
terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.3 hereof) affecting the Company or the financial statements of the
Company or in recognition of changes in applicable laws, regulations or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or
potential benefits intended to be made available under this Plan. 
 ARTICLE 16 

Withholding 

The Company shall have the right to deduct applicable taxes from any Award payment and withhold, at the time of delivery or vesting of
cash or Shares under this Plan, or at the time applicable law otherwise requires, an appropriate amount of cash or number of Shares or a combination thereof for payment of taxes required by law or to take such other action as may be necessary in the
opinion of the Company to satisfy all obligations for withholding of such taxes. The Committee may permit withholding to be satisfied by the transfer to the Company of Shares theretofore owned by the holder of the Award with respect to which
withholding is required. If Shares are used to satisfy tax withholding, such Shares shall be valued at their Fair Market Value on the date when the tax withholding is required to be made. 

ARTICLE 17 

Indemnification 

Each person who is or shall have been a member of the Committee, or of the Board, or an officer of the Company to whom the Committee has
delegated authority in accordance with Article 3 hereof, shall be indemnified and held harmless by the Company against and from: (a) any loss, cost, liability, or expense that may be imposed

 
upon or reasonable incurred by him or her in connection with or resulting from any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by
reason of any action taken or failure to act under this Plan, except for any such action or failure to act that constitutes willful misconduct on the part of such person or as to which any applicable statute prohibits the Company from providing
indemnification; and (b) any and all amounts paid by him or her in settlement of any claim, action, suit or proceeding as to which indemnification is provided pursuant to clause (a) of this sentence, with the Company’s approval, or
paid by him or her in satisfaction of any judgment or award in any such action, suit or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she
undertakes to handle and defend it on his or her own behalf. 
 The foregoing right of indemnification shall be in addition to
any other rights of indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or Amended and Restated By-Laws (each, as amended from time to time), as a matter of law, or otherwise. 

ARTICLE 18 

Successors 

All obligations of the Company under this Plan with respect to Awards granted hereunder shall be binding on any successor to the Company,
whether the existence of such successor is the direct or indirect result of a merger, consolidation, purchase of all or substantially all of the business and/or assets of the Company or other transaction. 

ARTICLE 19 

General Provisions 

19.1 Restrictions and Legends. No Shares or other form of payment shall be issued or transferred with respect to any Award unless
the Company shall be satisfied that such issuance or transfer will be in compliance with applicable U.S. federal and state securities laws. The Committee may require each person receiving Shares pursuant to an Award under this Plan to represent to
and agree with the Company in writing that the Participant is acquiring the Shares for investment without a view to distribution thereof. Any certificates evidencing Shares delivered under this Plan (to the extent that such Shares are so evidenced)
may be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any securities exchange or transaction reporting
system upon which the Shares are then listed or to which they are admitted for quotation and any applicable U.S. federal or state securities law. In addition to any other legend required by this Plan, any certificates for such Shares may include any
legend that the Committee deems appropriate to reflect any restrictions on transfer of such Shares. 
 19.2 Gender and
Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular and the singular shall include the plural. 

19.3 Severability. If any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

19.4 Requirements of Law. The granting of Awards and the issuance of Shares under this Plan shall be subject to all applicable
laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

19.5 Uncertificated Shares. To the extent that this Plan provides for issuance of certificates to reflect the transfer of Shares,
the transfer of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange or transaction reporting system on which the Shares are listed or to which the Shares are
admitted for quotation. 

 19.6 Unfunded Plan. Insofar as this Plan provides for Awards of cash, Shares or
rights thereto, it will be unfunded. Although the Company may establish bookkeeping accounts with respect to Participants who are entitled to cash, Shares or rights thereto under this Plan, it will use any such accounts merely as a bookkeeping
convenience. Participants shall have no right, title or interest whatsoever in or to any investments that the Company may make to aid it in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken pursuant to its
provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative or any other person. To the extent that any person acquires a right to
receive payments from the Company under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general funds of the Company and no special or
separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts, except as expressly set forth in this Plan. This Plan is not intended to be subject to ERISA. 

19.7 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to this Plan or any Award. The Committee
shall determine whether cash, Awards or other property shall be delivered or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or otherwise eliminated. 

19.8 Governing Law. This Plan and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed
by mandatory provisions of the Code or the securities laws of the United States, will be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any conflicts of laws provisions thereof that would
result in the application of the laws of any other jurisdiction.The Babcock & Wilcox Company Executive Incentive Compensation Plan

 Exhibit 10.9 

The Babcock & Wilcox Company 
 The
Executive Incentive Compensation Plan 
 • • • • • • • • • • • •

 

 

 July 30, 2010 

 Table of Contents 

 

					
			
		  	ARTICLE 1 – PURPOSE	  	3
			
		  	ARTICLE 2 – DEFINITIONS	  	3
			
		  	ARTICLE 3 – UNFUNDED STATUS OF THE PLAN	  	6
			
		  	ARTICLE 4 – ADMINISTRATION OF THE PLAN	  	6
			
		  	ARTICLE 5 – ELIGIBILITY AND PARTICIPATION	  	6
			
		  	ARTICLE 6 – AWARD DETERMINATION	  	7
			
	 (A)
	  	PERFORMANCE MEASURES AND PERFORMANCE GOALS.	  	7
	 (B)
	  	AWARD OPPORTUNITIES.	  	7
	 (C)
	  	ADJUSTMENT OF PERFORMANCE GOALS AND AWARD OPPORTUNITIES.	  	7
	 (D)
	  	FINAL AWARD DETERMINATIONS.	  	8
	 (E)
	  	AWARD LIMIT.	  	8
	 (F)
	  	THRESHOLD LEVELS OF PERFORMANCE.	  	8
			
		  	ARTICLE 7 – PAYMENT OF AWARDS	  	9
			
		  	ARTICLE 8 – NAMED EXECUTIVE OFFICERS	  	9
			
	 (A)
	  	APPLICABILITY OF ARTICLE 8.	  	9
	 (B)
	  	ESTABLISHMENT OF AWARD OPPORTUNITIES.	  	9
	 (C)
	  	COMPONENTS OF AWARD OPPORTUNITIES.	  	9
	 (D)
	  	NO MID-YEAR CHANGE IN AWARD OPPORTUNITIES.	  	10
	 (E)
	  	NON-ADJUSTMENT OF PERFORMANCE GOALS.	  	10
	 (F)
	  	INDIVIDUAL PERFORMANCE AND DISCRETIONARY ADJUSTMENTS.	  	10
	 (G)
	  	PERMISSIBLE MODIFICATIONS.	  	10
			
		  	ARTICLE 9 – LIMITATIONS	  	10
			
		  	ARTICLE 10 – AMENDMENT, SUSPENSION, TERMINATION, OR ALTERATION OF THE PLAN	  	11
			
		  	ARTICLE 11 – COMMENCEMENT OF AWARDS	  	11

  

 i 

 Article 1 – Purpose 

The purpose of the plan is to make provision for the payment of supplemental compensation to managerial and other key Employees who contribute materially
to the success of the Company or one or more of its Subsidiary or Affiliated Companies, thereby affording them an incentive for and a means of participating in that success. 

Article 2 – Definitions 
 For the
purpose of the Plan, the following definitions shall be applicable: 
 (a) Affiliated Company. Any corporation, joint venture, or
other legal entity in which The Babcock & Wilcox Company , directly or indirectly, through one or more Subsidiaries, owns less than fifty percent (50%) but at least twenty percent (20%) of its voting control. 

(b) Assets. Corporate Assets are defined as “total assets” as reported in the Company’s Consolidated Balance Sheet. Segment,
group and division assets are defined as “total assets” attributable to the segment, group or division averaged over each of the four quarters in the plan year, excluding cash, long-term notes payable, interest payable, and interest
receivable. 
 (c) Award Opportunity. The various levels of incentive award payouts which a Participant may earn under the Plan,
as established by the Committee pursuant to Sections 6(a), 6(b) and 8(b) herein. 
 (d) Board. The Board of Directors of The
Babcock & Wilcox Company. 
 (e) Capital. With respect to each fiscal year of the Company, the sum of (i) Notes
Payable and Current Maturities of Long-Term Debt (cumulatively also known as “Short-Term Debt”), (ii) Long-Term Debt, (iii) Deferred and Noncurrent Income Taxes, (iv) Total Minority Interest, and (v) Stockholders’
Equity, all as reported in or determined from the Company’s Consolidated Balance Sheet at the end of such year. 
 (f) Cash
Flow. With respect to each fiscal year of the Company, Corporate Cash Flow is defined as the sum of (i) Net Income (ii) Depreciation and Amortization, (iii) Minority Interest Dividends on Preferred Stock of Subsidiary,
(iv) Interest Expense, all as reported in the Company’s Consolidated Statement of Income and Retained Earnings, and (v) the difference between Deferred and Noncurrent Income Taxes as at the end of such fiscal year and the Deferred and
Noncurrent Income Taxes as at the end of the immediately preceding fiscal year, as reported in or determined from the Company’s Consolidated Balance Sheet at the end of such year. Segment, group and division Cash

 
Flow is further adjusted to remove all financing elements (including, but not limited to, debt and interest income). 

(g) Cash Flow Return on Assets. With respect to each fiscal year of the Company, that fraction, stated as a percentage, the numerator of
which is “Cash Flow” and the denominator of which is “Assets.” 
 (h) Cash Flow Return on Capital. With
respect to each fiscal year of the Company, the fraction, stated as a percentage, the numerator of which is “Cash Flow” and the denominator of which is “Capital.” 

(i) Cash Flow Return on Equity. With respect to each fiscal year of the Company, that fraction, stated as a percentage, the numerator of
which is “Cash Flow” and the denominator of which is “Equity.” 
 (j) Committee. “Committee” means
the Compensation Committee of the Board of Directors. The Committee shall be constituted so as to permit the Program to comply with the exemptive provisions of Section 16 of the Securities Exchange Act of 1934, and the rules promulgated
thereunder, and the rules and regulations approved by national securities exchanges. 
 (k) Company. “Company” means The
Babcock & Wilcox Company, a Delaware corporation (or any successor thereto) and its subsidiaries and affiliates. 
 (l)
Consolidated Balance Sheet and Consolidated Statement of Income and Retained Earnings. With respect to each fiscal year of the Company, the Consolidated Balance Sheet and the Consolidated Statement of Income and Retained Earnings,
included in the Company’s Consolidated Financial Statements for such year, as certified by the Company’s independent public accountants, and set forth in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange
Commission. 
 (m) Consolidated Financial Statements. With respect to each fiscal year of the Company, the Company’s
Consolidated Balance Sheet and Consolidated Statement of Income and Retained Earnings for such year. 
 (n) Economic Value Added.
Economic Value Added, with respect to each fiscal year of the Company, is defined as net operating profit after tax minus the product of capital and the cost of capital. 

(o) Employee. Any person who is regularly employed by the Company or any of its Subsidiary or Affiliated Companies on a full-time salaried
basis, including any Employee who also is an officer or director of the Company or of any of its Subsidiary or Affiliated Companies. 

 (p) Equity. Total stockholders’ equity as reported in the Company’s Consolidated
Balance Sheet. 
 (q) Final Award. The actual award earned during a plan year by a Participant, as determined by the Committee
following the end of a plan year; provided Participant is still an Employee when payment is to be made pursuant to Article 7 herein. 
 (r)
Named Executive Officer. A Participant who, as of the date of a payout of a Final Award, is one of the group of “covered employees,” as defined in the Regulations promulgated under Section 162(m)(3) of the Internal
Revenue Code of 1986, as amended. 
 (s) Net Income. Company Net Income is defined as after-tax net income, as reported in the
Company’s Consolidated Statements of Income. Segment, group and division Net Income is defined as pre-tax net income attributable to a specific segment, group, division or other business unit. 

(t) Operating Income. Operating Income, with respect to each fiscal year of the Company is defined as revenues minus operating
expenses (including depreciation and amortization, and Equity in Income of Investees). 
 (u) Participant. An Employee who has
received an Award Opportunity. 
 (v) Plan. The Executive Incentive Compensation Plan of The Babcock & Wilcox Company.

 (w 
 (x) Return on
Assets. With respect to each fiscal year of the Company, that fraction, stated as a percentage, the numerator of which is “Net Income” and the denominator of which is “Assets.” 

(y) Return on Capital. With respect to each fiscal year of the Company, that fraction, stated as a percentage, the numerator of which is
“Net Income” and the denominator of which is “Capital.” 
 (z) Return on Equity. With respect to each fiscal
year of the Company, that fraction, stated as a percentage, the numerator of which is “Net Income” and the denominator of which is “Equity.” 

(aa) Salary. The annual basic compensation earned during a plan year (including any portion which may have been deferred) 

(bb) Subsidiary. Any corporation, joint venture or other legal entity in which the Company, directly or indirectly, owns more than fifty
percent (50%) of its voting control. 

 (cc) Target Incentive Award. The award to be paid to Participants when the Company meets
“targeted” performance results, as established by the Committee. 
 Article 3 – Unfunded Status of the Plan 

(a) Each Final Award shall be paid from the general funds of the Participant’s employer. The entire expense of administering the Plan shall be borne
by the Company. . 
 (b) No special or separate funds shall be established, or other segregation of assets made to execute payment of Final
Awards. No Employee, or other person, shall have, under any circumstances, any interest whatsoever, vested or contingent, in any particular property or asset of the Company or any Subsidiary or Affiliated Company by virtue of any Final Award.

 Article 4 – Administration of the Plan 

Full power and authority to construe, interpret and administer the Plan shall be vested in the Committee. A determination by the Committee in carrying out
or administering the Plan shall be final and binding for all purposes and upon all interested persons, their heirs, and personal representative(s). Except as prohibited by applicable law or limited by Article 8 herein, the Committee may delegate to
the Chief Executive Officer and to executive officers of the Company its duties under this Plan pursuant to such conditions or limitations as the Committee may establish. 

Article 5 – Eligibility and Participation 

(a) All Employees are eligible for participation in the Plan. Actual participation in the Plan shall be based upon recommendations by the Chief Executive
Officer of the Company, subject to approval by the Committee. The Chief Executive Officer of the Company shall automatically participate in the Plan. 

(b) An Employee who becomes eligible after the beginning of a plan year may participate in the Plan for that plan year. Such situations may include, but
are not limited to (i) new hires, (ii) when an Employee is promoted from a position which did not meet the eligibility criteria, or (iii) when an Employee is transferred from an affiliate which does not participate in the Plan. The
Committee, in its sole discretion, retains the right to prohibit or allow participation in the initial plan year of eligibility for any of the aforementioned Employees. 

 Article 6 – Award Determination 

(a) Performance Measures and Performance Goals. 

For each plan year, the Committee shall select performance measures and shall establish performance goals for that plan year. Except as provided in
Article 8 herein, the performance measures may be based on any combination of corporate, segment, group, divisional, and/or individual goals. 

For each plan year, the Committee shall establish ranges of performance goals which will correspond to various levels of Award
Opportunities. Each performance goal range shall include a level of performance at which one hundred percent (100%) of the Target Incentive Award shall be earned. In addition, each range shall include levels of performance above and below the
one hundred percent (100%) performance level. 
 After the performance goals are established, the Committee will align the
achievement of the performance goals with the Award Opportunities (as described in Article 6(b) herein), such that the level of achievement of the pre-established performance goals at the end of the plan year will determine the Final Awards. Except
as provided in Article 8 herein, the Committee shall have the authority to exercise subjective discretion in the determination of Final Awards, and the authority to delegate the ability to exercise subjective discretion in this respect. 

(b) Award Opportunities. 
 For each plan
year, the Committee shall establish, in writing, Award Opportunities which correspond to various levels of achievement of the pre-established performance goals. The established Award Opportunities shall vary in relation to the job classification of
each Participant. 
 (c) Adjustment of Performance Goals and Award Opportunities. 

Once established, performance goals normally shall not be changed during the plan year. However, except as provided in Article 8 herein, if the Committee
determines that external changes or other unanticipated business conditions have materially affected the fairness of the goals, then the Committee may approve appropriate adjustments to the performance goals (either up or down) during the plan year
as such goals apply to the Award Opportunities of specified Participants. In addition, the Committee shall have the authority to reduce or eliminate the Final Award determinations, based upon any objective or subjective criteria it deems
appropriate. 

 Notwithstanding any other provision of this Plan, in the event of any change in Corporate
capitalization, such as a stock split, or a Corporate transaction, such as any merger, consolidation, separation, including a spin-off, or other distribution of stock or property of the Company, any reorganization (whether or not such reorganization
comes within the definition of such term in Code Section 368), or any partial or complete liquidation of the Company, such adjustment shall be made in the Award Opportunities and/or the performance measures or performance goals related to
then-current performance periods, as may be determined to be appropriate and equitable by the Committee, in its sole discretion, to prevent dilution or enlargement of rights; provided, however, that subject to Article 8 herein, any such adjustment
shall not be made if it would eliminate the ability of Award Opportunities held by Named Executive Officers to qualify for the “performance-based” exception under Code Section 162(m). 

(d) Final Award Determinations. 
 At the
end of each plan year, Final Awards shall be computed for each Participant as determined by the Committee. Subject to the terms of Article 8 herein, Final Award amounts may vary above or below the Target Incentive Award, based on the level of
achievement of the pre-established corporate, segment, group, divisional, and/or individual performance goals. 
 (e) Award Limit.

 The Committee may establish guidelines governing the maximum Final Awards that may be earned by Participants (either in the aggregate, by
Employee class, or among individual Participants) in each plan year. The guidelines may be expressed as a percentage of goals or financial measures, or such other measures as the Committee shall from time to time determine; provided, however, that
the maximum payout with respect to a Final Award payable to any one Participant in connection with performance in any one plan year shall be three million dollars ($3,000,000). However, if the Committee makes a determination that payment of a
greater amount is consistent with the best interests of the Company and if the Final Award recipient is a Named Executive Officer, further determines that the provisions of Section 8(g) apply, then the Committee may authorize such payment.

 (f) Threshold Levels of Performance. 

The Committee may establish minimum levels of performance goal achievement, below which no payouts of Final Awards shall be made to any Participant.

 Article 7 – Payment of Awards 

Each and every Final Award shall be payable in a lump sum no later than the March 15 following the end of the Plan year during which the award is
earned, or as soon as administratively practicable thereafter in the event payment is delayed due to unforeseeable events. 
 Article 8
– Named Executive Officers 
 (a) Applicability of Article 8. 

The provisions of this Article 8 shall apply only to Named Executive Officers. In the event of any inconsistencies between this Article 8 and the other
Plan provisions as they pertain to Named Executive Officers, the provisions of this Article 8 shall control. 
 (b) Establishment of Award
Opportunities. 
 Except as provided in Article 8(g) herein, Award Opportunities for Named Executive Officers shall be established as a
function of each Named Executive Officer’s base Salary. For each plan year, the Committee shall establish, in writing, various levels of Final Awards which will be paid with respect to specified levels of attainment of the pre-established
performance goals. 
 (c) Components of Award Opportunities. 

Each Named Executive Officer’s Award Opportunity shall be based on: (a) the Named Executive Officer’s Target Incentive Award; (b) the
potential Final Awards corresponding to various levels of achievement of the pre-established performance goals, as established by the Committee; and (c) Company, segment, group, or division performance in relation to the pre-established
performance goals. Except as provided in Article 8(g) herein, performance measures which may serve as determinants of Named Executive Officers’ Award Opportunities shall be limited to Cash Flow, Cash Flow Return on Capital, Cash Flow Return on
Assets, Cash Flow Return on Equity, Net Income, Operating Income, Return on Capital, Return on Assets, Return on Equity and Economic Value Added. Definitions for each of these performance measures have been set forth in Article 2. However, the
resulting performance, determined by compliance with the applicable definition(s) shall, to the extent not inconsistent with Section 162(m), be adjusted to exclude any negative impact caused by changes in accounting principles and unusual,
nonrecurring events and extraordinary items (including, but not limited to write-offs, capital gains and losses, acquisitions or dispositions of businesses). The Compensation Committee of the Board of Directors shall have the right through
discretionary downward adjustments to exclude the positive impact of the aforementioned items and occurrences. 

 (d) No Mid-Year Change in Award Opportunities. 

Except as provided in Article 8(c) and (g) herein, each Named Executive Officer’s Final Award shall be based exclusively on the Award
Opportunity levels established by the Committee. 
 (e) Non-adjustment of Performance Goals. 

Except as provided in Article 8(c) and (g) herein, performance goals shall not be changed following their establishment, and Named Executive Officers
shall not receive any payout when the minimum performance goals are not met or exceeded. 
 (f) Individual Performance and Discretionary
Adjustments. 
 Except as provided in Article 8(g) herein, subjective evaluations of individual performance of Named Executive Officers shall
not be reflected in their Final Awards. However, the Committee shall have the discretion to decrease or eliminate the amount of the Final Award otherwise payable to a Named Executive Officer. 

(g) Permissible Modifications. 
 In the
event the Committee determines that it is advisable that an Award Opportunity or Final Award not qualify for the performance-based exception from the deductibility limitations of Code Section 162(m), then compliance with this Article 8 will not
be required. In addition, in the event that changes are made to Code Section 162(m) to permit greater flexibility with respect to any Award Opportunity available under the Plan, the Committee, subject to Article 10, may make any adjustments it
deems appropriate. 
 Article 9 – Limitations 

(a) No person shall at any time have any right to a payment hereunder for any fiscal year, and no person shall have authority to enter into an agreement
for the making of an Award Opportunity or payment of a Final Award or to make any representation or guarantee with respect thereto. 
 (b) An
employee receiving an Award Opportunity shall have no rights in respect of such Award Opportunity, except the right to receive payments, subject to the conditions herein, of such Award Opportunity, which right may not be assigned or transferred
except by will or by the laws of descent and distribution. 
 (c) Neither the action of the Company in establishing the Plan, nor any action
taken by the Committee under the Plan, nor any provision of the Plan shall be construed as giving to any person the right to be retained in the employ of the Company or any of its Subsidiary or Affiliated Companies. 

 Article 10 – Amendment, Suspension, Termination, or Alteration of the Plan 

The Board may, at any time or from time to time, amend, suspend, terminate or alter the Plan, in whole or in part, but it may not thereby affect adversely
rights of Participants, their spouses, children, and personal representative(s) with respect to Final Awards previously made. 
 Article 11
– Commencement of Awards 
 The Company’s fiscal year ending December 31, 2010 shall be the first fiscal year with respect to
which Award Opportunities may be made under the Plan.

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