BABCOCK & WILCOX ENTERPRISES, INC.d18rn0p25nwr6d.cloudfront.net/CIK-0001630805/c497... ·...

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

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April12,2018 Via live webcast at www.virtualshareholdermeeting.com/BW2018

Dear Fellow Stockholders:

OnbehalfofyourBoardofDirectors,wearepleasedtoinviteyoutoattendtheBabcock&WilcoxEnterprises,Inc.(B&W)2018AnnualMeetingofStockholdersonMay16,2018.The2018AnnualMeetingofStockholderswillbeavirtualmeetingofstockholders,beginningat9:30a.m.EasternTime,conductedvialiveaudiowebcast.Youwillbeabletoattendthe2018AnnualMeetingofStockholdersonlineandsubmitquestionsduringthemeetingbyvisitingwww.virtualshareholdermeeting.com/BW2018.YouwillalsobeabletovoteyourshareselectronicallyattheAnnualMeeting(otherthansharesheldthroughtheB&WThriftPlan,whichmustbevotedpriortothemeeting).Wealsoinviteyoutoreadthisyear'sproxystatementthathighlightskeyactivitiesandaccomplishmentsin2017andpresentsthemattersforwhichweareseekingyourvoteatthe2018AnnualMeeting.

LookingBackandAheadThepastyearwaschallengingforBabcock&Wilcox,butwebelievethatourprogressshowswearefirmlyontherightpathforward.Duringtheyear,asweworkedtoadvanceengineeringandconstructiononourrenewableenergyprojectsinEurope,wealsoredefinedourapproachtobiddingandexecutingfutureprojects,betteraligningwithourcorecompetenciesandreducingourriskprofile.Additionally,wemaintainedstrongmarginsinourPowersegment,continuedeffortstogrowourIndustrialsegmentandbeganstrengtheningourinternalprojectmanagementandexecutioncapabilitiestoreduceriskandimproveprofitabilityinthefuture.Todayandalways,weremainfocusedondeliveringonourcommitmentstoourcustomers,improvingourbusinessandstrengtheningourcompanyforthefuture.

OurCorporateGovernanceWehavecontinuedtobeguidedbystrongcorporategovernancepracticesthatdemonstrateourcommitmenttoethicalvaluesandtobeingresponsivetoourstockholders.Ourengaged,committedanddiverseBoardservesasacompetitiveadvantagethathelpstoguideandoverseeourcompany,andwearepleasedthatMatthewE.Avril,HenryE.BartoliandBrianR.KahnjoinedtheBoardearlierthisyear.Wewelcomefeedbackfromourstockholdersand,inresponsetowhatwehaveheard,recommendthattheyvoteinfavorofallofmanagement’sproposalsinthisproxystatement,includingthedeclassificationoftheBoard.

YourViewpointisImportantWehopeyouareabletoparticipateinourannualmeetingtohearmoreaboutouroperationsandourprogress,andweencourageyoutoshareyourthoughts,concernsandsuggestionswithus.Wealsowanttoensureyoursharesarerepresentedasweconductavoteonthemattersoutlinedintheproxystatement.Ifyouareunabletoattend,pleasecastyourvoteassoonaspossibleeithervia:

• theInternetatwww.proxyvote.com• bycalling1-800-690-6903,or• byreturningtheaccompanyingproxycardifyoureceivedaprintedsetofmaterialsbymail.

Furtherinstructionsonhowtovoteyoursharescanbefoundinourproxystatement.While2017wasadifficultyearforB&W,weareexcitedaboutouropportunitiesforthefuture.OnbehalfoftheBoardofDirectorsandthemorethan4,800employeesofB&W,Iwanttothankyouforyourcontinuedsupportandinvestmentinourbusiness.Ifyouhaveanyquestionsorsuggestions,pleasefeelfreetocontactusattheaddressbeloworbyvisitingourwebsite.BoardofDirectorsBabcock&WilcoxEnterprises,Inc.13024BallantyneCorporatePlaceSuite700Charlotte,NC28277c/oJ.AndréHall,CorporateSecretary

Sincerely,

Leslie C. Kass PresidentandChiefExecutiveOfficer

April12,2018

Babcock&WilcoxEnterprises,Inc.13024BallantyneCorporatePlace,Suite700Charlotte,NorthCarolina28277

NOTICE OF 2018 ANNUAL MEETING OF STOCKHOLDERS

The2018AnnualMeetingoftheStockholders(the“AnnualMeeting”)ofBabcock&WilcoxEnterprises,Inc.,aDelawarecorporation(the“Company”),willbeavirtualmeetingofstockholders,beginningat9:30a.m.EasternTime,conductedvialiveaudiowebcast.Youwillbeabletoattendthe2018AnnualMeetingofStockholdersonlineandsubmitquestionsduringthemeetingbyvisitingwww.virtualshareholdermeeting.com/BW2018.YouwillalsobeabletovoteyourshareselectronicallyattheAnnualMeeting(otherthansharesheldthroughtheB&WThriftPlan,whichmustbevotedpriortothemeeting).TheAnnualMeetingwillbeheldto:

(1) approveamendmentstotheCompany’sRestatedCertificateofIncorporation(“CertificateofIncorporation”)todeclassifytheBoardofDirectorsandprovideforannualelectionsofalldirectorsbeginningatthe2020annualmeetingofstockholders;

(2) ifProposal1isapproved,electThomasA.Christopher,BrianR.KahnandLeslieC.KassasClassIdirectorsoftheCompany;

(3) ifProposal1isnotapproved,electThomasA.Christopher,BrianR.KahnandLeslieC.KassasClassIIIdirectorsoftheCompany;

(4) approveamendmentstotheCompany’sCertificateofIncorporationtoremoveprovisionsthatrequiretheaffirmativevoteofholdersofatleast80%ofthevotingpowertoapprovecertainamendmentstotheCertificateofIncorporationandtheAmendedandRestatedBylaws(“Bylaws”);

(5) ratifyourAuditandFinanceCommittee’sappointmentofDeloitte&ToucheLLPasourindependentregisteredpublicaccountingfirmfortheyearendingDecember31,2018;

(6) approve,onanon-bindingadvisorybasis,thecompensationofournamedexecutiveofficers;

(7) approvetheBabcock&WilcoxEnterprises,Inc.AmendedandRestated2015Long-TermIncentivePlan;and

(8) transactsuchotherbusinessasmayproperlycomebeforetheAnnualMeetingoranyadjournmentthereof.

IfyouwereastockholderasofthecloseofbusinessonApril5,2018,youareentitledtovoteattheAnnualMeetingandatanyadjournmentthereof.ToparticipateintheAnnualMeetingvialivewebcast,youwillneedthe16-digitcontrolnumberincludedonyourproxycardandontheinstructionsthataccompanyyourproxymaterials.TheAnnualMeetingwillbeginpromptlyat9:30a.m.EasternTime.Onlinecheck-inwillbeginat9:25a.m.EasternTime.OnApril12,2018,wemailedourproxymaterialstoallstockholdersofrecordasofApril5,2018andpostedourproxymaterialsatwww.proxyvote.com.Wehaveenclosedacopyofour2017AnnualReporttoStockholderswiththisnoticeandproxystatement.Yourvoteisimportant.Pleasevoteyourproxypromptlysoyoursharescanberepresented,evenifyouplantoattendtheAnnualMeeting.YoucanvotebyInternet,bytelephone,orbyrequestingaprintedcopyoftheproxymaterialsandusingtheenclosedproxycard.ByOrderoftheBoardofDirectors,

J. André Hall CorporateSecretary

2018 PROXY STATEMENT SUMMARY

2017Performance

B&Wmarkedits150thyearin2017–anothermilestoneinalonghistory–aswecontinuedtosetthestandardinprovidingenergyandenvironmentalproducts,servicesandsolutionstocustomersaroundtheworld.Thoughtheyearwasalsomarkedbychallengesthatimpactedourfinancialresults,wetookactionsthatwebelieveareaddressingthoseconcerns.

InourPowerbusiness,weexperiencedsustainedpressuresfromacontinuallychangingregulatoryenvironmentthatcausedbookingsdelaysfrombothourNorthAmericanandinternationalcustomerbase.Wefocusedonoptimizingcostsandprovidingoutstandingprojectexecutionandservicetoourcustomers,whichprovedsuccessfulaswereportedsegmentgrossprofitmarginwithinourexpectationsdespitelowerrevenue.

InIndustrial,bookingsandrevenuewerebelowouroriginalexpectations,althoughwesawstrongsignsofimprovementastheyearprogressed.ToaddresslowerprofitabilitywithinourB&WSPIGbusinessline,wehavebecomemoreselectiveintheprojectswepursue,moredisciplinedinourapproachtoprojectexecutionandmorefocusedonreducingcosts,asweworktoexpandouraftermarketpresenceinNorthAmericawherewealreadyhaveastrongfootprintwithourPowersegment’sutilitycustomers.

InourRenewablesegment,wefacedaseriesofprojectexecutionchallengeswithinourEuropeanrenewablenew-buildprojectportfoliothatwehaveworkeddiligentlytoresolve.Toaddressthesechallenges,atargetedfocusonimprovingourprojectmanagement,leadershipandinternalreviewprocesseshelpedusadvancethechallengedprojectsinthatbusinesstowardbeingsubstantiallyconstructioncomplete.Wealsoredefinedourapproachtothiskeymarketareatofocusonengineeringandsupplyingourcorewaste-to-energyandrenewableenergytechnologies–steamgeneration,combustiongrate,environmentalequipment,materialhandlingandcoolingcondensers–whilepartneringwithotherfirmstoexecutethebalanceofplantandcivilconstructionscope.Thisapproachbetteralignswithourcorecompetenciesandriskprofileasasupplierofengineeredequipmentandtechnologiesandaftermarketservices.

Wealsotookanumberofstepsdesignedtoimproveefficiencyandcashflowacrossourbusinesses.Whileouroverallperformanceandoutlookcontinuedtoimprovebyyear-end,toenhanceourfinancialflexibility,wealsoannouncedthatweareevaluatingstrategicalternativesforourMEGTECandUniversalbusinesses.Thoughwebelievethatouroutlookremainsfavorableforthesebusinesses,weconcludedthatitwasprudenttoexplorealternativesforthesepartsofourcompany,providinggreateroptionalityifneeded.

Asweendoursesquicentennialyear,weareoptimisticaboutthepathaheadaswecontinueworkingtostrengthenourbusinessesandbetterpositionourcompanyforsuccess.

2017 PAY-FOR-PERFORMANCE

Ourexecutivecompensationprogramsarebasedonastrongalignmentbetweenpayandperformanceandthisisreflectedinthepayoutamountsunderourannualincentiveplanandthevalueofawardsgrantedunderourlong-termincentiveplan.DecisionsbytheCompensationCommitteein2017alsotookintoaccountfeedbackfromourstockholdersandconcernforretentionofkeyemployeeswhileweaddressoperationalissues.B&Wdidnotperformasexpectedin2017;consequently,thepayoutunderourannualincentiveplanwas10%ofthetargetawardopportunities.Oursafetymetrics,whichareevaluatedindependentlyfromourfinancialperformance,accountfor10%ofthetargetawards.SolelyasaresultoftheCompany’ssignificantimprovementinsafetyperformanceover2016andthepriorthree-yearaverage,thepayoutpercentageforeachofournamedexecutiveofficers("NEOs")was10%ofthetargetannualincentiveaward.Forthesecondyearinarow,nopaymentwasearnedunderthefinancialorindividualcomponentsoftheannualincentiveaward.See"2017SummaryCompensationTable"foracomparisonofthetotalcompensationreceivedbyourNEOsin2017versus2016and2015,asapplicable.Ourlong-termincentivecompensationmetrics(earningspershare,relativetotalstockholderreturnandreturnoninvestedcapital),aredesignedtodriveperformanceandaligntheinterestsofemployeeswiththoseofstockholders.Inlightofourrecentfinancialperformance,however,thecurrentprojectedvalueoftheperformance-basedshareawardsgrantedin2017and2016underourlong-termincentiveplanissignificantlyimpaired.

CorporateGovernanceAspartofourcommitmenttoeffectivecorporategovernance,managementandourBoardundertookareviewofcurrentcorporategovernancetrendsandconsideredtheviewheldbymanyinstitutionalstockholdersthataclassifiedboardstructurehasthepotentialeffectofreducingtheaccountabilityofdirectors.Aftercarefulconsideration,theBoardunanimouslyapproved,andrecommendsthatourstockholdersapprove,amendmentstoourCertificateofIncorporationthat,ifadopted,wouldeliminatetheclassifiedstructureoftheBoardoveratwo-yearperiod.

GovernanceHighlights

Corporategovernanceisimportant,andwebelievethatourgovernancepoliciesandstructuresprovideastrongframeworkandassurancethatweareclear,ethicalandtransparentinallofourbusinessdealings.Theyhelpusoperatemoreeffectively,mitigateriskandactasasafeguardagainstmismanagement.

Board Elections •Majorityvotinginuncontestedelections

Board Independence •Sixoutofsevenofourdirectorsareindependent•OurCEOistheonlymanagementdirector

Board Composition

•Currentlytheboardhasfixedthenumberofdirectorsatseven•Theboardannuallyassessesitsperformancethroughboardandcommitteeself-evaluations•TheGovernanceCommitteeleadsthefullboardinconsideringboardcompetenciesandrefreshmentinlightofcompanystrategy

Board Committees •Wehavethreestandingboardcommittees–AuditandFinance,Governance,andCompensation•Allcommitteesarecomposedentirelyofindependentdirectors

Leadership Structure•OurindependentChairmanworkscloselywithourCEOandprovidesfeedbacktomanagement•Amongotherduties,ourChairmanisinvolvedinsettingtheBoard'sagendaandchairsexecutivesessionsoftheindependentdirectorstodiscusscertainmatterswithoutmanagementpresent

Risk Oversight•Ourfullboardisresponsibleforriskoversight,andhasdesignatedcommitteestohaveparticularoversightofcertainkeyrisks•Ourboardoverseesmanagementasmanagementfulfillsitsresponsibilitiesfortheassessmentandmitigationofrisks,andtakingappropriaterisks

Open Communication•WeencourageopencommunicationandstrongworkingrelationshipsamongtheChairmanand

otherdirectors•Ourdirectorshaveaccesstomanagementandemployees

Director Stock Ownership •Ourdirectorsarerequiredtoownfivetimestheirannualbaseretainersinsharesofcommonstock

Accountability to Stockholders •Weactivelyreachouttoourstockholdersthroughourengagementprogram•Stockholderscancontactourboard,Chairmanormanagementthroughourwebsiteorbyregularmail

Management Succession Planning •Theboardactivelymonitorsoursuccessionplanningandpeopledevelopment•Atleastonceperyear,theboardreviewsseniormanagementsuccessionanddevelopmentplans

TABLE OF CONTENTS

APPROVALOFAMENDMENTSTOTHECOMPANY’SCERTIFICATEOFINCORPORATIONTODECLASSIFYTHEBOARDOFDIRECTORSANDPROVIDEFORANNUALELECTIONSOFALLDIRECTORSBEGINNINGATTHE2020ANNUALMEETINGOFSTOCKHOLDERS(PROPOSAL1) -1RecommendationandVoteRequired -1

IFPROPOSAL1ISAPPROVED,ELECTIONOFTHREECLASSIDIRECTORS(PROPOSAL2) 2RecommendationandVoteRequired 2

IFPROPOSAL1ISNOTAPPROVED,ELECTIONOFTHREECLASSIIIDIRECTORS(PROPOSAL3) 2RecommendationandVoteRequired 2

INFORMATIONREGARDINGDIRECTORSANDDIRECTORNOMINEES -3VintageCapitalManagementAgreement -7SummaryofDirectorCoreCompetenciesandAttributes -8

CORPORATEGOVERNANCE -9DirectorIndependence -9BoardFunction,LeadershipStructureandExecutiveSessions 10DirectorNominationProcess 11CommunicationwiththeBoard -11BoardOrientationandContinuingEducation 12BoardAssessments -12TheRoleoftheBoardinSuccessionPlanning -12TheRoleoftheBoardinRiskOversight -12BoardofDirectorsandItsCommittees -12

COMPENSATIONOFDIRECTORS -15SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENT -16SECTION16(a)BENEFICIALOWNERSHIPCOMPLIANCE -18CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONS -18NAMEDEXECUTIVEOFFICERPROFILES -19APPROVALOFAMENDMENTSTOTHECOMPANY’SCERTIFICATEOFINCORPORATIONTOREMOVEPROVISIONSTHAT

REQUIRETHEAFFIRMATIVEVOTEOFHOLDERSOFATLEAST80%OFTHEVOTINGPOWERTOAPPROVECERTAINAMENDMENTSTOTHECERTIFICATEOFINCORPORATIONANDTHEBYLAWS(PROPOSAL4) -20RecommendationandVoteRequired -20

RATIFICATIONOFAPPOINTMENTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRMFORYEARENDINGDECEMBER31,2018(PROPOSAL5) -21RecommendationandVoteRequired -21

AUDITANDFINANCECOMMITTEEREPORT -22APPROVAL,ONANON-BINDINGADVISORYBASIS,OFNAMEDEXECUTIVEOFFICERCOMPENSATION(PROPOSAL6) -23

EffectofProposal -23RecommendationandVoteRequired -23

COMPENSATIONDISCUSSIONANDANALYSIS -24

TABLE OF CONTENTS(continued)

ExecutiveSummary -24WeAreCommittedtoCompensationBestPractices -28PeerGroup -29CompensationPhilosophyandProcess -302017CompensationDecisions -32OtherCompensationPracticesandPolicies -38

COMPENSATIONCOMMITTEEREPORT -40COMPENSATIONOFNAMEDEXECUTIVEOFFICERS -41

2017SummaryCompensationTable -412017GrantsofPlan-BasedAwards -44OutstandingEquityAwardsat2017FiscalYear-End -462017OptionExercisesandStockVested -492017PensionBenefits -502017Non-qualifiedDeferredCompensation -51PotentialPaymentsUponTerminationorChangeInControl -54

CEOPAYRATIO -64APPROVALOFTHEBABCOCK&WILCOXENTERPRISES,INC.AMENDEDANDRESTATED2015LONG-TERMINCENTIVEPLAN

(PROPOSAL7) -65Introduction -65RecommendationandVoteRequired 79

STOCKHOLDERS’PROPOSALS -80GENERALINFORMATION -80VOTINGINFORMATION -81

RecordDateandWhoMayVote -81HowtoVote -81HowtoChangeYourVoteorRevokeYourProxy -82HowtoParticipateintheAnnualMeeting -82HowtoLocateYour16-DigitControlNumber -82Quorum -82ProposalsPresentedforVote -82VoteRequired 83HowVotesareCounted -83ConfidentialVoting -84

APPROVAL OF AMENDMENTS TO THE COMPANY’S CERTIFICATE OF INCORPORATION TODECLASSIFY THE BOARD OF DIRECTORS AND PROVIDE FOR ANNUAL ELECTIONS OF ALLDIRECTORS BEGINNING AT THE 2020 ANNUAL MEETING OF STOCKHOLDERS (PROPOSAL1)General

OurCertificateofIncorporationcurrentlyprovidesforaclassifiedboardstructure,pursuanttowhichtheBoardisdividedintothreeclassesanddirectorsareelectedtostaggeredthree-yeartermswithmembersofoneofthethreeclasseselectedeveryyear.Aftercarefulconsideration,theBoard,upontherecommendationoftheGovernanceCommittee,unanimouslyapproved,andrecommendsthatourstockholdersapproveamendmentstoourCertificateofIncorporationthat,ifadopted,wouldeliminatetheclassifiedstructureoftheBoardbythe2020annualmeetingofstockholdersandallowforremovalofdirectorswithorwithoutcausewhentheBoardisnolongerclassified.

Summary of Principal Changes

Ifthisproposalisadopted,ArticleFifthofourCertificateofIncorporationwillbeamendedtoprovidethatalldirectornomineesstandingforelectionwillbeelectedtoaone-yeartermatorafterthe2020annualmeetingofstockholders.AttheAnnualMeeting,directorswhosetermsexpireatthatmeetingwillbeelectedtoatwo-yearterm.Atthe2019annualmeetingofstockholders,directorswhosetermsexpireatthatmeetingwillbeelectedtoaone-yearterm.Asaresult,beginningatthe2019annualmeetingofstockholders,andateachannualmeetingthereafter,alldirectorswillserveone-yearterms.DirectorselectedtofillanyvacancyontheBoardortofillnewlycreateddirectorpositionsresultingfromanincreaseinthenumberofdirectorswouldservetheremainderofthetermofthatposition.

Inconnectionwiththedeclassification,ArticleFifthwouldalsobeamendedtoprovidethat,commencingwiththeelectionofdirectorsatthe2020annualmeetingofstockholders,directorsmayberemovedwithorwithoutcauseasprovidedintheGeneralCorporationLawoftheStateofDelaware,andonlytheapprovalofamajorityofthevotingpoweroftheCompanywouldberequiredtoremoveadirectorwithorwithoutcause.

ThisdescriptionoftheproposedamendmentstoourCertificateofIncorporationisonlyasummaryofthoseamendmentsandisqualifiedinitsentiretybyreferenceto,andshouldbereadinconjunctionwith,thefulltextofArticleFIFTHoftheCertificateofIncorporation,markedtoshowtheproposedamendments,acopyofwhichisattachedtothisproxystatementasAppendixA.Ifadopted,theamendmentstotheCertificateofIncorporationwillbecomeeffectiveuponfilingoftheamendedCertificateofIncorporationwiththeSecretaryofStateofDelaware,whichisexpectedtooccurpromptlyfollowingthestockholdervote.IftheamendmentstotheCertificateofIncorporationareapprovedbystockholdersandbecomeeffective,theBoardexpectstoapprovecertainconformingamendmentstoourBylawstoremovereferencestoaclassifiedBoardandtoreflectstockholders’abilitytoremovedirectorsonanunclassifiedBoardwithorwithoutcauseatorafterthe2020annualmeetingofstockholders.

RecommendationandVoteRequired

Our Board recommends that stockholders vote “FOR” the approval of amendments to the Company’s Certificate of Incorporation todeclassify the Board and provide for annual elections of all directors beginning at the 2020 annual meeting of stockholders. Theproxyholderswillvoteallproxiesreceivedforapprovalofthisproposalunlessinstructedotherwise.Approvaloftheproposalrequirestheaffirmativevoteofatleast80%oftheoutstandingsharesofourcommonstock.Accordingly,abstentionsandbrokernon-voteswillhavetheeffectofavoteagainstthisproposal.

IF PROPOSAL 1 IS APPROVED, ELECTION OF THREE CLASS I DIRECTORS (PROPOSAL 2)

IfProposal1isapproved,stockholderswillvotetoelectthreedirectorstoholdofficeforatwo-yeartermexpiringatthe2020annualmeetingofstockholders.Insuchevent,theBoardhasrecommendedeachofThomasA.Christopher,BrianR.KahnandLeslieC.Kassforelectionasdirectors,toserveuntilthe2020annualmeetingofstockholdersoruntilhisorhersuccessorisdulyelectedandqualifiedoruntilhisorherearlierdeath,resignationorremoval.

Informationregardingthedirectornomineesissetforthbelowundertheheading“InformationRegardingDirectorsandDirectorNominees.”

Youmayvote“FOR”alldirectornomineesorwithholdyourvoteforanyoneormoreofthedirectornominees.Subjecttoourmajorityvotingrequirementsdescribedbelow,directornomineesareelectedbyapluralityofthevotescastbythesharesofourcommonstockentitledtovoteintheelectionofdirectorsatameetingofstockholdersatwhichaquorumispresent.The Board recommends that stockholders vote “FOR” theelection of each of Thomas A. Christopher, Brian R. Kahn and Leslie C. Kass.

IF PROPOSAL 1 IS NOT APPROVED, ELECTION OF THREE CLASS III DIRECTORS(PROPOSAL 3)

IfProposal1isnotapproved,stockholderswillvotetoelectthreedirectorstoholdofficeforathree-yearterm.Insuchevent,theBoardhasrecommendedeachofThomasA.Christopher,BrianR.KahnandLeslieC.Kassforelectionasdirectors,toserveuntilthe2021annualmeetingofstockholdersoruntilhisorhersuccessorisdulyelectedandqualifiedoruntilhisorherearlierdeath,resignationorremoval.

Informationregardingthedirectornomineesissetforthbelowundertheheading“InformationRegardingDirectorsandDirectorNominees.”

Youmayvote“FOR”alldirectornomineesorwithholdyourvoteforanyoneormoreofthedirectornominees.Subjecttoourmajorityvotingrequirementsdescribedbelow,directornomineesareelectedbyapluralityofthevotescastbythesharesofourcommonstockentitledtovoteintheelectionofdirectorsatameetingofstockholdersatwhichaquorumispresent.The Board recommends that stockholders vote “FOR” theelection of each of Thomas A. Christopher, Brian R. Kahn and Leslie C. Kass.

INFORMATION REGARDING DIRECTORS AND DIRECTOR NOMINEESOurBoardcurrentlyincludessevenhighlyqualifieddirectorswithskillsalignedtoourbusinessandstrategywhobringsignificantvalueanddiversitytotheCompany.OurBoardiscomprisedofthefollowingmembers:

NAME CLASS YEAR TERM EXPIRESThomas A. Christopher ClassIII 2018

Brian R. Kahn ClassIII 2018

Leslie C. Kass ClassIII 2018

Henry E. Bartoli ClassI 2019

Cynthia S. Dubin ClassI 2019

Matthew E. Avril ClassII 2020

Anne R. Pramaggiore ClassII 2020

TheBoardcurrentlyconsistsofthreeClassesofdirectorswitheachdirectorservingastaggeredthree-yearterm.TheClassIdirectorsareHenryE.BartoliandCynthiaS.Dubin.TheClassIIdirectorsareMatthewE.AvrilandAnneR.Pramaggiore.TheClassIIIdirectorsareThomasA.Christopher,BrianR.KahnandLeslieC.Kass.

IfProposal1isapproved,theBoardwillconsistoftwoClassesofdirectors,withthedirectorsinClassIservinguntiltheCompany’s2020annualmeetingofstockholdersandthedirectorsinClassIIservinguntiltheCompany’s2019annualmeetingofstockholders.IfProposal1isapproved,thedirectorscurrentlyinClassIIIwillbedesignatedasClassIdirectorsandthedirectorscurrentlyinClassIandClassIIwillbedesignatedasClassIIdirectors.

MatthewE.Avril,anindependentdirector,currentlyservesasBoardChairman.SolongastheBoardChairmanisanindependentdirector,theBoardpresentlyexpectsthatitwouldnotdesignateanotherdirectorasLeadIndependentDirector.

Unlessotherwisedirected,thepersonsnamedasproxiesontheenclosedproxycardintendtovote“FOR”theelectionofthenominees.Ifanynomineeshouldbecomeunavailableforelection,theshareswillbevotedforsuchsubstitutenomineeasmaybeproposedbyourBoard.However,wearenotawareofanycircumstancesthatwouldpreventanyofthenomineesfromservingasadirector.

ThefollowingsectionprovidesinformationwithrespecttoeachnomineeforelectionasadirectorandeachdirectoroftheCompanywhowillcontinuetoserveasadirectorafterthisyear’sAnnualMeeting.Itincludesthespecificexperience,qualificationsandskillsconsideredbytheGovernanceCommitteeand/ortheBoardinassessingtheappropriatenessofthepersontoserveasadirector.(agesareasofMay1,2018)

Nominees

THOMAS A. CHRISTOPHER Directorsince2015Age:73GovernanceCommittee

Qualifications:

Followinghisretirementin2009,Mr.Christopherhasprovidedindependentconsultantservicestovariousenergyindustryparticipants.HeservesasamemberoftheOperatingAdvisoryBoardofFortPointCapital,aprivateequityfirm.Healsoteachesagraduate-levelcourseinmanagementprinciplesattheUniversityofPittsburgh.FromJanuary2009untilhisretirementinJune2009,Mr.ChristopherservedastheViceChairmanofArevaNPInc.(“Areva”),acommercialnuclearpowerengineering,fuelandnuclearservicescompany.Previously,heservedasAreva’sPresidentandChiefExecutiveOfficerfromApril2000toJanuary2009andservedonAreva’sglobalExecutiveCommitteeinFrancefromJanuary2005untilDecember2008.PriortojoiningArevain2000,Mr.ChristopherservedasVicePresidentandGeneralManagerofSiemens/WestinghousePowerServicesDivisionssinceAugust1998,VicePresidentandGeneralManagerofWestinghouseEnergyServicesDivisionsfromJanuary1996untilAugust1998,andVicePresidentandGeneralManagerofWestinghouseGlobalNuclearServiceDivisionsfromJuly1982untilDecember1996.Mr.ChristopheralsospentsixyearswiththeU.S.Navyasanofficerinthenuclearsubmarineforce,holdingthenavalreactorsengineercertification.

Mr.Christopherbringsanextensiveanduniqueunderstandingoffossilpoweroperations,thepowermarketandpowerengineeringtotheCompany’sboardofdirectors.Asanenergybusinessexecutive,heisfamiliarwithourkeycustomersandtheirinvestmentdecisionmakingprocess.Heisalsoexperiencedinmanaginginternationaloperationsforenergyservicescompaniesthroughouttheworld.Mr.Christopher’smanagementexperienceandtechnicalbackgroundintheenergyindustrymakehimwellqualifiedtoserveonourboardofdirectors.

BRIAN R. KAHN Directorsince2018Age:44CompensationCommitteeGovernanceCommittee

Qualifications:

Since1999,Mr.KahnhasservedasthemanagingpartnerofVintageCapitalManagement,LLC,aprivate-equityinvestmentorganizationspecializinginthedefense,manufacturingandconsumersectors.HeservedasadirectorofAaron’s,Inc.,fromMay2014toAugust2015.Mr.KahnalsoservedastheChairmanoftheBoardofWhiteElectronicDesignsCorporationfromJune2009toApril2010.Hehasalsoservedasadirectorofnumerousprivately-heldcompaniesincludingAPITechnologiesCorp.,Buddy’sHomeFurnishings,EnergesServicesLLC,IECElectronicsandKVHIndustries,Inc.

MrKahn’sextensiveexperienceasadirectoracrossmultipleindustriesmakeshimavaluablememberofourboardofdirectors.

LESLIE C. KASS Directorsince2018Age:47

Qualifications:

Ms.KasshasservedasourPresidentandChiefExecutiveOfficersinceJanuary2018.Previously,Ms.KassservedastheCompany’sSeniorVicePresident,IndustrialfromMay2017throughJanuary2018.Priortothisappointment,sheservedinavarietyofrolesattheCompany,includingVicePresidentofRetrofitsandContinuousEmissionsMonitoringfortheCompany’sPowersegmentfromAugust2016toMay2017,VicePresident,InvestorRelations&CommunicationsfromJune2015toAugust2016,andVicePresidentofRegulatoryAffairsfromJanuary2013toJune2015.BeforejoiningtheCompany,Ms.Kassheldanumberofengineeringandprojectmanagement-relatedpositionsofincreasingresponsibilitywithWestinghouseElectricCompany,EntergyCorporationandDukeEnergyCorporation.

Ms.Kassisanexperiencedexecutivewithanextensiveengineeringandprojectmanagementbackground.Thisexperience,combinedwithherstrategicvision,makeheravaluablememberofourboardofdirectors.

ContinuingDirectors

MATTHEW E. AVRIL Directorsince2018Age:57 AuditandFinanceCommitteeCompensationCommittee

Qualifications:

Mr.AvrilisamemberofthestrategicadvisoryboardofVintageCapitalManagement,aprivate-equityinvestmentorganizationspecializinginthedefense,manufacturingandconsumersectors.FromNovember2016toMarch2017,heservedasChiefExecutiveOfficerofDiamondResortsInternational,Inc.Previously,hewasChiefExecutiveOfficer-electforVistanaSignatureExperiences,Inc.,fromFebruarytoNovember2015,afterhisretirementasPresident,HotelGroup,forStarwoodHotels&ResortsWorldwide,Inc.–apositionheheldfrom2008to2012.Beforethat,from2002to2008,heservedinanumberofexecutiveleadershippositionswithStarwood,andfrom1989to1998,heldvariousseniorleadershippositionswithVistana.

Mr.AvrilisaCertifiedPublicAccountant(inactivestatus),andhisknowledgeofaccountingandfinancemakeshimavaluablememberofourboardofdirectors.

ANNE R. PRAMAGGIORE Directorsince2015Age:59AuditandFinanceCommitteeCompensationCommittee

Qualifications:

SinceFebruary24,2012,Ms.PramaggiorehasservedasPresidentandChiefExecutiveOfficerofCommonwealthEdisonCompany(“ComEd”),anelectricutilitycompany.Priortohercurrentposition,sheservedasComEd’sPresidentandChiefOperatingOfficerfromMay2009throughFebruary23,2012.Ms.PramaggiorejoinedComEdin1998andservedasitsExecutiveVicePresident,CustomerOperations,RegulatoryandExternalAffairsfromSeptember2007toMay2009,SeniorVicePresident,RegulatoryandExternalAffairsfromNovember2005toSeptember2007,andVicePresident,RegulatoryandExternalAffairsfromOctober2002toNovember2005.ShealsoservedasitsLeadCounsel.Ms.PramaggiorehasalsoservedasamemberoftheBoardofDirectorsofMotorolaSolutions,Inc.sinceJanuary2013.Inaddition,Ms.PramaggioreservesasaboardmemberontheChicagoFederalReserveBoard.

Ms.PramaggioreisalicensedattorneyandbringstotheCompany’sboardofdirectorsextensiveexperienceintheutilitiesindustry,ashighlightedbyheryearsofserviceatComEd.Herexperienceasacurrentexecutiveatanotherpubliccompanyandherperspectiveonthetechnical,regulatory,operationalandfinancialaspectsofthepowerindustrymakeherwellqualifiedtoserveonourboardofdirectors.

HENRY E. BARTOLI Directorsince2018Age:71 GovernanceCommittee

Qualifications:

In2014,Mr.BartoliretiredasPresidentandChiefExecutiveOfficerofHitachiPowerSystemsAmericaLTD,apositionheheldfrom2004to2014.From2002to2004,hewasExecutiveVicePresidentofTheShawGroup,afterservinginanumberofseniorleadershiprolesatFosterWheelerLtd.from1992to2002,includingGroupExecutiveandCorporateSeniorVicePresident,EnergyEquipmentGroup,andGroupExecutiveandCorporateVicePresidentandGroupExecutive,FosterWheelerPowerSystemsGroup.Previously,from1971to1992,heservedinanumberofpositionsofincreasingimportanceatBurnsandRoeEnterprises,Inc.

Withmorethan35yearsofexperienceintheglobalpowerindustry,Mr.Bartoliisavaluablememberofourboardofdirectors.

CYNTHIA S. DUBIN Directorsince2015Age:56AuditandFinanceCommittee

Qualifications:

FromNovember2011throughJanuary2016,Ms.DubinservedasFinanceDirectorofJKXOil&Gasplc,apubliclyheldoilandgasexploration,developmentandproductioncompany.PriortojoiningJKXOil&Gasplc,sheco-foundedandservedasChiefFinancialOfficerofCanamensEnergyLimited,anoilandgasexplorationandproductioncompanyfocusedontheCaspian,NorthAfrica,MiddleEastandNorthSearegions,from2006to2011.PriortojoiningCanamensEnergyLimited,Ms.DubinservedasVicePresidentandFinanceDirector,Europe,MiddleEastandAfricaDivisionforEdisonMissionEnergy,aU.S.ownedelectricpowergeneratorwhichdeveloped,acquired,financed,ownedandoperatedreliableandefficientpowersystems.Ms.DubinstartedhercareeratTheBankofNewYorkandMitsubishiBankadvisingonandlendingtolargeenergyprojects.

Ms.DubinbringsvaluablefinanceandenergyindustryexperiencetotheCompany’sboardaswellasauniqueunderstandingoftheglobalandEuropeanenergymarkets.Withmorethan30yearsofexperienceintheenergysectorcombinedwithherfinancialexpertiseandherinternationalleadershipexperience,Ms.Dubinisavaluablememberofourboardofdirectors.

VintageCapitalManagementAgreement

OnJanuary3,2018,theCompanyenteredintoanagreement(the“Agreement”)withVintageCapitalManagement,LLC(“Vintage”)andcertainrelatedparties(eacha“VintageShareholder”and,collectively,the“VintageShareholders”).PursuanttotheAgreement,theCompanyagreed,amongotherthings,toincreasethesizeoftheBoardtotenmembersbyaddingthreeadditionaldirectorstotheBoard,andtoappointeachofHenryE.Bartoli,MatthewE.AvrilandBrianR.Kahn(collectively,the“VintageShareholderNominees”)totheBoardtoserveasClassI,ClassIIandClassIIIdirectors,respectively.PursuanttotheAgreement,theCompanyalsoappointedeachofMessrs.Bartoli,AvrilandKahntotheGovernanceCommittee,theAuditandFinanceCommitteeandtheCompensationCommitteeoftheBoard,respectively.PursuanttotheAgreement,andsolongasVintage’sbeneficialownershiphasnotdecreasedbelow5%ofthethen-outstandingsharesofcommonstockoftheCompany(otherthanasaresultofanincreaseinthenumberofsharesofoutstandingcommonstock),ifanyVintageShareholderNomineeisunableorunwillingtoserveasadirector,resignsasadirectororisremovedasadirectorpriortotheexpirationoftheNominationPeriod(asdefinedbelow),Vintagemayrecommendasubstitutepersontofilltheresultingvacancy,andtheappointmentofanysuchpersontotheBoardwillbesubjecttotheapprovaloftheGovernanceCommittee.

PursuanttotheAgreement,untilthefirstdateonwhichCompanyshareholdersmaynominateindividualsforelectiontotheBoardattheCompany’s2019annualmeetingofshareholdersor,ifearlier,thefirstdateonwhichCompanyshareholdersmaynominateindividualsforelectiontotheBoardiftheCompanyannouncesthatitwillholdashareholdermeetingatwhichdirectorswillbeelectedotherthantheannualmeetingsofshareholdersin2018and2019(the“NominationPeriod”),theVintageShareholderswillnotengageincertainproxysolicitations,makecertainshareholderproposals,callmeetingsofshareholdersorsolicitorpubliclycommentoncertainproposalsorconsentsfromshareholdersregardinganymerger,acquisition,recapitalization,restructuring,dispositionorotherbusinesscombinationwithrespecttotheCompany.

TheAgreementfurtherprovidesthat,duringtheNominationPeriod,eachVintageShareholderwillcauseCommonSharesthenbeneficiallyownedbysuchVintageShareholderoritsaffiliatestoappearinpersonorbyproxyatallannualmeetingsandtobevotedinfavoroftheBoard’snomineesfordirector,inaccordancewiththeBoard’srecommendationwithrespecttotheratificationoftheCompany’sindependentregisteredpublicaccountingfirm,inaccordancewiththeBoard’srecommendationwithrespecttotheCompany’s“say-on-pay”proposal,inaccordancewiththeBoard’srecommendationwithrespecttothefrequencyoftheCompany’s“say-on-pay”proposalsandinfavorofthedeclassificationofBoardterms.

SummaryofDirectorCoreCompetenciesandAttributes

OurBoardofDirectorsprovideseffectiveandstrategicoversighttosupportthebestinterestsofourCompanyanditsstockholders.ThefollowingchartsummarizesthecorecompetenciesandattributesrepresentedbythedirectornomineesandthedirectorswhowillcontinuetoserveaftertheAnnualMeetingonourBoard.Moredetailsoneachdirector’scompetenciesareincludedinthedirectorprofilesonthepreviouspages.

Competencies / Attributes Matthew E.Avril

Henry E.Bartoli

Thomas A.Christopher

Cynthia S.Dubin

Brian R.Kahn

Leslie C.Kass

Anne R.Pramaggiore

COMPLIANCE CONSIDERATIONS IndependentDirector ● ● ● ● ● ●

Financialexpertise ● ● ● ● ● ●

CORE COMPETENCIES RecentorcurrentpubliccompanyCEO/COO/CFO/GC ● ● ●

FossilFuelPowerGeneration ● ● ● ● ●

Manufacturing ● ● ● EngineeringandConstruction ● ● ● Utility/PowerTransmissionDistribution ● ● ●

InternationalOperations ● ● ● ● ●

STRATEGIC COMPETENCIES Financial(Reporting,Auditing,InternalControls) ● ● ● ● ● ● ●

Strategy/BusinessDevelopment/M&A ● ● ● ● ● ● ●

HumanResources/OrganizationalDevelopment ● ● ● ● ● ●

Legal/Governance/BusinessConduct ● ● ● ● ● ●

RiskManagement ● ● ● ● ● PublicPolicy/RegulatoryAffairs ● ● ● ● ●

PUBLIC COMPANY BOARDEXPERIENCE Boardofsimilarorlargersizeenergycompany ● ●

Audit/Finance(Boardcommitteeexperiencewithothercompanies) ● Compensation(Boardcommitteeexperiencewithothercompanies) ● ●

Nomination/Governance(Boardcommitteeexperiencewithothercompanies) ●

PERSONAL Age(asofMay1,2018) 57 71 73 56 44 47 59

Gender M M M F M F F

CORPORATE GOVERNANCE

OurCorporateGovernancepoliciesandstructuresprovidethegeneralframeworkforhowwerunourbusiness.Theydemonstrateourcommitmenttoethicalvalues,tostrongandeffectiveoperationsandtoassuringcontinuedgrowthandfinancialstabilityforourstockholders.

ThecorporategovernancesectiononourWebsitecontainscopiesofourprincipalgovernancedocuments.Itisfoundatwww.babcock.comat“Investors—CorporateGovernance”andcontainsthefollowingdocuments:

AmendedandRestatedBylaws

CorporateGovernancePrinciples

CodeofBusinessConduct

CodeofEthicsforChiefExecutiveOfficerandSeniorFinancialOfficers

AuditandFinanceCommitteeCharter

CompensationCommitteeCharter

GovernanceCommitteeCharter

ConflictMineralsPolicy

RelatedPartyTransactionsPolicy

ModernSlaveryTransparencyStatement

DirectorIndependence

TheNewYorkStockExchange(“NYSE”)listingstandardsrequireourBoardtoconsistofatleastamajorityofindependentdirectors.Foradirectortobeconsideredindependent,theBoardmustdeterminethatthedirectordoesnothaveanydirectorindirectmaterialrelationshipwithus.TheBoardhasestablishedcategoricalstandards,whichconformtotheindependencerequirementsintheNYSElistingstandardstoassistitindeterminingdirectorindependence.ThesestandardsarecontainedintheCorporateGovernancePrinciplesfoundonourWebsiteatwww.babcock.comunder“Investors—CorporateGovernance—GovernanceDocuments.”

Basedontheseindependencestandards,ourBoardhasdeterminedthatthefollowingdirectorsareindependentandmeetourcategoricalstandards:

MatthewE.Avril CynthiaS.DubinHenryE.Bartoli BrianR.KahnThomasA.Christopher AnneR.Pramaggiore

Aspreviouslydisclosed,effectiveMarch2,2018,E.JamesFerland,StephenG.Hanks,BrianK.FerraioliandLarryL.WeyersresignedasdirectorsoftheCompany.TheBoardpreviouslydeterminedthateachofStephenG.Hanks,BrianK.FerraioliandLarryL.Weyerswasindependentandmetourcategoricalstandardsduring2017.

Indeterminingtheindependenceofthedirectors,ourBoardconsideredordinarycoursetransactionsbetweenusandotherentitieswithwhichthedirectorsareassociated.Thosetransactionsaredescribedbelow,althoughnoneweredeterminedtoconstituteamaterialrelationshipwithus.AlthoughMr.WeyershadnorelationshipwiththeCompanyduring2017,exceptasadirectorandstockholder,heistheformerchairmanoftheboardofdirectorsofIntegrysEnergyGroup,Inc.,withwhichwehavetransactedbusinessintheordinarycourseduringthelastthreeyears.Mr.Ferraioliwasformerlyanofficerofanentitywithwhichwehavetransactedbusinessintheordinarycourseduringthelastthreeyears,andMs.Pramaggioreiscurrentlyanofficerofanentitywithwhichwehavetransactedbusinessintheordinarycourseduringthelastthreeyears.Mr.Hanksisadirectorofanentitywithwhichwetransactbusinessintheordinarycourse.

BoardFunction,LeadershipStructureandExecutiveSessions

OurBoardoversees,counselsanddirectsmanagementinthelong-terminterestoftheCompanyandourstockholders.TheBoard’sresponsibilitiesinclude:

• overseeingtheconductofourbusinessandassessingourbusinessandenterpriserisks;• reviewingandapprovingourkeyfinancialobjectives,strategicandoperatingplans,andothersignificantactions;• overseeingtheprocessesformaintainingtheintegrityofourfinancialstatementsandotherpublicdisclosures,andourcompliancewithlawandethics;

• evaluatingCEOandseniormanagementperformanceanddeterminingexecutivecompensation;• planningforCEOsuccessionandmonitoringmanagement’ssuccessionplanningforotherkeyexecutiveofficers;and• establishingoureffectivegovernancestructure,includingappropriateboardcompositionandplanningforboardsuccession.

OurBoarddoesnothaveapolicyrequiringeitherthatthepositionsoftheChairmanandtheChiefExecutiveOfficershouldbeseparateorthattheyshouldbeoccupiedbythesameindividual.OurBoardbelievesthatthisissueisproperlyaddressedaspartofthesuccessionplanningprocessandthatitisinthebestinterestsoftheCompanyfortheBoardtomakeadeterminationonthesematterswhenitelectsanewChiefExecutiveOfficerorChairmanoftheBoardoratothertimesconsiderationiswarrantedbycircumstances.Intherecentpast,theBoardhasbeenstructuredwithacombinedChairmanandChiefExecutiveOfficer.InconnectionwithourrecentChiefExecutiveOfficersuccessioninJanuary2018,Ms.KasswasappointedasourPresidentandChiefExecutiveOfficer,whileMr.AvrilcurrentlyservesasourChairman.

PursuanttoourCorporateGovernancePrinciples,intheeventtheChairmanoftheBoardisnotanindependentdirector,theindependentdirectorswillannuallyappointaLeadIndependentDirectorwithsuchresponsibilitiesastheBoardshalldeterminefromtimetotime.Ifappointed,theLeadIndependentDirectorhasthefollowingresponsibilities:

• presidesoverallBoardmeetingsatwhichtheChairmanoftheBoardisnotpresentandallexecutivesessionsattendedonlybyindependentdirectors;

• servesasliaisonbetweentheindependentdirectorsandtheChairmanoftheBoardandChiefExecutiveOfficer(includingadvisingtheChairmanoftheBoardandChiefExecutiveOfficerofdiscussionsheldduringexecutivesessionsofthenon-employeeandindependentdirectors,asappropriate);

• reviewsandapprovestheBoardmeetingagendasandmeetingschedulestoassurethatthereissufficienttimefordiscussionofallagendaitems;

• advisestheChairmanoftheBoardandChiefExecutiveOfficerregardingthequality,quantityandtimelinessofinformationsentbymanagementtothedirectors;

• hastheauthoritytocallmeetingsoftheindependentdirectors;and• ifrequestedbymajorstockholders,ensuresthatheorsheisavailableforconsultationanddirectcommunication.

Mr.AvrilandMs.KasscurrentlyserveasourChairmanandChiefExecutiveOfficer,respectively.SolongastheBoardChairmanisanindependentdirector,theBoardpresentlyexpectsthatitwouldnotdesignateanotherdirectorasLeadIndependentDirector.TheBoardbelievesthatthisleadershipstructureisappropriateforusatthistimebecauseitprovidesourChairmanwiththereadilyavailableresourcestomanagetheaffairsoftheBoard.OurChairmanworkscloselyandcollaborativelywithourChiefExecutiveOfficertoensurethattheviewsoftheBoardaretakenintoaccountasmanagementcarriesoutthebusinessoftheCompany.Ourindependentdirectors,ledbyourChairman,meetinexecutivesessionwithoutmanagementattheconclusionofeachBoardandcommitteemeeting.

DirectorNominationProcess

OurGovernanceCommitteeisresponsibleforassessingthequalifications,skillsandcharacteristicsofcandidatesforelectiontotheBoard.Inmakingthisassessment,theGovernanceCommitteegenerallyconsidersanumberoffactors,includingeachcandidate’s:

• professionalandpersonalexperiencesandexpertiseinrelationto(1)ourbusinessesandindustries,and(2)theexperiencesandexpertiseofotherBoardmembers;

• integrityandethicsinhisorherpersonalandprofessionallife;• professionalaccomplishmentinhisorherfield;• personal,financialorprofessionalinterestsinanycompetitor,customerorsupplierofours;• preparednesstoparticipatefullyinBoardactivities,includingactivemembershiponatleastoneBoardcommitteeandattendanceat,andactiveparticipationin,meetingsoftheBoardandthecommittee(s)ofwhichheorsheisamember,andlackofotherpersonalorprofessionalcommitmentsthatwould,intheGovernanceCommittee’ssolejudgment,interferewithorlimithisorherabilitytodoso;and

• abilitytocontributepositivelytotheBoardandanyofitscommittees.

TheBoardrecognizesthebenefitsofadiverseboardandbelievesthatanysearchforpotentialdirectorcandidatesshouldconsiderdiversityastogender,ethnicbackground,education,viewpointandpersonalandprofessionalexperiences.

Ourbylawsprovidethat(1)apersonwillnotbenominatedforelectionorreelectiontoourBoardifsuchpersonwillhaveattainedtheageof75priortothedateofelectionorre-electionand(2)anydirectorwhoattainstheageof75duringhisorhertermwillbedeemedtohaveresignedandretiredatthefirstAnnualMeetingfollowinghisorherattainmentoftheageof75.Accordingly,adirectornomineemaystandforelectionifheorshehasnotattainedtheageof75priortothedateofelectionorreelection.

TheGovernanceCommitteesolicitsideasforpossiblecandidatesfromanumberofsources—includingmembersoftheBoard,ourChiefExecutiveOfficerandothersenior-levelexecutiveofficers,individualspersonallyknowntothemembersoftheBoardandindependentdirectorcandidatesearchfirms.

Inaddition,anystockholdermaynominateoneormorepersonsforelectionasoneofourdirectorsatanannualmeetingofstockholdersifthestockholdercomplieswiththenotice,informationandconsentprovisionscontainedinourbylaws.See“Stockholders’Proposals”inthisproxystatementandourbylaws.

TheGovernanceCommitteewillevaluateproperlyidentifiedcandidates,includingnomineesrecommendedbystockholders.TheGovernanceCommitteealsotakesintoaccountthecontributionsofincumbentdirectorsasBoardmembersandthebenefitstousarisingfromtheexperienceofincumbentdirectorsontheBoard.Inaddition,theGovernanceCommitteewillconsiderwhetheracandidatemeetstheCompany’sCorporateGovernanceGuidelines.

Ourbylawsprovideforamajorityvotingstandardfordirectorsinuncontestedelections.Anynomineefordirectorisrequiredtosignanirrevocablecontingentresignationletter.Ifanomineefordirectordoesnotreceiveamajorityofthevotescast"FOR"hisorherelection(notcountinganyabstentionsorbrokernon-votesasbeingcast),theBoardwillactonanexpeditedbasistodeterminewhethertoaccepttheresignation.

CommunicationwiththeBoard

OurstockholdersorotherinterestedpersonsmaycommunicatedirectlywithourBoardoritsindependentmembers.WrittencommunicationstotheindependentmembersofourBoardcanbesenttothefollowing:BoardofDirectors(independentmembers),c/oBabcock&WilcoxEnterprises,Inc.,CorporateSecretary’sOffice,13024BallantyneCorporatePlace,Suite700,Charlotte,NorthCarolina28277.Allsuchcommunicationsareforwardedtotheindependentdirectorsfortheirreview,exceptforcommunicationsthat(1)containmaterialthatisnotappropriateforreviewbytheBoardbasedupontheCompany’sbylawsandtheestablishedpracticeandprocedureoftheBoard,or(2)containimproperorimmaterialinformation.InformationregardingthisprocessispostedonourWebsiteatwww.babcock.comunder“Investors—CorporateGovernance—GovernanceDocuments.”

BoardOrientationandContinuingEducation

EachnewdirectorparticipatesinanorientationprogramdevelopedandimplementedwiththeoversightoftheGovernanceCommittee.ThisorientationincludesinformationtofamiliarizenewdirectorswiththeCompany’soperations,significantfinancial,accountingandriskmanagementissues,complianceprograms,CodeofBusinessConduct,principalofficersandinternalandindependentauditors.

Directorsareencouragedtoparticipateincontinuingeducationprograms.TheBoardbelievesitisappropriatefordirectors,attheirdiscretion,tohaveaccesstoeducationalprogramsrelatedtotheirdutiesasdirectorsonanongoingbasistoenablethemtobetterperformtheirdutiesandtorecognizeanddealappropriatelywithissuesastheyarise.

TheCompanyprovidesappropriatefundingforanysuchprograminwhichadirectorwishestoparticipate.

BoardAssessments

TheBoardconductsanannualself-evaluationtodeterminewhetheritanditscommitteesarefunctioningeffectively.TheGovernanceCommitteeoverseesthisevaluation,solicitscommentsfromalldirectorsandreportsannuallytotheBoardwithanassessmentoftheperformanceoftheBoardanditscommittees.

TheRoleoftheBoardinSuccessionPlanning

TheBoardbelieveseffectivesuccessionplanning,particularlyfortheChiefExecutiveOfficer,isimportanttothecontinuedsuccessoftheCompany.Asaresult,theBoardperiodicallyreviewsanddiscussessuccessionplanningwiththeChiefExecutiveOfficerduringexecutivesessionsofBoardmeetings.TheCompensationCommitteeassiststheBoardintheareaofsuccessionplanningbyreviewingandassessingthemanagementsuccessionplanningprocessandreportingtotheBoardwithrespecttosuccessionplanningfortheChiefExecutiveOfficerandourotherexecutiveofficers.

TheRoleoftheBoardinRiskOversight

Aspartofitsoversightfunction,theBoardmonitorsvariousrisksthatweface.WemaintainanenterpriseriskmanagementprogramadministeredbyourCorporateStrategygroup.Thisprogramfacilitatestheprocessofreviewingkeyexternal,strategic,operational(e.g.,cybersecurity)andfinancialrisks,aswellasmonitoringtheeffectivenessofriskmitigation.InformationontheenterpriseriskmanagementprogramispresentedtoseniormanagementandtheBoard.TheAuditandFinanceCommitteeassiststheBoardinfulfillingitsoversightresponsibilityforfinancialreporting,andmeetsperiodicallywithmanagementtoreviewfinancialriskexposuresandtheCompany’spoliciesandguidelinesconcerningriskassessmentandriskmanagement.TheCompensationCommitteealsoassiststheBoardwiththisfunctionbyassessingrisksassociatedwithourcompensationprogramsinconsultationwithmanagementanditsoutsidecompensationconsultant,asmorefullydescribedin“CompensationDiscussionandAnalysis-CompensationPhilosophyandProcess.”

BoardofDirectorsandItsCommittees

OurBoardmet21timesduring2017.Alldirectorsattended75%ormoreofthemeetingsoftheBoardandofthecommitteesonwhichtheyservedduring2017.AlldirectorsthenservingontheBoardattendedour2017AnnualMeeting.

OurBoardcurrentlyhas,andappointsthemembersof,standingAuditandFinance,CompensationandGovernanceCommittees.EachofthosecommitteeshasawrittencharterapprovedbytheBoard.ThecurrentcharterforeachstandingBoardcommitteeispostedonourWebsiteatwww.babcock.comunder“Investors—CorporateGovernance—GovernanceDocuments.”

Thecurrentmembersofthecommitteesareidentifiedbelow.NYSElistingstandardsrequirethatallmembersofourAuditandFinance,CompensationandGovernanceCommitteesbeindependent.OurBoardhasaffirmativelydeterminedthateachmemberofsuchcommitteesisindependentinaccordancewiththeNYSElistingstandards.

COMMITTEECOMPOSITION:

Committee Member Audit & Finance Compensation Governance

MatthewE.Avril ● ●

CynthiaS.Dubin ●

AnneR.Pramaggiore ● ●

ThomasA.Christopher ●

BrianR.Kahn ● ●

HenryE.Bartoli ●

●-Chair●-Member

AUDIT AND FINANCE COMMITTEE:

Ms.Dubin(Chair)Mr.Avril(joinedMarch2,2018)Ms.Pramaggiore

TheAuditandFinanceCommitteemetfivetimesduring2017.TheAuditandFinanceCommittee’sroleisfinancialoversight.Ourmanagementisresponsibleforpreparingfinancialstatements,andourindependentregisteredpublicaccountingfirmisresponsibleforauditingthosefinancialstatements.

TheAuditandFinanceCommitteeisdirectlyresponsiblefortheappointment,compensation,retentionandoversightofourindependentregisteredpublicaccountingfirm.Thecommittee,amongotherthings,alsoreviewsanddiscussesourauditedfinancialstatementswithmanagementandtheindependentregisteredpublicaccountingfirm.TheAuditandFinanceCommitteeprovidesoversightof:(1)ourfinancialreportingprocessandinternalcontrolsystem;(2)theintegrityofourfinancialstatements;(3)ourcompliancewithlegalandregulatoryrequirements;(4)theindependence,qualificationsandperformanceofourindependentauditors;(5)theperformanceofourinternalauditfunction;and(6)ourfinancialstructureandstrategy.TheAuditandFinanceCommitteealsohasoversightoftheCompany’sethicsandcomplianceprogram,andreceivesregularreportsonprogrameffectiveness.

OurBoardhasdeterminedthatMr.AvrilandMmes.DubinandPramaggioreallqualifyasan“auditcommitteefinancialexpert”withinthedefinitionestablishedbytheSecuritiesandExchangeCommission(“SEC”).Formoreinformationonthebackgroundsofthesedirectors,seetheirbiographicalinformationunder“ElectionofDirectors.”

COMPENSATION COMMITTEE:

Mr.Avril(Chair)Mr.Kahn(joinedJanuary3,2018)Ms.Pramaggiore

TheCompensationCommitteemetsixtimesduring2017.TheCompensationCommitteehasoverallresponsibilityforourexecutiveandnon-employeedirectorcompensationplans,policiesandprogramsincludingourExecutiveIncentiveCompensationPlan(the“EICP”)andourAmendedandRestated2015Long-TermIncentivePlan(the“2015LTIP”).

TheCompensationCommitteehastheauthoritytoretain,terminate,compensateandoverseeanycompensationconsultantorotheradvisorstoassistthecommitteeinthedischargeofitsresponsibilities.TheCompensationCommitteemayformanddelegateauthoritytosubcommitteesconsistingofoneormoreindependentdirectorsastheCompensationCommitteedeemsappropriate.TheCompensationCommitteehasengagedKornFerryHayGroup,Inc.(“HayGroup”)asitsoutsidecompensationconsultant.Seethe“CompensationDiscussionandAnalysis–CompensationPhilosophyand

Process"and"–2017CompensationDecisions”sectionsofthisproxystatementforinformationaboutour2017namedexecutiveofficercompensation,includingadiscussionoftheroleofmanagementandthecompensationconsultant.

Compensation Committee Interlocks and Insider Participation

NodirectorwhoservedasamemberoftheCompensationCommitteeduringtheyearendedDecember31,2017(Messrs.Christopher,HanksandWeyers,andMs.Pramaggiore)(1)wasduringsuchyear,orhadpreviouslybeen,anofficeroremployeeoftheCompanyoranyofitssubsidiaries,or(2)otherthantransactionsintheordinarycourse,hadanymaterialinterestinatransactionoftheCompanyorabusinessrelationshipwith,oranyindebtednessto,theCompany.Noneofourexecutiveofficershaveservedasmembersofacompensationcommittee(orotherboardcommitteeperformingequivalentfunctions)ortheboardofdirectorsofanyotherentitythathasanexecutiveofficerservingasamemberofourBoard.

GOVERNANCE COMMITTEE:

Mr.Christopher(Chair) Mr.Bartoli(joinedJanuary3,2018) Mr.Kahn(joinedJanuary3,2018)

TheGovernanceCommitteemetfivetimesduring2017.Thiscommittee,inadditiontoothermatters,hasoverallresponsibilityto(1)establishandassessdirectorqualifications;(2)recommendnomineesforelectiontoourBoard;and(3)overseetheannualevaluationofourBoardandmanagement,includingtheChiefExecutiveOfficerinconjunctionwithourCompensationCommittee.Thiscommitteewillconsiderindividualsrecommendedbystockholdersfornominationasdirectorsinaccordancewiththeproceduresdescribedunder“Stockholders’Proposals.”ThiscommitteealsoassistsourBoardwithmanagementsuccessionplanninganddirectorandofficerinsurancecoverage.

COMPENSATION OF DIRECTORS

Thecompensationreflectedbelowsummarizesthecompensationearnedbyorpaidtoournon-employeedirectorsforservicesasmembersofourBoardduringfiscalyear2017.Directorswhoarealsoouremployeesdonotreceiveanycompensationfortheirserviceasdirectors.Messrs.Avril,BartoliandKahnwereappointedtotheBoardonJanuary3,2018andthereforearenotincludedinthetablebelow.

NAME FEES EARNED OR PAIDIN CASH($)

STOCKAWARDS($) TOTAL($)

ThomasA.Christopher $85,000 $94,991 $179,991CynthiaS.Dubin $85,000 $94,991 $179,991BrianK.Ferraioli $100,000 $94,991 $194,991StephenG.Hanks $115,000 $94,991 $209,991AnneR.Pramaggiore $85,000 $94,991 $179,991LarryL.Weyers $95,000 $94,991 $189,991

FEES EARNED OR PAID IN CASH

Underourcurrentdirectorcompensationprogram,whichisrecommendedbytheCompensationCommitteeandapprovedbytheBoard,non-employeedirectorsareeligibletoreceiveanannualretainerof$85,000,paidinquarterlyinstallmentsandproratedforpartialterms.

ThechairsofBoardcommitteesandanyLeadIndependentDirector(Mr.Hanksin2017)receiveadditionalannualretainers,paidinquarterlyinstallments,asfollows(proratedforpartialterms):

• thechairoftheAuditandFinanceCommittee:$15,000;• thechairofeachoftheCompensationandGovernanceCommittees:$10,000;and• theLeadIndependentDirector:$20,000.

UnderourSupplementalExecutiveRetirementPlan(the“SERP”),eachdirectormayelecttodeferthepaymentofupto100%ofhisorherannualretainerandfees.Amountselectedtobedeferredarecreditedasabookkeepingentryintoanotionalaccount,whichwerefertoasadeferralaccount.Thebalanceofadirector’sdeferralaccountconsistsofdeferralcontributionsmadebythedirectorandhypotheticalcreditedgainsorlossesattributabletoinvestmentselectedbythedirector,orbyourCompensationCommitteeifthedirectorfailstomakeinvestmentelections.Directorsare100%vestedintheirdeferralaccountsatalltimes.Nodirectormadeadeferralelectionwithrespecttohisorhercashretainersin2017.

STOCK AWARDS

Ourstockownershipguidelinesrequirethatnon-employeedirectorsownstockvaluedatfivetimestheirannualretainer,andtheyhavefiveyearsfromthedateofjoiningtheBoardtoacquiretherequirednumberofshares.Alldirectorsarecurrentlyincompliancewithourstockownershipguidelines.Inadditiontothecashpaymentsprovidedtoourdirectors,eachnon-employeedirectorisentitledtoreceiveastockawardintheformofanumberoffullyvestedsharesequalto$95,000dividedbytheclosingpriceofourcommonstockonthegrantdate,roundeddowntothenearestwholeshare.Mr.ChristopherandMr.Ferraiolieachelectedtodefer100%ofhisstockawardin2017.

Theamountsreportedinthe“StockAwards”columnrepresentthegrantdatefairvaluecomputedinaccordancewithFinancialAccountingStandardsBoardAccountingStandardsCodification(“FASBASC”)Topic718forthesegrantsmadein2017.Grantdatefairvaluesforthestockawardsweredeterminedusingtheclosingpriceofourcommonstock($10.41)onthedateofgrant(May12,2017).Underour2015LTIP,directorsmayelecttodeferpaymentofalloraportionoftheirstockawards.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Thefollowingtablesetsforthinformationwithrespecttothebeneficialownershipofourcommonstockbythefollowing:

• eachstockholderwhobeneficiallyownsmorethan5%ofourcommonstock;• eachcurrentexecutiveofficernamedinthe2017SummaryCompensationTable;• eachofourdirectors;and• allofourexecutiveofficersanddirectorsasagroup.

Fortheinstitutionalbeneficialownerslistedbelow,wehavebasedtheirrespectivenumberofsharesofCompanycommonstockbeneficiallyownedandthepercentageofclassamountsonthemostrecentlyreportedSchedule13Gfiledbysuchowners.

Fortheexecutiveofficersanddirectorslistedbelow,wehavebasedtheirrespectivenumberofsharesofCompanycommonstockbeneficiallyownedandpercentageofclassamountsasofMarch1,2018.Thenumberofsharesbeneficiallyownedbyeachstockholder,directororofficerisdeterminedaccordingtotherulesoftheSECandtheinformationisnotnecessarilyindicativeofbeneficialownershipforanyotherpurpose.Themailingaddressforeachofthedirectorsandexecutiveofficersis13024BallantyneCorporatePlace,Suite700,Charlotte,NC28277.

NAME OF BENEFICIAL OWNERCOMMON STOCK:

NUMBER OF SHARESBENEFICIALLY OWNED

PERCENT OFCLASS 1

OWNERSHIP OFOTHER

SECURITIESPERCENT OF

CLASS 1

5% Stockholders:

VintageCapitalManagement,LLC2 6,600,000 14.9% - *

SteelPartnersHoldings,L.P.3 5,621,962 12.8% - *

BlackRock,Inc.4 3,433,801 7.8% - *

LonestarPartners,L.P.5 3,264,000 7.4% - *

VIEXCapitalAdvisors,LLC6 2,815,302 6.4% - *

D.E.Shaw&Co.,L.P.7 2,390,562 5.4% - *Executive Officers, Directors and Director Nominees:

LeslieC.Kass8 33,969 * - *

E.JamesFerland9 912,989 2.0% 32,614 *MatthewE.Avril 169,363 * - *HenryE.Bartoli 8,232 * - *

ThomasA.Christopher10 4,426 * 21,624 *CynthiaS.Dubin 19,680 * - *

BrianR.Kahn11 8,232 * - *AnneR.Pramaggiore 26,721 * - *

JennyL.Apker12 90,553 * - *

EliasGedeon13 49,030 * 2,317 *

MarkA.Carano14 76,131 * 9,888 *

MarkS.Low15 58,210 * - *

AllDirectors,DirectorNomineesandExecutiveOfficersasagroup(15persons)16 1,525,064 3.6% 66,433 **Representslessthan1.0percent

1PercentisbasedonoutstandingsharesofourcommonstockonMarch1,2018.2AsreportedonSchedule13D/AfiledwiththeSEConFebruary2,2018.TheSchedule13D/Areportsbeneficialownershipof6,600,000sharesofourcommonstockbyVintageCapitalManagement,LLCwhichhassolevotingpoweroverzeroshares,sharedvotingpowerover6,600,000sharesandshareddispositivepowerover6,600,000shares.TheSchedule13D/Areportsbeneficialownershipof6,600,000sharesbybothKahnCapitalManagement,LLCandBrianR.Kahn,whicheachhavesolevotingpoweroverzeroshares,sharedvotingpowerover6,600,000sharesandshareddispositivepowerover6,600,000shares.Thereportingperson'saddressis4705S.ApopkaVinelandRoad,Suite206,Orlando,FL32819.

3AsreportedonSchedule13D/AfiledwiththeSEConFebruary13,2018.TheSchedule13D/Areportsbeneficialownershipof5,621,962sharesofourcommonstockbySteelPartnersHoldingsL.P.,SPHGroupLLC,SPHGroupHoldingsLLC,SteelPartnersHoldingsGPInc.,SteelExcelInc.andSteelPartnersLtd.whicheachhavesharedvotinganddispositivepowerover5,621,962shares.TheSchedule13D/Areportsbeneficialownershipof75,000sharesofourcommonstockbyWarrenG.Lichtensteinwhohassharedvotinganddispositivepowerover75,000shares.Thereportingperson'saddressis590MadisonAvenue,32ndFloor,NewYork,NewYork10022.

4AsreportedonSchedule13G/AfiledwiththeSEConJanuary29,2018.TheSchedule13G/Areportsbeneficialownershipof3,433,801sharesofourcommonstockbyBlackRock,Inc.whichhassolevotingpowerover3,339,993shares,sharedvotingpoweroverzeroshares,andsoledispositivepowerover3,433,801shares.Thereportingperson'saddressis55East52ndStreet,NewYork,NY10055.

5AsreportedonSchedule13GfiledwiththeSEConSeptember8,2017.TheSchedule13Greportsbeneficialownershipof3,264,000sharesofourcommonstockbyLonestarPartners,L.P.,CottonwoodCapitalGPLLC,LonestarCapitalManagementLLC,JeromeL.SimonandYediWongwhicheachhavesharedvotinganddispositivepowerover3,264,000shares.Thereportingperson'saddressisOneMaritimePlaza,Suite1106,SanFrancisco,CA94111.

6AsreportedonSchedule13D/AfiledwiththeSEConOctober27,2017.TheSchedule13D/Areportsbeneficialownershipof2,815,302sharesofourcommonstockbyVIEXOpportunitiesFund,LP-SeriesOneandVIEXGP,LLCwhicheachhavesharedvotinganddispositivepowerover2,815,302shares.Thereportingperson'saddressis825ThirdAvenue,33rdFloor,NewYork,NewYork10022.

7AsreportedonSchedule13G/AfiledwiththeSEConFebruary14,2018.TheSchedule13G/Areportsbeneficialownershipof2,390,562sharesofourcommonstockbyD.E.Shaw&Co.,L.P.andDavidE.Shawwhicheachhavesharedvotinganddispositivepowerover2,390,562shares.Thereportingperson'saddressis1166AvenueoftheAmericas,9thFloor,NewYork,NY10036.

8SharesownedbyMs.Kassinclude26,481sharesofcommonstockthatshemayacquireontheexerciseofstockoptionsand240sharesofcommonstockheldonourThriftPlan.

9SharesownedbyMr.Ferlandinclude661,131sharesofcommonstockthathemayacquireontheexerciseofstockoptionsand532sharesofcommonstockheldinourThriftPlan.OthersecuritiesownedbyMr.Ferlandinclude32,614sharesofcommonstockunderlyingrestrictedstockunitsthatheelectedtodeferunderour2015LTIP.

10OthersecuritiesownedbyMr.Christopherinclude21,624sharesofcommonstockunderlyingvestedrestrictedstockunitsthatheelectedtodeferunderour2015LTIP.

11SharesownedbyMr,KahndonotincludebeneficiallyownedsharesheldbyVintageCapitalManagement,LLCofwhichheisaprincipal.

12SharesownedbyMs.Apkerinclude58,505sharesofcommonstockthatshemayacquireontheexerciseofstockoptionsand539sharesofcommonstockheldinourThriftPlan.

13SharesownedbyMr.Gedeoninclude37,363sharesofcommonstockthathemayacquireontheexerciseofstockoptionsand189sharesofcommonstockheldinourThriftPlan.OthersecuritiesownedbyMr.Gedeoninclude2,317sharesofcommonstockunderlyingrestrictedstockunitsthatheelectedtodeferunderour2015LTIP.

14SharesownedbyMr.Caranoinclude63,050sharesofcommonstockthathemayacquireontheexerciseofstockoptionsand262sharesofcommonstockheldinourThriftPlan.OthersecuritiesownedbyMr.Caranoinclude9,888sharesofcommonstockunderlyingrestrictedstockunitsthatheelectedtodeferunderour2015LTIP.

15SharesownedbyMr.Lowinclude45,329sharesofcommonstockthathemayacquireontheexerciseofstockoptionsand663sharesofcommonstockheldonourThriftPlan.

16Sharesownedbyalldirectorsandofficersasagroupinclude944,630sharesofcommonstockthatmaybeacquiredontheexerciseofstockoptionsand2,586sharesofcommonstockheldinourThriftPlan.

SECTION 16(a) BENEFICIAL OWNERSHIP COMPLIANCE

Section16(a)oftheSecuritiesExchangeActof1934,asamended(the"ExchangeAct")requiresourdirectorsandexecutiveofficers,andpersonswhoownmorethan10%ofourvotingstock,tofilereportsofownershipandchangesinownershipofourequitysecuritieswiththeSECandtheNYSE.Directors,executiveofficersandmorethan10%holdersarerequiredbySECregulationstofurnishuswithcopiesofallSection16(a)formstheyfile.Basedsolelyonareviewofthecopiesofthoseformsfurnishedtous,orwrittenrepresentationsthatnoformswererequired,webelievethat,duringtheyearendedDecember31,2017,allSection16(a)filingrequirementsapplicabletoourdirectors,executiveofficersand10%ormorebeneficialownersweresatisfied.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

PursuanttoourCodeofBusinessConduct,allemployees(includingournamedexecutiveofficers)whohave,orwhoseimmediatefamilymembershave,anydirectorindirectfinancialorotherparticipationinanybusinessthatcompeteswithus,suppliesgoodsorservicestous,orisourcustomer,arerequiredtodisclosetousandreceivewrittenapprovalfromourCorporateEthicsandCompliancedepartmentpriortotransactingsuchbusiness.Ouremployeesareexpectedtomakereasonedandimpartialdecisionsintheworkplace.Asaresult,approvalofthebusinessisdeniedifwebelievethattheemployee’sinterestinsuchbusinesscouldinfluencedecisionsrelativetoourbusiness,orhavethepotentialtoadverselyaffectourbusinessortheobjectiveperformanceoftheemployee’swork.OurCorporateEthicsandCompliancedepartmentimplementsourCodeofBusinessConductandrelatedpoliciesandtheAuditandFinanceCommitteeofourBoardisresponsibleforoverseeingourEthicsandComplianceProgram,includingcompliancewithourCodeofBusinessConduct.OurBoardmembersarealsoresponsibleforcomplyingwithourCodeofBusinessConduct.Additionally,ourGovernanceCommitteeisresponsibleforreviewingtheprofessionaloccupationsandassociationsofourBoardmembers.OurAuditandFinanceCommitteealsoreviewstransactionsbetweenusandothercompanieswithwhichourBoardmembersareaffiliated.ToobtainacopyofourCodeofBusinessConduct,pleaseseethe“CorporateGovernance”sectionaboveinthisproxystatement.

Weenterintoanindemnificationagreementwitheachofourdirectorsandexecutiveofficers.Underthetermsoftheagreement,weagreetoindemnifytheindemnifiedperson,tothefullestextentpermittedbyDelawarelaw,fromclaimsandlossesarisingfromtheirservicetotheCompany(otherthancertainclaimsbroughtbytheindemnifiedpartyagainstusoranyofourofficersanddirectors).Theagreementalsoprovideseachindemnifiedpersonwithexpenseadvancementtotheextenttheexpensesarisefrom,ormightreasonablybeexpectedtoarisefrom,anindemnifiableclaimandcontainsadditionaltermsmeanttofacilitateadeterminationoftheindemnifiedperson’sentitlementtosuchbenefits.

NAMED EXECUTIVE OFFICER PROFILESThefollowingprofilesprovidesummaryinformationregardingtheexperienceofourformerChiefExecutiveOfficer,ourChiefFinancialOfficerandourthreeothermosthighlycompensatedexecutiveofficerswhowereemployedbytheCompanyasofDecember31,2017.Thenamedexecutiveofficerprofilesprovidebiographicalinformation,includingageasofMay1,2018.Unlessotherwiseindicated,allpositionsdescribedbelowarepositionswithBabcock&WilcoxEnterprises,Inc.sincetheeffectivedateofthespin-off.

E. James Ferland ,age51,servedasourExecutiveChairmanuntilMarch2018.Fromthespin-offtoJanuary2018,Mr.FerlandservedasourChiefExecutiveOfficer.Priortothespin-off,Mr.FerlandwasBWC’sPresidentandChiefExecutiveOfficersinceApril2012.PriortojoiningBWC,Mr.FerlandservedasPresidentoftheAmericasdivisionforWestinghouseElectricCompany,LLC,anuclearenergycompanyandgroupcompanyofToshibaCorporation,from2010throughMarch2012.From2007to2010,Mr.FerlandworkedforPNMResources,Inc.,aholdingcompanyofutilitiesprovidingelectricityandenergyproductsandservices,whereheheldpositionsasSeniorVicePresidentofUtilityOperationsandSeniorVicePresidentofEnergyResources.Previously,Mr.FerlandheldvariousseniormanagementandengineeringpositionsatWestinghouseElectricCompany,LouisianaEnergyServices/URENCO,DukeEngineeringandServices,CarolinaPower&LightandGeneralDynamics.Mr.FerlandhasalsoservedontheboardofdirectorsofActuantCorporationsinceAugust2014.

Jenny L. Apker ,age60,servesasourSeniorVicePresidentandChiefFinancialOfficer.Priortothespin-off,Ms.ApkerservedasBWC’sVicePresident,TreasurerandInvestorRelationssinceAugust2012and,priortothattime,servedasBWC’sVicePresidentandTreasurersincejoiningBWCinJune2010.Previously,Ms.ApkerservedasVicePresidentandTreasurerwithDexOneCorporation(formerlyR.H.DonnelleyCorporation),amarketingservicescompany,fromMay2003untilJune2010.

Mark A. Carano ,age48,servesasourSeniorVicePresident,IndustrialandCorporateDevelopment.HeservedasSeniorVicePresident,CorporateDevelopmentandIndustrialFinancefromAugust2017toFebruary2018,andSeniorVicePresident,CorporateDevelopmentandTreasurerfromthespin-offuntilJanuary2017.Priortothespin-off,Mr.CaranoservedasSeniorVicePresidentandChiefCorporateDevelopmentOfficerofBWCsinceAugust2013.PriortojoiningBWCinJune2013,Mr.CaranoservedasaManagingDirectorintheInvestmentBankingGroupofBankofAmericaMerrillLynch,afinancialservicescompany,since2006.Mr.CaranoalsopreviouslyheldpositionswiththeInvestmentBankingGroupofDeutscheBank.

Elias Gedeon ,age58,servedasourSeniorVicePresidentandChiefBusinessDevelopmentOfficeruntilMarch2018,apositionheheldsincejoiningBWCinMay2014.Mr.Gedeonhasmorethan30yearsofexperienceinthepowergenerationindustryandhasheldvarioussales,operationsandP&LleadershippositionsintheU.S.andoverseas.HejoinedBWCfromAlstomPower,Inc.,asubsidiaryofenergyandtransportmanufacturerAlstom,whereheservedasVicePresident,GlobalSalesandMarketing–BoilerGroupsince2009andpreviouslyasVicePresidentofSales,Americas.PriortojoiningAlstom,Mr.GedeonservedinsalesandoperationsrolesofincreasingresponsibilitywithFosterWheelerPowerGroup,Inc.,includingExecutiveVicePresident,GlobalSales&Marketing.

Mark S. Low , age61,servesasourSeniorVicePresident,Power,apositionhehasheldsinceJune2016.Mr.LowservedasourSeniorVicePresident,GlobalServicessegmentfollowingthespin-offuntilJune2016.From2013toMarch2015,hewasVicePresidentandGeneralManagerofourEnvironmentalProductsandServicesDivision,responsibleforallaspectsofourenvironmentalproductsandservicesbusiness.From2007to2012,Mr.LowservedasVicePresident,ServiceProjects,inwhichheledalltechnicalandcommercialaspectsofourserviceprojectsbusinessincludingprojectmanagement,forecasting,costing,costforecasting,andwarrantyresolution.

APPROVAL OF AMENDMENTS TO THE COMPANY’S CERTIFICATE OF INCORPORATION TOREMOVE PROVISIONS THAT REQUIRE THE AFFIRMATIVE VOTE OF HOLDERS OF AT LEAST80% OF THE VOTING POWER TO APPROVE CERTAIN AMENDMENTS TO THE CERTIFICATEOF INCORPORATION AND THE BYLAWS (PROPOSAL 4)General

OurBoardhasrecommendedandisseekingstockholderapprovalforamendmentstoourCertificateofIncorporationthatwouldremoveprovisionsthatrequiretheaffirmativevoteofholdersofatleast80%ofthevotingpoweroftheCompany’soutstandingstocktoapprovecertainamendmentstotheCertificateofIncorporationandtheBylaws(the“supermajorityvoterequirement”)describedbelow,andreplacethisrequirementwithamajorityvoterequirement.Currently,ArticleFifthofourCertificateofIncorporationrequirestheaffirmativevoteoftheholdersofatleast80%ofthevotingpoweroftheCompany’soutstandingstockentitledtovotethereontoamend,modifyorrepealArticleFifthorArticleSixthofourCertificateofIncorporation.Inaddition,ArticleFifth(e)ofourCertificateofIncorporationrequirestheaffirmativevoteoftheholdersofatleast80%ofthevotingpoweroftheCompany’soutstandingstockentitledtovotegenerallyintheelectionofdirectorstoamend,modifyorrepealtheCompany’sBylawsortoadoptnewbylaws.

OurBoardrecognizesthatamajorityvotingstandardforeffectingchangestotheCertificateofIncorporationandtheBylawsincreasestheabilityofstockholderstoparticipateingovernanceoftheCompanyandalignstheCompanywithrecognizedbestpracticesincorporategovernance.

Summary of Principal Changes

Iftheproposalisapproved,theCompanyintendstofileanamendmenttotheCertificateofIncorporationwiththeSecretaryofStateofDelaware,reflectingtheeliminationofallsupermajorityvoterequirementsforamendingtheCertificateofIncorporationandtheBylaws.Asaresult,atfuturemeetingsofstockholders,theaffirmativevoteoftheholdersofamajorityofthevotingpoweroftheCompany’soutstandingstockentitledtovoteonthematterwillberequiredtoamendallprovisionsoftheCertificateofIncorporationandtheBylaws.ThisdescriptionoftheproposedamendmentstoourCertificateofIncorporationisonlyasummaryofthoseamendmentsandisqualifiedinitsentiretybyreferenceto,andshouldbereadinconjunctionwith,thefulltextofArticleFIFTHoftheCertificateofIncorporation,markedtoshowtheproposedamendment,acopyofwhichisattachedtothisproxystatementasAppendixB.Ifadopted,theamendmentstotheCertificateofIncorporationwillbecomeeffectiveuponfilingoftheamendedCertificateofIncorporationwiththeSecretaryofStateofDelaware,whichisexpectedtooccurpromptlyfollowingthestockholdervote.IftheamendmentstotheCertificateofIncorporationareapprovedbystockholdersandbecomeeffective,theBoardexpectstoapprovecertainconformingamendmentstoourBylawstoremoveallsupermajorityvoterequirementsforamendingtheBylaws.

Our Board recommends that stockholders vote “FOR” the approval of amendments to our Certificate of Incorporation that would removethe supermajority voting requirements to approve certain amendments to our Certificate of Incorporation and our Bylaws. Theproxyholderswillvoteallproxiesreceivedforapprovalofthisproposalunlessinstructedotherwise.Approvaloftheproposalrequirestheaffirmativevoteofatleast80%oftheoutstandingsharesofourcommonstock.Accordingly,abstentionsandbrokernon-voteswillhavetheeffectofavoteagainstthisproposal.

RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM FOR YEAR ENDING DECEMBER 31, 2018 (PROPOSAL 5)

OurBoardhasratifiedthedecisionoftheAuditandFinanceCommitteetoappointDeloitte&ToucheLLP(“Deloitte”)toserveastheindependentregisteredpublicaccountingfirmtoauditourfinancialstatementsfortheyearendingDecember31,2018.Althoughwearenotrequiredtoseekstockholderapprovalofthisappointment,weintendtoseekstockholderapprovalofourregisteredpublicaccountingfirmannually.NodeterminationhasbeenmadeastowhatactiontheAuditandFinanceCommitteeandtheBoardwouldtakeifourstockholdersfailtoratifytheappointment.Eveniftheappointmentisratified,theAuditandFinanceCommitteeretainsdiscretiontoappointanewindependentregisteredpublicaccountingfirmatanytimeiftheAuditandFinanceCommitteeconcludessuchachangewouldbeinourbestinterests.WeexpectthatrepresentativesofDeloittewillbepresentattheAnnualMeetingandwillhaveanopportunitytomakeastatementiftheydesiretodosoandtorespondtoappropriatequestions.

FortheyearsendedDecember31,2017andDecember31,2016,wepaidDeloittefees,includingexpensesandtaxes,totaling$4,609,745and$3,424,534,respectively,whicharecategorizedbelow.

2017 2016

Audit TheAuditfeeswereforprofessionalservicesrenderedfortheauditsofthecombinedandconsolidatedfinancialstatementsoftheCompany,theauditoftheCompany’sinternalcontroloverfinancialreporting,statutoryandsubsidiaryaudits,reviewsofthequarterlycombinedandconsolidatedfinancialstatementsoftheCompanyandassistancewithreviewofdocumentsfiledwiththeSEC. $4,550,750 $3,329,250

Audit-Related TherewerenoAudit-Relatedfees. $0 $0

Tax TheTaxfeeswereforprofessionalservicesrenderedforconsultationsonvariousU.S.federal,stateandinternationaltaxcompliancematters,aswellasconsultationandadviceonvariousforeigntaxmatters. $58,995 $95,284

All Other Therewerenootherfeesforservices. $0 $0TOTAL $4,609,745 $3,424,534

ItisthepolicyofourAuditandFinanceCommitteetopre-approveallauditengagementfees,termsandservicesandpermissiblenon-auditservicestobeperformedbyourindependentregisteredpublicaccountingfirm.

Annually,theindependentregisteredpublicaccountingfirmandtheVicePresident,ControllerandChiefAccountingOfficerpresenttotheAuditandFinanceCommitteetheanticipatedservicestobeperformedbythefirmduringtheyear.TheAuditandFinanceCommitteereviewsand,asitdeemsappropriate,pre-approvesthoseservices.TheseparateAudit,Audit-Related,TaxandAllOtherservicesandestimatedfeesarepresentedtotheAuditandFinanceCommitteeforconsideration.TheAuditandFinanceCommitteereviewsonatleastaquarterlybasistheproposedservicesandfeesforadditionalservicesthathaveoccurredandareoutsidethescopeoftheservicesandfeesinitiallypre-approvedbytheAuditandFinanceCommittee.Inordertorespondtotime-sensitiverequestsforservicesthatmayarisebetweenregularlyscheduledmeetings,theAuditandFinanceCommitteehaspre-approvedspecificaudit,audit-related,taxandotherservicesandindividualandaggregatefeesforsuchservices.TheAuditandFinanceCommitteedidnotapproveanyaudit,audit-related,taxorotherservicespursuanttothedeminimisexceptiondescribedinSection10A(i)(1)(B)oftheExchangeAct.

Our Board recommends that stockholders vote “FOR” the ratification of the decision of our Audit and Finance Committee to appointDeloitte as our independent registered public accounting firm for the year ending December 31, 2018. Theproxyholderswillvoteallproxiesreceivedforapprovalofthisproposalunlessinstructedotherwise.Approvalofthisproposalrequirestheaffirmativevoteofamajorityofthesharescastonthematter.Abstentionswillnotbeconsideredascastand,asaresult,willnothaveanyeffectontheproposal.Becausetheratificationoftheappointmentoftheindependentauditorisconsidereda“routine”matter,therewillbenobrokernon-voteswithrespecttothisproposal.

AUDIT AND FINANCE COMMITTEE REPORT

ThefollowingreportoftheAuditandFinanceCommitteeshallnotbedeemedtobe“solicitingmaterial”ortootherwisebeconsidered“filed”withtheSECorbesubjecttoRegulation14Aor14C(otherthanasprovidedinItem407ofRegulationS-K)ortotheliabilitiesofSection18oftheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”),norshallsuchinformationbeincorporatedbyreferenceintoanyfuturefilingundertheSecuritiesActof1933,asamended,ortheExchangeAct,excepttotheextentthattheCompanyspecificallyincorporatesitbyreferenceintosuchfiling.

Asdescribedmorefullyinitscharter,thepurposeoftheAuditandFinanceCommitteeistoassisttheBoardinitsoversightoftheCompany’sfinancialreportingprocess,internalcontrolsystemandauditfunctions.TheAuditandFinanceCommitteealsoprovidesoversightof(i)theCompany’scompliancewithlegalandregulatoryfinancialrequirements;(ii)theCompany’sguidelines,policiesandprocessestoassessandmanagetheCompany’sexposuretorisksingeneral,includingfinancialrisks;(iii)theCompany’sfinancialstrategiesandcapitalstructure;and(iv)theCompany’sethicsandcomplianceprogram.Ourprincipalresponsibilityisoneofoversight.TheCompany’smanagementisresponsibleforthepreparation,presentationandintegrityofitsfinancialstatementsandDeloitte&ToucheLLP(“Deloitte”),theCompany’sindependentregisteredpublicaccountingfirm,isresponsibleforauditingandreviewingthosefinancialstatements.DeloittereportsdirectlytotheAuditandFinanceCommittee,whichisresponsiblefortheappointment,compensation,retentionandoversightoftheindependentregisteredpublicaccountingfirm.

Inthiscontext,wehavereviewedanddiscussedtheCompany’sauditedconsolidatedfinancialstatementsfortheyearendedDecember31,2017withtheCompany’smanagementandDeloitte.ThisreviewincludeddiscussionswithDeloitteregardingthosemattersrequiredtobediscussedbyAuditingStandardNo.1301,CommunicationswithAuditCommittees,issuedbythePublicCompanyAccountingOversightBoard.Inaddition,wereceivedfromDeloittethewrittendisclosuresandtheletterrequiredbytheapplicablerequirementsofthePublicCompanyAccountingOversightBoardregardingDeloitte’scommunicationswiththeAuditandFinanceCommitteeconcerningindependenceanddiscussedwithDeloittetheirindependencefromtheCompanyanditsmanagement.Wealsoconsideredwhethertheprovisionofnon-auditservicestotheCompanyiscompatiblewithDeloitte’sindependence.

BasedonthesereviewsanddiscussionsandthereportsofDeloitte,theAuditandFinanceCommitteerecommendedtotheBoardthattheauditedfinancialstatementsbeincludedintheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2017,forfilingwiththeSecuritiesandExchangeCommission.

THE AUDIT AND FINANCE COMMITTEE

CynthiaS.Dubin(Chair)MatthewE.Avril(joinedMarch2,2018)AnneR.Pramaggiore

APPROVAL, ON A NON-BINDING ADVISORY BASIS, OF NAMED EXECUTIVE OFFICERCOMPENSATION (PROPOSAL 6)

AsrequiredbySection14AoftheExchangeAct,weareaskingstockholderstoapproveanadvisoryresolutiontoapproveournamedexecutiveofficercompensationasreportedinthisproxystatement.

Itisourbeliefthatourabilitytohire,retainandmotivateemployeesisessentialtothesuccessoftheCompanyanditsstockholders.Therefore,wegenerallyseektoprovidereasonableandcompetitivecompensationforourexecutiveswithasubstantialportionintheformofperformance-basedcompensation.

Asaresult,ourexecutivecompensationisstructuredinthemannerthatwebelievebestservestheinterestsoftheCompanyanditsstockholders.WeencouragestockholderstoreadtheCompensationDiscussionandAnalysissectionofthisproxystatement,whichprovidesamorethoroughreviewofourexecutivecompensationphilosophyandhowthatphilosophyhasbeenimplemented.Wehavegivenconsiderableattentiontohow,whyandwhatwepayourexecutives,andduring2017havecontactedormetwithstockholderswhocollectivelyheldapproximately47%ofouroutstandingsharestosolicitfeedbackonthebestwaytoalignourexecutivecompensationprogramandstrategiestostrengthentheCompanyandbetterpositionitforsuccess.Recognizingthatnosinglecompensationstructurewillmatchperfectlywithallstockholders,webelievethatourexecutivecompensationisreasonableandprovidesappropriateincentivestoourexecutivestoachieveresultsthatweexpecttodrivestockholdervaluewithoutencouragingthemtotakeexcessiverisksintheirbusinessdecisions.

EffectofProposal

Theresolutiontoapproveournamedexecutiveofficercompensationisnotbindingonus,ourBoardorourCompensationCommittee.Accordingly,eveniftheresolutionisapproved,theBoardandCompensationCommitteeretaindiscretiontochangeexecutivecompensationfromtimetotimeifitconcludesthatsuchachangewouldbeinthebestinterestoftheCompanyanditsstockholders.Nodeterminationhasbeenmadeastowhataction,ifany,wouldbetakenifourstockholdersfailtoapprovenamedexecutiveofficercompensation.However,ourBoardanditsCompensationCommitteevaluetheopinionsofstockholdersonimportantmatterssuchasexecutivecompensationandexpecttocarefullyconsidertheresultsofthisadvisoryvotewhenevaluatingourexecutivecompensationprograms.

Advisoryvotestoapprovenamedexecutiveofficercompensationarescheduledtobeheldonceeveryyear.Thenextadvisoryvotetoapprovenamedexecutiveofficercompensationisexpectedtooccuratour2019AnnualMeetingofStockholders.

Our Board recommends that stockholders vote “FOR” the approval of named executive officer compensation. The proxy holders will voteall proxies received for approval of this proposal unless instructed otherwise. ApprovalofthisproposalrequirestheaffirmativevoteofamajorityoftheoutstandingsharesofcommonstockpresentinpersonorrepresentedbyproxyandentitledtovoteonthisproposalattheAnnualMeeting.Becauseabstentionsarecountedaspresentforpurposesofthevoteonthismatterbutarenotvotes“FOR”thisproposal,theyhavethesameeffectasvotes“AGAINST”thisproposal.Brokernon-voteswillnothaveanyeffectonthisproposal.

Accordingly,wesubmitthefollowingresolutiontostockholdersattheAnnualMeeting:

RESOLVED,thatthestockholdersofBabcock&WilcoxEnterprises,Inc.approve,onanadvisorybasis,thecompensationofitsnamedexecutiveofficers,assuchcompensationisdisclosedpursuanttoItem402ofRegulationS-Kinthisproxystatement,includingunderthesectionsentitled“CompensationDiscussionandAnalysis”and“CompensationofNamedExecutiveOfficers.”

COMPENSATION DISCUSSION AND ANALYSIS

TableofContents• ExecutiveSummary• WeareCommittedtoCompensationBestPractices• PeerGroup• CompensationPhilosophyandProcess• 2017CompensationDecisions• OtherCompensationPracticesandPolicies

ExecutiveSummary

2017 PERFORMANCE

Wemadesubstantialstridesinaddressingchallengesthatburdenedourbusinessesandimpactedourfinancialperformancein2017.ProjectexecutionissuesinourEuropeanrenewableenergybusinessaccountedforthelargestportionofourlossesbuttheimplementationofourmore-focusedbusinessmodel,newleadershipandsignificantprogresstowardcompletionofourchallengedprojectspositionsusforimprovedfinancialperformancein2018.

InourPowersegment,closeattentiontocontrollingcostsandhighlyeffectiveprojectexecutionallowedustoachieveexcellentmarginsinadifficultmarketenvironment.Thoughtheglobalcoalpowermarketsremainuncertain,B&Wiswell-positionedtoserveourcustomersbothintheU.S.andabroadforyearstocome.

OurIndustrialsegmentunderperformedourexpectationsin2017,andasaresult,wehaveimplementedkeychangesinourbiddingandprojectmanagementstrategiesaswellasourmanagementstructurethatwillserveuswellin2018andthefuture.

2017 PAY-FOR-PERFORMANCE

Ourexecutivecompensationprogramsarebasedonastrongalignmentbetweenpayandperformance,andthisireflectedinthepayoutamountsunderourannualincentiveplanandthevalueofawardsgrantedunderourlong-termincentiveplan.DecisionsbytheCompensationCommitteein2017alsotookintoaccountfeedbackfromourstockholdersandconcernforretentionofkeyemployeeswhileweaddressoperationalissues.

Wedidnotperformasexpectedin2017;consequently,thepayoutunderourannualincentiveplanwas10%ofthetargetawardopportunities.Oursafetymetrics,whichareevaluatedindependentlyfromourfinancialperformance,accountfor10%ofthetargetawards.SolelyasaresultoftheCompany’ssignificantimprovementinsafetyperformanceover2016andthepriorthree-yearaverage,thepayoutpercentageforeachofourNEOswas10%ofthetargetannualincentiveaward.Forthesecondyearinarow,nopaymentwasearnedunderthefinancialorindividualcomponentsoftheannualincentiveaward.See"2017SummaryCompensationTable"foracomparisonofthetotalcompensationreceivedbyourNEOsin2017versus2016and2015,asapplicable.

Ourlong-termincentivecompensationmetrics(earningspershare,relativetotalstockholderreturnandreturnoninvestedcapital),aredesignedtodriveperformanceandaligntheinterestsofemployeeswiththoseofstockholders.Inlightofourrecentfinancialperformance,however,thecurrentprojectedvalueoftheperformance-basedshareawardsgrantedin2017and2016underourlong-termincentiveplanissignificantlyimpaired.

EXECUTIVE COMPENSATION PROGRAM

Babcock&WilcoxEnterprises,Inc.("B&W"orthe"Company")becameapubliccompanyonJuly1,2015asaspin-offfromTheBabcock&WilcoxCompany("BWC").Inthisdocument,BWCreferstoTheBabcock&WilcoxCompanypriortothespin-off.Compensation-relateddecisionsforourNEOsbeforethespin-offweremadebythecompensationcommitteeoftheBoardofDirectorsofBWC.CompensationdecisionsforB&W’sNEOsfromandafterthespin-offweremadebytheCompensationCommitteeofourBoard,whichwerefertointhisdiscussionasthe“CompensationCommittee.”Keyfeaturesofourexecutivecompensationprogramforthefollowingexecutiveofficers(theNEOs)areoutlinedinthisdocument:

NAME TITLE (AS OF LAST DAY OF 2017)E.JamesFerland ChairmanandChiefExecutiveOfficer

JennyL.Apker SeniorVicePresidentandChiefFinancialOfficer

MarkA.Carano SeniorVicePresident,CorporateDevelopmentandIndustrialFinance

EliasGedeon SeniorVicePresidentandChiefBusinessDevelopmentOfficer

MarkS.Low SeniorVicePresident,Power

MANAGEMENT OVERVIEWOurNEOsandothermembersofourseniorleadershipteamincludeindividualswhohavebroadexperienceinthepowergenerationbusiness.Aspreviouslydisclosed,onJanuary31,2018,theBoardappointedLeslieC.KassasPresidentandChiefExecutiveOfficeroftheCompanyandelectedMs.KasstotheBoard.Mr.FerlandcontinuedtoserveasExecutiveChairmanoftheBoarduntilMarch2,2018.Mr.GedeonwasterminatedfromhisrolewiththeCompanyasofMarch5,2018.

Ms.Kass,age47,hasservedinavarietyofseniormanagementroleswithboththeCompanyanditspredecessor,includingmostrecentlyasourSeniorVicePresident,Industrial.Previously,sheheldengineeringandprojectmanagement-relatedpositionsofincreasingresponsibilitywithWestinghouseElectricCompany,EntergyCorporationandDukeEnergyCorporation.TheinitialcompensationpackageforMs.Kassisbelowmedianforacompanyofoursizeandscope,reflectingtheCompensationCommittee’santicipationofmovinghertowardthemedianofthemarketovertimeasshebecomesmoretenuredinhernewrole.Inconnectionwithherappointment,theCompanywillinitiallyprovideMs.Kassthefollowingkeyelementsofcompensation:

• abasesalaryof$750,000peryear;• atargetannualbonusof100%ofbasesalary,subjecttocertainperformancecriteriaestablishedbytheCompensationCommittee;and• equityawardswithanaggregategrantdatevalueof$1,500,000.

2017 SAY-ON-PAY VOTE

In2017,wereceivednearly97%approvalonouradvisoryvotetoapproveNEOcompensation.Weconsideredthisresultinexaminingcompensationpoliciesanddecisionsfor2017,anddeterminedthatitdemonstratedstrongsupportforourexecutivecompensationprogram.Wedidnotmakeanychangestoourcompensationpoliciesandpracticesthatwereprimarilydrivenbytheresultofthisvote.

WE ENGAGED WITH OUR STOCKHOLDERS

During2017,ourLeadIndependentDirectorandseniormanagementcontactedormetwithinstitutionalstockholderswhocollectivelyheldapproximately47%ofouroutstandingsharestosolicitfeedbackonthebestwaytoalignourexecutivecompensationprogramandstrategiestostrengthentheCompany.Generally,investorssupportedourexecutivecompensationprogramgoals,encouragedustofocusonpayingfordemonstrableperformance,andaskedthatwecarefullyconsidereliminatingourclassifiedboardstructure.

Inresponsetothefeedbackfromourstockholderoutreach,theBoardunanimouslyapproved,andrecommendsthatourstockholdersapprove,amendmentstoourCertificateofIncorporationandBylawsthat,ifadopted,wouldeliminatetheclassifiedstructureoftheBoardoveratwo-yearperiodandallowforremovalofdirectorswithorwithoutcausebyamajorityofthestockholders.Thephasinginofannualelectionsofdirectorsoveratwo-yearperiodisdesignedtoensureasmoothtransitiontoasystemofannualelectionsofallofourdirectors.

WealsoaddedBrianR.Khan(managingpartnerofVintage),MatthewE.AvrilandHenryR.BartolitotheBoard.Messrs.Kahn,AvrilandBartolirepresentVintageandtheVintageShareholders,whichcollectivelyown14.9%ofouroutstandingcommonstock.Formoreinformation,see“VintageCapitalManagementAgreement.”

2017 COMPENSATION PROGRAM DESIGN

ConsideringthestockholderfeedbackandotherfactorsdescribedinthisCompensationDiscussionandAnalysis,theCompensationCommitteetookthefollowingkeyactionswithrespecttothe2017executivecompensationprogram:

• Establishedourannualandlong-termincentivecompensationprogramdesignfor2017toreflectourpay-for-performanceculture;and• Maintainedemphasisonperformanceinourlong-termincentivecompensationprogrambyweightingperformance-basedrestrictedstockunits(“PSUs”)at60%ofthetotallong-termincentiveawardmix.TheCompensationCommitteealsodeterminedtoincluderelativetotalstockholderreturn,alongwithearningspershareandreturnoninvestedcapital,tomeasureperformanceforthePSUs.Inlieuofstockoptions(whichpreviouslycomprised20%ofthetotallong-termincentiveaward),theCompensationCommitteedeterminedtograntrestrictedstockunits(“RSUs”)fortheentiretyoftheremaining40%ofthetotallong-termincentiveaward,thevalueofwhichistieddirectlytoimprovementsinthepriceoftheCompany’sstock.TheCompensationCommitteeutilizedRSUsinsteadofstockoptionsspecificallytomanageourlong-termplanreserveandreducethedilutionimpactsofthelong-termincentiveprogram.

2017 COMPENSATION MIX

Thefollowingchartsillustratethetargetmixofbasesalary,annualincentiveawardsandlong-termincentiveawardsforourFormerChiefExecutiveOfficerandotherNEOsin2017,highlightingtheperformance-drivenfocusofthecompensationopportunities:

KEY 2017 PROGRAM ELEMENTS

ThemainelementsoftheCompany’s2017executivecompensationprogram,adescriptionofeachelement,andanexplanationastowhywepayeachelement,areprovidedbelow:

Compensation Element Description Objectives

Base Salary Fixedcashcompensation;reviewedannuallyandsubjecttoadjustment Attract,retainandmotivateourNEOs

Annual Cash IncentiveCompensation

Short-termcashincentivecompensationpaidbasedonperformanceagainstannuallyestablishedfinancial,safetyandindividualperformancegoals

RewardandmotivateourNEOsforachievingkeyshort-termperformanceobjectives

Long-Term EquityCompensation

Annualequitycompensationawardsof time-vestingRSUsandperformance-vestingPSUs

AlignNEOinterestswiththoseofourstockholdersbyrewardingthecreationoflong-termstockholdervalueandencouragingstockownership

Health, Welfare and RetirementBenefits

Qualifiedandnonqualifiedretirementplansandhealthcareandinsurancebenefits

AttractandretainNEOsbyprovidingmarket-competitivebenefits

Severance and Change inControl Arrangements

Reasonableseverancepaymentsandbenefitsprovideduponaninvoluntarytermination,includinganinvoluntaryterminationfollowingachangeincontroloftheCompany

Helpattractandretainhighqualitytalentbyprovidingmarket-competitiveseveranceprotection,andhelpencourageNEOstodirecttheirattentiontostockholders’interests,notwithstandingthepotentialforlossofemploymentinconnectionwithachangeincontrol

Limited Perquisites Financialplanningservices,executivephysicalsandairlineclubmemberships Attractandretainhighqualitytalent

WeAreCommittedtoCompensationBestPractices

TheCompensationCommitteebelievesthatourexecutivecompensationprogramfollowsbestpracticesalignedtolong-termstockholderinterests,summarizedbelow:

WHAT WE DO WHAT WE DON’T DO

Pay-for-performance philosophyemphasizescompensationtiedtocreationofstockholdervalue No excise tax gross-ups uponachangeincontrol

Robust compensation governance practices ,includingannualCEOperformanceevaluationprocessbyindependentdirectors,thoroughprocessforsettingrigorousperformancegoalsanduseofanindependentcompensationconsultant

No discounting, reloading or re-pricing of stock options withoutstockholderapproval

Multiple performance metrics forannualandlong-termincentivecompensationplans;differentmetricsusedforeachplan

No single-trigger vesting ofequity-basedawardsuponchangeincontrol

60%oflong-termincentiveawardsgrantedasperformance-basedPSUs

Limited perquisites andreasonableseveranceandchangeincontrolprotectionthatrequiresinvoluntarytermination

Clawback provisions inannualandlong-termincentivecompensationplans

Policies prohibiting executives from hedging or pledging Companystock

Strong stock ownership guidelines forexecutives(fivetimesbasesalaryforCEOandthreetimesbasesalaryforotherNEOs)

PeerGroup

PEER GROUP DESIGN

Tohelpensurethatourexecutivecompensationprogramprovidescompetitivecompensationopportunitiesthatarenecessarytoattractandretainwell-qualifiedexecutives,theCompensationCommitteereviewsthelevelandmixofcompensationforourCEOandCFOagainstthecompensationprovidedbyagroupofpeercompanies(inadditiontosurveydataprovidedbyHayGroupwhichisusedtoreviewthecompensationforallofourNEOs).TheCompensationCommitteealsousesthesepeercompaniestoconsidertherelativeperformanceofourCompanywithrespecttotherelativetotalstockholderreturnperformancemeasureinour2017long-termincentiveprogram(asfurtherdiscussedbelow)andtoevaluatetheCompany'sincentiveprogramdesignsagainstmarketpractice.

TheCompensationCommittee,withadvicefromHayGroup,consideredcompaniesacrossanumberofrelevantfactors,includingcompanieswithinaspecifiedsizerangebasedprimarilyonrevenuesandmarketcapitalization,companieswithinsimilarindustrygroupsandwithsimilardegreesofbusinesscomplexity,andcompanieswithwhichwecompeteforexecutivetalent.TheCompensationCommitteegenerallyconsideredcompanieswithtotalrevenuesinarangefrom0.4xto2.5xofoursize,althoughsomeexceptionsweremadetakingintoaccountotherfactors(suchasindustry,complexityandcompetitionfortalent)andinordertocreateagroupwithasufficientnumberofcompaniestoprovidemeaningfulcomparativedata.

Basedonthisreview,theCompensationCommitteeapprovedthefollowingcompensationpeergroupfor2017:

Actuant Corp.IndustrialMachinery

Crane Co.IndustrialMachinery

MasTec Inc.Construction&Engineering

AMETEK Inc.ElectronicComponents&Equipment

Curtiss-Wright Corp.Aerospace&Defense

Primoris Services Corp.Construction&Engineering

CECO Environmental Corp.Environmental&FacilitiesServices

Dycom Industries Inc.Construction&Engineering

SPX Corp.IndustrialMachinery

Chart Industries Inc.IndustrialMachinery

Flowserve Corp.IndustrialMachinery

Tetra Tech, Inc.*ElectronicEquipment&Instruments

CIRCOR Intl. Inc.IndustrialMachinery

Harsco Corp.IndustrialMachinery

Covanta Holding Corp.Environmental&FacilitiesServices

Idex Corp.IndustrialMachinery

*For2017,TetraTech,Inc.(“TetraTech”)replacedItron,Inc.(“Itron”)asbeingaclosermatchtoB&W.WhileItronoperateswithintheelectricity,naturalgasandwatermarkets,itismoreofaninformationtechnologycompanythananindustrialcompany.TetraTechprovidesconsultingandengineeringservicesworldwideandoperatestwosegments:Water,EnvironmentandInfrastructure,andResourceManagementandEnergy.Inaddition,TetraTechisalsocitedbyourpeersasapeercompanymoreoftenthanItron.

CompensationPhilosophyandProcess

OUR COMPENSATION PHILOSOPHY

B&Woperatesinachallenging,continuallychangingandhighlycompetitivemarket.Weknowthatattracting,developingandretainingqualifiedexecutiveswhoincreasestockholdervaluebyachievingourfinancialandstrategicgrowthplansremainskeytooursuccess.Weemphasizepay-for-performance,rewardingthosewhoachieveorexceedtheirgoals,andweuseshort-andlong-termincentivestodrivecontinuedstrongresultsforourstockholders.

Ourcompensationprogramisdesignedto:• Incentandrewardannualandlong-termperformance;• AligninterestsofB&Wexecutiveswithstockholders;and• Attractandretainwell-qualifiedexecutives.

TheCompensationCommitteeworkswithmanagementandHayGroup,anexternaladvisoryfirm,tohelpensurethecompensationprogramalignswithindustrystandardsandhasabalanceddesignthatwillachievethedesiredobjectives.

TherolesandtheresponsibilitiesoftheCompensationCommittee,B&WmanagementandHayGrouparesummarizedhere.

Compensation Committee (ThreeIndependentDirectors)• Establishesandimplementsourexecutivecompensationphilosophy;• AimstoensurethetotalcompensationpaidtoourNEOsandotherexecutivesisfairandcompetitive,andmotivateshighperformance;• Subscribestoa“pay-for-performance”philosophywhendesigningexecutivecompensationprogramsthatplaceasubstantialportionofanexecutive’stargetcompensation“atrisk”andperformance-based,wherethevalueofoneormoreelementsofcompensationistiedtotheachievementoffinancialand/orothermeasurestheCompanyconsidersimportantdriversinthecreationofstockholdervalue;

• EngagesHayGroupasitsoutsideconsultantforexecutiveanddirectorcompensationmatterstoregularlyreviewthedesignofourexecutivecompensationprograms;and

• WorksdirectlywithHayGroupontheCEO’scompensation.

B&W Management• PreparesinformationandmaterialsfortheCompensationCommitteerelevanttomattersunderconsiderationbytheCompensationCommittee;• TheCEOprovidesrecommendationsregardingcompensationoftheotherNEOs;and• TheCEOandseniorHRpersonnelattendCompensationCommitteemeetingsand,asrequestedbytheCompensationCommittee,participateindeliberationsonexecutivecompensation(otherthantheirown).

Hay Group ( ConsultanttoourCompensationCommittee)• ProvidestheCompensationCommitteewithinformationandadviceonthedesign,structureandlevelofexecutiveanddirectorcompensation;• AttendsCompensationCommitteemeetings,includingexecutivesessions,toadviseoncompensationdiscussions;• Reviewsmarketsurveyandproxycompensationdataforcomparativemarketanalysis;• AdvisestheCompensationCommitteeonselectinganappropriatepeergroup;• AdvisestheCompensationCommitteeonexternalmarketfactorsandevolvingcompensationtrends;and• ProvidestheCompanyassistancewithregulatorycomplianceandchangesregardingcompensationmatters.

AlthoughHayGroupworkswithourmanagementonvariousmattersforwhichtheCompensationCommitteeisresponsible,ourmanagementdoesnotdirectoroverseetheretentionoractivitiesofHayGroup.FollowingareviewandassessmentoftheindependenceofHayGroup,theCompensationCommitteeconcluded,afterconsiderationofallrelevantfactors,specificallyincludingsixconsultantindependencefactorsunderRule10C-1(b)(4)(i)through(vi)undertheExchangeAct,thatnoconflictofinteresthasbeenraisedbytheworkofHayGroup.TheaggregateamountpaidbyB&WtoHayGroupin2017forexecutiveanddirectorcompensationserviceswas$133,136,andforadditionalserviceswas

$350,440.Theadditionalservices,whichconsistedofleadershipdevelopmentprograms,wererecommendedbymanagementandwerepre-approvedbytheCompensationCommittee.

Plan Design and Risk Management

B&Wsubscribestoa“pay-for-performance”philosophy.Assuch:• IncentiveCompensationTiedtoPerformance--AsubstantialportionofNEOs’targetcompensationis“atrisk,”withthevalueofoneormoreelementsofcompensationtiedtotheachievementoffinancialand/orothermeasurestheCompanyconsidersimportantdriversofstockholdervalue.

• EmphasisonLong-TermIncentiveOverAnnualIncentiveCompensation—Long-termincentivecompensationforourNEOsmakesupalargerpercentageoftargettotaldirectcompensationthanannualincentivecompensation.Incentivecompensationhelpsdriveperformanceandaligntheinterestsofemployeeswiththoseofstockholders.Bytyingasignificantportionoftotaldirectcompensationtolong-termincentivesoverathree-yearperiod,wepromotelonger-termperspectivesregardingCompanyperformance.

• Long-TermIncentiveCompensationSubjecttoForfeitureforBadActs—TheCompensationCommitteemayterminateanyoutstandingequityawardiftherecipient(1)isconvictedofamisdemeanorinvolvingfraud,dishonestyormoralturpitudeorafelony,or(2)engagesinconductthatadverselyaffectsormayreasonablybeexpectedtoadverselyaffectthebusinessreputationoreconomicinterestsoftheCompany.

• AnnualandLong-TermIncentiveCompensationSubjecttoClawbacks—Incentivecompensationawardsincludeprovisionsallowingustorecoverexcessamountspaidtoindividualswhoknowinglyengagedinafraudresultinginarestatement.

• LinearandCappedIncentiveCompensationPayouts—TheCompensationCommitteeestablishesfinancialperformancegoalsthatareusedtoplotalinearpayoutformulaforannualandlong-termincentivecompensationtoavoidanover-emphasisonshort-termdecisionmaking.Themaximumpayoutforeachoftheannualandlong-termincentivecompensationprogramsiscappedat200%oftarget.

• UseofMultipleandAppropriatePerformanceMeasures—Weusemultipleperformancemeasurestoavoidhavingcompensationopportunitiesoverlyweightedtowardtheperformanceresultofasinglemeasure.Ingeneral,ourincentiveprogramsarebasedonamixoffinancial,safetyandindividualgoals.Ourfinancialperformancemeasuresarebasedonoperatingincome,freecashflow,returnoninvestedcapital,relativetotalstockholderreturnandearningspershare.Operatingincomeandfreecashflowmaintainthefocusonoperationalperformancewhileearningspershare,returnoninvestedcapitalandrelativetotalstockholderreturnmaintainafocusonlonger-termmetricsthathelpdrivestockholdervalue.

• StockOwnershipGuidelines—Ourexecutiveofficersanddirectorsaresubjecttostockownershipguidelines,whichhelptopromotelonger-termperspectivesandaligntheinterestsofourexecutiveofficersanddirectorswiththoseofourstockholders.

TheCompensationCommitteereviewstherisksandrewardsassociatedwithouremployeecompensationprograms.Theprogramsaredesignedwithfeaturesthatmitigateriskwithoutdiminishingtheincentivenatureofthecompensation.Webelieveourcompensationprogramsencourageandrewardprudentbusinessjudgmentandappropriaterisk-takingovertheshorttermandthelongterm.ManagementandtheCompensationCommitteedonotbelieveanyofourcompensationpoliciesandpracticescreaterisksthatarereasonablylikelytohaveamaterialadverseeffectontheCompany.

2017CompensationDecisions

BASE SALARIES

WegenerallytargetbasesalariesforourNEOsatmedian(+/-15%)ofasurveygroupusingdatafurnishedbyourindependentcompensationconsultant,HayGroup.TheCompensationCommitteeusedHayGroup’sIndustrialExecutiveCompensationSurveyforthispurpose.Italsoconsideredpubliclyavailablecompensationdatafromthecustompeergroupdescribedabovecomprisedof16companieswithwhomwecompeteforexecutivetalentfromtheengineeringandconstruction,aerospaceanddefense,heavyelectricalequipmentandindustrialmachineryindustries.InthecaseofMr.FerlandandMs.Apker,theCompensationCommitteeusedthepeergroupdatatovalidatetherangesestablishedusingthesurveydataprovidedbyHayGrouptoevaluatetheirbasesalaries.Forpurposesofthisevaluation,itwassurveyresultsthemselves,andnottheidentitiesoftheparticularentitiessurveyed,thatwasmaterial.Formoreinformationregardingthiscomparativecompensationinformation,see"PeerGroup"above.

WefollowedournormalcompensationprocessandmadecertainadjustmentstobasesalaryrateseffectiveasofApril1,2017,asfollows:

2017BASESALARYADJUSTMENTS

NAME BASE SALARY AT JAN. 1,2017

BASE SALARY AT APRIL1, 2017 PERCENTAGE INCREASE

E.JamesFerland $978,500 $978,500 0%

JennyL.Apker $435,000 $435,000 0%

MarkA.Carano $425,000 $425,000 0%

EliasGedeon $390,000 $398,000 2.1%

MarkS.Low $325,000 $340,000 4.6%

ANNUAL CASH INCENTIVES

WeprovideourNEOswithanannualincentivecompensationprogramthatrewardsparticipatingexecutivesforthreeareasofperformance:

• 70%basedonachievementofpre-establishedfinancialgoals;• 10%basedonachievementofpre-establishedsafetygoals;and• 20%basedonanassessmentofpre-establishedindividualperformancegoals.

EachNEOhadatargetannualincentiveawardbasedonapercentageofbasesalary(referredtoasthe“targetawardpercentage”).Thefinalawardcouldrangefrom0%to200%ofthetargetbasedonactualperformanceresults.ThetargetawardpercentageswereestablishedbytheCompensationCommitteebasedonareviewofHayGroup’ssurveydata,andtakingintoaccounteachNEO’sexperience,roleandscopeofduties.InthecaseofMr.FerlandandMs.Apker,thereviewalsoincludedHayGroup'speergroupdata.WegenerallytargetannualincentivesforourNEOsatmedian(+/-15%)ofmarket.However,Mr.Gedeon’stargetannualincentiverepresentedabout118%ofthemedianofmarketinrecognitionofhisexperienceintheindustryandthesubstantialresponsibilitiesthathispositionentailed.Mr.Low’stargetannualincentivewasfifteenpercentagepointsbelowthetargetedrangeforhisposition,reflectingtheincreasedscopeofresponsibilitiesMr.Lowassumedinlate2016.ThefollowingtablesummarizesthetargetawardpercentagesforeachNEO:

TARGETAWARD%FOR2017ANNUALINCENTIVEAWARD

NAME TARGET AWARD %

E.JamesFerland 100%

JennyL.Apker 70%

MarkA.Carano 60%

EliasGedeon 60%

MarkS.Low 60%

2017ANNUALINCENTIVEPAYOUTAsdescribedinmoredetailbelow,basedonour2017performance,theannualincentivepayoutpercentageforourNEOswas10%ofthetargetaward.

2017ANNUALINCENTIVEAWARDDESIGNTheCompensationCommitteedeterminedthatthe2017annualincentiveawardwouldbemadeupofthreecomponents,asfollows:

COMPONENT WEIGHTING MEASURES PAYOUT CALCULATION

Financial 70%Operatingincome(45%)Freecashflow(25%)

Rangefrom0%–200%basedonachievementagainstgoalsResultreferredtoas“FinancialMultiplier”

Safety 10% Totalrecordableincidentrate(5%);Daysaway,restrictedortransferredrate(5%)

Rangefrom0%–100%multipliedby“FinancialMultiplier”(ifgreaterthan0)

Individual 20% Assessmentofpre-establishedindividualperformancegoals

Rangefrom0%–100%multipliedby“FinancialMultiplier”

Forthefinancialperformancecomponent,ourCompensationCommitteedeterminedthatoperatingincomeandfreecashflowgoalsalignedourNEOswithourkeybusinessgoalsrelatedtocreatingprofitableorganicgrowthandenhancedfreecashflowacrossourrangeofglobalmarkets.Forthispurpose:

• Operating income meansrevenuelesscostofoperations,researchanddevelopmentcosts,selling,generalandadministrativeexpenses,lossesonassetdisposalsandimpairments.Operatingincomealsoincludesthenetimpactofequityinincomeofinvestees.

• Free cash flow meansournetcashflowfromoperatingactivities(operatingcashflow)lesscapitalexpenditures.

Inorderforthesemeasurestoreflectcoreoperatingresults,theCompensationCommitteedeterminedthatthemeasuresshouldbeadjustedforthefollowingitems:pensionandotherpost-retirementbenefitmark-to-marketgainsandlosses,restructuringcharges,expensesrelatedtothespin-offtransaction,assetimpairments,lossesinrespectoflegalproceedingsanddisputeresolutionsandothernon-recurringorunusualitemsthatwouldhavethepotentialtocreatemisalignmentbetweenourannualincentiveprogramandlong-termoperatingobjectives.Forpurposesoffreecashflow,theCompensationCommitteealsodeterminedthatvariancesfromthebudgetedincometaxrateshouldalsobeexcluded.Withouttheseadjustments,incentivepayoutsmaynotaccuratelyreflectmanagement’sperformance.

TheCompensationCommitteebelievesthatourforecastingprocessproducesrigorousgoalsthatarereasonablyachievableifthebusinessesperformedasexpected.Asaresult,theCompensationCommitteegenerallysetstargetlevelfinancialperformancebasedonforecast.ThetargetlevelsofoperatingincomeperformanceandfreecashflowperformancewerebasedonaforecastthatanticipatedsubstantiallosseswouldbeincurredontheCompany’srenewableenergyprojectsinEurope.Asaresultoftheseanticipatedlosses,freecashflowwasforecastedtobenegativethroughout2017.Becausefreecashflowwasforecastedtobenegativefor2017,theCompensationCommitteeusedthefreecashflowforecasttosetthethresholdlevelperformancegoal,ratherthanthetargetlevelgoal,forfreecashflow.Performancebelowthisthresholdlevelwouldresultinnoannualincentiveawardbeingearnedwithrespecttothefinancialmetrics.TheCompensationCommitteealsoestablishedamaximumlevelofperformanceabovewhichnomorethan200%ofthetargetawardamountwouldbeearned.Thereisnoannualincentivepayout(otherthanwithrespecttothesafetycomponentoftheaward)ifoperatingincomeisbelowthethresholdlevel.

ThefollowingtablesummarizesthefinancialgoalsthattheCompensationCommitteeestablishedfor2017:

2017FINANCIALPERFORMANCEGOALS

PERFORMANCE LEVEL

INCENTIVE PAYOUT%*

OPERATING INCOME

FREE CASH FLOW

Belowthreshold 0% Lessthan$44.2million Lessthan$(124.0)million

Threshold 50% $44.2million $(124.0)million

Target 100% $55.3million $(95.4)million

Maximum 200% $66.4millionormore $(66.8)millionormore

*Thepayoutpercentageisproratedonastraight-linebasisforresultsbetweenthresholdandtargetorbetweentargetandmaximum.

TheCompensationCommitteealsoapprovedsafetygoalsfor2017.Thesegoalsemphasizeourstrategicbusinessgoalofmaintainingourcommitmenttosafety.Thegoalsrelatetotwocomponentsofmeasuringsafetyresults:

• TotalRecordableIncidentRate(“TRIR”),whichmeasurestherateofrecordableworkplaceinjuries;and• DaysAway,RestrictedorTransferred(“DART”),whichmeasuresinjuriesresultinginlostorrestricteddays.

TRIRandDARTeachaccountfor5%ofthetotalannualincentivepayout.For2017,theCompensationCommitteeestablishedthethresholdandtargetforTRIRat1.29and1.09,respectively,andthethresholdandtargetforDARTat0.55and0.40,respectively.Ineachcase,thetargetlevelsrepresenta5%improvementovertheaverageofthepriorthreeyears.

Foreachsafetygoal,thereisathresholdlevelofperformanceatwhich50%ofthetargetincentiveisearned(andbelowwhichnoincentiveisearned),andatargetlevelofperformanceatwhich100%ofthetargetincentiveisearned.UnlesstheFinancialMultiplieris0%,thefinallevelofsafetyachievementismultipliedbytheFinancialMultiplier.

IndividualperformanceisgenerallyassessedagainstindividualgoalsandperformanceprioritiesestablishedearlyintheyearforeachNEO.IndividualperformancegoalsallowtheCompensationCommitteetodifferentiatefinalannualincentiveawardsforeachNEObasedontheCommittee’sinformedjudgment,takingintoaccountindividualeffortsandachievementsintheirrespectiveareasofresponsibility.Theperformanceassessmentmayresultinanindividualperformanceresultthatrangesfrom0%to100%oftarget.EachNEO’sindividualperformanceresultismultipliedbytheFinancialMultiplier,sothattheportionearnedbasedonindividualperformanceistiedtoourfinancialperformance.

2017FINANCIALPERFORMANCERESULTS

Inearly2018,ourCompensationCommitteereviewedthe2017financialandsafetyperformanceresults.For2017annualincentivecompensationpurposes,ourconsolidatedoperatingincomewas$(163.9)million.Inaccordancewithour2017annualincentiveplandesign,thisamountincludedanetupwardadjustmentfromour2017GAAPoperatingincomeresult,largelytoexcludetheeffectofamark-to-marketpensionaccountingloss,aswellasrestructuringcharges,assetimpairmentsandothernon-recurringorunusualitemsthathadthepotentialtocreateamisalignmentbetweenourannualincentiveprogramandlong-termoperatingobjectives,orotherwisemaynothaveaccuratelyreflectedmanagement’s2017operatingperformance.For2017forincentivecompensationpurposes,wegeneratedadjustedfreecashflowof$(181.7)million.

Wedidnotachieveourthresholdoperatingincomegoal,andasaresult,thefinancialpayoutpercentagewasdeterminedtobe0%.Thispayoutpercentageisalsothe“FinancialMultiplier”usedfortheindividualperformanceportionoftheawardasdescribedbelow.Thefollowingtable,whichsummarizeshowtheCompanyperformedrelativetothefinancialgoalsestablishedbytheCompensationCommittee,showsthefinalFinancialMultiplier.

2017FINANCIALPERFORMANCEPAYOUTPERCENTAGE

METRIC THRESHOLD TARGET MAX ACTUAL WEIGHTING RESULT

OperatingIncome (45%)

Goal $44.2million $55.3million $66.4million $(163.9)million Payout% 50% 100% 200% 45/70 0%

Free Cash Flow(25%)

Goal $(124.0)million $(95.4)million $(66.8)million $(181.1)million Payout% 50% 100% 200% 25/70 0%

FinancialPayout% 0%

WithrespecttotheperformanceoftheNEOsrelativetotheirindividualgoals,theCompensationCommitteedeterminedthattheannualincentivepayoutwas$0forthismetricbecausetheFinancialMultiplierwas0%.TheCompensationCommitteealsoreviewedourperformancerelativetothesafetygoalsfor2017,anddeterminedthattheCompanysignificantlyimproveditssafetyperformanceasmeasuredbybothTRIRandDART.TheCompany’scalculatedTRIRfor2017was0.67(animprovementof33%overtheprioryearand39%overthe2017goal),anditscalculatedDARTwas0.21(animprovementof42%overtheprioryearand48%overthe2017goal).Asnotedabove,iftheFinancialMultiplieris0%,itdoesnotapplytothesafetymetrics.Asaresult,theCompensationCommitteedeterminedthatthepayoutpercentageforthesafetymetricswas10%ofthetargetannualincentiveaward.

Thefollowingtablesummarizesthe2017awardcalculation.ThetotalamountforeachNEOappearsinthe"2017SummaryCompensationTable"as2017compensationunder“Non-EquityIncentivePlanCompensation."

2017TOTALANNUALINCENTIVEAWARD

NAME TOTAL AWARD

E.JamesFerland $97,850

JennyL.Apker $30,450

MarkA.Carano $25,500

EliasGedeon $23,760

MarkS.Low $20,175

LONG-TERM INCENTIVE AWARDS

Weprovidedlong-termincentivecompensationawardsinamixofperformance-vestingPSUsandtime-vestingRSUsgrantedduringthefirstquarterof2017inthefollowingproportions:

• 60%PSUs;and• 40%time-vestingRSUs.

TheaggregatevalueoftheawardsgrantedeachyearisgenerallybasedontheCompensationCommittee'sreviewoflong-termincentivecompensationawardopportunitiesbasedonHayGroup’ssurveydatadescribedabove,andtakingintoaccounteachNEO’sexperience,roleandscopeofduties,inordertoprovidecompetitivelong-termincentiveopportunities.InthecaseofMr.FerlandandMs.Apker,thereviewalsoincludedHayGroup'speergroupdata.Wegenerallytargetlong-termincentivesforourNEOsatmedian(+/-15%)ofmarket.Themixofawardtypesisintendedtobalancethecompensationobjectivesofencouragingsustainable,long-termfinancialperformancewithexecutiveretention.Useofequity-basedawards,togetherwithourmeaningfulstockownershiprequirements,isalsointendedtoaligntheinterestsofourNEOswiththelong-terminterestsofourstockholders,whichisanotherimportantobjectiveofourexecutivecompensationprogram.

2017PSUawardsgenerallyvestfrom0%to200%oftheamountofinitialsharesgranteddepending60%onthelevelofcumulativeadjusteddilutedearningspershare,20%onaverageannualreturnoninvestedcapital(“ROIC”)and20%onrelativetotalshareholderreturnattainedfromJanuary1,2017toDecember31,2019(the“PerformancePeriod”).Webelievethatoverthelong-term,thereisahighdegreeofcorrelationbetweenadjustedearningspershareandstockprice.Accordingly,weuseadjustedearningspershareinlong-termstock-basedcompensationtomorecloselyalignourgoalswithstockholderinterests.Wealsouserelativetotalshareholderreturn(“TSR”)asaperformancemetrictopromotemanagementfocusonourCompany’sperformancerelativetopeercompaniesintheindustriesinwhichweoperate.ThisperformancemetriccomparestheCompany’saveragequarterlyTSRoverthePerformancePeriodtothatofthecompaniesinourcustompeergroup(asdescribedunder"PeerGroup"above).Finally,includingROIChelpspromotefocusonassetutilization.Webelieveusingdifferentperformancemeasuresforlong-termincentivecompensationratherthanintheannualincentivecompensationprogramreducesthefocusonasinglemetricattheexpenseofothers,therebyhelpingtomitigateriskrelatedtoincentivecompensation.

Foreachperformancemeasure,resultsatthethreshold,targetandmaximumgoalsproducevestingat50%,100%and200%,respectively,oftheportionofthePSUsgrantedthataresubjecttothatperformancemeasure.Vestingforperformanceresultsbetweenthresholdandtargetortargetandmaximumisdeterminedbylinearinterpolation.Noamountwillvestwithrespecttoanyperformancemeasureunlessatleastthresholdresultsareattained.TheCompensationCommitteesettargetandmaximumgoalsbasedonthesumofadjustedearningspershareestimatesforeachyearofthePerformancePeriod.Tocomplementandleveragefinancialresultsthatmaybeachievedundertheannualincentivecompensationelement,wederivedthethresholdforcumulativeadjusteddilutedearningspersharefromtheoperatingincometargetgoalusedin2017annualincentivecompensationandassumedsubstantialoperatingincomegrowthfortargetandmaximumgoals.Wesetthreshold,targetandmaximumgoalsforaverageROICatlevelsthattheCompensationCommitteedeterminedtobeappropriatebasedonmanagement’sprojectionsofourfinancialresultsforthePerformancePeriod.

Wedonotdisclosethespecific,forward-lookingdilutedearningspershareorROICgoalsthatweestablishedforthePSUawardsgrantedin2017inthisproxystatementbecause(1)thesegoalsrelatetoexecutivecompensationtobeearnedand/orpaidinfutureyearsanddonotaffectafairunderstandingoftheNEOs’compensationfor2017,and(2)webelievethatdisclosureofsuchgoalswhiletheapplicableperformanceperiodisongoingwouldcauseuscompetitiveharm.However,weexpecttodisclosesuchgoalsinfutureproxystatementsoncetheapplicableperformanceperiodhasendedaspartofourdiscussionandanalysisabouttheamountsearnedbytheNEOsundertheseawards.Insettingtheapplicabletargetlevels,theCompensationCommitteeconsideredhowachievementoftheperformancegoalscouldbeimpactedbyeventsexpectedtooccurinthecomingyears.Webelievethatthethresholdgoalshavebeenestablishedatlevelsthatshouldbeappropriatelydifficulttoattain,andthatthetargetgoalswillrequireconsiderableandincreasingcollectiveeffortonthepartofouremployees,includingourNEOs,toachieve.Achievementofthemaximumgoalisconsideredtobeastretchgoalgivencurrentmarketconditions.ThePSUgrantsmadein2017fortheNEOsaresetforthinthe"2017GrantsofPlan-BasedAwards"tableofthisproxystatement.

WithrespecttotherelativeTSRperformancemetric,wesetthresholdperformanceatthe25thpercentileofourcustompeergroup,targetperformanceatthe50thpercentile,andmaximumperformanceatthe75thpercentileofourcustompeergroup.Payoutsbetweentheselevelswillbebasedonlinearinterpolation.

RSUsgenerallyvestratablyoverthreeyears.

Thefollowingtablesummarizestheaggregatetarget2017long-termincentiveawardsforeachNEO:

2017LONG-TERMINCENTIVEAWARDS

NAME TARGET VALUE LTI 1

E.JamesFerland $3,200,000

JennyL.Apker $750,000

MarkA.Carano $600,000

EliasGedeon $345,000

MarkS.Low $400,000

1Thevalueofthetargetlong-termincentiveawardsrepresentsthenominalvalueusedtodeterminethenumberofPSUsandRSUsgranted,takingintoaccountthevestingscheduleoftheawards,ratherthanthegrantdatefairvaluecomputedforfinancialreportingpurposes.Seethe“2017GrantsofPlan-BasedAwards”tableformoreinformationregardingthestockawards.

Ascomparedtothelong-termincentiveawardsgrantedin2016,theCompensationCommitteeandMr.FerlandmutuallyagreedtoreduceMr.Ferland’sawardfrom$4,200,000in2016to$3,200,000in2017inlightoftheCompany’srecentfinancialperformance.Mr.Ferland’stargetawardvaluesforlong-termincentiveawardsrepresentedapproximately62%ofhistotal2017salaryandtargetannualandlong-termcompensationopportunity,placingsignificantemphasisforhimoncreationoflong-termstockholdervalue.TheCompensationCommitteedeterminedtoincreaseMs.Apker’slong-termincentiveawardfrom$600,000in2016to$750,000in2017tomorecloselyalignherlong-termincentivecompensationwiththemarketmedianforherposition.Basedonpeerdata,Ms.Apker’slong-termincentiveawardin2016wasinthe25thpercentile,andher2017long-termincentiveawardisstillbelowmedianforachieffinancialofficer.TheCompensationCommitteealsodeterminedtoincreasethelong-termincentiveawardsfortheotherNEOsasfollows:forMr.Carano,from$450,000to$600,000;forMr.Gedeon,from$325,000to$345,000;andforMr.Low,from$325,000to$400,000.Increasesinthelong-termincentiveawardsforMessrs.CaranoandGedeonwerewithinthetargetedrangesfortheirrespectivepositions.Mr.Low’s2017targetlong-termincentiverepresentedanincreaseofapproximately25%overhis2016targetaward,althoughitwasthirteenpercentagepointsbelowthetargetedrangeforhisposition,reflectingtheincreasedscopeofresponsibilitiesMr.Lowassumedin2016.

2017LONG-TERMINCENTIVEPERFORMANCEUPDATE

Our2016and2017financialresults(asapplicable)willmakeitdifficulttoachieveathresholdlevelofperformanceforour2016and2017long-termincentiveawardswhenperformanceismeasuredattheendofeachthree-yearperformancecycle,whichisafurtherreflectionofourstrongpay-for-performancephilosophy.

RETENTION PROGRAM

Inordertomaintaincontinuityofmanagementwebelieveisneededtoworkthroughoperationalchallenges,theCompensationCommitteeimplementedaspecialretentionprogramin2017.Participationinthespecialretentionprogramislimitedtoasmallnumberofseniorexecutives,whoseleadershipandcontinuedcontributionsarevitallyimportanttothecompletionoftheCompany’srenewableenergyprojectsandoureffortstostabilizeandstrengthenourbusinesses,includingourNEOsotherthanMr.Ferland.Athisrequest,Mr.Ferlanddidnotparticipateinthespecialretentionprogram.Mr.Ferlandwasapartytoaretentionarrangemententeredintoinconnectionwiththespin-offin2015.See“OutstandingSpin-offAwards–Long-TermPerformanceandRetention”foradditionalinformation.

Specialretentionprogramparticipantsreceivedbothcash-settledandstock-settledawards,whichareintendedtobalancenear-andlong-termperformanceandretentionrisks.Thecash-settledcomponentincorporatesstockpriceperformancetomaintainimportantnear-termalignmentwiththeCompany’sstockholdersaswellasincorporateaperformanceelementintheretentionprogram.Keyelementsofthespecialretentionprogramawardsareasfollows:

CASH-SETTLEDPERFORMANCEUNITS

Thecash-settledcomponentofthespecialretentionprogramiscomprisedofanawardofcash-settledperformanceunits(“CPUs”).EachCPUrepresentstherighttoreceiveanamountincashequaltothe“measurementvalue”ofourstockatthetimeofvesting.Generally,themeasurementvalueisdeterminedbasedontheaveragefairmarketvalueofourstockforthe30-dayperiodimmediatelyprecedingthevestingdate.However,themeasurementvaluewillbenolessthan75%ofthemarketvalueofourstockdeterminedasofthegrantdateofAugust14,2017,andnogreaterthan150%ofthevalueofourstockdeterminedasofthegrantdate.Ingeneral,40%oftheCPUgrantvestssixmonthsafterthegrantdate,andtheremaining60%vests12monthsafterthegrantdate.TheCPUawardsaresubjecttorepayment(adjustedfortaxespaidbythegrantee)ifthegrantee’semploymentisterminatedbetweenthefirstandsecondvestingdatesotherthanduetodeathordisability,aterminationbytheCompanywithoutcause(asdefinedintheCPUawardagreement)oraterminationforgoodreason(asdefinedintheCPUawardagreement)followingachangeincontrol(asdefinedinthe2015LTIP).

TIME-VESTINGRESTRICTEDSTOCKUNITS

Thestock-settledcomponentofthespecialretentionprogramiscomprisedofanawardoftime-vestingRSUsthatgenerallyvestinequalinstallmentsonthesecondandthirdanniversaryofthegrantdate(whichwasAugust14,2017).However,uponthevestingoftheRSUs,thenumberofRSUsvestingatsuchtimewillbereduced(butnotbelowzero)bythenumberofPSUsgrantedtothegranteein2016and2017thatvestpriorto(orthatarevestingasof)thevestingeventforthespecialretentionprogramRSUaward.

Thefollowingtablesummarizesthe2017specialretentionprogramawardsforeachparticipatingNEO.

SPECIALRETENTIONPROGRAMAWARDS

NAME CPU AWARD 1 RSU AWARD 1

JennyL.Apker $282,750 $649,800

MarkA.Carano $233,750 $518,700

EliasGedeon $218,900 $341,400

MarkS.Low $187,000 $361,200

1ThevalueofthetargetspecialretentionprogramawardsrepresentsthenominalvalueusedtodeterminethenumberofCPUsandRSUsgranted,takingintoaccountthevestingscheduleoftheawards,ratherthanthefairvaluecomputedforfinancialreportingpurposes.

Seethe“2017SummaryCompensationTable"andthe“2017GrantsofPlan-BasedAwards”tableformoreinformationregardingthesecashandequityawards.

OUTSTANDING SPIN-OFF AWARDS – LONG-TERM PERFORMANCE AND RETENTION

In2015,BWCapprovedcertainlong-termarrangementsdesignedtoensuremanagementcontinuitythroughandafterthespin-offthatwereinadditiontothelong-termincentiveawardsdescribedabove.Amongotherthings,BWCapprovedaRestructuringTransactionRetentionAgreementwithMr.Ferland.Pursuanttohisretentionagreement,inrecognitionofMr.Ferland’suniqueskillsandindustrybackground,andtofurtherencouragehiscontinuedservicetoourCompanyafterthespin-off,BWCgrantedhimacashretentionawardequaltotwotimesthesumofhis2014annualbasesalaryrateandtargetannualincentiveaward(atotalof$3,800,000),50%ofwhichvestedonthesecondanniversaryofthespin-offin2017and50%ofwhichwillgenerallyvestonthethirdanniversaryofthespin-offin2018.Becausethisisacash-basedaward,amountswillappearintheSummaryCompensationTableintheyearearnedandpaid,ratherthanintheyearofgrant.Tothatend,thetotalamountreportedintheSummaryCompensationTablefor2017wouldhavebeenlowerthanthetotalamountreportedin2016.BWCbelievedthisarrangementwasfairandreasonable,especiallyinlightofthefactthattheBoardaskedMr.Ferlandtoremainwiththesmallerofthetwocompaniesfollowingthespin-off.BWCalsobelievedthatthesearrangementswouldresultinthebestopportunitiestocreateshareholdervalueinthefuture.

OtherCompensationPracticesandPolicies

BENEFITS

NEOsparticipateintheCompany’stax-qualified401(k)planandvarioushealthandwelfareplansonthesamebasisasothereligibleemployeesoftheCompany.The401(k)planincludesemployermatchingcontributionsandservice-basedemployercontributions,rangingfrom3%to8%ofeligiblecompensation,forparticipantswhoarenoteligibleforadefinedbenefitpensionplan.NEOsalsoreceivelimitedperquisitesforitemssuchasfinancialplanning,anannualexecutivephysicalandannualairlineclubmemberships.TheCompensationCommitteeviewsthesebenefitsascustomaryarrangementsandastandardpartofacompetitivetotalcompensationpackage.

NEOsarealsoeligibletoparticipateintwonon-qualifieddefinedcontributionretirementplans,referredtoasthe“RestorationPlan”andthe“SupplementalExecutiveRetirementPlan”(or“SERP”).BothplanspermitourNEOstochoosetodefereligiblecompensationabovethelimitedamountspermittedunderthe401(k)plan.TheRestorationPlanalsoprovidesforanemployermatchandservice-basedemployercontributiononthesamebasisasunderthe401(k)planbutwithoutregardtocertainlimitsthatotherwiseapplytothe401(k)planunderU.S.InternalRevenueCoderules.TheSERPalsoprovidesforanadditionaldiscretionaryemployercontributionforeligibleemployees,whichinrecentyearshasequaled5%ofprioryearsalaryandbonus.TheCompensationCommitteebelievesthattheopportunitiestodefercompensationandreceiveemployercontributionsunderboththeRestorationPlanandtheSERPreflectcompetitivemarketpracticesandprovideourNEOswithreasonableretirementbenefitopportunitiesgiventheircompensationandgiventhattheydonotparticipateinanyqualifiedornon-qualifieddefinedbenefitpensionplans.NeithertheRestorationPlannortheSERPprovidesforabove-marketearningsonanydeferredamounts.See“2017Non-qualifiedDeferredCompensation”foradditionalinformationabouttheseplans.

Severance and Change in Control Protection

NEOsareeligibletoreceivecertainseverancebenefitsincaseofaninvoluntaryterminationwithout"cause,"includingaterminationfor"goodreason."DifferentprovisionsapplyforaninvoluntaryterminationthatoccursbeforeorfollowingachangeincontroloftheCompany.SeverancebenefitsforaterminationoccurringbeforeachangeincontrolwouldgenerallybeprovidedforMr.Ferlandunderanemploymentagreementthatbecameeffectiveuponthespin-off,andfortheotherNEOsinaccordancewiththeCompany’sExecutiveSeverancePlan.Severancebenefitsforaninvoluntaryterminationduringa2-yearprotectedperiodfollowingachangeincontrolareprovidedunderaseparatechangeincontrolagreementwitheachNEO.Theseagreements,whichwereamendedin2016tomakecertainclarifyingchangesandtoprovideforanadditionalairlineclubmembership,requirebothachangeincontrolanda"CoveredTermination"(inotherwords,adoubletrigger)foranypaymentsthereunder.TheCompensationCommitteebelievestheamountsofseverancepayablearereasonableinbothamountandtype.Thechangeincontrolagreementsdonotprovideforanytaxgross-ups.Mr.Ferland’semploymentagreementandthechangeincontrolagreementswitheachNEOincludecovenantsregardingprotectionofconfidentialinformation,non-solicitationofemployeesandcustomersandnon-competitionasaconditiontotheseverancebenefits.Ourequitygrantagreementsalsoprovidefordouble-triggervestinguponachangeincontrol.See“PotentialPaymentsUponTerminationorChangeinControl”foradditionaldetails.

TheCompensationCommitteebelievesthattheseagreementsserveanumberofimportantpurposesforourstockholders.Theyhelpusattractandretaintopqualityexecutivesandrepresentstandardarrangementsatmostpubliccompaniesaspartofacompetitivetotalcompensationpackage.Thechangeincontrolagreementsalsobetterallowexecutivestoobjectivelyevaluatepotentialtransactions.

Effectiveasofthespin-off,ouremploymentagreementwithMr.Ferlandwentintoeffect.TheemploymentagreementgovernsthebasictermsandconditionsofMr.Ferland’semployment.Theagreementprovidesforaminimumlevelofbasesalary,participationinourannualandlong-termincentiveprograms,andcertainothercustomarybenefits.Theemploymentagreementhasaninitialtermofoneyear,butwillgenerallyautomaticallyrenewforadditionalone-yeartermsunlessnoticeofterminationisgivenbyeitherparty.Intheeventofaterminationofemployment,Mr.Ferlandwouldbeentitledtoseverancecompensationundertheemploymentagreement,asfurtherdescribedunder“PotentialPaymentsUponTerminationorChangeinControl.”

Stock Ownership Requirements

TheCompanymaintainsstockownershipguidelinesforexecutives.Theseguidelinesestablishminimumstockownershiplevelsoftwotofivetimesannualbasesalaryforexecutives.TheownershipmultiplesapplicabletoourNEOsare:

• CEO–Five(5)xbasesalary;and• OtherNEOs–Three(3)xbasesalary.

NEOshavefiveyearstoachievetheirrespectiveminimumownershiplevels.TheGovernanceCommitteeannuallyreviewsthecompliancewiththeseguidelinesandhasdiscretiontowaiveormodifythestockownershipguidelines.AllcontinuingNEOsarecurrentlyincompliancewithourstockownershipguidelines.NEOsareexpectedtohold100%ofthenetsharesissuedtothemunderourlong-termincentiveplan,andshouldnotsellorotherwisedisposeofanyothersharesofCompanycommonstockunlesstheyhavemettheirrespectiveguideline.

No Hedging or Pledging Transactions

TheCompanymaintainsapolicythatprohibitsalldirectors,officersandemployeesfromtradinginputs,callsorotheroptionsonCompanycommonstockorotherwiseengaginginhedgingtransactionsthataredesignedtohedgeoroffsetanydecreaseinthemarketvalueofCompanycommonstock.Thedirectors,officersandemployeesarealsoprohibitedfrompledgingCompanysecuritiesandengaginginshortsalesofCompanysecurities.

Compensation Recovery (Clawback) Policy

Allannualandlong-termincentivecompensationawardsgenerallyincludeprovisionsallowingtheCompanytorecoverexcessamountspaidtoindividualswhoknowinglyengagedinafraudresultinginarestatement.

Timing of Equity Award Approvals

Toavoidtimingstockawardsaheadofthereleaseofmaterialnonpublicinformation,theCompensationCommitteegenerallyapprovestheannualstockoptionandotherstockawardseffectiveasofthethirddayfollowingthefilingoftheCompany’sannualreportonForm10-KorquarterlyreportonForm10-QwiththeSecuritiesandExchangeCommission.

Tax Considerations

Section162(m)oftheInternalRevenueCode(“Section162(m)”)generallydisallowsafederaltaxdeductionbytheCompanyforcompensationpaidtocertainexecutiveofficers(and,beginningin2018,certainformerexecutiveofficers)inexcessof$1million.Historically,compensationthatqualifiesas“performance-basedcompensation”underSection162(m)couldbeexcludedfromthis$1millionlimit,butthisexceptionhasnowbeenrepealed,effectivefortaxableyearsbeginningafterDecember31,2017,unlesscertaintransitionreliefforcertaincompensationarrangementsinplaceasofNovember2,2017isavailable.

CompensationdecisionsforourNEOspriorto2018weregenerallymadeafterconsiderationoftheSection162(m)implications,buttheCompensationCommitteeretaineddiscretiontomakecompensationdecisionsinlightofavarietyofconsiderations.BasedontherepealdescribedaboveandtheoperationofSection162(m),compensationgrantedbytheCompensationCommitteemaynotqualifyas“performance-basedcompensation”undercertaincircumstances.TheCompensationCommitteeretainstheflexibilitytoawardcompensationthatisconsistentwithourobjectivesandphilosophyevenifitdoesnotqualifyforataxdeduction.TheCompensationCommitteebelievesthatthetaxdeductionlimitationshouldnotbepermittedtocompromiseourabilitytodesignandmaintainexecutivecompensationarrangementsthatwillattractandretaintheexecutivetalenttocompetesuccessfully.Accordingly,achievingthedesiredflexibilityinthedesignanddeliveryofcompensationmayresultincompensationthatincertaincasesisnotdeductibleforfederalincometaxpurposes,anditispossiblethatawardsintendedtoqualifyas“performance-basedcompensation”maynotsoqualify.Moreover,eveniftheCompensationCommitteeintendedtograntcompensationthatqualifiesas“performance-based

compensation”forpurposesofSection162(m),wecannotguaranteethatsuchcompensationwillsoqualifyorultimatelyisorwillbedeductible.

COMPENSATION COMMITTEE REPORT

ThefollowingreportoftheCompensationCommitteeshallnotbedeemedtobe“solicitingmaterial”ortootherwisebeconsidered“filed”withtheSECorbesubjecttoRegulation14Aor14C(otherthanasprovidedinItem407ofRegulationS-K)ortotheliabilitiesofSection18oftheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”),norshallsuchinformationbeincorporatedbyreferenceintoanyfuturefilingundertheSecuritiesActof1933,asamended,ortheExchangeAct,excepttotheextentthattheCompanyspecificallyincorporatesitbyreferenceintosuchfiling.

WehavereviewedanddiscussedtheCompensationDiscussionandAnalysiswiththeCompany’smanagementand,basedonsuchreviewanddiscussions,werecommendedtotheBoardthattheCompensationDiscussionandAnalysisbeincludedinthisproxystatementandtheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2017.

THE COMPENSATION COMMITTEE

MatthewE.Avril(Chair)(joinedMarch2,2018)BrianR.KahnAnneR.Pramaggiore

COMPENSATION OF NAMED EXECUTIVE OFFICERS

Thefollowingtablesummarizesthe2017,2016and2015(asapplicable)compensationofourformerChiefExecutiveOfficer(“CEO”),ChiefFinancialOfficer(“CFO”)andthreehighest-paidexecutiveofficersotherthantheCEOandCFOwhowerestillservingasexecutiveofficersasofDecember31,2017.WerefertothesepersonsasourNamedExecutiveOfficersorNEOs.Asapplicable,theinformationincludedinthesetablesforfiscalyear2015reflectscompensationearnedbytheindividualsforservicewithBWCandus.Asdiscussedbelow,referencesinthefollowingtablestostockawardsandoptionawardsrelatetoeitherBWCstockorourstock,dependingonthetimingofthegrantandthereferencedatefortheparticulardisclosure.

2017SummaryCompensationTable

NAME AND PRINCIPALPOSITION YEAR SALARY ($) BONUS ($) STOCK

AWARDS ($)OPTION

AWARDS ($)NON-EQUITY INCENTIVEPLAN COMPENSATION($)

CHANGE IN PENSIONVALUE AND NON-

QUALIFIED DEFERREDCOMPENSATION

EARNINGS ($)

ALL OTHERCOMPENSATION ($) TOTAL ($)

E.JamesFerland 2017 $978,821 $1,900,000 $3,323,550 — $97,850 N/A $186,469 $6,486,690

FormerExecutiveChairman&ChiefExecutiveOfficer

2016 $978,500 — $3,769,685 $758,464 $0 N/A $178,670 $5,685,319

2015 $971,375 — $6,155,436 $1,428,006 $1,187,770 N/A $154,759 $9,897,346

JennyL.Apker 2017 $435,321 — $1,852,883 — $30,450 N/A $69,270 $2,387,924

SeniorVicePresident&ChiefFinancialOfficer

2016 $420,000 — $538,498 $108,357 $0 N/A $63,895 $1,130,750

2015 $335,000 — $976,692 $153,012 $228,634 N/A $44,692 $1,738,030

MarkA.Carano 2017 $425,321 — $1,492,483 — $25,500 N/A $75,776 $2,019,080

SeniorVicePresident,Industrial&CorporateDevelopment

2016 $424,325 — $403,874 $81,259 $0 N/A $77,970 $987,428

2015 $419,225 — $1,040,650 $144,507 $307,570 N/A $68,580 $1,980,532

EliasGedeon 2017 $396,321 — $1,028,059 — $23,760 N/A $60,031 $1,508,171

FormerSeniorVicePresident&ChiefBusinessDevelopmentOfficer

2016 $389,050 — $291,723 $58,691 $0 N/A $54,219 $793,683

2015 $383,400 — $888,362 $101,993 $281,285 N/A $26,924 $1,681,964

MarkS.LowSeniorVicePresident,Power

2017 $336,571 — $1,057,136 — $20,175 $33,328 $74,784 $1,521,994

Salary

Amountsreportedinthe“Salary”columnabovefor2017includeamountsthathavebeendeferredunderqualifiedandnon-qualifieddeferredcompensationplans.Seethe“CompensationDiscussionandAnalysis”formoreinformationregardingthebasesalariesfortheNEOsin2017.

Amountreportedinthe“Bonus”columnabovefor2017represents50%ofMr.Ferland’scashretentionawardunderhisRestructuringTransactionRetentionAgreement(enteredintoasofNovember5,2014inconnectionwiththespin-off),whichamountvestedandwaspaidduring2017.

Stock and Option Awards

Theamountsreportedfor2017inthe“StockAwards”columnsforeachNamedExecutiveOfficerrepresenttheaggregategrantdatefairvalueofallstockawardsgrantedtotheNamedExecutiveOfficersin2017computedinaccordancewithFASBASCTopic718,excludingtheeffectofestimatedforfeitures.Theseawardsconsistof(1)time-basedRSUs,(2)cash-settledCPUs,plus(3)performance-basedPSUs.Foradiscussionofthevaluationassumptionsusedindeterminingthegrantdatefairvalues,seeNote9tothefinancialstatementsincludedinourAnnualReportonForm10-KfortheyearendedDecember31,2017.Seethe“2017GrantsofPlan-BasedAwards”tableandthe“CompensationDiscussionandAnalysis”formoreinformationregardingthestockawardsgrantedtotheNamedExecutiveOfficersin2017.

WithrespecttothePSUs,theamountsreportedinthistablerepresentthegrantdatefairvaluesbasedontheprobableoutcomeoftheapplicableperformanceormarketconditionswhichare$1,923,428forMr.Ferland,$450,802forMs.Apker,$360,637forMr.Carano,$207,362forMr.Gedeon,and$240,426forMr.Low.Assumingthehighestleveloftheapplicableperformanceconditionsisachieved,suchamountswouldbe$3,846,856forMr.Ferland,$901,604forMs.Apker,$721,274forMr.Carano,$414,724forMr.Gedeon,and$480,852forMr.Low.

TheCompanydidnotgrantanystockoptionsin2017.

Non-Equity Incentive Plan Compensation

Theamountsarereportedinthe“Non-EquityIncentivePlanCompensation”columnfor2017areattributabletotheachievementofsafetygoalsundertheEICP.Thepayoutpercentageforthesafetygoalsis100%oftarget.Seethe“2017GrantsofPlan-BasedAwards”tableandthe“CompensationDiscussionandAnalysis”formoreinformationregardingtheannualincentiveawardopportunitiesfortheNamedExecutiveOfficersin2017.

Change in Pension Value and Non-qualified Deferred Compensation Earnings

Theamountreportedinthe"ChangeinPensionValueandNon-qualifiedDeferredCompensationEarnings"columnfor2017forMr.Lowrepresentsthechangesinactuarialpresentvaluesofhisaccumulatedbenefitsunderourdefinedbenefitplans,determinedbycomparingthepriorcompletedfiscalyearendamounttothecoveredfiscalyearendamount.Thediscountrateapplicabletosuchpensionplanswas3.69%fortheQualifiedPlanand3.62%fortheExcessPlans(eachasdescribedunderthe"2017PensionBenefits"table)atDecember31,2017.ThediscountrateapplicabletotheQualifiedPlanwas4.20%and4.30%atDecember31,2016and2015,respectively.ThediscountrateapplicabletotheExcessPlanswas4.11%and4.25%atDecember31,2016and2015,respectively.Reductionsinthediscountrate,amongotherfactors,resultinanincreaseinthepresentvalueofthepensionbenefits.Noportionofthisamountrepresentsabove-marketorpreferentialearningsundernon-qualifieddeferredcompensationplans.

All Other Compensation

Theamountsreportedfor2017inthe“AllOtherCompensation”columnareattributabletothefollowing:

ALLOTHERCOMPENSATION

MR. FERLAND MS. APKER MR. CARANO MR. GEDEON MR. LOW

SERPContribution $106,275 $31,525 $35,709 $32,704 $26,117401(k)PlanContributions $16,200 $16,238 $15,860 $16,200 $27,012

RestorationPlanContributions $49,441 $6,600 $9,300 $7,560 $7,287

Perquisites $14,553 $14,907 $14,907 $3,567 $14,368

SERP Contribution

Seethe“2017Non-qualifiedDeferredCompensation”tableformoreinformationregardingtheseCompanycontributionamountsandtheSERP.

401(k) Plan Contributions and Restoration Plan Contributions

Theamountsreportedinthesecolumnsrepresentthetotalamountofmatchingandservice-basedcontributionsmadetoeachNamedExecutiveOfficerundertheCompany’s401(k)planandRestorationPlan,respectively.UndertheCompany’s401(k)plan,theCompanywillmatch50%ofanemployee’scontributions,upto6%.UndertheCompany’sRestorationPlan,theCompanywillmatch50%ofthefirst6%ofanemployee’sdeferralcontributions.

Perquisites

PerquisitesandotherpersonalbenefitsreceivedbyaNamedExecutiveOfficerareincludedeveniftheiraggregatevaluedoesnotexceed$10,000.ThevaluesoftheperquisitesandotherpersonalbenefitsreportedforourNamedExecutiveOfficersin2017areasfollows:

• The$14,553reportedforMr.Ferlandisattributabletofinancialplanningservicesandanannualexecutivephysical.• The$14,907reportedforMs.Apkerisattributabletofinancialplanningandanannualexecutivephysical.• The$14,907reportedforMr.Caranoisattributabletofinancialplanningservicesandanannualexecutivephysical.• The$3,567reportedforMr.Gedeonisattributabletoanannualexecutivephysicalandtwoairlineclubmemberships.• The$14,368reportedforMr.Lowisattributabletofinancialplanningservicesandanannualexecutivephysical.

TheCompanycalculatesallperquisitesandpersonalbenefitsbasedontheincrementalcostitincurstoprovidesuchbenefits.Forannualphysicals,theCompanycomputesincrementalcostbasedontheactualcostincurredbyitforthephysical.Forfinancialplanningservices,theCompanycomputesincrementalcostbasedonthesumof(1)theactualcostincurredbyitforthefinancialplanningservicefortheapplicableNamedExecutiveOfficerand(2)apro-ratedportionofthefeepaidtothethirdpartyfirmthatprovidesthefinancialplanningservices.

2017GrantsofPlan-BasedAwards

Thefollowingtableprovidesadditionalinformationonstockawardsandoptionawards,plusnon-equityincentiveplanawards,madetoourNamedExecutiveOfficersbyusduringtheyearendedDecember31,2017.

NAME GRANT DATE COMMITTEEACTION DATE

ESTIMATED POSSIBLE PAYOUTS UNDER NON-EQUITYINCENTIVE PLAN AWARDS (1)

ESTIMATED FUTURE PAYOUTS UNDER EQUITYINCENTIVE PLAN AWARDS

ALL OTHER STOCKAWARDS: NUMBER

OF SHARES OFSTOCK OR UNITS

(#)(2)

GRANT DATE FAIRVALUE OF STOCK

AND OPTIONAWARDS ($)THRESHOLD($) TARGET($) MAXIMUM($) THRESHOLD(#) TARGET(#) MAXIMUM(#)

Mr. Ferland — — $24,463 $978,500 $1,957,000 — — — — —

03/03/17 2/20/2017 — — — — — — 133,473 $1,400,122

03/03/17 2/20/2017 — — — 19,895 198,947 397,894 — $1,923,428

Ms. Apker — — $7,613 $304,500 $609,000 — — — — —

03/03/17 2/20/2017 — — — — — — 31,283 $328,159

03/03/17 2/20/2017 — — — 4,663 46,628 93,256 — $450,802

08/14/17 08/01/17 — — — — — — 97,500 $424,125

08/14/17 08/01/17 — — — — — — 224,068 $649,797

Mr. Carano — — $6,375 $255,000 $510,000 — — — — —

03/03/17 2/20/2017 — — — — — — 25,026 $262,523

03/03/17 2/20/2017 — — — 3,730 37,302 74,604 — $360,637

08/14/17 08/01/17 — — — — — — 80,603 $350,623

08/14/17 08/01/17 — — — — — — 178,862 $518,700

Mr. Gedeon — — $5,940 $237,600 $475,200 — — — — —

03/03/17 2/20/2017 — — — — — — 14,390 $150,951

03/03/17 2/20/2017 — — — 2,145 21,448 42,896 — $207,362

08/14/17 08/01/17 — — — — — — 75,482 $328,347

08/14/17 08/01/17 — — — — — — 117,724 $341,400

Mr. Low — — $5,044 $201,750 $403,500 — — — — —

03/03/17 02/20/17 — — — — — — 16,683 $175,015

03/03/17 02/20/17 — — — 2,487 24,868 49,736 — $240,426

08/14/17 08/01/17 — — — — — — 64,482 $280,497

08/14/17 08/01/17 — — — — — — 124,551 $361,198

1AmountsshownrepresenttherangeofpotentialpayoutsunderourEICPfor2017.TheactualamountspaidtoourNamedExecutiveOfficersareincludedinthe"Non-EquityIncentivePlanCompensation"columnofthe“2017SummaryCompensationTable”above.2Amountsshownrepresentsharesofourcommonstockunderlyingtime-basedRSUs.

Estimated Possible Payouts Under Non-Equity Incentive Plan Awards

Theamountsshowninthiscolumnreflectthethreshold,targetandmaximumpayopportunitiesforeachNamedExecutiveOfficerunderourEICPfor2017.Generally,withrespecttoourEICP,payoutdependsonthreeprincipalfactors:(1)theCompany’sfinancialperformance,safetyperformance,andtheNamedExecutiveOfficer’sindividualperformance,(2)theNamedExecutiveOfficer’stargetpercentage,and(3)theNamedExecutiveOfficer’searningsfrombasesalary.

Theamountsreflectedinthe“target”columnunder"EstimatedPossiblePayoutsUnderNon-EquityIncentivePlanAwards"representthevalueofthepayoutopportunityundertheEICPattargetfinancialperformancelevels.ThisamountwascalculatedbymultiplyingtheNamedExecutiveOfficer’stargetpercentagebytheamountofbasesalaryearnedbyeachNamedExecutiveOfficerfor2017.

Theamountsshowninthe“maximum”columnrepresentthemaximumpayoutopportunityfor2017,whichforallNamedExecutiveOfficerswas200%ofthetargetamount.Theamountsshowninthe“threshold”columnrepresenttheminimumpayoutopportunityfor2017,whichforallNamedExecutiveOfficerswas2.5%ofthetargetamount,ifthethresholdlevelofeitherofthesafetymetrics(TRIRandDART)wasattained.

Allthreshold,targetandmaximumamountsreportedinthetableaboveassumethattheCompensationCommitteedoesnotexercisediscretionwithrespecttotheannualincentivecompensationawardultimatelypaid.

See“CompensationDiscussionandAnalysis—2017CompensationDecisions”onthepreviouspagesformoreinformationabouttheannualincentiveawardsandperformancegoalsfor2017.

Estimated Future Payouts Under Equity Incentive Plan Awards

TheamountsshownwithagrantdateofMarch3,2017reflectthethreshold,targetandmaximumpayoutopportunitiesofPSUsgrantedin2017underthe2015LTIP.EachPSUrepresentsarighttoreceiveoneshareofourcommonstockifperformancetargetsaremet.Uponvesting,thePSUsareconvertedintosharesofourcommonstock.TheamountofPSUsthatvest,ifany,isdeterminedbased(1)60%ontheCompany’scumulativeearningspershareduringthethree-yearperformanceperiod,(2)20%ontheaverageannualROICduringthesameperiod,and(3)20%onrelativeTSRcomparedtothecompaniesintheCompany’scustompeergroup.Theamountsshowninthe“target”columnrepresentthenumberofPSUsthatwillvest,whichis100%oftheamountgranted,ifthetargetlevelsofaverageannualROIC,cumulativedilutedearningspershareandrelativeTSRareattained.Theamountsshowninthe“maximum”columnrepresentthenumberofPSUsthatwillvest,whichis200%oftheamountgranted,ifthemaximumlevelofaverageannualROIC,cumulativeearningspershareandrelativeTSRareattained.Theamountsshowninthe“threshold”columnrepresenttheminimumnumberofPSUsthatwillvest,whichis10%oftheamountgranted,ifthethresholdlevelofeitherofthelowestweightedmetrics(averageannualROICorrelativeTSR)isattained.NoamountofPSUswillvestifthelevelsofallthreesuchperformancemetricsarelessthanthethresholdperformancelevel.See“CompensationDiscussionandAnalysis—2017CompensationDecisions—Long-TermIncentiveAwards”aboveformoreinformationregardingthe2017PSUs.

All Other Stock Awards

Theamountsshownreflect2017grantsoftime-basedRSUsandCPUsgrantedbytheCompanyunderour2015LTIP.RSUawardswithgrantdatesofMarch3,2017aregenerallyscheduledtovestratablyoneachofthefirstthreeanniversariesofthegrantdate.ForRSUawardswithgrantdatesofAugust14,2017(asshowninthesecondrowwithsuchgrantdate),50%oftheawardwillvestonAugust14,2019,andtheremaining50%willvestonAugust14,2020.ForCPUawards(asshowninthefirstrowwithagrantdateofAugust14,2017),40%oftheawardvestssixmonthsafterthegrantdate,andtheremaining60%vests12monthsafterthegrantdate.

EachRSUgrantedbytheCompanyrepresentstherighttoreceiveoneshareofourcommonstock,andeachCPUrepresentstherighttoreceiveanamountincashbasedonthevalueofourcommonstock.See“CompensationDiscussionandAnalysis—2017CompensationDecisions”aboveformoreinformationregardingthe2017RSUandCPUawards.

Grant Date Fair Value of Stock and Option Awards

Theamountsincludedinthe“GrantDateFairValueofStockandOptionAwards”columnforeachNamedExecutiveOfficerrepresentthegrantdatefairvaluesoftheequityawardscomputedinaccordancewithFASBASCTopic718.UnderFASBASCTopic718,thefairvalueofequityawardsisdeterminedusingtheclosingpriceoftheCompany’scommonstockonthedateofgrantforRSUs,PSUsandCPUs.

Thegrantdatefairvaluesreportedinthetableabovedifferfromthe"target"valuesdiscussedinthe"CompensationDiscussionandAnalysis,"becausesuch"target"valueswereconvertedintothenumberofsharesgrantedtakingintoaccountthevestingscheduleoftheawards,asdeterminedbyHayGroup.Formoreinformationregardingthecompensationexpenserelatedtotheawards,seetheinformationsetforthundertheheading“CompanyStockOptions”inNote9, “Stock-BasedCompensation,”tothecombinedfinancialstatementsincludedinItem8ofourAnnualReportonForm10-KfortheyearendedDecember31,2017.

Narrative Disclosure Relating to the "2017 Summary Compensation Table" and the "2017 Grants of Plan-Based Awards" Table

FormoreinformationregardingthechangeincontrolseveranceagreementswiththeNamedExecutiveOfficersandtheemploymentagreementwithMr.Ferland,referto"PotentialPaymentsUponTerminationorChangeinControl”below.Forinformationregardingtheamountofsalaryandbonuscompensationinproportiontototalcompensation,see"2017CompensationMix"above.

OutstandingEquityAwardsat2017FiscalYear-End

Thefollowing"OutstandingEquityAwardsat2017FiscalYear-End"tablesummarizestheequityawardswithrespecttosharesofourcommonstockthatwereheldbyourNamedExecutiveOfficersandoutstandingasofDecember31,2017.

NAMEGRANT

DATE (1)

OPTION AWARDS STOCK AWARDS

NUMBER OFSECURITIES

UNDERLYINGUNEXERCISED

OPTIONS(#)EXERCISABLE

NUMBER OFSECURITIES

OPTIONS(#)UNEXERCISABLE

OPTIONEXERCISEPRICE ($)

OPTIONEXPIRATION

NUMBER OFSHARES OR UNITS

OF STOCK THATHAVE NOT VESTED

MARKET VALUEOF SHARES OR

UNITS OF STOCKTHAT HAVE NOT

VESTED ($)(2)

EQUITY INCENTIVEPLAN AWARDS:

NUMBER OFUNEARNED SHARES,

UNITS OR OTHERRIGHTS THAT HAVE

NOT VESTED (#)

MARKET OR PAYOUTVALUE OF

UNEARNED SHARES,UNITS OR OTHER

RIGHTS THAT HAVENOT VESTED ($)(2)

Mr. Ferland StockOptions 04/19/12 42,592 — $13.88 04/19/19 — — — —

StockOptions 04/19/12 34,373 — $13.88 04/19/19 — — — —

StockOptions 03/04/13 72,341 — $15.88 03/04/20 — — — —

StockOptions 03/03/14 86,933 — $19.37 03/03/21 — — — —

StockOptions 03/02/15 299,332 149,6663 $18.32 03/02/25 — — — —

StockOptions 03/01/16 62,780 125,56010 $19.00 03/01/26 — — — —

RSU 03/02/15 — — — — 83,1924 $472,531 — —

RSU 03/02/15 — — — — 26,8623 $152,576 — —

RSU 03/01/16 — — — — 32,2207 $183,010 — —

RSU 03/03/17 — — — — 133,4728 $758,121 PSU 03/01/16 — --- --- --- --- --- 14,5759 $82,786

PSU 03/03/17 — --- --- --- --- --- 19,89510 $113,004

Ms. Apker StockOptions 03/04/11 1,777 — $20.47 03/04/18 — — — —

StockOptions 03/05/12 1,957 — $15.75 03/05/19 — — — —

StockOptions 03/04/13 3,726 — $15.88 03/04/20 — — — —

StockOptions 03/03/14 4,449 — $19.37 03/03/21 — — — —

StockOptions 03/02/15 15,324 7,6623 $18.32 03/02/25 — — — —

StockOptions 07/01/15 10,384 5,1925 $19.90 07/01/25 — — — —

StockOptions 03/01/16 8,969 17,9387 $19.00 03/01/26 — — — —

RSU 03/02/15 — — — — 4,2584 $24,185 — —

RSU 03/02/15 — — — — 1,3743 $7,804 — —

RSU 07/01/15 — — — — 4,2826 $24,322 — —

RSU 07/01/15 — — — — 1,3835 $7,855 — —

RSU 03/01/16 — — — — 4,6027 $26,139 — —

RSU 03/03/17 — — — — 31,2838 $177,676 — —

RSU 08/14/17 — — — — 224,06811 $1,272,706 — —

PSU 03/01/16 — — — — — — 2,0829 $11,826

PSU 03/03/17 — — — — — — 4,66310 $26,486

CPU 08/14/17 — — — — 97,50012 $553,800 — —

NAMEGRANT

DATE (1)

OPTION AWARDS STOCK AWARDS

NUMBER OFSECURITIES

OPTIONS(#)EXERCISABLE

NUMBER OFSECURITIES

OPTIONS(#)UNEXERCISABLE

OPTIONEXERCISEPRICE ($)

OPTIONEXPIRATION

NUMBER OFSHARES OR UNITS

OF STOCK THATHAVE NOT VESTED

MARKET VALUEOF SHARES OR

UNITS OF STOCKTHAT HAVE NOT

VESTED ($)(2)

NUMBER OFUNEARNED SHARES,

UNITS OR OTHERRIGHTS THAT HAVE

NOT VESTED (#)

MARKET OR PAYOUTVALUE OF

UNEARNED SHARES,UNITS OR OTHER

RIGHTS THAT HAVENOT VESTED ($)(2)

Mr. Carano StockOptions 06/12/13 10,511 — $17.65 06/12/20 — — — —

StockOptions 03/03/14 8,797 — $19.37 03/03/21 — — — —

StockOptions 03/02/15 30,290 15,1463 $18.32 03/02/25 — — — —

StockOptions 03/01/16 6,726 13,4527 $19.00 03/01/26 — — — —

RSU 03/02/15 — — — — 8,4174 $47,809 — —

RSU 03/02/15 — — — — 2,7183 $15,438 — —

RSU 03/01/16 — — — — 3,4527 $19,607 — —

RSU 03/03/17 — — — — 25,0268 $142,148 — —

RSU 08/14/17 — — — — 178,86211 $1,015,936 — —

PSU 03/01/16 — — — — — — 1,5629 $8,872

PSU 03/03/17 — — — — — — 3,73010 $21,186

CPU 08/14/17 — — — — 80,60312 $457,825 — —

Mr. Gedeon StockOptions 05/15/14 6,269 — $19.18 05/15/21 — — — —

StockOptions 03/02/15 21,378 10,6903 $18.32 03/02/25 — — — —

StockOptions 03/01/16 4,858 9,7167 $19.00 03/01/26 — — — —

RSU 03/02/15 — — — — 5,9424 $33,751 — —

RSU 03/02/15 — — — — 1,9183 $10,894 — —

RSU 03/01/16 — — — — 2,4947 $14,166 — —

RSU 03/03/17 — — — — 14,3908 $81,724 — —

RSU 08/14/17 — — — — 117,72411 $668,672 — —

PSU 03/01/16 — — — — — — 1,1289 $6,407

PSU 03/03/17 — — — — — — 2,14510 $12,184

CPU 08/14/17 — — — — 75,48212 $428,738 — —

Mr. Low StockOptions 03/04/11 1,712 — $20.47 03/04/18 — — — —

StockOptions 03/05/12 1,943 — $15.75 03/05/19 — — — —

StockOptions 03/04/13 4,932 — $15.88 03/04/20 — — — —

StockOptions 03/03/14 4,657 — $19.37 03/03/21 — — — —

StockOptions 03/02/15 21,378 10,6903 $18.32 03/02/25 — — — —

StockOptions 03/01/16 4,858 9,7167 $19.00 03/01/26 — — — —

RSU 03/02/15 — — — — 5,9424 $33,751 — —

RSU 03/02/15 — — — — 1,9183 $10,894 — —

RSU 03/01/16 — — — 2,4947 $14,166 — —

RSU 03/03/17 — — — — 16,6838 $94,759 — —

RSU 08/14/17 — — — — 124,55111 $707,450 — —

PSU 03/01/16 — — — — — — 1,1289 $6,407

PSU 03/03/17 — — — — — — 2,48710 $14,126

CPU 08/14/17 — — — — 64,48212 $366,258 — —

1Thedatespresentedinthiscolumnrepresentthedatestheawardsweregranted(a)byBWC(butconvertedintoawardscoveringourcommonstock)priortoJuly2015,and(b)bytheCompanyonorafterJuly1,2015.WearepresentingtheoriginalgrantdatesforBWCawardspriortoourspin-offtoassistinunderstandingthevestingdatesassociatedwiththoseawards.2MarketvaluesinthesecolumnsarebasedontheclosingpriceofourcommonstockasofDecember29,2017($5.68),asreportedontheNewYorkStockExchange.3ThesestockoptionsandRSUsvestedonMarch2,2018.4TheseRSUsvestedonMarch2,2018.5ThesestockoptionsandRSUsvestannuallyinthirdsbeginningonJuly1,2016.6TheseRSUsvestonJuly1,2018.7HalfoftheseRSUsandstockoptionsvestonMarch1,2018,andtheotherhalfvestonMarch1,2019.8One-thirdoftheseRSUsvestedonMarch3,2018,one-thirdvestonMarch3,2019,andone-thirdvestonMarch3,2020.9ThesePSUsrepresenttherighttoreceiveashareoftheCompany’scommonstockforeachPSUthatvests.ThenumberofPSUsthatvestdependsupontheattainmentofspecifiedperformancegoalsoveraperformanceperiodbeginningonJanuary1,2016andendingonDecember31,2018.ThenumberofPSUsreportedisbasedonachievingthresholdperformancelevels.

10ThesePSUsrepresenttherighttoreceiveashareoftheCompany’scommonstockforeachPSUthatvests.ThenumberofPSUsthatvestdependsupontheattainmentofspecifiedperformancegoalsoveraperformanceperiodbeginningonJanuary1,2017andendingonDecember31,2019.ThenumberofPSUsreportedisbasedonachievingthresholdperformancelevels.

11HalfoftheseRSUsvestonAugust14,2019,andtheremaininghalfvestonAugust14,2020.1240%oftheseCPUsvestsixmonthsafterthegrantdate,andtheremaining60%vest12monthsafterthegrantdate.

EachRSUandstockoptionawardsetforthinthetableabove(whichonlyshowsawardsbasedonorrelatedtosharesofourCompany)withagrantdatepriortoJuly1,2015isanawardresultingfromanadjustmentmadetoacorrespondingBWCawardinconnectionwiththespin-off.

2017OptionExercisesandStockVested

Thefollowing"2017OptionExercisesandStockVested"tableprovidesadditionalinformationaboutthevaluerealizedbyourNamedExecutiveOfficersonexercisesofoptionawardsandvestingofstockawardswithrespecttoourcommonstockduringtheyearendedDecember31,2017.

OPTION AWARDS STOCK AWARDSNUMBER OF SHARES

ACQUIRED ON EXERCISE(#)

VALUE REALIZED ONEXERCISE ($)

NUMBER OFSHARES ACQUIRED

ON VESTING (#)

VALUE REALIZED ONVESTING ($)

Mr.Ferland — — 60,783 $637,454Ms.Apker — — 7,075 $75,729Mr.Carano — — 2,094 $21,712Mr.Gedeon — — 4,896 $51,617Mr.Low — — 5,276 $55,318

Stock Awards

ForeachNamedExecutiveOfficer,theamountsreportedinthenumberofsharesacquiredonvestingcolumninthetableaboverepresenttheaggregatenumberofsharesofcommonstockacquiredbytheNamedExecutiveOfficerinconnectionwithRSUsunderthe2015LTIPthatvestedin2017.Theamountsreportedinthevaluerealizedonvestingcolumnwerecalculatedbymultiplyingthenumberofsharesacquiredonthedateofvestingbytheclosingpriceofourcommonstockonthedateofvesting.

ThenumberofsharesacquiredinconnectionwiththevestingofRSUsincludesshareswithheldbyusintheamountsandfortheNamedExecutiveOfficersreportedbelowtosatisfytheminimumstatutorywithholdingtaxdueonvesting.

NAME SHARES WITHHELD ON VESTING OF RSUS

Mr.Ferland 29,407Ms.Apker 2,405Mr.Carano 1,028Mr.Gedeon 1,841Mr.Low 2,024

2017PensionBenefits

Thefollowing"2017PensionBenefits"tableshowsthepresentvalueofaccumulatedbenefitspayabletoeachofourNamedExecutiveOfficersunderourqualifiedandnon-qualifiedpensionplans.

NAME PLAN NAME NUMBER OF YEARSCREDITED SERVICE (#)

PRESENT VALUE OFACCUMULATED BENEFIT

PAYMENTS DURING 2017($) 1

Mr.Ferland N/A N/A N/A N/A

Ms.Apker N/A N/A N/A N/A

Mr.Carano N/A N/A N/A N/A

Mr.Gedeon N/A N/A N/A N/A

Mr.Low QualifiedPlan 29 $1,080,166 $7,475

ExcessPlan 29 $359,228 $0

1Representspaymentsmadein2017bytheQualifiedPlantrustonbehalfofMr.Low.

Overview of Qualified Plans

TheCompanymaintainsretirementplansthatarefundedbytrustsandcovercertaineligibleregularfull-timeemployees,describedbelowinthesectionentitled“ParticipationandEligibility.”Mr.LowparticipatesintheRetirementPlanforEmployeesofBabcock&WilcoxCommercialOperations(the“QualifiedPlan”).

Overview of Non-qualified Plans

TotheextentbenefitspayableundertheCompany’squalifiedplansarelimitedbySection415(b)or401(a)(17)oftheInternalRevenueCode,pensionbenefitswillbepaiddirectlybytheCompany’sapplicablesubsidiariesunderthetermsofunfundedexcessbenefitplans(the“ExcessPlans”)maintainedbythem.Mr.LowparticipatesintheExcessPlanforcertainemployeesofBabcock&WilcoxCommercialOperations.

DuetothedateofinitialemploymentofMs.Apker,andMessrs.Ferland,CaranoandGedeontheywerenoteligibletoparticipateintheCompany’sdefinedbenefitpensionplans.

Participation and Eligibility

Generally,certainsalariedemployeesovertheageof21yearsparticipateinthepensionplan,asfollows:

• ForsalariedparticipantshiredbeforeApril1,2001,benefitaccrualswerefrozenasofDecember31,2015.BeginningJanuary1,2016,affectedemployeeswillreceiveaservice-basedcashcontributiontotheir401(k)planaccount.

• ForsalariedparticipantshiredonorafterApril1,2001,benefitaccrualswerefrozenasofMarch31,2006,subjecttocostoflivingadjustments.BeginningJanuary1,2016,thecostoflivingadjustmentswerediscontinued.Affectedemployeesreceiveaservice-basedcashcontributiontotheir401(k)account.

Benefits

ForeligibleNamedExecutiveOfficers,benefitsundertheQualifiedPlanarebasedonyearsofcreditedserviceandfinalaveragecashcompensation(includingbonuses).

Thepresentvalueofaccumulatedbenefitsreflectedinthe"2017PensionBenefits"tableaboveisbasedonadiscountrateatDecember31,2017andtheRP2014mortalitytableprojectedwiththeMP2016mortalityimprovementscale.ThediscountrateapplicabletothepensionplansatDecember31,2017was3.69%fortheQualifiedPlanand3.62%fortheExcessPlans.ThediscountrateapplicabletothepensionplansatDecember31,2016was4.20%fortheQualifiedPlanand4.11%fortheExcessPlans.Additionalbenefitaccrualsoffsetbyreductionsinthediscountrate,amongotherfactors,resultinanincreaseinthepresentvalueofthepensionbenefits.

RetirementUndertheQualifiedPlan,normalretirementisage65.Thenormalformofpaymentisasingle-lifeannuityora50%jointandsurvivorannuity,dependingontheemployee’smaritalstatuswhenpaymentsarescheduledtobegin.

2017Non-qualifiedDeferredCompensation

Thefollowing"2017Non-qualifiedDeferredCompensation"tablesummarizesourNamedExecutiveOfficers’compensationunderthenon-qualifieddefinedcontributionplans.

NAME PLAN NAMEEXECUTIVE

CONTRIBUTIONS IN2017 ($)(2)

REGISTRANTCONTRIBUTIONS IN

2017 ($)(2)

AGGREGATEEARNINGS IN 2017

($)(2)

AGGREGATEWITHDRAWALS/

DISTRIBUTIONS ($)

AGGREGATEBALANCE AT 12/31/17

($)(2)

SERP — $106,275 $41,159 — $463,636

Mr.Ferland RestorationPlan $42,510 $49,441 $67,490 — $604,386

LTIP1 — — — — $185,248

SERP — $31,525 $25,465 — $197,284

Ms.Apker RestorationPlan — $6,600 $3,092 — $27,325

LTIP1 — — — — —

SERP — $35,709 $965 — $110,986

Mr.Carano RestorationPlan $9,300 $9,300 $13,942 — $90,988

LTIP1 — — — — $119,416

SERP — $32,704 $27,752 — $419,412

Mr.Gedeon RestorationPlan $8,820 $7,560 $9,573 — $116,531

LTIP1 — — — — $84,530

SERP — $26,117 $4,763 — $32,844

Mr.Low RestorationPlan $3,975 $7,287 $315 — $23,307

LTIP1 — — — — —

1TheamountsreflectedintheserowsrepresentthevalueofRSUsdeferredbyeachNamedExecutiveOfficerunderthe2015LTIP.2Seethenarrativedisclosurethatfollowsforinformationregardingtheextenttowhichamountsreportedinthecontributionsandearningscolumnsarereportedas2017compensationinthe"2017SummaryCompensationTable"andamountsreportedinthe"AggregateBalanceat12/31/17"columnpreviouslywerereportedascompensationinourSummaryCompensationTablesforpreviousyears.

TheCompany’sSERPisanunfunded,non-qualifieddefinedcontributionplanthroughwhichtheCompanyprovidesannualcontributionstoaparticipant’snotionalaccount,whichisreferredtoasaparticipant’scompanyaccount.ParticipantsincludeofficersselectedbytheCompensationCommittee.BenefitsundertheSERParebasedontheparticipatingofficer’svestedpercentageinhisorhernotionalaccountbalanceatthetimeofdistribution.AnofficergenerallyvestsinhisorhercompanySERPaccount20%foreachyearofparticipationintheirrespectivecompanyaccount,subjecttoacceleratedvestingfordeath,disability,terminationbytheCompanywithoutcauseorretirement,oronachangeincontrol.

For2017,participantscouldelecttodeferthepaymentofcertaincompensationearnedfromtheCompany(asdescribedbelow)undertheSERP.AnyamountsdeferredbyaparticipantaremaintainedinanotionalaccountseparatefromtheaccountintowhichtheCompanymakesannualcontributions.Thisseparateaccountisreferredtoasaparticipant’sdeferralaccount.Participantsare100%vestedintheirdeferralaccountsatalltimes.

Restoration Plan

TheCompany’sRestorationPlanisanunfunded,non-qualifieddefinedcontributionplanthroughwhichtheCompanyprovidesannualcontributionstoeachparticipant’snotionalaccounts,whicharereferredtoasaparticipant’scompanymatchingaccountandcompanyservice-basedaccount.ParticipantsincludetheNamedExecutiveOfficersandotheremployeesoftheCompanywhosebasesalaryexceedscertaincompensationlimitsimposedbytheInternalRevenueCode.BenefitsundertheRestorationPlanarebasedonaparticipant’svestedpercentageinhisorhernotionalaccount

balanceatthetimeofdistribution.Eachparticipantgenerallyvests100%inhisorhercompanymatchingaccountandcompanyservice-basedaccountuponcompletingthreeyearsofservicewiththeCompany,subjecttoacceleratedvestingfordeath,disability,terminationbytheCompanywithoutcauseorretirement,oronachangeincontrol.

ParticipantsmayelecttodeferthepaymentofcertaincompensationearnedfromtheCompanyoritssubsidiaries(asdescribedbelow)thatisinexcessoflimitsimposedbytheInternalRevenueCodeundertheCompany’sRestorationPlan.Participantsare100%vestedintheirdeferralaccountsatalltimes.

Executive Contributions in 2017

UndertheSERP,anofficerselectedbytheCompensationCommitteemayelecttodeferupto50%ofhisorherannualsalaryand/orupto100%ofanybonusearnedinanyplanyearandamemberoftheBoardmayelecttodeferupto100%ofhisorherretainersandfeesearnedinanyplanyear.Althoughparticipantswerepermittedtocontributealloraportionoftheir2017EICPbonusestotheirSERPaccounts,theamountsreportedinthistableas“ExecutiveContributionsin2017”donotincludeanycontributionsofany2017EICPawards.AmountsreportedinthiscolumnforeachNamedExecutiveOfficerarereportedas“Salary”foreachNamedExecutiveOfficerinthe"2017SummaryCompensationTable"above.

AllofourNamedExecutiveOfficerselectedtocontributetotheirRestorationPlandeferralaccountsin2017.TheCompany’sRestorationPlanallowsparticipantstodeferapercentageoftheirbasesalaryinexcessoftheInternalRevenueCodeSection401(a)(17)compensationlimit,andreceivecompanymatchingcontributionswithrespecttothosedeferrals.

Company Contributions in 2017

TheCompanymakesannualnotionalcontributionstoparticipatingemployees’SERPcompanyaccountsequaltoapercentageoftheemployee’sprior-yearcompensation,asdeterminedbytheCompensationCommittee.UnderthetermsoftheSERP,thecontributionpercentagemaynotbethesameforallparticipants.Additionally,theCompensationCommitteemayapproveadiscretionarycontributiontoaparticipant’saccountatanytime.

For2017,thecontributionsreportedinthetableabovefortheSERPreflectnotionalcontributionsmadebytheCompanytoeachparticipatingNamedExecutiveOfficer’scompanyaccount.TheCompany’s2017contributionsequaled5%oftheNamedExecutivesOfficers’basesalariesandEICPawardspaidin2016.All2017contributionsareincludedinthe"2017SummaryCompensationTable"as“AllOtherCompensation.”

UndertheCompany’sRestorationPlan,theCompanymakesnotionalmatchingandserviced-basedcontributionstoeacheligibleparticipant’sCompanymatchingaccountandserviced-basedaccount,respectively.AnyRestorationPlanparticipantswhohaveelectedtomakedeferralcontributionsundertheRestorationPlanarecreditedwithaCompanymatchingcontributionequalto50%ofthefirst6%oftheirdeferralcontribution.ForeachparticipantintheRestorationPlanwhoisnoteligibletoparticipateintheCompany’spensionplans,theCompanyalsomakesacashservice-basedcontributiontotheparticipant’scompanyservice-basedaccount.Theamountofthisservice-basedcontributionisbasedonapercentageoftheparticipant’seligiblecompensationinexcessoftheInternalRevenueCodelimitandrangesbetween3%and8%,dependingontheparticipant’syearsofservice.Thisservice-basedcontributionismaderegardlessofwhethertheparticipanthaselectedtomakedeferralcontributionsundertheCompany’sRestorationPlan.All2017Companycontributionsareincludedinthe"2017SummaryCompensationTable"as“AllOtherCompensation.”

Aggregate Earnings in 2017

TheamountsreportedinthiscolumnfortheSERPandRestorationPlanrepresenthypotheticalamountsofearningsorlossesanddividendscreditedduring2017onallaccountsforeachNamedExecutiveOfficerundertheCompany’sSERPandRestorationPlan.Undertheseplans,eachparticipantelectstohavehisorhernotionalaccountshypotheticallyinvestedinoneormoreoftheinvestmentfundsdesignatedbytheCompensationCommittee.Eachparticipant’snotionalaccountsarecreditedanddebitedtoreflectgainsandlossesonthehypotheticalinvestments.Thesegainsandlossesarenotreportedascompensationinthe"2017SummaryCompensationTable."

Aggregate Balance at December 31, 2017

Theaggregatebalanceofaparticipatingofficer’snotionalSERPaccountconsistsofcontributionsmadebytheCompanytotheofficer’sCompanyaccount,deferralsbytheofficertohisorherdeferralaccountandhypotheticalcreditedgainsorlossesonthoseaccounts.Theaggregatebalanceofaparticipatingofficer’snotionalRestorationPlanaccountconsistsofcontributionsmadebytheCompanytotheofficer’sCompanymatchingaccountandcompanyservice-basedaccount,

deferralsbytheofficertohisorherdeferralaccount,andhypotheticalgainsorlossesonthoseaccounts.Thebalancesshownrepresenttheaccumulatedaccountvalues(includinggainsandlosses)foreachNamedExecutiveOfficerasofDecember31,2017.Ms.Apkerwas100%vestedonherSERPbalancesandMessrs.Ferland,Carano,Gedeon,andLowwere80%,60%,40%,and40%vested,respectively,intheirSERPbalancesasshownabove.EachoftheNamedExecutiveOfficersis100%vestedintheirRestorationPlanbalanceasshownabove.PortionsoftheamountsinthiscolumnwerereportedascompensationinourSummaryCompensationTablesforpreviousyears.

Deferred Restricted Stock Units Under LTIP

Underthetermsofthe2015LTIP,theCompensationCommitteehasthediscretiontopermitselectedparticipantstodeferalloraportionoftheirstockawards.ThesedeferredRSUswillbepaidbytheCompanyintheformofCompanycommonstock.Mr.Ferland’sdeferredRSUswillbedeliveredinfourannualinstallmentsbeginningtwoyearsafterhisterminationofemployment.Mr.Carano’sdeferredRSUswillbedeliveredinfiveannualinstallmentsbeginningsixmonthsfollowinghisterminationofemployment.Mr.Gedeon’sdeferredRSUswillbedeliveredinasinglelumpsumoneyearafterhisterminationofemployment. Alloftheamountsreportedforthe2015LTIPinthe“AggregateBalanceat12/31/17”columnwerereportedascompensationtothenamedexecutiveofficerinthe"2017SummaryCompensationTable"orinSummaryCompensationTablesforpreviousyears.

PotentialPaymentsUponTerminationorChangeInControl

ThefollowingtablesshowpotentialpaymentstoourNamedExecutiveOfficersunderexistingcontracts,agreements,plansorarrangements,whetherwrittenorunwritten,forvariousscenariosunderwhichapaymentwouldbedueintheeventofachangeincontrolorterminationofemploymentofourNamedExecutiveOfficers,assumingaDecember29,2017terminationdate.Whereapplicable,theamountslistedbelowusetheclosingpriceoftheCompany’scommonstockof$5.68(asreportedontheNYSE)asofDecember29,2017.ThesetablesdonotreflectamountsthatwouldbepayabletotheNamedExecutiveOfficerspursuanttobenefitsorawardsthatarealreadyvested.

Exceptasotherwiseindicated,amountsreportedinthebelowtablesforstockoptions,RSUs,PSUsandCPUsrepresentthevalueofunvestedandacceleratedsharesorunits,asapplicable,calculatedby:

• forstockoptions:multiplyingthenumberofacceleratedoptionsbythedifferencebetweentheexercisepriceand$5.68(theclosingpriceoftheCompany’scommonstockonDecember29,2017);and

• forRSUs,PSUsandCPUs:multiplyingthenumberofacceleratedunitsby$5.68(theclosingpriceoftheCompany’scommonstockonDecember29,2017).

ESTIMATED VALUE OF BENEFITS TO BE RECEIVED UPON INVOLUNTARY TERMINATION WITHOUT CAUSEThefollowingtableshowstheestimatedvalueofpaymentsandotherbenefitsduetheNamedExecutiveOfficersassumingtheirinvoluntaryterminationwithoutcauseasofDecember29,2017.IntheeventofaNamedExecutiveOfficer’sterminationwithcause,noneofthesepaymentsandotherbenefitswouldbedue.

SeverancePayments $1,957,000 $435,000 $425,000 $398,000 $340,000

CashRetentionAward $1,900,000 — — — —

BenefitsPayment $61,801 $11,846 $16,005 $16,005 $5,595

EICP $97,850 — — — —

FinancialPlanning $6,000 $6,000 $6,000 — $6,000

OutplacementServices — $7,500 $7,500 $7,500 $7,500

SupplementalExecutiveRetirementPlan(SERP) $92,727 — — — —

RestorationPlan — — — — —

StockOptions(unvestedandaccelerated) $0 $0 $0 $0 $0

RestrictedStockUnits(unvestedandaccelerated) $913,474 $0 $0 $0 $0

PSUs(unvestedandaccelerated) $928,572 $0 $0 $0 $0

CPUs(unvestedandaccelerated) — $424,125 $350,625 $328,350 $280,500

Total $5,957,424 $884,471 $805,130 $749,855 $639,595

Severance Payment

TheseverancepaymentreportedforeachNamedExecutiveOfficerotherthanMr.Ferlandrepresentsalumpsumcashpaymentequalto52weeksofbasesalaryasineffectonthedateoftermination.ThisistheamountthatwouldhavebeenpayableundertheBabcock&WilcoxEnterprises,Inc.ExecutiveSeverancePlan(or“ExecutiveSeverancePlan”).TheExecutiveSeverancePlangenerallyprovidesforbenefitsintheeventaNamedExecutiveOfficeristerminatedbytheCompanyforreasonsotherthan“cause.”

TheseverancepaymentreportedforMr.Ferlandrepresentsalumpsumcashpaymentequaltohisannualizedbasesalaryandtargetbonusamountasineffectimmediatelypriortotermination.ThisistheamountthatwouldhavebeenpayableunderMr.Ferland’semploymentagreement.Mr.Ferland’semploymentagreementgenerallyprovidesforbenefitsintheeventMr.FerlandisterminatedbytheCompanyforreasonsotherthan“cause,”deathor“disability,”orby

Mr.Ferlandfor“goodreason,”orifMr.Ferland'semploymentendsattheendoftheinitialtermorrenewaltermofhisemploymentagreementfollowingnoticeofnon-renewalbyeitherparty(a"Non-RenewalTermination").

ReceiptoftheseverancebenefitsundertheExecutiveSeverancePlanisgenerallysubjecttoexecutingageneralreleaseofclaimsandagreeingtocertainnon-compete,nondisclosureandotherrestrictivecovenants.ReceiptoftheseverancebenefitsunderMr.Ferland’semploymentagreementisgenerallysubjecttoexecutingageneralreleaseofclaims.

UndertheExecutiveSeverancePlanandMr.Ferland’semploymentagreement,“cause”generallymeans:

• thewillfulandcontinuedfailureoftheexecutivetoperformsubstantiallyhisorherduties(occasionedbyreasonotherthanphysicalormentalillnessordisability)afterawrittendemandforsubstantialperformanceisdeliveredtotheexecutivebytheCompensationCommitteeorthechiefexecutiveofficer(ortheBoard,inthecaseofMr.Ferland),whichspecificallyidentifiesthemannerinwhichthecompensationcommitteeorthechiefexecutiveofficer(ortheBoard,inthecaseofMr.Ferland)believesthattheexecutivehasnotsubstantiallyperformedhisorherduties,afterwhichtheexecutivewillhave30daystodefendorremedysuchfailuretosubstantiallyperformhisorherduties;

• thewillfulengagingbyanexecutiveinillegalconductorgrossmisconduct,whichismateriallyanddemonstrablyinjurioustotheCompany;or• theconvictionofanexecutivewithnofurtherpossibilityofappealfor,orpleaofnolocontenderebytheexecutiveto,anyfelony.

Exceptassetforthonthefollowingpages,theseverancepaymentsandbenefitspayabletoMr.Ferlandareinlieuofanyseverancepaymentsorbenefitspayableunderanyotherseveranceplan,benefitorprogramoftheCompany,includingtheCompany’sExecutiveSeverancePlan.

Cash Retention Award

Mr.Ferland’sretentionagreementprovidesaone-timecashretentionawardequaltotwotimesthesumofMr.Ferland’ssalaryineffectonthedateofhisretentionagreementplushis2014targetbonusunderBWC’sExecutiveIncentiveCompensationPlan,50%ofwhichwouldbepaidoneachofthesecondandthirdanniversariesofthespin-offifMr.FerlandremainscontinuouslyemployedwiththeCompanyateachsuchdate.50%ofMr.Ferland'scashretentionawardwouldvestonthedateofhistermination.

Benefits Payment

UponaterminationbytheCompanyotherthanduetocause,deathordisabilityunderMr.Ferland’semploymentagreement,Mr.Ferlandwouldalsobeentitledtoalumpsumpaymentequaltothreetimesthefullannualcostofcoverageforthemedical,dentaland/orvisionbenefitsineffectforMr.Ferlandandhiscovereddependentsasofthedateoftermination.TheamountreportedforMr.Ferlandwasdeterminedbymultiplyingtheannualcostof2017medical,dentaland/orvisionbenefitsforMr.Ferlandandhiscovereddependentsbythree.

UponaterminationbytheCompanyforanyreasonotherthancauseunderourExecutiveSeverancePlan,eachNamedExecutiveOfficerotherthanMr.FerlandwouldbeentitledtoalumpsumpaymentequaltoninemonthsofCOBRApremiumsforthemedical,dentaland/orvisionbenefitsineffectfortheNamedExecutiveOfficerandhisorherqualifiedbeneficiariesasofthedateoftermination.Theamountsreportedweredeterminedbymultiplyingtheannualcostof2017medical,dentaland/orvisionbenefitsfortheNamedExecutiveOfficerandhisorherqualifiedbeneficiariesby102%,andthenmultiplyingtheproductbythree-fourths.OurExecutiveSeverancePlanalsoprovidesforextendedavailabilityofCOBRAcoveragefrom18to24months.

ThesepaymentsaresubjecttothesameconditionsdescribedaboveforseverancepaymentsundertheExecutiveSeverancePlanandMr.Ferland’semploymentagreement,asapplicable.

UponaterminationbytheCompanyforanyreasonotherthancause,deathordisabilityunderhisemploymentagreement,Mr.Ferlandwouldbeentitledtotheamountofhisannualincentiveawardearnedin2017undertheEICPbasedonfull-yearperformance,pro-ratedbasedonaDecember29,2017terminationdate,contingentuponMr.Ferlandexecutingageneralreleaseofclaimsasdescribedabove.

Financial Planning

IftheNamedExecutiveOfficeristerminatedforanyreasonotherthancauseandheorsheparticipatedintheCompany’sfinancialplanningservicesasofDecember29,2017,ouragreementwiththefinancialplanningserviceproviderprovidesforfinancialplanningbenefitsuntilJune30thoftheyearfollowingtheyearinwhichtheterminationwithoutcauseoccurred,solongastheservicesarenotearlierterminatedforallsimilarlysituatedemployees.AllNamedExecutiveOfficersotherthanMr.Gedeonparticipatedinthefinancialplanningbenefitduring2017.TheamountsreportedinthiscolumnrepresenttwotimesthemostrecentquarterlyfeepaidbytheCompanyfortheapplicableNamedExecutiveOfficertoreceivesuchbenefits.

Outplacement Services

TheNamedExecutiveOfficers(otherthanMr.Ferland)wouldbeentitledto12monthsofemployer-paidoutplacementservicesunderourExecutiveSeverancePlanfollowingtheirterminationbytheCompanyforreasonsotherthancause.TheamountreportedrepresentsthecosttheCompanywouldincurtoengageourthird-partyserviceproviderfor12monthsofexecutiveoutplacementservices.

PursuanttoMr.Ferland’semploymentagreement,hisCompanyaccountintheSERPwouldbecomefullyvestedon,amongotherevents,thedateofhisterminationbytheCompanyforanyreasonotherthancause,deathordisability.Mr.Ferlandwas80%vestedinhisCompanyaccountsasofDecember29,2017.Accordingly,20%oftheamountinhisCompanyaccountwouldbesubjecttoacceleratedvestinguponhisterminationwithoutcause.

Restoration Plan

Mr.Ferland’semploymentagreementprovidesthathisCompanymatchingaccountandCompanyservice-basedaccountbecomefullyvestedon,amongotherevents,thedateofhisterminationbytheCompanyforanyreasonotherthancause,deathordisability.Mr.Ferlandwas100%vestedinhisRestorationPlanaccountasofDecember29,2017.Accordingly,noneoftheamountsinhisCompanymatchingaccountandCompanyservice-basedaccountwouldbesubjecttoacceleratedvestinguponhisterminationwithoutcause.

Equity Awards

Mr.Ferland’semploymentagreementprovidesthatalloutstandingandunvestedequityawardsgrantedtoMr.FerlandonorafterJanuary1,2015willvestonapro-ratabasisbasedonthenumberofdaysduringtheapplicablevestingorperformanceperiodthatMr.FerlandwasemployedbytheCompany(includingdaysemployedbyBWCpriortothespin-off)(forPSUs,basedonachievementoftheapplicableperformanceconditionsforthefullperformanceperiod,whichisassumedforpurposesofthisdisclosuretobeata"target"levelofperformance).Inaddition,theCPUsheldbytheothernamedexecutiveofficerswouldbecomevesteduponaterminationbytheCompanywithoutcause.Forthetime-vestingRSUsgrantedunderthespecialretentionprogramin2017,iftheterminationweretooccuronorafterthefirstanniversaryofthegrantdate,then(1)25%ofthethen-remainingoutstandingRSUswouldvestonthedateofsuchterminationiftheterminationoccurspriortothesecondanniversaryofthegrantdateand(2)50%ofthethen-remainingoutstandingRSUswillvestonthedateofsuchterminationiftheterminationoccursonorafterthesecondanniversaryofthegrantdate.

ESTIMATED VALUE OF BENEFITS TO BE RECEIVED UPON VOLUNTARY TERMINATION

NopaymentsorotherbenefitswouldbeduetoourNamedExecutiveOfficersotherthanMr.FerlandassumingtheirvoluntaryterminationasofDecember29,2017(exceptforaccruedbutunpaidcompensation).However,certainpaymentsandbenefitswouldbecomepayabletoMr.Ferlandifhevoluntarilyterminatedhisemploymentfor“goodreason”asdefinedunderhisemploymentagreement.“Goodreason”generallymeans(subjectto"notice"and"cure"assetforthintheemploymentagreement):

• amaterialdiminutioninthedutiesorresponsibilitiesofMr.Ferlandfromthoseapplicableonandimmediatelyfollowingthespin-off;• amaterialbreachoftheemploymentagreementbytheCompany,includingabreachofthetermsgoverningMr.Ferland’scompensationandbenefits;

• thefailurebytheCompanytocontinueineffectanycompensationplaninwhichMr.Ferlandparticipatesimmediatelybeforethespin-offwhichismaterialtoMr.Ferland’stotalcompensation,unlessacomparablearrangement(embodiedinanongoingsubstituteoralternativeplan)hasbeenmadewithrespecttosuchplan,orthefailurebythe

CompanytocontinueMr.Ferland’sparticipationtherein(orinsuchsubstituteoralternativeplan)onabasisnotmateriallylessfavorablethanexistedimmediatelybeforethespin-off,unlesstheactionbytheCompanyappliestoallsimilarlysituatedemployees;

• thefailurebytheCompanytocontinuetoprovideMr.FerlandwithmaterialbenefitsintheaggregatethataresubstantiallysimilartothoseenjoyedbyMr.FerlandunderanyoftheCompany’s(oritsaffiliates’)pension,savings,lifeinsurance,medical,healthandaccident,ordisabilityplansinwhichMr.Ferlandwasparticipatingimmediatelybeforethespin-offifsuchbenefitsarematerialtoMr.Ferland’stotalcompensation,thetakingofanyotheractionbytheCompanywhichwoulddirectlyorindirectlymateriallyreduceanyofsuchbenefitsordepriveMr.Ferlandofanyfringebenefitenjoyedbyhimorherimmediatelypriortothespin-offifsuchfringebenefitismaterialtoMr.Ferland’stotalcompensation,unlesstheactionbytheCompanyappliestoallsimilarlysituatedemployees;or

• achangeinthelocationofMr.Ferland’sprincipalplaceofemploymentwiththeCompanybymorethan50milesfromthelocationwhereMr.Ferlandwasprincipallyemployedimmediatelypriortothespin-offwithoutMr.Ferland’sconsent.

ThefollowingtableshowstheestimatedvalueofpaymentsandotherbenefitsduetheNamedExecutiveOfficersonavoluntaryterminationofemployment(assuming,inthecaseofMr.Ferland,histerminationofemploymentforgoodreasonunderhisemploymentagreementasofDecember29,2017).

SeverancePayments $1,957,000 — — — —

BenefitsPayment $61,801 — — — —

EICP $97,850 — — — —

FinancialPlanning $6,000 — — — —

SupplementalExecutiveRetirementPlan(SERP) $92,727 — — — —

RestrictedStockUnits(unvestedandaccelerated) $913,474 $0 $0 $0 $0

PSUs(unvestedandaccelerated) $928,572 $0 $0 $0 $0

CPUs(unvestedandaccelerated) — — — — —

Total $5,957,424 $0 $0 $0 $0

Severance Payment

TheseverancepaymentreportedforMr.Ferlandrepresentsalumpsumcashpaymentequaltohisannualizedbasesalaryandtargetbonusamountasineffectimmediatelypriortotermination,whichwouldhavebeenpayablepursuanttohisemploymentagreementifheresignedfor“goodreason.”UndertheExecutiveSeverancePlan,theotherNamedExecutiveOfficerswouldnotbeentitledtosimilarseverancepaymentsuponaresignationfor“goodreason.”ReceiptoftheseverancebenefitsunderMr.Ferland'semploymentagreementonaresignationfor"goodreason"isgenerallysubjecttoexecutingageneralreleaseofclaims.

Mr.Ferland’sretentionagreementprovidesforaone-timecashretentionawardequaltotwotimesthesumofMr.Ferland’ssalaryineffectonthedateofhisretentionagreementplushis2014targetbonusunderBWC’sEICP,50%ofwhichwouldbepaidoneachofthesecondandthirdanniversariesofthespin-offifMr.FerlandremainscontinuouslyemployedwiththeCompanyateachsuchdate.50%ofMr.Ferland'scashretentionawardwouldvestonthedateofhistermination.TheamountreportedassumesthatMr.FerlandterminatedhisemploymentforgoodreasononDecember29,2017withaneffectivedateasofJune30,2018(thethirdanniversaryofthespin-off).

Benefits Payment

UponterminationbyMr.Ferlandfor“goodreason”underhisemploymentagreement,Mr.Ferlandwouldalsobeentitledtoalumpsumpaymentequaltothreetimesthefullannualcostofcoverageforthemedical,dentaland/orvisionbenefitsineffectforMr.Ferlandandhiscovereddependentsasofthedateoftermination.ThispaymentissubjecttothesameconditionsdescribedaboveforseverancepaymentsundertheMr.Ferland’semploymentagreement.TheamountreportedforMr.Ferlandwasdeterminedbymultiplyingtheannualcostof2017medical,dentaland/orvisionbenefitsforMr.Ferlandandhiscovereddependentsbythree.

Uponaterminationforgoodreasonunderhisemploymentagreement,Mr.Ferlandwouldbeentitledtotheamountofhisannualincentiveawardearnedin2017undertheEICPbasedonfull-yearperformance,pro-ratedbasedonaDecember29,2017terminationdate,contingentuponMr.Ferlandexecutingageneralreleaseofclaimsasdescribedabove.

Financial Planning

PursuanttoMr.Ferland’semploymentagreement,ifheterminateshisemploymentforgoodreasonandheparticipatedintheCompany’sfinancialplanningservicesasofDecember29,2017,ouragreementwiththefinancialplanningserviceproviderprovidesforfinancialplanningbenefitsuntilJune30thoftheyearfollowingtheyearinwhichtheterminationforgoodreasonoccurred,solongastheservicesarenotearlierterminatedforallsimilarlysituatedemployees.

PursuanttoMr.Ferland’semploymentagreement,hisCompanyaccountintheSERPbecomesfullyvestedon,amongotherevents,thedateofhisterminationforgoodreason.Mr.Ferlandwas80%vestedinhisCompanyaccountsasofDecember29,2017.Accordingly,20%oftheamountinhisCompanyaccountswouldbesubjecttoacceleratedvestinguponhisterminationforgoodreason.

Restoration Plan

Mr.Ferland’semploymentagreementprovidesthathisCompanymatchingaccountandCompanyservice-basedaccountbecomefullyvestedon,amongotherevents,thedateheterminateshisemploymentforgoodreason.Mr.Ferlandwas100%vestedinhisRestorationPlanaccountsasofDecember29,2017.Accordingly,noneoftheamountsinhisCompanymatchingaccountandCompanyservice-basedaccountwouldbesubjecttoacceleratedvestinguponhisterminationofemploymentforgoodreason.

Equity Awards

Mr.Ferland’semploymentagreementprovidesthatalloutstandingandunvestedequityawardsgrantedtoMr.FerlandonorpriortoDecember31,2014willbecomevestedupon,amongotherevents,terminationofemploymentforgoodreason(forPSUs,basedonachievementoftheapplicableperformanceconditionsforthefullperformanceperiod).AnyotherunvestedequityawardsgrantedtoMr.FerlandonorafterJanuary1,2015willvestonapro-ratabasisbasedonthenumberofdaysduringtheapplicablevestingperiodthatMr.FerlandwasemployedbytheCompany(includingdaysemployedbyBWCpriortothespin-off)(forPSUs,basedonachievementoftheapplicableperformanceconditionsforthefullperformanceperiod,whichisassumedforpurposesofthisdisclosuretobeata"target"levelofperformance).

ESTIMATED VALUE OF BENEFITS TO BE RECEIVED UPON TERMINATION DUE TO DEATH OR DISABILITY

ThefollowingtableshowsthevalueofpaymentsandotherbenefitsduetotheNamedExecutiveOfficersassumingtheterminationoftheiremploymentbyreasonofdeathordisabilityasofDecember29,2017

SeverancePayments $978,500 $435,000 $425,000 $398,000 $340,000

BenefitPayments $61,801 $11,846 $16,005 $16,005 $5,595

EICP $97,850 — — — —

SupplementalExecutiveRetirementPlan(SERP) $92,727 $0 $44,394 $45,250 $19,707

RestrictedStockUnits(unvestedandaccelerated) $913,474 $1,157,595 $940,375 $623,335 $655,716

PSUs(unvestedandaccelerated) $928,572 $383,110 $300,569 $185,884 $205,309

Total $4,972,924 $2,411,677 $2,076,968 $1,596,823 $1,506,827

Severance Payment

TheseverancepaymentsreportedforeachNamedExecutiveOfficerrepresentlumpsumcashpaymentsequalto52weeksofbasesalaryasineffectonthedateoftermination.ThisistheamountthatwouldhavebeenpayableundertheExecutiveSeverancePlan.Throughthisplan,eligibleemployeesareentitledtoreceivespecifiedseverancebenefits,includingtheseverancepaymentreported,intheeventtheiremploymentisterminatedduetoaterminationbytheCompanybyreasonofaNamedExecutiveOfficerbeingunabletoperformhisorherdutiesduetotheirphysicalormentalillnessordisability.TheExecutiveSeverancePlangenerallyprovidesforbenefitsintheeventaNamedExecutiveOfficeristerminatedbytheCompanyforreasonsotherthan“cause.”“Cause”isdefinedtoexcludeinstanceswhereaneligibleemployeeisunabletoperformhisorherdutiesbyreasonofhisorherphysicalormentalillnessordisability.

Mr.Ferland’sretentionagreementprovidesforaone-timecashretentionawardequaltotwotimesthesumofMr.Ferland’ssalaryineffectonthedateofhisretentionagreementplushis2014targetbonusunderBWC’sExecutiveIncentiveCompensationPlan,50%ofwhichwouldbepaidoneachofthesecondandthirdanniversariesofthespin-offifMr.FerlandremainscontinuouslyemployedwiththeCompanyateachsuchdate.AnyunvestedportionofthecashretentionawardispayableinfulluponMr.Ferland’sdeathor“disability”solongasheremainscontinuouslyemployedbytheCompanythroughthedateofdeathorlastdateofemploymentdueto“disability.”UnderthetermsofMr.Ferland’sretentionagreement,“disability”meansthecircumstancesthatwouldqualifyhimforlongtermdisabilitybenefitsundertheCompany’slongtermdisabilityplan(whetherornotheiscoveredbysuchplan).Thedisabilityplandefines“disability”togenerallymeanthat,duetosickness,pregnancyoraccidentalinjury,anemployeeisreceiving“appropriatecare”and“treatmentfromadoctor”(eachasdefinedinthelongtermdisabilityplan)onacontinuingbasis,andduringtheemployee’s“eliminationperiod”(asdefinedinthedisabilityplan)andthenext24monthperiod,theemployeeisunabletoearnmorethan80%ofhisorherpre-disabilityearningsorindexedpre-disabilityearningsathisorheroccupationforanyemployerinhisorherlocaleconomy;orafterthe24monthperiod,theemployeeisunabletoearnmorethan60%ofhisorherindexedpre-disabilityearningsfromanyemployerinhisorherlocaleconomy,andwhichprovidestheemployeewithsubstantiallythesameearningcapacityastheemployee’sformerearningcapacitypriortothestartofhisorherdisability.

Benefit Payments

UponaterminationbytheCompanyforanyreasonotherthancauseunderourExecutiveSeverancePlan,eachNamedExecutiveOfficerotherthanMr.FerlandwouldbeentitledtoalumpsumpaymentequaltoninemonthsofCOBRApremiumsforthemedical,dentaland/orvisionbenefitsineffectfortheNamedExecutiveOfficerandhisorherqualified

beneficiariesasofthedateoftermination.Theamountsreportedweredeterminedbymultiplyingtheannualcostof2017medical,dentaland/orvisionbenefitsfortheNamedExecutiveOfficerandhisorherqualifiedbeneficiariesby102%,andthenmultiplyingtheproductbythreefourths.OurExecutiveSeverancePlanalsoprovidesforextendedavailabilityofCOBRAcoveragefrom18to24months.

UponterminationbyMr.Ferlandduetodeathordisabilityunderhisemploymentagreement,Mr.Ferlandwouldbeentitledtoalumpsumpaymentequaltothreetimesthefullannualcostofcoverageforthemedical,dentaland/orvisionbenefitsineffectforMr.Ferlandandhisorhercovereddependentsasofthedateoftermination.TheamountreportedforMr.Ferlandwasdeterminedbymultiplyingtheannualcostof2017medical,dentaland/orvisionbenefitsforMr.Ferlandandhiscovereddependentsbythree.UnderMr.Ferland’semploymentagreement,“disability”isdefinedascircumstanceswhichwouldqualifyMr.FerlandforlongtermdisabilitybenefitsundertheCompany’slongtermdisabilityplan(whetherornotheiscoveredundersuchplan).

UponaterminationofMr.Ferland’semploymentduetodeathordisabilityunderhisemploymentagreement,Mr.Ferlandwouldbeentitledtotheamountofhisannualincentiveawardearnedin2017undertheEICPbasedonfull-yearperformance,pro-ratedbasedonaDecember29,2017terminationdate.

UnderthetermsoftheSERP,anexecutive’sCompanyaccountfullyvestson,amongotherevents,theexecutive’sdeathordisability.Ms.Apkerwas100%vestedinherCompanyaccountsasofDecember29,2017.Messrs.Ferland,Carano,GedeonandLowwere80%,60%and40%and40%vested,respectively,intheirrespectivecompanyaccountsasofthesamedate.Accordingly,forMessrs.Ferland,CaranoandGedeon,20%,40%and60%and60%respectively,oftheamountintheirCompanyaccountswouldbesubjecttoacceleratedvestingupontheirterminationduetodeathordisability.

Restoration Plan

UnderourRestorationPlan,anexecutive’sCompanymatchingaccountandCompanyservice-basedaccountbecomefullyvestedon,amongotherevents,thedateoftheexecutive’sdeathordisability.EachoftheNamedExecutiveOfficersis100%vestedintheirRestorationPlanaccountsasofDecember29,2017.Accordingly,noneoftheamountsintheirCompanymatchingaccountsandCompanyservice-basedaccountswouldbesubjecttoacceleratedvestinguponhisterminationofemploymentduetodeathordisability.

Equity Awards

UnderthetermsoftheawardsoutstandingforeachNamedExecutiveOfficerasofDecember29,2017,allunvestedstockawardsbecomevestedandallunvestedoptionawardsbecomevested(forPSUs,atthe"target"level)andexercisableintheeventtheapplicableNamedExecutiveOfficer’semploymentterminatesbyreasonofhisorherdeath,oriftheNamedExecutiveOfficerbecomesdisabled(or,insomecases,experiencesaterminationofemploymentduetodisability).

Mr.Ferland’semploymentagreementprovidesthatalloutstandingandunvestedequityawardsgrantedtoMr.FerlandonorpriortoDecember31,2014willbecomevestedupon,amongotherevents,terminationofemploymentduetodeathordisability(forPSUs,basedonachievementoftheapplicableperformanceconditionsforthefullperformanceperiod,whichisassumedforpurposesofthisdisclosuretobeata"target"levelofperformance).AnyotherunvestedequityawardsgrantedtoMr.FerlandonorafterJanuary1,2015willvestonapro-ratabasisbasedonthenumberofdaysduringtheapplicableperformanceorserviceperiodthatMr.FerlandwasemployedbytheCompany(includingdaysemployedbyBWCpriortothespin-off).

ESTIMATED VALUE OF BENEFITS TO BE RECEIVED IN CONNECTION WITH CHANGE IN CONTROL

ThefollowingtableshowstheestimatedvalueofpaymentsandotherbenefitsduetheNamedExecutiveOfficersassumingachangeincontrolandterminationasofDecember29,2017.

SeverancePayments $1,957,000 $1,479,000 $1,360,000 $1,273,600 $1,088,000

BenefitsPayment $63,036 $47,385 $64,020 $64,020 $22,379

EICP $978,500 $304,500 $255,000 $238,800 $204,000

FinancialPlanning $6,000 $6,000 $6,000 — $6,000

SupplementalExecutiveRetirementPlan(SERP) $92,727 $0 $44,394 $45,250 $19,707

RestrictedStockUnits(unvestedandaccelerated) $913,474 $1,157,595 $940,375 $623,335 $655,716

PSUs(unvestedandaccelerated) $928,572 $383,110 $300,569 $185,884 $205,309

ExciseTaxGross-Up — — — — —

Total $6,839,309 $3,801,715 $3,320,983 $2,759,238 $2,481,611

TheCompanyhaschangeincontrolagreementswithvariousofficers,includingeachofourNamedExecutiveOfficers.Generally,undertheCompany’schangeincontrolagreementsandcertainothercompensationarrangements,ifaNamedExecutiveOfficeristerminatedwithintwoyearsfollowingachangeincontroleither(1)bytheCompanyforanyreasonotherthancauseordeathordisability,or(2)bytheNamedExecutiveOfficerforgoodreason(ineachcase,a“qualifyingtermination”),theNamedExecutiveOfficerisentitledtoreceive:

• acceleratedvestingintheexecutive’sSERPandRestorationPlanaccounts;• acceleratedvestinginanyoutstandingequityawards;• acashseverancepayment;• aproratedtargetEICPpayment;• paymentoftheprioryear’sEICPpayment,ifunpaidattermination;• acashpaymentrepresentinghealthbenefitscoveragecosts;• continuedfinancialplanningservices;and• forMr.Ferland,fullvestingofhis2015cashretentionaward.

Inadditiontothesepayments,theNamedExecutiveOfficerwouldbeentitledtovariousaccruedbenefitsearnedthroughthedateoftermination,suchasearnedbutunpaidsalaryandearnedbutunusedvacationandreimbursements.

UndertheCompany’schangeincontrolagreements,a“changeincontrol”willbedeemedtohaveoccurredgenerallyuponanyofthefollowing(asfurtherclarifiedinthechangeincontrolagreements):

• anyperson,otherthananERISA-regulatedpensionplanestablishedbytheCompanyoritsaffiliatesmakesanacquisitionofoutstandingvotingstockandis,immediatelythereafter,thebeneficialownerof30%ormoreofthethenoutstandingvotingstock,unlesssuchacquisitionismadedirectlyfromtheCompanyinatransactionapprovedbyamajorityoftheincumbentdirectors;oranygroupisformedthatisthebeneficialownerof30%ormoreoftheoutstandingvotingstock(otherthanagroupformationforthepurposeofmakinganacquisitiondirectlyfromtheCompanyandapproved(priortosuchgroupformation)byamajorityoftheincumbentdirectors);

• individualswhoareincumbentdirectors(asdefinedinthechangeincontrolagreements)ceaseforanyreasontoconstituteamajorityofthemembersoftheBoard;

• consummationofcertainbusinesscombinations(asfurtherdescribedintheagreements)unless,immediatelyfollowingsuchbusinesscombination,(i)allorsubstantiallyalloftheindividualsandentitiesthatwerethebeneficialownersoftheoutstandingvotingstockimmediatelybeforesuchbusinesscombinationbeneficiallyown,directlyorindirectly,morethan51%ofthethen-outstandingsharesofvotingstockoftheparentcorporationresultingfromsuchbusinesscombinationinsubstantiallythesamerelativeproportionsastheirownership,immediatelybeforesuchbusinesscombination,oftheoutstandingvotingstock,(ii)ifthebusinesscombinationinvolvestheissuanceorpaymentbytheCompanyofconsiderationtoanotherentityoritsstockholders,thetotalfairmarketvalueofsuchconsiderationplustheprincipalamountoftheconsolidatedlong-termdebtoftheentityorbusinessbeingacquired(ineachcase,determinedasofthedateofconsummationofsuchbusinesscombinationbyamajorityoftheincumbentdirectors)doesnotexceed50%ofthesumofthefairmarketvalueoftheoutstandingvotingstockplustheprincipalamountoftheCompany’sconsolidatedlong-termdebt(ineachcase,determinedimmediatelybeforesuchconsummationbyamajorityoftheincumbentdirectors),(iii)noperson(otherthananycorporationresultingfromsuchbusinesscombination)beneficiallyowns,directlyorindirectly,30%ormoreofthethen-outstandingsharesofvotingstockoftheparentcorporationresultingfromsuchbusinesscombinationand(iv)amajorityofthemembersoftheboardofdirectorsoftheparentcorporationresultingfromsuchbusinesscombinationwereincumbentdirectorsoftheCompanyimmediatelybeforeconsummationofsuchbusinesscombination;or

• consummationofcertainmajorassetdispositions(asfurtherdescribedintheagreements)unless,immediatelyfollowingsuchmajorassetdisposition,(i)individualsandentitiesthatwerebeneficialownersoftheoutstandingvotingstockimmediatelybeforesuchmajorassetdispositionbeneficiallyown,directlyorindirectly,morethan70%ofthethen-outstandingsharesofvotingstockoftheCompany(ifitcontinuestoexist)andoftheentitythatacquiresthelargestportionofsuchassets(ortheentity,ifany,thatownsamajorityoftheoutstandingvotingstockofsuchacquiringentity)and(ii)amajorityofthemembersoftheBoard(ifitcontinuestoexist)andoftheentitythatacquiresthelargestportionofsuchassets(ortheentity,ifany,thatownsamajorityoftheoutstandingvotingstockofsuchacquiringentity)wereincumbentdirectorsoftheCompanyimmediatelybeforeconsummationofsuchmajorassetdisposition.

Severance Payment

TheseverancepaymentmadetoeachNamedExecutiveOfficer,withtheexceptionofMr.Ferland,inconnectionwithaqualifyingterminationfollowingachangeincontrolisgenerallyacashpaymentequaltotwotimesthesumof(1)theexecutive’sannualbasesalarypriortoterminationand(2)thesameannualbasesalarymultipliedbytheexecutive’stargetannualincentivecompensationpercentagefortheyearinwhichtheterminationoccurs.TheseverancepaymentmadetoMr.Ferlandinconnectionwithaqualifyingterminationfollowingachangeincontrolisgenerallyacashpaymentequaltoonetimesthesumof(1)hisannualbasesalarypriortoterminationand(2)thesameannualbasesalarymultipliedbyhistargetannualincentivecompensationpercentagefortheyearinwhichtheterminationoccurs.AssumingaterminationasofDecember29,2017,theseverancepaymentonaqualifyingterminationfollowingachangeincontrolwouldhavebeencalculatedbasedonthefollowing:

• Mr.Ferland:$978,500basesalaryand$978,500targetannualincentivecompensation(100%ofhisannualbasesalary);• Ms.Apker:$435,000basesalaryand$304,500targetannualincentivecompensation(70%ofherannualbasesalary);• Mr.Carano:$425,000basesalaryand$255,000targetannualincentivecompensation(60%ofhisannualbasesalary);• Mr.Gedeon:$398,000basesalaryand$238,800targetannualincentivecompensation(60%ofhisannualbasesalary);and• Mr.Low:$340,000basesalaryand$204,000targetannualincentivecompensation(60%ofhisannualbasesalary).

Mr.Ferland’sretentionagreementprovidesforaone-timecashretentionawardequaltotwotimesthesumofMr.Ferland’ssalaryineffectonthedateofhisretentionagreementplushis2014targetbonusunderBWC’sEICP,50%ofwhichwouldbepaidoneachofthesecondandthirdanniversariesofthespin-offifMr.FerlandremainscontinuouslyemployedwiththeCompanyateachsuchdate.Anyunvestedportionofthecashretentionawardispayableinfulluponachangeincontrol.

Benefits

TheamountsreportedrepresentthreetimesthefullannualcostthatwouldbepayablebytheNEOforcontinuationofcoverageformedical,dentalandvisionbenefitsifelectedbytheNEOforhimself/herselfandhisorhereligibledependentsunderCOBRAfortheyearendedDecember29,2017,whichwouldbepaidinalumpsum.

EICP Payment

DependingonthetimingoftheterminationrelativetothepaymentofanEICPaward,theapplicableexecutivecouldreceiveuptotwoEICPpaymentsinconnectionwithterminationresultingfromachangeincontrol,asfollows:

• IfanEICPawardfortheyearpriortoterminationispaidtootherEICPparticipantsafterthedateoftheexecutive’stermination,theexecutivewouldbeentitledtoreceivetheactualamountoftheawarddeterminedundertheEICPforsuchprioryear(withouttheexerciseofanydownwarddiscretion).The2016EICPawardswerepaidbeforeDecember29,2017.Asaresult,nopaymentwouldhavebeenduetoourNamedExecutiveOfficersinthisrespect.

• TheexecutivewouldbeentitledtoanEICPpaymentequaltotheproductoftheNamedExecutiveOfficer’sannualbasesalarymultipliedbysuchNamedExecutiveOfficer'sEICPtargetpercentage,withtheproductproratedbasedonthenumberofdaystheNamedExecutiveOfficerwasemployedduringtheyearinwhichtheterminationoccurs.Wehaveassumedforpurposesofthisdisclosurethat,intheeventofaDecember29,2017terminationdate,eachNamedExecutiveOfficerwouldhavebeenentitledtoanEICPpaymentequalto100%ofhisorher2017targetEICP,asineffectimmediatelypriortothedateoftermination.

Financial Planning

UnderthetermsoftheagreementwiththeCompany’sfinancialplanningserviceprovider,eachNamedExecutiveOfficerisentitledtofinancialplanningbenefitsuntilJune30thoftheyearfollowingtheyearofachangeincontrol,solongastheagreementhasnotbeenearlierterminated.Mr.Gedeondidnotparticipateinthisbenefit.TheamountsreportedinthiscolumnrepresentthefeethatwouldberequiredtobepaidforeachsuchNamedExecutiveOfficertoreceivesuchbenefits.“Changeofcontrol”isnotdefinedundertheagreement.

UnderthetermsoftheCompany’sSERP,anexecutive’sCompanyaccountbecomesfullyvestedon,amongotherevents,thedateachangeincontroloccurs.Ms.Apkerwas100%vestedinherCompanyaccountsasofDecember29,2017andMessrs.Ferland,Carano,GedeonandLowwere80%,60%,40%and40%vested,respectively,intheirrespectiveCompanyaccountsasofthesamedate.Accordingly,forMessrs.Ferland,Carano,GedeonandLow20%,40%,60%and40%,respectively,oftheamountintheirCompanyaccountswouldbesubjecttoacceleratedvestinguponachangeincontrol.UndertheSERP,a“changeincontrol”occursunderthesamecircumstancesdescribedabovewithrespecttothechange-in-controlagreements.

Restoration Plan

UndertheCompany’sRestorationPlan,anexecutive’sCompanymatchingaccountandCompanyservice-basedaccountbecomefullyvestedon,amongotherevents,thedateachangeincontroloccurs.EachoftheNamedExecutiveOfficersiswere100%vestedintheirRestorationPlanaccountsasofDecember29,2017.Accordingly,noneoftheamountsintheirCompanymatchingaccountsandCompanyservice-basedaccountswouldbesubjecttoacceleratedvestingupontheirterminationofemploymentfollowingachangeofcontrol.

Tax Reimbursements

Thechangeincontrolagreementsdonotprovideforanytaxreimbursementonthebenefits.Instead,theagreementscontaina“modifiedcutback”provision,whichactstoreducethebenefitspayabletoaNEOtotheextentnecessarysothatnoexcisetaxwouldbeimposedonthebenefitspaid,butonlyifdoingsowouldresultintheNEOretainingalargerafter-taxamount.

Equity Awards

Underthetermsoftheawardsoutstanding,allunvestedrestrictedstockunit,PSU,CPUandoptionawardswouldbecomevestedonaqualifyingterminationfollowingachangeincontrol(forPSUs,attargetlevels,withareductionforthenumberofunvestedCPUsasofthedateofachanceincontrol).UndertheCompany’s2015LTIP,a“changeincontrol”occursunderthesamecircumstancesdescribedabovewithrespecttotheCompany’schangeincontrolagreements.

CEO PAY RATIO

Weidentifiedouremployee(the“MedianEmployee”)whoweestimatereceivedthemedianof2017totalcompensationforallemployeesoftheCompanyanditsconsolidatedsubsidiaries,excludingourformerCEO,Mr.Ferland(the“MedianAnnualCompensation”)usingouremployeepopulationasofDecember31,2017(the“DeterminationDate”).AsoftheDeterminationDate,thisemployeepopulationconsistedof5,029globalfull-time,part-time,temporaryandseasonalemployeesemployedbyusorourconsolidatedsubsidiaries.AspermittedunderapplicableSECrules,weexcludedemployeesofourjointventuresinChinaandIndia(notunderthedeminimisexception),andindependentcontractorspaidbythirdparties.Wedidnotexcludeanyothernon-U.S.employeesanddidnotexcludeanyemployeesofbusinessesacquiredbyusorcombinedwiththeCompany.Inaddition,wedidnotutilizeanystatisticalsamplingorcost-of-livingadjustmentsforpurposesofthispayratiodisclosure.WeusedaconsistentlyappliedcompensationmeasureacrossthisemployeepopulationtoidentifytheMedianEmployee.Forourconsistentlyappliedcompensationmeasure,weusedtotalcashcompensation,whichconsistedofsalary,bonusandvestedincentivecompensationawardsbutexcludedthevalueofhealthandwelfarebenefits,fortheperiodbeginningonJanuary1,2017andendingonDecember31,2017.Themajorityofouremployeepopulationreceivebasesalary(paidonanhourly,weeklyorbiweeklybasis)alongwiththepotentialforanannualcashbonus.Asaresult,totalcashcompensationprovidesanaccuratedepictionoftotalearningsforthepurposeofidentifyingourMedianEmployee.Aportionofouremployeepopulationidentifiedaboveworkedforlessthanthefullfiscal2017duetocommencingemploymentafterJanuary1,2017orcommencinganunpaidleaveofabsenceduring2017.IndeterminingtheMedianEmployee,weannualizedthetotalcashcompensationforsuchindividuals(butavoidedcreatingfull-timeequivalencies).WethencalculatedtheMedianEmployee'scompensationinthesamemannerastheNEOsinthe"2017SummaryCompensationTable."

WeestimatethattheMedianAnnualCompensationwas$64,674.OurformerChiefExecutiveOfficer’s2017totalcompensationwas$6,486,690.Accordingly,theratioofourformerCEO’s2017totalcompensationtotheMedianAnnualCompensationisapproximately100:1.Wenotethat,duetoourpermitteduseofreasonableestimatesandassumptionsinpreparingthispayratiodisclosure,thedisclosuremayinvolveadegreeofimprecision,andthusthisratiodisclosureisareasonableestimatecalculatedinamannerconsistentwithItem402(u)ofRegulationS-Kusingthedataandassumptionsdescribedabove.

APPROVAL OF THE BABCOCK & WILCOX ENTERPRISES, INC. AMENDED AND RESTATED2015 LONG-TERM INCENTIVE PLAN (PROPOSAL 7)

Introduction

OnJune8,2015,BWC,asoursolestockholderatthetime,approvedtheBabcock&WilcoxEnterprises,Inc.2015Long-TermIncentivePlan(the“2015LTIP”)inanticipationofourspinoffasanindependent,publiclytradedcompany.OurBoardalsoadoptedthe2015LTIPonthesamedate.OnFebruary23,2016,uponrecommendationbytheCompensationCommittee,ourBoardunanimouslyapprovedandadopted,subjecttotheapprovalofourstockholdersatthe2016AnnualMeetingofStockholders,theAmendedandRestated2015Long-TermIncentivePlan(the“AmendedandRestated2015LTIP”),andourstockholdersapprovedtheAmendedandRestated2015LTIPatthe2016AnnualMeetingofStockholders.

OnMarch6,2018,uponrecommendationbytheCompensationCommittee,ourBoardunanimouslyapprovedandadopted,subjecttotheapprovalofourstockholdersattheAnnualMeeting,afurtheramendmentandrestatement,initsentirety,oftheAmendedandRestated2015LTIP(the“SecondAmendedandRestated2015LTIP”).TheSecondAmendedandRestated2015LTIPcontinuestoaffordtheCompensationCommitteetheflexibilitytodesignequity-basedcompensatoryawardsthatareresponsivetotheCompany’sbusinessneedsandauthorizesavarietyofawardsdesignedtoadvancetheinterestsandlong-termsuccessoftheCompany.ThisdescriptionoftheSecondAmendedandRestated2015LTIPisonlyasummaryoftheproposedplanandisqualifiedinitsentiretybyreferencetoandshouldbereadinconjunctionwith,thefulltextoftheSecondAmendedandRestated2015LTIP,acopyofwhichisattachedtothisproxystatementasAppendixC.

TheSecondAmendedandRestated2015LTIPamendsandrestatesinitsentiretytheAmendedandRestated2015LTIP.IftheSecondAmendedandRestated2015LTIPisapprovedbystockholdersattheAnnualMeeting,itwillbeeffectiveasofthedateoftheAnnualMeeting.However,toclarify:thetermsandconditionsoftheSecondAmendedandRestated2015LTIP,totheextenttheydifferfromthetermsandconditionsofeitherthe2015LTIPortheAmendedandRestated2015LTIP,donotapplytoorotherwiseimpactpreviouslygrantedoroutstandingawardsunderthe2015LTIPortheAmendedandRestated2015LTIP,asapplicable.Outstandingawardsunderthe2015LTIPandtheAmendedandRestated2015LTIPwillcontinueineffectinaccordancewiththeirterms.IftheSecondAmendedandRestated2015LTIPisnotapprovedbyourstockholders,noawardswillbemadeundertheSecondAmendedandRestated2015LTIP,andtheAmendedandRestated2015LTIPwillremainineffect.

OurprincipalreasonforamendingandrestatingtheAmendedandRestated2015LTIPistoincreasethenumberofsharesofcommonstockavailableforissuance.TheSecondAmendedandRestated2015LTIPwillincreasethemaximumnumberofsharesavailableforawardsfrom8,300,000to9,300,000,anincreaseof1,000,000shares(or2.3%ofouroutstandingcommonstockasofMarch15,2018).TheCompanyisengaginginarightsofferinginwhichithasdistributedtoholdersofourcommonstocksubscriptionrightstopurchaseourcommonstockatasubscriptionpriceof$3.00pershare.SuchrightsweredistributedonMarch19,2018.Unlessextended,therightsofferingisexpectedtoexpireonApril10,2018.WecurrentlyanticipatethattheCompensationCommittee,inaccordancewiththetermsoftheAmendedandRestated2015LTIPandtheSecondAmendedandRestated2015LTIP,willapproveanequitableadjustmenttothenumberofsharesofcommonstockavailableforfutureawardsundertheplan,aswellascertainothersharelimitsundertheplan,plusthenumberofsharesofcommonstocksubjectto,andtheothertermsof,outstandingawards(includingthosecontingentonstockholderapprovaloftheSecondAmendedandRestated2015LTIP),toreflecttheeffectoftherightsoffering.TheseadjustmentsareexpectedtobeapprovedinApril2018andbememorializedinanamendmentto(oramendmentandrestatementof)theSecondAmendedandRestated2015LTIP.Tobeclear,theseadjustments,ifanyareexpectedtoimpactthenumberofsharesavailableundertheSecondAmendedandRestated2015LTIP,andtheoutstandingawardsapprovedthereunder,thatissubjecttostockholderapproval,butthequantitativeimpactofsuchadjustmentscannotbedeterminedatthistime.

WhiletheprimarypurposeofamendingtheAmendedandRestated2015LTIPistopermitanincreaseinthesharesavailableforawardsundertheAmendedandRestated2015LTIP,theCompanyisalsoproposingtomakecertainsubstantivechangesfromtheAmendedandRestated2015LTIPto,asfurtherdescribedbelow,inadditiontocertainotherconformingandnon-substantivechanges:

• extendthetermoftheplandocument;• clarifysomeofthesharecountingmechanics;• revisethenon-employeedirectorcompensationlimitincludedintheplandocument;

• expandtheantidilutionadjustmentprovisions;• provideadditionalauthoritytotheCompensationCommitteefortreatingoutstandingawardsintheeventofachangeincontrol;• revisecertainprovisionsregardingthepaymentofdividendsanddividendequivalents;and• clarifytheplanamendment,modificationandterminationprovisions.

WHY WE BELIEVE YOU SHOULD VOTE FOR PROPOSAL 7

TheSecondAmendedandRestated2015LTIPauthorizesourCompensationCommitteetoprovideequity-basedcompensationintheformofoptions,appreciationrights,restrictedstock,restrictedstockunits,performanceshares,performanceunits,dividendequivalentsandotherawardsthatmaybedenominatedorpayablein,orbasedonorrelatedtocommonstock,forthepurposeofprovidingournon-employeedirectors,officersandotheremployees,andcertainconsultantsincentivesandrewardsforperformanceorservice.SomeofthekeyfeaturesoftheSecondAmendedandRestated2015LTIPthatreflectourcommitmenttoeffectivemanagementofequityandincentivecompensationaresetforthbelowinthissubsection.

Webelieveourfuturesuccessdependsinpartonourabilitytoattract,motivateandretainhighqualityemployeesanddirectorsandthattheabilitytoprovideequity-basedandincentive-basedawardsundertheSecondAmendedandRestated2015LTIPiscriticaltoachievingthissuccess.Wewouldbeataseverecompetitivedisadvantageifwecouldnotuseshare-basedawardstorecruitandcompensateourdirectors,officersandotheremployees.

Theuseofcommonstockaspartofourcompensationprogramisimportantbecauseitfostersapay-for-performanceculturethatisanimportantelementofouroverallcompensationphilosophy.Webelieveequitycompensationprovidesadditionalmotivationfordirectorsandemployeestocreatestockholdervaluebecausethevaluesuchindividualsrealizefromtheirequitycompensationisbasedonourstockpriceperformance.

Equitycompensationalsoalignsthecompensationinterestsofourdirectorsandemployeeswiththeinvestmentinterestsofourstockholdersandpromotesafocusonlong-termvaluecreation,becauseourequitycompensationawardsaresubjecttovestingand/orperformancecriteria.

AsofMarch15,2018,449,239sharesofcommonstockremainedavailableforissuanceundertheAmendedandRestated2015LTIP(notcounting1,022,982sharesofcommonstockthatareexpectedtobecomesubjecttoawardsthatweregrantedin2018contingentonstockholderapprovaloftheSecondAmendedandRestated2015LTIP,asfurtherdescribedbelowunder"NewPlanBenefits").IftheSecondAmendedandRestated2015LTIPisnotapproved,wemaybecompelledtoincreasesignificantlythecashcomponentofouremployeeanddirectorcompensation,whichmaynotnecessarilyaligncompensationinterestswiththeinvestmentinterestsofourstockholdersaswellasalignmentprovidedbyequity-basedawards.Replacingequityawardswithcashalsowouldincreasecashcompensationexpenseandusecashthatcouldbebetterutilizedifreinvestedinourbusinessesorreturnedtoourstockholders.

Thefollowingincludesaggregatedinformationregardingoverhanganddilutionassociatedwiththe2015LTIPandAmendedandRestated2015LTIPandthepotentialstockholderdilutionthatwouldresultiftheproposedshareincreaseundertheSecondAmendedandRestated2015LTIPisapproved.Thisinformationdoesnotincludegrantsthatweremadein2018subjecttostockholderapprovaloftheSecondAmendedandRestated2015LTIP,whichgrantsaredescribedbelowunder"NewPlanBenefits."ThisinformationisasofMarch15,2018.Asofthatdate,therewereapproximately44,377,243sharesofcommonstockoutstanding:

Underthe2015LTIPandAmendedandRestated2015LTIP:• Outstandingfull-valueawards(performance-andtime-basedrestrictedstockunits):4,172,401shares(9.4%ofouroutstandingcommonstock);

• Outstandingoptions:2,338,496shares(5.3%ofouroutstandingcommonstock)(outstandingoptionshaveanaverageexercisepriceof$17.97andanaverageremainingtermof3.8years);

• Totalsharesofcommonstocksubjecttooutstandingawards,asdescribedabove(full-valueawardsandoptions):6,510,897shares(14.7%ofouroutstandingcommonstock);

• TotalsharesofcommonstockavailableforfutureawardsundertheAmendedandRestated2015LTIP:449,239shares(1.0%ofouroutstandingcommonstock);and

• Thetotalnumberofsharesofcommonstocksubjecttooutstandingawards(6,510,897shares),plusthetotalnumberofsharesavailableforfutureawardsundertheAmendedandRestated2015LTIP(449,239shares),representsacurrentoverhangpercentageof15.7%(inotherwords,thepotentialdilutionofourstockholdersrepresentedbytheAmendedandRestated2015LTIP).

UndertheSecondAmendedandRestated2015LTIP:• ProposedadditionalsharesofcommonstockavailableforfutureawardsundertheSecondAmendedandRestated2015LTIP:1,000,000shares(2.3%ofouroutstandingcommonstock-thispercentagereflectsthesimpledilutionofourstockholdersthatwouldoccuriftheSecondAmendedandRestated2015LTIPisapproved).

TotalpotentialoverhangordilutionundertheSecondAmendedandRestated2015LTIP:• ThetotalsharesofcommonstocksubjecttooutstandingawardsasofMarch15,2018(6,510,897shares),plusthetotalsharesofcommonstockavailableforfutureawardsundertheAmendedandRestated2015LTIPasofthatdate(449,239shares),plustheproposedadditionalcommonsharesavailableforfutureissuanceundertheSecondAmendedandRestated2015LTIP(1,000,000shares),representatotalfully-dilutedoverhangof7,960,136shares(17.9%)undertheSecondAmendedandRestated2015LTIP.

BasedontheclosingpriceontheNewYorkStockExchangeforourcommonstockonMarch15,2018of$4.48pershare,theaggregatemarketvalueasofMarch15,2018ofthe1,000,000additionalsharesofcommonstockrequestedundertheSecondAmendedandRestated2015LTIPwas$4,480,000.

In2015,2016and2017,wegrantedawardsunderthe2015LTIPorAmendedandRestated2015LTIPcovering3,551,032shares,1,027,289shares,and1,401,539shares,respectively.Approximately97%oftheawardsgrantedin2015were“replacementawards,”grantedasaresultoftheadjustmentofawardsoutstandingunderBWC’slong-termincentiveplanatthetimeofthespinoff.Basedonourbasicweightedaveragesharesofcommonstockoutstandingforthosethreeyearsof53,487,071,50,128,922and46,934,506,respectively,forthethree-yearperiod2015-2017,ouraverageburnrate,nottakingintoaccountforfeitures,was5%(ourindividualyears’burnrateswere7%for2015,2%for2016,and5%for2017).

IndeterminingthenumberofsharestorequestforapprovalundertheSecondAmendedandRestated2015LTIP,ourmanagementteamworkedwiththeCompensationCommitteetoevaluateanumberoffactors,includingourrecentshareusageandcriteriaexpectedtobeutilizedbyinstitutionalproxyadvisoryfirmsinevaluatingourproposalfortheSecondAmendedandRestated2015LTIP.

IftheSecondAmendedandRestated2015LTIPisapproved,weintendtoutilizethesharesauthorizedundertheSecondAmendedandRestated2015LTIPtocontinueourpracticeofincentivizingkeyindividualsthroughannualequitygrants.WecurrentlyanticipatethatthesharesrequestedinconnectionwiththeapprovaloftheSecondAmendedandRestated2015LTIPcombinedwiththesharesavailableforfutureawardswilllastforaboutoneyearbasedonourrecentgrantratesandtheapproximatecurrentshareprice,butcouldlastforashorterperiodoftimeifactualpracticedoesnotmatchrecentratesoroursharepricechangesmaterially.Werecognizethatequitycompensationawardsdilutestockholderequity,sowehavecarefullymanagedourequityincentivecompensation.Ourequitycompensationpracticesareintendedtobecompetitiveandconsistentwithmarketpractices,aswellasresponsibleandmindfulofstockholderinterests,asdescribedabove.

SUMMARY OF CERTAIN MATERIAL CHANGES FROM AMENDED AND RESTATED 2015 LTIP

IncreaseinSharesAvailableforAwards:TheSecondAmendedandRestated2015LTIPincreasesthenumberofsharesavailableforawardsby1,000,000sharestoatotalof9,300,000shares.Inaddition,theannuallimitsonthenumberofsharesthatmaybesubjecttocertainawardsduringanycalendaryeartoanindividualparticipanthavebeenincreased,asfurtherdescribedbelowundertheheading“SummaryofMaterialTermsoftheSecondAmendedandRestated2015LTIP.”

ExtensionofTerm.TheSecondAmendedandRestated2015LTIPextendsthetermunderwhichawardsmaybegranteduntilthetenthanniversaryofthedatestockholdersapprovetheSecondAmendedandRestated2015LTIP.

RevisionofDirectorCompensationLimit.TheSecondAmendedandRestated2015LTIPrevisesthenon-employeedirectorcompensationlimitsothat,subjecttoadjustmentasprovidedintheplan,nonon-employeedirector

willbegrantedcompensation,inanyonecalendaryear,havinganaggregatemaximumvalueatthedateofgrant(calculatingthevalueofanyawardsbasedonthegrantdatefairvalueforfinancialreportingpurposes)inexcessof$500,000.ThecomparablelimitintheAmendedandRestated2015LTIPappliedonlytoawardsgrantedundersuchplan.

ExpansionofAdjustmentProvision.TheAmendedandRestated2015LTIPmandatesequitableadjustmentstotheavailableplanshares,certainawardlimitationsandcertaintermsofoutstandingawardsintheeventofcertaincorporatetransactionsorevents.TheSecondAmendedandRestated2015LTIPexpandsandrefinestheseprovisionstoprovideforabroadersetofcorporatetransactionsoreventsandstreamlinetheprovisions.

FlexibilityofChangeinControlAccelerationorContinuedVestingTreatmentProvisions.TheAmendedandRestated2015LTIPprovidesthattheCompensationCommitteemayprovideforacceleratedvestingofawardsintheeventofachangeincontrolonlywhereaparticipantexperiencesaqualifyingterminationwithinaparticularperiodoftimeafterthechangeincontrolorwheretheawardisnotassumedorconvertedintoareplacementawardinconnectionwiththechangeincontrol.TheSecondAmendedandRestated2015LTIPexpandstheseprovisionstogivetheCompensationCommitteetheabilitytodeterminethetreatmentofawardsintheeventofachangeincontrolwithinindividualgrantagreements,ratherthan“hardwiring”suchtreatmentintotheplandocumentitself.

RevisiontoCertainDividendsandDividendEquivalentsProvisions.TheAmendedandRestated2015LTIPprovidesthatdividendsonrestrictedstockmustbedeferredandpaidcontingentontheearningoftheunderlyingawardonlywithrespecttoperformance-basedawards.TheSecondAmendedandRestated2015LTIPextendsthisrequirementthatdividendsonrestrictedstockmustbedeferredandpaidcontingentontheearningoftheunderlyingawardtoservice-basedrestrictedstockawards(notjustperformance-basedawards),andappliesthissamerequirementtodividendsanddividendequivalentsoncertainotherawardsgrantedundertheSecondAmendedandRestated2015LTIP.

ClarificationofAmendment,ModificationandTerminationProvisions.TheSecondAmendedandRestated2015LTIPclarifiesthattheplanamendmentsthatrequireshareholderapproval(asenumeratedintheplandocument)areincludedforpurposesofapplicablestockexchangerulesanddonotprohibitequitableantidilutionadjustmentsasprovidedforundertheSecondAmendedandRestated2015LTIP.

SECTION 162(m)

Section162(m)oftheCodegenerallydisallowsadeductionforcertaincompensationpaidtocertainexecutiveofficers(and,beginningin2018,certainformerexecutiveofficers)totheextentthatcompensationtoacoveredemployeeexceeds$1millionforsuchyear.Compensationqualifyingforaperformance-basedexceptionas“qualifiedperformance-basedcompensation”underSection162(m)oftheCodehashistoricallynotbeensubjecttothedeductionlimitifthecompensationsatisfiestherequirementsofSection162(m)oftheCode.Thisexceptionhasnowbeenrepealed,effectivefortaxableyearsbeginningafterDecember31,2017,unlesscertaintransitionreliefforcertaincompensationarrangementsinplaceasofNovember2,2017isavailable.TheSecondAmendedandRestated2015LTIPretainscertainlegacyprovisionsthatwereoriginallyincludedinthe2015LTIPand/orAmendedandRestated2015LTIPtohelppotentiallyqualifyawardsgrantedunderthe2015LTIPortheAmendedandRestated2015LTIPfortheperformance-basedexceptiontothe$1milliontaxdeductibilitycapunderCodeSection162(m)(providedthatsuchawardswereintendedtoqualifyfortheperformance-basedexception).Tobeclear,stockholdersarenotbeingaskedtoapprovetheSecondAmendedandRestated2015LTIP(oranyofitsprovisions)forpurposesofSection162(m)oftheCodeortheperformance-basedexception.Currently,theCompanydoesnotanticipatethatitwillbeabletomakeanyfuturegrantsundertheSecondAmendedandRestated2015LTIPthatwillbeintendedtoqualifyfortheperformance-basedexception;thus,whilethosetermsaredescribedinthisproposal,unlessthetransitionreliefdescribedaboveshouldapply,theCompanydoesnotexpectthatsuchCodeSection162(m)-relatedprovisionswillbematerialoroperableforpurposesoffuturegrantsmadeundertheSecondAmendedandRestated2015LTIP.

AsummaryoftheSecondAmendedandRestated2015LTIPissetforthbelowandisqualifiedinitsentiretytothetextoftheSecondAmendedandRestated2015LTIP,whichisattachedasAppendixCtothisproxystatement.

SUMMARY OF MATERIAL TERMS OF THE SECOND AMENDED AND RESTATED 2015 LTIP

Administration.TheSecondAmendedandRestated2015LTIPisadministeredbytheCompensationCommittee,whichshallbecomposedofnotlessthanthreemembersofourBoardofDirectors,eachofwhomshall(a)meetallapplicableindependencerequirementsoftheNewYorkStockExchange,(b)bea“non-employeedirector”withinthe

meaningofRule16b-3and(c)bean“outsidedirector”withinthemeaningofSection162(m)oftheCode.TheCompensationCommitteeselectstheparticipantsanddeterminesthetypeortypesofawardsandthenumberofsharesorunitstobeoptionedorgrantedtoeachparticipantundertheSecondAmendedandRestated2015LTIP.AllorpartoftheawardmaybesubjecttoconditionsestablishedbytheCompensationCommittee,whichmayincludecontinuedservicewiththeCompany,achievementofspecificbusinessobjectives,increasesinspecifiedindices,attainmentofspecifiedgrowthratesorothercomparablemeasuresofperformance.TheCompensationCommitteegenerallyhasfullandexclusivepowerandauthoritytoimplementandinterprettheSecondAmendedandRestated2015LTIPandmay,fromtimetotime,adoptrulesandregulationsinordertocarryoutthetermsoftheSecondAmendedandRestated2015LTIP.

TheCompensationCommitteemaydelegatealloranypartofitsauthorityundertheSecondAmendedandRestated2015LTIPtoasubcommittee.Further,aspermittedbylaw,theCompensationCommitteemaydelegateitsdutiesundertheSecondAmendedandRestated2015LTIPtoourChiefExecutiveOfficerandotherseniorofficers.However,(a)theCompensationCommitteemaynotdelegateanyauthoritytograntawardstoanon-employeedirectororanemployeewhoisanofficer,directorormorethan10%beneficialownerofanyclassofourequitysecuritiesthatisregisteredpursuanttoSection12oftheExchangeAct,asdeterminedbytheCompensationCommitteeinaccordancewithSection16oftheExchangeAct,oranypersonsubjecttoSection162(m)oftheCode,(b)theresolutionprovidingforsuchauthorizationtograntawardsmustsetforththetotalnumberofsharessuchofficer(s)maygrantandthetermsofanyawardthatsuchofficer(s)maygrant,and(c)theofficer(s)mustreportperiodicallytotheCompensationCommitteeregardingthenatureandscopeoftheawardsgrantedpursuanttotheauthoritydelegated.Allinterpretations,determinationsanddecisionsmadebytheCompensationCommitteepursuanttotheprovisionsoftheSecondAmendedandRestated2015LTIP,anyawardagreementandallrelatedordersandresolutionsoftheCompensationCommitteewillbefinal,conclusiveandbindingonallpersonsconcerned.

TheCompensationCommitteemay,initsdiscretion,acceleratethevestingorexercisabilityofanaward,eliminateorreducetherestrictionsonanaward,waiveanyrestrictionorotherprovisionoftheSecondAmendedandRestated2015LTIPoranyawardunderit,orotherwiseamendormodifyanyawardinanymannerthatiseithernotadversetotheparticipantholdingtheawardorisconsentedtoinwritingbysuchparticipant,andisconsistentwiththetermsoftheSecondAmendedandRestated2015LTIPandtherequirementsofSection409Aand162(m)oftheCode(ifapplicable).

Eligibility.Non-employeemembersoftheBoardofDirectors,officersandotheremployeesoftheCompany,aswellascertainconsultants,areeligibletoparticipateintheSecondAmendedandRestated2015LTIPifselectedbytheCompensationCommittee.AnyparticipantmayreceivemorethanoneawardundertheSecondAmendedandRestated2015LTIP.Presently,weanticipatethat9currentnon-employeemembersoftheBoardofDirectors,14officers,63otheremployeesand0consultantswillparticipateintheSecondAmendedandRestated2015LTIPgoingforward.IfaneligiblepersonisselectedbytheCompensationCommitteetoreceiveanawardundertheSecondAmendedandRestated2015LTIP,suchpersonisnotguaranteedtoreceiveanyfutureawardsundertheSecondAmendedandRestated2015LTIP.ThebasisforparticipationintheSecondAmendedandRestated2015LTIPbyeligiblepersonsistheselectionofsuchpersonsbytheCompensationCommitteeinitsdiscretion.

SharesAvailableforGrantsUndertheSecondAmendedandRestated2015LTIP.Subjecttotheprovisionswedescribebelow,9,300,000sharesofourcommonstockmaybeissuedundertheSecondAmendedandRestated2015LTIP(5,800,000ofwhichwereapprovedbyoursolestockholderpriortothespin-offin2015,2,500,000ofwhichwereapprovedbyourstockholdersin2016and1,000,000ofwhichwillbeaddeduponapprovalofourstockholdersin2018).Inaddition,shareswhicharesubjecttoawardsthatarecancelled,terminated,forfeitedorexpired,aresettledincash,orareunearned,inwholeorinpart,willbecomeavailableforissuanceundertheSecondAmendedandRestated2015LTIPtotheextentofsuchcancellation,termination,forfeiture,expiration,cashsettlementorunearnedamount.TheCompensationCommitteemayadoptandobservesuchproceduresconcerningthecountingofsharesagainsttheSecondAmendedandRestated2015LTIPmaximumasitmaydeemappropriate.However,thefollowingshareswillnotbeaddedtotheaggregatenumberofsharesavailableforawardsundertheSecondAmendedandRestated2015LTIP:(a)shareswithheldbyus,tenderedorotherwiseusedtopayanoptionpriceofanoption,(b)shareswithheldbyus,tenderedorotherwiseusedtosatisfyataxwithholdingobligation,(c)sharessubjecttoanappreciationrightthatarenotactuallyissuedinconnectionwithitssharesettlementonexercise,and(d)sharesreacquiredbyusontheopenmarketorotherwiseusingcashproceedsfromtheexerciseofoptions.SharesreservedforissuanceundertheSecondAmendedandRestated2015LTIPmaybesharesoforiginalissuanceorsharesheldintreasury,oracombinationthereof.Inaddition,theSecondAmendedandRestated2015LTIPcontainsabroad-basednon-employeedirectorcompensationlimit:subjecttoadjustmentasdescribedintheplandocument,innoeventwillanynon-employeedirectorinanyonecalendaryearbegrantedcompensationfordirectorservicehavinganaggregate

maximumvalue(measuredatthedateofgrantandcalculatingthevalueofawardsundertheSecondAmendedandRestated2015LTIPbasedonthegrantdatefairvalueforfinancialreportingpurposes)inexcessof$500,000.

CommonstockissuedortransferredpursuanttoawardsgrantedundertheSecondAmendedandRestated2015LTIPinsubstitutionfororinconversionof,orinconnectionwiththeassumptionof,awardsheldbyawardeesofanentityengaginginacorporateacquisitionormergerwithusoranyofoursubsidiarieswillnotcountagainstthesharelimitsundertheSecondAmendedandRestated2015LTIP.Additionally,sharesavailableundercertainplansthatweoroursubsidiariesmayassumeinconnectionwithcorporatetransactionsfromanotherentitymaybeavailableforcertainawardsundertheSecondAmendedandRestated2015LTIP,butwillnotcountagainstthesharelimitsundertheSecondAmendedandRestated2015LTIP.SubjecttoadjustmentasdescribedintheSecondAmendedandRestated2015LTIP,themaximumnumberofsharesofcommonstockactuallyissuedpursuanttotheexerciseofincentivestockoptionsundertheSecondAmendedandRestated2015LTIPwillbe1,200,000.

TypesofAwardsUndertheSecondAmendedandRestated2015LTIP.UndertheSecondAmendedandRestated2015LTIP,theCompensationCommitteemayawardtoparticipantsincentiveandnonqualifiedstockoptions,appreciationrights,restrictedstock,restrictedstockunits,performanceshares,performanceunits,cashincentiveawardsandotherawards.Theformsofawardsaredescribedingreaterdetailbelow.Generally,agrantofanawardundertheSecondAmendedandRestated2015LTIPwillbeevidencedbyanawardagreementoragreementswhichwillcontainsuchtermsandprovisionsastheCompensationCommitteemaydetermine,consistentwiththeSecondAmendedandRestated2015LTIP.AbriefdescriptionofthetypesofawardsthatmaybegrantedundertheSecondAmendedandRestated2015LTIPissetforthbelow.

StockOptions.TheCompensationCommitteehasdiscretiontoawardincentivestockoptionsandnonqualifiedstockoptions.Astockoptionisarighttopurchaseaspecifiednumberofsharesofourcommonstockataspecifiedexerciseprice.AnincentivestockoptionisintendedtoqualifyassuchunderSection422oftheCode.UndertheSecondAmendedandRestated2015LTIP,noparticipantmaybegrantedoptionsand/orappreciationrightsduringanyfiscalyearthatareexercisableformorethan1,200,000sharesofourcommonstock,subjecttoadjustmentasdescribedintheSecondAmendedandRestated2015LTIP.Incentivestockoptionsmayonlybegrantedtoemployees.Exceptwithrespecttoawardsissuedinsubstitutionfor,inconversionof,orinconnectionwithanassumptionofstockoptionsheldbyawardeesofanentityengaginginacorporateacquisitionormergerwithusoranyofoursubsidiaries,theexercisepriceofanoptionmaynotbelessthanthefairmarketvalueofashareofourcommonstockonthedateofgrant,subjecttoadjustmentasdescribedintheSecondAmendedandRestated2015LTIP.SubjecttothespecifictermsoftheSecondAmendedandRestated2015LTIP,theCompensationCommitteehasdiscretiontodeterminethenumberofshares,theexerciseprice,thetermsandconditionsofexercise,whetheranoptionwillqualifyasanincentivestockoptionundertheCodeandsetsuchadditionallimitationsonandtermsofoptiongrantsasitdeemsappropriate.Moreover,agrantofoptionsmaybeexercisableearlyorsubjecttocontinuedvesting,includingonretirement,deathordisabilityorintheeventofachangeincontrol.TheAwardAgreementwillgenerallyspecify,amongotherthings,theexerciseprice,durationandnumberofsharesapplicabletotheawardaswellaswhethertheawardisofnonqualifiedorincentivestockoptions.

OptionsgrantedtoparticipantsundertheSecondAmendedandRestated2015LTIPwillexpireatsuchtimesastheCompensationCommitteedeterminesatthetimeofthegrant,butnooptionwillbeexercisablelaterthantenyearsfromthedateofgrant.EachAwardAgreementwillsetforththeextenttowhichtheparticipantwillhavetherighttoexercisetheoptionfollowingterminationoftheparticipant’semploymentorservice.TheterminationprovisionswillbedeterminedwithinthediscretionoftheCompensationCommittee,neednotbeuniformamongallparticipantsandmayreflectdistinctionsbasedonthereasonsforterminationofemploymentorservice.Dividendequivalentsdonotattachtostockoptions.

UpontheexerciseofanoptiongrantedundertheSecondAmendedandRestated2015LTIP,theoptionpriceispayableinfulltous,subjecttoapplicablelaw:(1)incashorbycheckacceptabletotheCompanyorbywiretransferofimmediatelyavailablefunds;(2)bytenderingpreviouslyacquiredsharesofourcommonstockhavingafairmarketvalueatthetimeofexerciseequaltothetotaloptionprice;(3)subjecttoanyconditionsorlimitationsestablishedbytheCompensationCommittee,byourwithholdingofsharesofcommonstockotherwiseissuableuponexerciseofanoptionpursuanttoa“netexercise”arrangement;(4)byacombinationof(1),(2)and(3);or(5)byanyothermethodapprovedbytheCompensationCommitteeinitssolediscretion.Further,totheextentpermittedbylaw,anygrantofoptionsmayprovidefordeferredpaymentoftheoptionpricefromtheproceedsofasalethroughabankorbrokerofsomeorallofthesharesofcommonstocktowhichtheexerciserelates.Agrantofoptionsmayspecifyperformancegoalsthatmustbeachievedasaconditiontotheexerciseofsuchoptions.Wedonotanticipategrantinganyfuture

awardsofstockoptionsthatwillbedesignedtoqualifyfortheperformance-basedexceptionunderSection162(m)oftheCode.

AppreciationRights.TheSecondAmendedandRestated2015LTIPprovidesforthegrantofappreciationrights,whichmaybegrantedaseithertandemappreciationrightsorfree-standingappreciationrights.Atandemappreciationrightisanappreciationrightthatisgrantedintandemwithastockoption.Afree-standingappreciationrightisanappreciationrightthatisnotgrantedintandemwithastockoption.Anappreciationrightisaright,exercisablebythesurrenderofarelatedstockoption(ifatandemappreciationright)orbyitself(ifafree-standingappreciationright),toreceivefromusanamountequalto100%,orsuchlesserpercentageastheCompensationCommitteemaydetermine,ofthespreadbetweenthebaseprice(oroptionexercisepriceifatandemappreciationright)andthevalueofourcommonstockonthedateofexercise.Tandemappreciationrightsmaybegrantedatanytimepriortotheexerciseorterminationoftherelatedstockoptions,butatandemappreciationrightawardedinrelationtoanincentivestockoptionmustbegrantedconcurrentlywithsuchincentivestockoption.

EachAwardAgreementforappreciationrightswillspecifytheapplicabletermsandconditionsofsuchappreciationrights,includinganyvestingandforfeitureprovisions.Agrantofappreciationrightsmayprovideforearlierexerciseorbesubjecttocontinuedvesting,includinginthecaseofretirement,deathordisabilityoftheparticipantorintheeventofachangeincontrol.Anygrantofappreciationrightsmayspecifyperformancegoalsthatmustbeachievedasaconditionoftheexerciseofsuchappreciationrights.Anappreciationrightmaybepaidincash,sharesofcommonstockoranycombinationthereof.Exceptwithrespecttoawardsissuedinsubstitutionfor,inconversionof,orinconnectionwithanassumptionofappreciationrightsheldbyawardeesofanentityengaginginacorporateacquisitionormergerwithusoranyofoursubsidiaries,thebasepriceofafree-standingappreciationrightmaynotbelessthanthefairmarketvalueofashareofcommonstockonthedateofgrant.Thetermofanappreciationrightmaynotextendmorethantenyearsfromthedateofgrant.

TheAwardAgreementforappreciationrightswillsetforththeextenttowhichtheparticipantwillhavetherighttoexercisetheappreciationrightsfollowingterminationoftheparticipant’semploymentorservicewiththeCompanyoritssubsidiaries.SuchprovisionswillbedeterminedinthesolediscretionoftheCompensationCommittee,neednotbeuniformamongallappreciationrightsgrantedundertheSecondAmendedandRestated2015LTIPandmayreflectdistinctionsbasedonthereasonsfortermination.Tandemappreciationrightsmaybeexercisedonlyatatimewhentherelatedstockoptionsarealsoexercisableandthespread(theexcessofthefairmarketvalueofashareofcommonstockovertheexerciseprice)ispositiveandbysurrenderoftherelatedstockoptionforcancellation.AppreciationrightsgrantedundertheSecondAmendedandRestated2015LTIPmaynotprovidefordividendsordividendequivalents.Wedonotanticipategrantinganyfutureawardsofappreciationrightsthatwillbedesignedtoqualifyfortheperformance-basedexceptionunderSection162(m)oftheCode.

RestrictedStock.TheCompensationCommitteealsoisauthorizedtograntorsellrestrictedsharesofourcommonstockundertheSecondAmendedandRestated2015LTIPonsuchtermsandconditionsasitshallestablish.Althoughrecipientswillgenerallyhavetherighttovoterestrictedsharesfromthedateofgrant,theywillgenerallynothavetherighttosellorotherwisetransferthesharesduringtheapplicableperiodofrestrictionoruntilearliersatisfactionofotherconditionsimposedbytheCompensationCommitteeinitssolediscretion.TheAwardAgreementwillspecifytheperiodsofrestriction,anyrestrictionsbasedonachievementofspecificperformancegoals,restrictionsunderapplicablefederalorstatesecuritieslawsandsuchothertermstheCompensationCommitteedeemsappropriate.Agrantorsaleofrestrictedstockmayprovideforearlierterminationofrestrictionsorcontinuedvesting,includinginthecaseofretirement,deathordisabilityoftheparticipantorintheeventofachangeincontrol.However,nosuchadjustmentmaybemadeinthecaseofanawarddesignedtoqualifyfortheCodeSection162(m)performance-basedexception(otherthaninconnectionwiththedeathordisabilityoftheparticipantorachangeincontrolofus)whereitwouldresultinthelossoftheotherwiseavailableexemptionunderSection162(m)oftheCode.Wedonotanticipategrantinganyfutureawardsofrestrictedstockthatwillbedesignedtoqualifyfortheperformance-basedexception.

UnlesstheCompensationCommitteeotherwisedetermines,participantswillbecreditedwithcashdividendsontheirsharesofrestrictedstock.TheCompensationCommitteeinitsdiscretionmayapplyanyrestrictionstothedividendsthatitdeemsappropriate.Dividendsonsharesofrestrictedstockwillinallcasesbedeferreduntil,andpaidcontingentupon,thevestingoftherestrictedstock.

EachAwardAgreementforrestrictedstockwillsetforththeextenttowhichtheparticipantwillhavetherighttoretainunvestedsharesofrestrictedstockfollowingterminationoftheparticipant’semploymentorservice.TheseprovisionswillbedeterminedinthesolediscretionoftheCompensationCommittee,neednotbeuniformamongallparticipantsandmayreflectdistinctionsbasedonthereasonsforterminationofemploymentorservice.Nomorethan1,200,000

sharesofourcommonstockmaybegrantedintheformofawardsofrestrictedstockandrestrictedstockunitsdesignedtoqualifyfortheCodeSection162(m)performance-basedexceptiontoanyparticipantinanyfiscalyear,subjecttoadjustmentasdescribedintheplandocument.

PerformanceUnits,PerformanceSharesandCashIncentiveAwards.Performanceunits,performancesharesandcashincentiveawardsareformsofperformanceawardsthataresubjecttotheattainmentofoneormorepre-establishedperformancegoalsduringadesignatedperformanceperiod.Performanceunits,performancesharesandcashincentiveawardsmaybegrantedbytheCompensationCommitteeatanytimeinsuchamountsandonsuchtermsastheCompensationCommitteedetermines.EachperformanceunitwillhaveaninitialvaluethatisestablishedbytheCompensationCommitteeatthetimeofthegrant.Eachperformancesharewillbeabookkeepingentrythatrecordstheequivalentofoneshareofourcommonstockandhaveaninitialvalueequaltothefairmarketvalueofashareofourcommonstockonthedateofthegrant.TheCompensationCommitteeinitsdiscretionwilldeterminetheapplicableperformanceperiodandwillestablishperformancegoalsforanygivenperformanceperiod.Theperformanceperiodmaybesubjecttoearlierlapseormodification,includinginthecaseofretirement,deathordisabilityoftheparticipantorintheeventofachangeincontrol.However,nosuchadjustmentmaybemadeinthecaseofanawarddesignedtoqualifyfortheCodeSection162(m)performance-basedexception(otherthaninconnectionwiththedeathordisabilityoftheparticipantorachangeincontrolofus)whereitwouldresultedinthelossoftheotherwiseavailableexemptionunderSection162(m)oftheCode.Wedonotanticipategrantinganyfutureawardsofperformanceunits,performancesharesorcashincentiveawardsthatwillbedesignedtoqualifyfortheperformance-basedexception.

Duringtheapplicablevestingperiod,participantswillhavenovotingrightswithrespecttoanysharesofourcommonstockunderlyingaperformanceunitorperformanceshare.However,participantsshall,unlesstheCompensationCommitteeotherwisedetermines,receivedividendequivalentsonthesharesunderlyingtheirperformanceshareorperformanceunitgrantsintheformofcashoradditionalperformanceunitsorperformancesharesifacashdividendispaidwithrespecttosharesofourcommonstock.Suchdividendequivalentsaresubjecttothevestingrequirementsapplicabletotheaward.

Paymentofearnedperformancesharesorperformanceunitsmaybemadeincashorinsharesofourcommonstockthathaveanaggregatefairmarketvalueequaltotheearnedperformanceunitsorperformanceshares.EachAwardAgreementwillsetforththeextenttowhichtheparticipantwillhavetherighttoreceiveapayoutofperformanceshares,performanceunitsand/orcashincentiveawardsfollowingterminationoftheparticipant’semploymentorservice.TheterminationprovisionswillbedeterminedbytheCompensationCommitteeinitssolediscretion,neednotbeuniformamongallparticipantsandmayreflectdistinctionsbasedonthereasonsforterminationofemploymentorservice.

Subjecttoadjustmentasdescribedintheplandocument,(a)nomorethan1,200,000sharesofourcommonstockmaybegrantedintheformofperformancesharesdesignedtoqualifyfortheCodeSection162(m)performance-basedexceptiontoanyparticipantinanyfiscalyear,(b)nomorethan$6,000,000couldhavebeenpaidincashtoanyparticipantwithrespecttoperformanceunitsdesignedtoqualifyfortheCodeSection162(m)performance-basedexceptiongrantedinanyfiscalyear,asvaluedonthedateofeachgrant,and(c)nomorethan$6,000,000couldhavebeenpaidincashtoanyparticipantwithrespecttocashincentiveawardsdesignedtoqualifyfortheCodeSection162(m)performance-basedexceptiongrantedinanyfiscalyear.

RestrictedStockUnits.Anawardofarestrictedstockunitconstitutesanagreementbyustodeliversharesofourcommonstockortopayanamountincashequaltothefairmarketvalueofashareofourcommonstockforeachrestrictedstockunittoaparticipantinthefuture.RestrictedstockunitsmaybegrantedorsoldbytheCompensationCommitteeonsuchtermsandconditionsasitmayestablish.TherestrictedstockunitAwardAgreementwillspecifythevestingperiodorperiods,anyspecificperformanceobjectivesandsuchotherconditionsasmayapplytotheaward.Agrantofrestrictedstockunitsmayprovideforearlierterminationofrestrictionsorcontinuedvesting,includinginthecaseofretirement,deathordisabilityoftheparticipantorintheeventofachangeincontrol.However,nosuchadjustmentmaybemadeinthecaseofanawarddesignedtoqualifyfortheCodeSection162(m)performance-basedexception(otherthaninconnectionwiththedeathordisabilityoftheparticipantorachangeincontrolofus)totheextentitwouldcausesuchawardtofailtosoqualify.Wedonotanticipategrantinganyfutureawardsofrestrictedstockunitsthatwillbedesignedtoqualifyfortheperformance-basedexception.

Duringtheapplicablevestingperiod,participantswillhavenovotingrightswithrespecttothesharesofourcommonstockunderlyingarestrictedstockunitgrant.However,participantsshall,unlesstheCompensationCommitteeotherwisedetermines,becreditedwithdividendequivalentsonthesharesunderlyingtheirrestrictedstockunitgrants

intheformofcashoradditionalrestrictedstockunitsifacashdividendispaidwithrespecttosharesofourcommonstock.Suchdividendequivalentsaresubjecttothevestingrequirementsapplicabletotheaward.

EachAwardAgreementforrestrictedstockunitswillsetforththeextenttowhichtheparticipantwillhavetherighttoretainunvestedrestrictedstockunitsfollowingterminationofemploymentorservice.TheseprovisionswillbedeterminedinthesolediscretionoftheCompensationCommittee,neednotbeuniformamongallparticipantsandmayreflectdistinctionsbasedonreasonsforterminationofemploymentorservice.Nomorethan1,200,000sharesofourcommonstockmaybegrantedintheformofawardsofperformance-basedrestrictedstockandperformance-basedrestrictedstockunitsdesignedtoqualifyfortheCodeSection162(m)performance-basedexceptiontoanyparticipantinanyfiscalyear,subjecttoadjustmentasdescribedintheplandocument.

OtherAwards.SubjecttoapplicablelawandthelimitssetforthintheSecondAmendedandRestated2015LTIP,theCompensationCommitteemaygrantsuchotherawardsthatmaybedenominatedorpayablein,valuedinwholeorinpartbyreferenceto,orotherwisebasedon,orrelatedto,sharesofourcommonstockorfactorsthatmayinfluencethevalueofsuchshares,including,withoutlimitation,convertibleorexchangeabledebtsecurities,otherrightsconvertibleorexchangeableintosharesofcommonstock,purchaserightsforcommonstock,awardswithvalueandpaymentcontingentuponperformanceofusorspecifiedsubsidiaries,affiliatesorotherbusinessunitsoranyotherfactorsdesignatedbytheCompensationCommittee,andawardsvaluedbyreferencetothebookvalueofsharesofcommonstockorthevalueofsecuritiesof,ortheperformanceofthesubsidiaries,affiliatesorotherbusinessunitsofus.ThetermsandconditionsofanysuchawardswillbedeterminedbytheCompensationCommittee.SharesofcommonstockdeliveredunderanawardinthenatureofapurchaserightgrantedundertheSecondAmendedandRestated2015LTIPwillbepurchasedforsuchconsideration,paidforatsuchtime,bysuchmethods,andinsuchforms,including,withoutlimitation,sharesofcommonstock,otherawards,notesorotherproperty,astheCompensationCommitteedetermines.

Inaddition,theCompensationCommitteemaygrantcashawards,asanelementoforsupplementtoanyotherawardsgrantedundertheSecondAmendedandRestated2015LTIP.TheCompensationCommitteemayalsograntsharesofcommonstockasabonus,ormaygrantotherawardsinlieuofobligationsofusorasubsidiarytopaycashordeliverotherpropertyundertheSecondAmendedandRestated2015LTIPorunderotherplansorcompensatoryarrangements,subjecttotermsdeterminedbytheCompensationCommitteeinamannerthancomplieswithSection409AoftheCode.

Anygrantofanotherawardmayprovideforearliereliminationofrestrictionsapplicabletosuchawardorcontinuedvesting,includingintheeventoftheretirement,death,ordisabilityoftheparticipantorintheeventofachangeincontrol.However,nosuchadjustmentmaybemadeinthecaseofanawarddesignedtoqualifyfortheCodeSection162(m)performance-basedexception(otherthaninconnectionwiththedeathordisabilityoftheparticipantorachangeincontrolofus)totheextentitwouldcausesuchawardtofailtosoqualify.Wedonotanticipategrantinganyfuture“other”awardsthatwillbedesignedtoqualifyfortheperformance-basedexception.

TheCompensationCommitteemayauthorizethepaymentofdividendsordividendequivalentsonsuchotherawardsonadeferredandcontingentbasisintheformofcashoradditionalshares.Suchdividendequivalentsaresubjecttothevestingrequirementsapplicabletotheotheraward.

Subjecttoadjustmentasdescribedintheplandocument,(a)nomorethan$6,000,000maybepaidincashtoanyparticipantwithrespecttootherawardsdesignedtoqualifyfortheCodeSection162(m)performance-basedexceptiongrantedinanyfiscalyear,asvaluedonthedateofeachgrant,and(b)themaximumaggregatenumberofsharesofcommonstockthatmaybesubjecttootherawardsdesignedtoqualifyfortheCodeSection162(m)performance-basedexceptioninanyonefiscalyeartoanyoneparticipantis1,200,000.

PerformanceMeasures.TheCompensationCommitteemaygrantawardsundertheSecondAmendedandRestated2015LTIPtoeligibleemployeessubjecttotheattainmentofspecifiedperformancemeasures.Weexpectthatallfutureperformance-basedawardswilleithernotbeintendedtoqualify,orwillnotbeabletoqualify,forthehistoricalCodeSection162(m)performance-basedexception(a“QualifiedPerformance-BasedAward”).However,theperformancemeasuresapplicabletoanyawardthatisdesignedtobeaQualifiedPerformance-BasedAwardtoacoveredemployeemustbechosenfromamongthefollowingperformancemetrics(includingrelativeorgrowthachievementregardingsuchalternatives):(a)CashFlow(includingoperatingcashflowandfreecashflow);(b)CashFlowReturnonCapital;(c)CashFlowReturnonAssets;(d)CashFlowReturnonEquity;(e)NetIncome;(f)ReturnonCapital;(g)ReturnonInvestedCapital;(h)ReturnonAssets;(i)ReturnonEquity;(j)SharePrice;(k)EarningsPerShare(basicordiluted);(l)EarningsBeforeInterestandTaxes;(m)EarningsBeforeInterest,Taxes,Depreciationand

Amortization;(n)TotalandRelativeShareholderReturn;(o)OperatingIncome;(p)ReturnonNetAssets;(q)GrossorOperatingMargins;(r)Safety;and(s)EconomicValueAddedorEVA.

TheperformancemeasuresdescribedabovecouldbedescribedintermsofCompany-wideobjectivesorobjectivesthatarerelatedtotheperformanceoftheindividualparticipantorofoneormoreofthesubsidiaries,divisions,departments,regions,functionsorotherorganizationalunitswithinusoroneofoursubsidiaries.Performancemeasuresmayalsobemaderelativetotheperformanceofothercompaniesorsubsidiaries,divisions,departments,regions,functionsorotherorganizationalunitswithinsuchothercompanies,andmaybemaderelativetoanindexoroneormoreoftheperformancemeasuresthemselves.Additionally,inthecaseofaQualifiedPerformance-BasedAward,eachperformancemeasuremustbeobjectivelydeterminabletotheextentrequiredunderSection162(m)oftheCode,and,unlessotherwisedeterminedbytheCompensationCommitteeandtotheextentconsistentwithSection162(m)oftheCode,theCompensationCommitteecouldincludeorexcludefromtheperformancemeasuresresearchanddevelopmentexpenses,acquisitioncosts,operatingexpensesfromacquiredbusinessesorcorporatetransactionsandotherunusualorinfrequentitemsidentifiedonthedateofgrant.

Followingtheendofaperformanceperiod,theCompensationCommitteedeterminesthevalueofanyQualifiedPerformance-BasedAwardsgrantedfortheperiodbasedonitsdeterminationofthedegreeofattainmentofthepre-establishedperformancegoals.TheCompensationCommitteewillhavethediscretiontoadjustdeterminationsofthedegreeofattainmentofthepre-establishedperformancegoals.However,exceptinconnectionwithachangeincontrol,aQualifiedPerformance-BasedAwardcouldnothavebeadjustedinamannerthatwouldresultintheawardnolongerqualifyingasaQualifiedPerformance-BasedAward.TheCompensationCommitteealsohasdiscretiontoreduce(butnottoincrease)thevalueofanyQualifiedPerformance-BasedAwards.

Deferrals.TheCompensationCommitteewillhavethediscretiontoprovideforthedeferralofanawardortopermitparticipantstoelecttodeferpaymentofsomeoralltypesofawardsinamannerconsistentwiththerequirementsofSection409AoftheCode.

ChangeinControl.Subjecttoapplicablelaw,regulationsorstockexchangerules,thetreatmentofoutstandingawardsupontheoccurrenceofachangeincontrol(asdefinedintheSecondAmendedandRestated2015LTIP)willbedeterminedinthesolediscretionoftheCompensationCommitteeinaccordancewiththetermsoftheSecondAmendedandRestated2015LTIP,willbedescribedintheapplicableAwardAgreementsandneednotbeuniformamongallawardsgrantedundertheSecondAmendedandRestated2015LTIP.

AdjustmentandAmendments.TheSecondAmendedandRestated2015LTIPprovidesforappropriateadjustmentsintermssuchasthenumberandkindofsharessubjecttoawardsandavailableforfutureawards,theexerciseorotherpriceapplicabletooutstandingawards,themaximumawardlimitationsundertheSecondAmendedandRestated2015LTIP(totheextentthatsuchadjustmentwouldnotcauseanyoptionintendedtoqualifyasanincentivestockoptiontofailtosoqualify),thefairmarketvalueofthecommonstock,cashincentiveawardsandothervaluedeterminationsandothertermsapplicabletooutstandingawards,intheeventofchangesinouroutstandingcommonstockbyreasonofamerger,stocksplit,orcertainotherevents.Further,intheeventofcertaincorporateevents,includingacorporatemerger,consolidation,acquisition,separation,reorganizationorliquidation,orachangeincontrol,theCompensationCommitteeisauthorized,initssolediscretion(butsubjecttocompliancewithSection409AoftheCodetotheextentapplicable),to:(a)grantorassumeawardsbymeansofsubstitutionofnewawardsforpreviouslygrantedawardsortoassumepreviouslygrantedawardsaspartofsuchadjustment;(b)makeprovision,priortothetransaction,fortheaccelerationofthevestingandexercisabilityof,orlapseofrestrictionswithrespectto,awardsandtheterminationofoptionsthatremainunexercisedatthetimeofsuchtransaction;or(c)providefortheaccelerationofthevestingandexercisabilityofoptionsandthecancellationofoptionsinexchangeforsuchpaymentastheCompensationCommittee,initssolediscretion,determinesisareasonableapproximationofthevaluethereof.Moreover,intheeventofanysuchtransactionoreventorintheeventofachangeincontroloftheCompany,theCompensationCommitteewillprovideinsubstitutionforanyoralloutstandingawardsundertheSecondAmendedandRestated2015LTIPsuchalternativeconsideration(includingcash),ifany,asit,ingoodfaith,determinestobeequitableinthecircumstancesandwillrequirethesurrenderofallawardssoreplacedinamannerthatcomplieswithSection409AoftheCode.Inaddition,foreachstockoptionorappreciationrightwithanoptionpriceorbasepricegreaterthantheconsiderationofferedinconnectionwithanysuchtransactionoreventofchangeincontrol,theCompensationCommitteemayinitsdiscretionelecttocancelsuchstockoptionorappreciationrightwithoutanypaymenttothepersonholdingsuchstockoptionorappreciationright.

TheSecondAmendedandRestated2015LTIPmaybemodified,altered,suspendedorterminatedbytheBoardofDirectorsatanytimeandforanypurposethattheBoardofDirectorsdeemsappropriate,but(subjecttocertain

exceptions)noamendmenttotheSecondAmendedandRestated2015LTIPmayadverselyaffectanyoutstandingawardswithouttheaffectedparticipant’sconsent.Further,ifanamendmenttotheSecondAmendedandRestated2015LTIP(forpurposesofapplicablestockexchangerulesandexceptaspermittedundertheadjustmentprovisionsoftheSecondAmendedandRestated2015LTIP)(a)wouldmateriallyincreasethebenefitsaccruingtoparticipantsundertheSecondAmendedandRestated2015LTIP,(b)wouldmateriallyincreasethenumberofsecuritieswhichmaybeissuedundertheSecondAmendedandRestated2015LTIP,(c)wouldmateriallymodifytherequirementsforparticipationintheSecondAmendedandRestated2015LTIPor(d)mustotherwisebeapprovedbythestockholdersoftheCompanyinordertocomplywithapplicablelaworstockexchangerules,allasdeterminedbytheBoard,thensuchamendmentwillbesubjecttostockholderapprovalandwillnotbeeffectiveunlessanduntilsuchapprovalhasbeenobtained.Additionally,ifpermittedbySection409AoftheCodeandSection162(m)oftheCodeandsubjecttotheothertermsoftheSecondAmendedandRestated2015LTIP,theCompensationCommitteemaymakeadjustmentsintheterms,conditionsorcriteriaofanawardinrecognitionofcertainunusualornonrecurringeventsaffectingtheCompanyorthefinancialstatementsoftheCompanyorinrecognitionofchangesinapplicablelaws,regulationsoraccountingprinciples,whenevertheCompensationCommitteedeterminesthatsuchadjustmentsareappropriate.

ProhibitiononRepricing.ExceptinconnectionwithcertaincorporatetransactionsorchangesinthecapitalstructureoftheCompany,thetermsofoutstandingawardsmaynotbeamendedto(1)reducetheexercisepriceofoutstandingoptionsorappreciationrights,or(2)replaceorregrantoptionsthroughcancellation,inexchangeforotherawards,oriftheeffectofthereplacementorregrantwouldbetoreducetheoptionpriceoftheoptionsorwouldconstitutearepricingundergenerallyacceptedaccountingprinciples(asapplicable),withoutstockholderapproval.

Clawbacks.AnyAwardAgreementmayreferenceaclawbackpolicyoftheCompanyorprovideforthecancellationorforfeitureofanawardortheforfeitureandrepaymenttotheCompanyofanygainrelatedtoanaward,orotherprovisionsintendedtohaveasimilareffect,uponsuchtermsandconditionsasmaybedeterminedbytheCompensationCommitteefromtimetotime,ifaparticipantengagesincertaindetrimentalactivity.Inaddition,anyAwardAgreementorsuchclawbackpolicymayalsoprovideforthecancellationorforfeitureofanawardortheforfeitureandrepaymenttotheCompanyofanycommonstockissuedunderand/oranyotherbenefitrelatedtoanaward,orotherprovisionsintendedtohaveasimilareffect,uponsuchtermsandconditionsasmayberequiredbytheCompensationCommitteeorunderSection10DoftheExchangeActandanyapplicablerulesorregulationspromulgatedbytheSECoranynationalsecuritiesexchangeornationalsecuritiesassociationonwhichtheCompany’scommonstockmaybetraded.

Transferability.Exceptasotherwisespecifiedinaparticipant’sAwardAgreement,noawardgrantedpursuantto,andnorighttopaymentunder,theSecondAmendedandRestated2015LTIPwillbeassignableortransferablebyanSecondAmendedandRestated2015LTIPparticipantexceptbywillorbythelawsofdescentanddistributionorpursuanttoaqualifieddomesticrelationsorder,andanyrightgrantedtoaparticipantundertheSecondAmendedandRestated2015LTIPwillbeexercisablebyoravailabletoonlytheparticipantduringtheparticipant’slifetime.

Restrictions.SharesofourcommonstockdeliveredundertheSecondAmendedandRestated2015LTIP,ifany,maybesubjecttostop-transferordersandotherrestrictionsastheCompensationCommitteemaydeemadvisableundertherules,regulationsandotherrequirementsoftheSEC,anysecuritiesexchangeortransactionreportingsystemonwhichourcommonstockisthenlistedortowhichitisadmittedforquotationandanyapplicablefederalorstatesecuritieslaw.

GrantstoNon-U.S.BasedParticipants.InordertofacilitatethemakingofanygrantorcombinationofgrantsundertheSecondAmendedandRestated2015LTIP,theCompensationCommitteemayprovideforsuchspecialtermsforawardstoparticipantswhoareforeignnationals,whoareemployedbyusoranyofoursubsidiariesoutsideoftheUnitedStatesofAmericaorwhoprovideservicestousunderanagreementwithaforeignnationoragency,astheCompensationCommitteemayconsidernecessaryorappropriatetoaccommodatedifferencesinlocallaw,taxpolicyorcustom.TheCompensationCommitteemayapprovesuchsupplementsto,oramendments,restatementsoralternativeversionsof,theSecondAmendedandRestated2015LTIP(including,withoutlimitation,sub-plans)asitmayconsidernecessaryorappropriateforsuchpurposes,providedthatnosuchspecialterms,supplements,amendmentsorrestatementsmayincludeanyprovisionsthatareinconsistentwiththetermsoftheSecondAmendedandRestated2015LTIPasthenineffectunlesstheSecondAmendedandRestated2015LTIPcouldhavebeenamendedtoeliminatesuchinconsistencywithoutfurtherapprovalbyourstockholders.

TaxWithholding.Wehavetherighttodeductapplicabletaxesfromanyawardpaymentandwithhold,atthetimeofdeliveryorvestingofcashorsharesofourcommonstockundertheSecondAmendedandRestated2015LTIP,orat

thetimeapplicablelawotherwiserequires,anappropriateamountofcashornumberofsharesofourcommonstockorcombinationthereofforpaymentoftaxesrequiredbylawortotakesuchotheractionasmaybenecessaryinouropiniontosatisfyallobligationsforwithholdingofthosetaxes.TheCompensationCommitteemaypermitwithholdingtobesatisfiedbythetransfertousofsharesofourcommonstockpreviouslyownedbytheholderoftheawardforwhichwithholdingisrequired.Ifsharesofcommonstockareusedtosatisfytaxwithholding,suchshareswillbevaluedattheirfairmarketvalueonthedatewhenthetaxwithholdingisrequiredtobemadeandthevaluewithheldshallnotexceedtheminimumamountoftaxesrequiredtobewithheld.

NoRighttoContinuedEmployment.TheSecondAmendedandRestated2015LTIPdoesnotconferuponanyparticipantanyrightwithrespecttocontinuanceofemploymentorservicewiththeCompanyoranyofitssubsidiariesoraffiliates.

UnfundedPlan.Insofarasitprovidesforawardsforcash,sharesofourcommonstockorrightsthereto,theSecondAmendedandRestated2015LTIPwillbeunfunded.Althoughwemayestablishbookkeepingaccountswithrespecttoplanparticipantswhoareentitledtocash,sharesofourcommonstockorrightstheretoundertheSecondAmendedandRestated2015LTIP,wewilluseanysuchaccountsmerelyasabookkeepingconvenience.

DurationoftheSecondAmendedandRestated2015LTIP.TheSecondAmendedandRestated2015LTIPwillremainineffectuntilalloptionsandrightsgrantedundertheplanhavebeensatisfiedorterminatedunderthetermsoftheSecondAmendedandRestated2015LTIP,subjecttotherightoftheBoardofDirectorstoamendorterminatetheSecondAmendedandRestated2015LTIPatanytimesubjecttothetermsoftheSecondAmendedandRestated2015LTIP.However,innoeventwillanyawardbegrantedundertheSecondAmendedandRestated2015LTIPonorafterthetenthanniversaryofthedatetheCompany’sstockholdersapprovetheSecondAmendedandRestated2015LTIP.

RegulationsNotApplicabletoPlan.TheSecondAmendedandRestated2015LTIPisnotintendedtobesubjecttotheprovisionsoftheEmployeeRetirementIncomeSecurityActof1974andisnotqualifiedunderSection401(a)oftheCode.

Material United States Federal Income Tax ConsequencesThefollowingisabriefsummaryofcertainofthefederalincometaxconsequencesofcertaintransactionsundertheSecondAmendedandRestated2015LTIPbasedonfederalincometaxlawsineffect.Thissummary,whichispresentedfortheinformationofstockholdersconsideringhowtovoteonthisproposalandnotforSecondAmendedandRestated2015LTIPparticipants,isnotintendedtobecompleteanddoesnotdescribefederaltaxesotherthanincometaxes(suchasMedicareandSocialSecuritytaxes),orstate,localorforeigntaxconsequences.

Tax Consequences to ParticipantsNon-QualifiedStockOptions.Aparticipantwillnotrecognizeincomeuponthegrantofanon-qualifiedstockoption.Ingeneral,theparticipantwillrecognizeordinaryincomeatthetimeofexerciseequaltotheexcessofthefairmarketvalueoftheunderlyingstockatthetimeofexerciseovertheexerciseprice.Uponasubsequentsaleofthesharesreceiveduponexercise,anydifferencebetweenthenetproceedsonthesaleandthefairmarketvalueofthesharesonthedateofexercisewillbetaxedascapitalgainorloss(long-orshort-term,dependingontheholdingperiod).

IncentiveStockOptions.Aparticipantwillnotrecognizeincomeuponthegrantofanincentivestockoption.Inaddition,aparticipantwillnotrecognizeincomeupontheexerciseofanincentivestockoptionifheorshesatisfiescertainemploymentandholdingperiodrequirements.Tosatisfytheemploymentrequirement,aparticipantmustexercisetheoptionnotlaterthanthreemonthsafterheorsheceasestobeanemployeeofours(oneyearifheorsheisdisabled).Tosatisfytheholdingperiodrequirement,aparticipantmustholdtheoptionedstockmorethantwoyearsfromthegrantoftheoptionandmorethanoneyearafterthetransferofthestocktohimorher.Iftheserequirementsaresatisfied,onthesaleofsuchstock,theparticipantwillbetaxedonanygain,measuredbythedifferencebetweentheparticipant’sbasisinsuchsharesandthenetproceedsofthesale,atlong-termcapitalgainsrates.

Ifsharesofcommonstockacquireduponthetimelyexerciseofanincentivestockoptionaresold,exchanged,orotherwisedisposedofwithoutsatisfyingtheholdingperiodrequirement(a“disqualifyingdisposition”),theparticipantwill,intheusualcase,recognizeordinaryincomeatthetimeofdispositionequaltotheexcessofthefairmarketvalueofthesharesofcommonstockatthetimeofexerciseovertheexerciseprice.Anygaininexcessofthatamountwilleitherbelong-termorshort-termcapitalgaindependingontheholdingperiod.Uponadisqualifyingdispositionthatconstitutesasaleorexchangewithrespecttowhichanyloss(ifsustained)wouldberecognized,theamountincludibleinordinaryincomewillbelimitedtotheexcess,ifany,ofthenetamountrealizedonthesaleorexchangeoverthe

participant’sbasisinsuchshares.Ingeneral,suchadispositionisatransactionwithanunrelatedthirdpartythatisnotsubjecttothewash-saleprovisionsoftheCode.

AppreciationRights.Aparticipantwillnotrecognizeincomeuponthegrantofanappreciationright.Whentheappreciationrightisexercised,theparticipantwillgenerallyberequiredtoincludeastaxableordinaryincomeintheyearofexerciseanamountequaltotheamountofcashreceivedandthefairmarketvalueofanyunrestrictedsharesofcommonstockreceivedontheexercise.Theterm“unrestrictedshares”includessharesthataresubjectonlytorestrictionsontransfer.

RestrictedShares.Aparticipantwillnotrecognizeincomeuponthereceiptofrestrictedshares,unlesstheparticipantmakesanelectionunderSection83(b)oftheCode(a“Section83(b)Election”)within30daysafterthetransferofthesharestohimorhertohavesuchsharestaxedtohimorherasordinaryincomeattheirfairmarketvalueonthedateoftransferlesstheamount,ifany,paidbyhimorher.

IftheparticipantmakesaSection83(b)Election,heorshewillrecognizeordinaryincomeintheyearofreceiptinanamountequaltotheexcessofthefairmarketvalueofsuchshares(determinedwithoutregardtotherestrictionsimposed)atthetimeoftransferoveranyamountpaidbytheparticipanttherefor.IfaparticipantmakesaSection83(b)Electionwithrespecttocommonsharesthataresubsequentlyforfeited,heorshewillnotbeentitledtodeductanyamountpreviouslyincludedinincomebyreasonofsuchelection.IfaparticipantdoesnotmakeaSection83(b)Election,heorshewillrecognizeordinaryincomeintheyearoryearsinwhichtherestrictionsterminate,inanamountequaltotheexcess,ifany,ofthefairmarketvalueofsuchsharesonthedatetherestrictionsexpireorareremovedoveranyamountpaidbytheparticipanttherefor.IfaSection83(b)Electionhasnotbeenmade,anyunrestricteddividendsreceivedwithrespecttocommonsharessubjecttorestrictionswillbetreatedasadditionalcompensationincomeandnotasdividendincome.

RestrictedStockUnits.Noincomegenerallywillberecognizedupontheawardofrestrictedstockunits.Therecipientofsuchanawardgenerallywillrecognizeordinaryincomeinanamountequaltotheaggregateamountofanycashreceivedandthefairmarketvalueofunrestrictedsharesofcommonstockreceivedonthedatethatsuchcashandsharesaretransferredtotherecipientundertheaward(reducedbyanyamountpaidbytherecipientforsuchshares),andthecapitalgains/lossholdingperiodforanyshareswillalsocommenceonsuchdate.

PerformanceUnitsandPerformanceShares.Noincomegenerallywillberecognizedupontheawardofperformanceunitsorperformanceshares.Therecipientofsuchanawardgenerallywillrecognizeordinaryincomeinanamountequaltotheaggregateamountofanycashreceivedandthefairmarketvalueofunrestrictedsharesofcommonstockreceivedonthedatethatsuchcashandsharesaretransferredtotherecipientundertheaward,andthecapitalgains/lossholdingperiodforanysharesreceivedwillalsocommenceonsuchdate.

Tax Consequences to the Company or SubsidiaryTotheextentthataparticipantrecognizesordinaryincomeinthecircumstancesdescribedabove,theCompanyorsubsidiaryforwhichtheparticipantperformsserviceswillbeentitledtoacorrespondingdeduction;providedthat,amongotherthings,theincomemeetsthetestofreasonableness,isanordinaryandnecessarybusinessexpense,isnotan“excessparachutepayment”withinthemeaningofSection280GoftheCode,andisnotdisallowedbythe$1millionlimitationoncertainexecutivecompensationunderSection162(m)oftheCode.

New Plan BenefitsOnFebruary19,2018,theCompanyapprovedgrantsofstockoptionsthatwerecontingentonstockholderapprovaloftheSecondAmendedandRestated2015LTIP.Noneoftheseawardswereintendedordesignedtoqualifyfortheperformance-basedexceptiondescribedabove.Theseawards,whichwillbecanceledintheeventthatstockholdersdonotapprovethisProposal7,aresummarizedinthefollowingtable:

NEWPLANBENEFITS

SecondAmendedandRestated2015LTIP

NAME AND POSITION DOLLAR VALUE(S) NUMBER OF UNITS

E.JamesFerland–FormerExecutiveChairmanandChiefExecutiveOfficer $450,000 124,653

JennyL.Apker–SeniorVicePresidentandChiefFinancialOfficer $250,000 69,252

MarkA.Carano–SeniorVicePresident,IndustrialandCorporateDevelopment $200,000 55,401

EliasGedeon–FormerSeniorVicePresidentandChiefBusinessDevelopmentOfficer — —

MarkS.Low–SeniorVicePresident,Power $156,667 43,397

ExecutiveGroup(8persons) $1,490,000 412,738

Non-ExecutiveDirectorGroup(6persons) — —

Non-ExecutiveOfficerEmployeeGroup(67persons) $2,253,083 624,095

Theamountsinthe"NumberofUnits"columninthetableaboverepresentthenumberofstockoptionsgrantedtoeachoftheindicatedindividualsandgroups,subjecttoandcontingentuponstockholderapprovaloftheSecondAmendedandRestated2015LTIP,withagrantdateofMarch6,2018.Eachstockoptionhasanexercisepriceof$5.76pershareandgenerallyvests,subjecttocontinuedemployment,onthefirstanniversaryofthegrantdate.Eachstockoptionwillexpirenolaterthan10yearsfromthegrantdate.Theamountsinthe"DollarValue"columnofthetableaboverepresentthegrantdatefairvaluesofthestockoptionawardscomputedinaccordancewithFASBASCTopic718.

Thefollowingtableshows,astoeachNamedExecutiveOfficerandthevariousindicatedgroups,theaggregatenumberofoptionawardsunderthe2015LTIPandtheAmendedandRestated2015LTIPfrominceptionofthe2015LTIPthroughMarch15,2018(whichdonotincludetheoptionawardsincludedinthe"NewPlanBenefits"tableabove):

NAME NUMBER OF OPTIONS GRANTED

Named Executive Officers: E.JamesFerlandFormerExecutiveChairmanandChiefExecutiveOfficer

873,577

JennyL.ApkerSeniorVicePresidentandChiefFinancialOfficer

75,601

MarkA.CaranoSeniorVicePresident,IndustrialandCorporateDevelopment

84,922

EliasGedeonFormerSeniorVicePresidentandChiefBusinessDevelopmentOfficer

50,482

MarkS.LowSeniorVicePresident,Power

58,174

All current executive officers as a group 334,148

All current non-employee directors as a group —

Each nominee for election as a director —

Each associate of any of the foregoing —

Each other person who received at least 5% of all options granted —

All employees, excluding current executive officers 1,676,584

Registration with the SECWeintendtofileaRegistrationStatementonFormS-8relatingtotheissuanceofadditionalcommonsharesundertheSecondAmendedandRestated2015LTIPwiththeSECpursuanttotheSecuritiesActassoonaspracticableafterapprovaloftheSecondAmendedandRestated2015LTIPbyourstockholders.

ThefollowingtableprovidesinformationonourequitycompensationplansasofDecember31,2017:

EQUITYCOMPENSATIONPLANINFORMATION

Plan Category

Number of securitiesto be issued upon

exercise ofoutstanding options, warrants

and rights (a)

Weighted-averageexercise price of

outstanding options, warrantsand rights (b)

Number of securitiesremaining availablefor future issuance

under equity compensation plans(excluding securities reflected in column

(a)) (c) (1)Equity compensation plans approvedby security holders 5,839,265 $13.15 247,310

Equity compensation plans notapproved by security holders — — —

Total 5,839,265 $13.15 247,310

(1)Allofthesecuritiesdisclosedinthiscolumnareavailableforfutureissuanceotherthanupontheexerciseofanoption,warrantorright.

Our Board recommends that stockholders vote “FOR” the approval of the Second Amended and Restated 2015 LTIP. Approvalofthisproposalrequirestheaffirmativevoteofamajorityofthesharescastonthematter.Abstentionsareconsideredasvotescastand,asaresult,willhavetheeffectofan"against"vote.Ingeneral,brokersdonothavediscretionaryauthorityonproposalsrelatingtoequitycompensationplans.Therefore,absentinstructionsfromyou,yourbrokermaynotvoteoursharesonProposal7.Brokernon-voteswillhavenoeffectonthevoteonProposal7.

STOCKHOLDERS’ PROPOSALS

Anystockholderwhowishestohaveaqualifiedproposalconsideredforinclusioninourproxystatementforour2019AnnualMeetingmustsendnoticeoftheproposaltoourCorporateSecretaryatourprincipalexecutiveofficenolaterthanDecember13,2018.Ifyoumakesuchaproposal,youmustprovideyourname,address,thenumberofsharesofcommonstockyouholdofrecordorbeneficially,thedateordatesonwhichsuchcommonstockwasacquiredanddocumentarysupportforanyclaimofbeneficialownership.

Inaddition,anystockholderwhointendstosubmitaproposalforconsiderationatour2019AnnualMeeting,butnotforinclusioninourproxymaterials,orwhointendstosubmitnomineesforelectionasdirectorsatthemeetingmustnotifyourCorporateSecretary.Underourbylaws,suchnoticemust(1)bereceivedatourprincipalexecutiveofficesnoearlierthancloseofbusinessonJanuary16,2019orlaterthanFebruary15,2019and(2)satisfyspecifiedrequirementssetforthinourbylaws.AcopyofthepertinentbylawprovisionscanbefoundonourWebsiteatwww.babcock.comat“Investors—CorporateGovernance—GovernanceDocuments.”

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to Be Held on May 16, 2018.

TheProxyStatementand2017AnnualReportareavailableontheInternetatwww.proxyvote.com.

ThefollowinginformationapplicabletotheAnnualMeetingmaybefoundintheproxystatementandaccompanyingproxycard:• Thedate,timeandlocationoftheAnnualMeeting;• Alistofthemattersintendedtobeactedonandourrecommendationsregardingthosematters;• Anycontrol/identificationnumbersthatyouneedtoaccessyourproxycard;and• InformationaboutattendingtheAnnualMeeting.

GENERAL INFORMATION

OurBoardhasmadethesematerialsavailabletoyouovertheInternetandhasmailedyouaprintedversionofthesematerialsinconnectionwiththeAnnualMeeting,whichwilltakeplaceonMay16,2018.WemailedourproxymaterialstoourstockholdersbeginningonApril12,2018,andourproxymaterialswerepostedatwww.proxyvote.comonthatsamedate.

WehavesentandprovidedaccesstothematerialstoyoubecauseourBoardissolicitingyourproxytovoteyoursharesatourAnnualMeeting.Wewillbearallexpensesincurredinconnectionwiththisproxysolicitation.WehaveengagedD.F.King&Co.,Inc.toassistinthesolicitationforafeethatwillnotexceed$17,500.Inaddition,ourofficersandemployeesmaysolicityourproxybytelephone,byfacsimiletransmissionorinpersonandtheywillnotbeseparatelycompensatedforsuchservices.WesolicitproxiestogiveallstockholdersanopportunitytovoteonmattersthatwillbepresentedattheAnnualMeeting.Inthisproxystatement,youwillfindinformationonthesematters,whichisprovidedtoassistyouinvotingyourshares.Ifyoursharesareheldthroughabrokerorothernominee(i.e.,in“streetname”)andyouhaverequestedprintedversionsofthesematerials,wehaverequestedthatyourbrokerornomineeforwardthisproxystatementtoyouandobtainyourvotinginstructions,forwhichwewillreimbursethemforreasonableout-of-pocketexpenses.IfyoursharesareheldthroughtheB&WThriftPlanandyouhaverequestedprintedversionsofthesematerials,thetrusteeofthatplanhassentyouthisproxystatementandyoushouldinstructthetrusteeonhowtovoteyourplanshares.

VOTING INFORMATION

RecordDateandWhoMayVote

OurBoardselectedApril5,2018astherecorddatefordeterminingstockholdersentitledtovoteattheAnnualMeeting.Thismeansthatifyouwerearegisteredstockholderwithourtransferagentandregistrar,ComputershareTrustCompany,N.A.,ontherecorddate,youmayvoteyoursharesonthematterstobeconsideredattheAnnualMeeting.Ifyourshareswereheldinstreetnameonthatdate,youshouldrefertotheinstructionsprovidedbyyourbrokerornomineeforfurtherinformation.Theyareseekingyourinstructionsonhowyouwantyoursharesvoted.Brokersholdingsharesinstreetnamecanvotethosesharesonroutinemattersifthebeneficialownerhasnotprovidedvotinginstructionsatleast10daysbeforeameeting.UndertherulesoftheNewYorkStockExchange,theelectionofdirectorsandtheadvisoryvoteoncompensationofournamedexecutiveofficersarenotconsideredroutinematters.Thatmeansthatbrokersmaynotvoteyoursharesintheelectionofdirectorsortheadvisoryvoteoncompensationofournamedexecutiveofficersifyouhavenotgivenyourbrokerspecificinstructionsastohowtovoteandyourshareswillnotberepresentedinthosematters.Pleasebesuretogivespecificvotinginstructionstoyourbroker.

Ontherecorddate,44,381,104sharesofourcommonstockwereoutstanding.EachoutstandingshareofcommonstockentitlesitsholdertoonevoteoneachmattertobeactedonattheAnnualMeeting.

HowtoVote

Moststockholderscanvotebyproxyinthreeways:

• byInternetatwww.proxyvote.com;• bytelephone;or• bymail.

Ifyouareastockholderofrecord,youcanvoteyoursharesbyvotingbyInternet,telephone,mailinginyourproxyorvirtuallyattheAnnualMeeting.Youmaygiveusyourproxybyfollowingtheinstructionsincludedintheenclosedproxycard.

Bygivingusyourproxy,youwillbedirectingushowtovoteyoursharesatAnnualMeeting.Evenifyouplanonattendingthemeeting,weurgeyoutovotenowbygivingusyourproxy.Thiswillensurethatyourvoteisrepresentedatthemeeting.Ifyoudoattendthemeeting,youcanchangeyourvoteatthattime,ifyouthendesiretodoso.

Ifyouarethebeneficialownerofsharesheldinstreetname,themethodsbywhichyoucanaccesstheproxymaterialsandgivethevotinginstructionstothebrokerornomineemayvary.Accordingly,beneficialownersshouldfollowtheinstructionsprovidedbytheirbrokersornomineestovotebyInternet,telephoneormail.IfyouwanttovoteyoursharesvirtuallyattheAnnualMeeting,youmustobtainavalidproxyfromyourbrokerornominee.Youshouldcontactyourbrokerornomineeorrefertotheinstructionsprovidedbyyourbrokerornomineeforfurtherinformation.Additionally,theavailabilityofInternetortelephonevotingdependsonthevotingprocessusedbythebrokerornomineethatholdsyourshares.

Youmayreceivemorethanoneproxystatementandproxycardorvotinginstructionformifyoursharesareheldthroughmorethanoneaccount(e.g.,throughdifferentbrokersornominees).Eachproxycardorvotinginstructionformonlycoversthosesharesheldintheapplicableaccount.Ifyouholdsharesinmorethanoneaccount,youwillhavetoprovidevotinginstructionsastoallyouraccountstovoteallyourshares.

HowtoChangeYourVoteorRevokeYourProxy

Forstockholdersofrecord,youmaychangeyourvoteorrevokeyourproxybywrittennoticetoourCorporateSecretaryat13024BallantyneCorporatePlace,Suite700,Charlotte,NorthCarolina28277,grantinganewlaterdatedproxy,submittingalaterdatedvotebytelephoneorontheInternet,orbyvotingvirtuallyattheAnnualMeeting.Unlessyouattendthemeetingandvoteyourshares,youshouldchangeyourvoteusingthesamemethod(byInternet,telephoneormail)thatyoufirstusedtovoteyourshares.Thiswillhelptheinspectorofelectionforthemeetingverifyyourlatestvote.

Forbeneficialownersofsharesheldinstreetname,youshouldfollowtheinstructionsintheinformationprovidedbyyourbrokerornomineetochangeyourvoteorrevokeyourproxy.IfyouwanttochangeyourvoteastosharesheldinstreetnamebyvotingvirtuallyattheAnnualMeeting,youmustobtainavalidproxyfromthebrokerornomineethatholdsthosesharesforyou.

HowtoParticipateintheAnnualMeeting

Thisyear'sAnnualMeetingwillbeheldexclusivelyvialivewebcastenablingstockholdersfromaroundtheworldtoparticipate,submitquestionsinwritingandvote.StockholdersofrecordasofthecloseofbusinessonApril5,2018,areentitledtoparticipateinandvoteattheAnnualMeetingbyvisitingwww.virtualshareholdermeeting.com/BW2018.ToparticipateintheAnnualMeetingvialivewebcast,youwillneedthe16-digitcontrolnumberincludedonyourproxycardandontheinstructionsthataccompaniedyourproxymaterials.TheAnnualMeetingwillbeginpromptlyat9:30a.m.EasternTime.Onlinecheck-inwillbeginat9:25a.m.EasternTime.Pleaseallowampletimefortheonlinecheck-inprocedures.

Howtolocateyour16-digitcontrolnumberpriortothedayoftheAnnualMeeting

PriortothedayoftheAnnualMeeting,ifyouneedassistancewithyour16-digitcontrolnumberandyouholdyoursharesinyourownname,pleaseemailinvestors@babcock.com.Ifyouholdyoursharesinthenameofabankorbrokeragefirm,youwillneedtocontactyourbankorbrokeragefirmforassistancewithyour16-digitcontrolnumber.

Quorum

TheAnnualMeetingwillbeheldonlyifaquorumexists.ThepresenceattheAnnualMeeting,inpersonorbyproxy,oftheholdersofsharesofstockhavingamajorityofthevotestheholdersofalloutstandingsharesofcapitalstockoftheCompanyentitledtovoteattheAnnualMeetingcouldcastwillbenecessaryandsufficienttoconstituteaquorum.IfyouattendthemeetingorvoteyoursharesbyInternet,telephoneormail,yourshareswillbecountedtowardaquorum,evenifyouabstainfromvotingonaparticularmatter.Sharesheldbybrokersandothernomineesastowhichtheyhavenotreceivedvotinginstructionsfromthebeneficialownersandlackthediscretionaryauthoritytovoteonaparticularmatterarecalled“brokernon-votes”andwillcountforquorumpurposes.

ProposalsPresentedforVote

Weareaskingyoutovoteonthefollowing:

• Proposal1:theapprovalofamendmentstotheCertificateofIncorporationtodeclassifytheBoardandprovideforannualelectionsofalldirectorsbeginningatthe2020annualmeetingofstockholders;

• Proposal2:ifProposal1isapproved,theelectionofThomasA.Christopher,BrianR.KahnandLeslieC.KassasClassIdirectorsoftheCompany;

• Proposal3:ifProposal1isnotapproved,theelectionofThomasA.Christopher,BrianR.KahnandLeslieC.KassasClassIIIdirectorsoftheCompany;

• Proposal4:theapprovalofamendmentstotheCertificateofIncorporationtoremoveprovisionsthatrequiretheaffirmativevoteofholdersofatleast80%ofthevotingpowertoapprovecertainamendmentstotheCertificateofIncorporationandtheBylaws;

• Proposal5:theratificationofourAuditandFinanceCommittee’sappointmentofDeloitte&ToucheLLPasourindependentregisteredpublicaccountingfirmfortheyearendingDecember31,2018;

• Proposal6:theapproval,onanon-bindingadvisorybasis,ofthecompensationofournamedexecutiveofficers;and• Proposal7:theapprovaloftheBabcock&WilcoxEnterprises,Inc.AmendedandRestated2015Long-TermIncentivePlan.

VoteRequired

ForProposal1,youmayvote“FOR”or“AGAINST”orabstainfromvoting.Thisproposalrequirestheaffirmativevoteofatleast80%oftheoutstandingsharesofourcommonstock.Accordingly,abstentionsandbrokernon-voteswillhavetheeffectofavoteagainstProposal1.

InProposal2,youmayvote“FOR”alldirectornomineesorwithholdyourvoteforanyoneormoreofthedirectornominees.InProposal3youmayvote“FOR”alldirectornomineesorwithholdyourvoteforanyoneormoreofthedirectornominees.Subjecttoourmajorityvotingrequirementsdescribedbelow,directornomineesareelectedbyapluralityofthevotescastbythesharesofourcommonstockentitledtovoteintheelectionofdirectorsatameetingofstockholdersatwhichaquorumispresent.Abstentionsandbrokernon-voteswillhavenoeffectontheelectionofdirectors.ThismeansthattheindividualsnominatedforelectiontotheBoardwhoreceivethemost“FOR”votes(amongvotesproperlycastinpersonorbyproxy)willbeelected.However,underourbylaws,anynomineefordirectorisrequiredtosubmitanirrevocablecontingentresignationletter.Ifanomineefordirectordoesnotreceiveamajorityofthevotescast"FOR"hisorherelection(notcountinganyabstentionsorbrokernon-votesasbeingcast),theBoardwillactonanexpeditedbasistodeterminewhethertoaccepttheresignation.

ForProposal4,youmayvote“FOR”or“AGAINST”orabstainfromvoting.Thisproposalrequirestheaffirmativevoteofatleast80%oftheoutstandingsharesofourcommonstock.Accordingly,abstentionsandbrokernon-voteswillhavetheeffectofavoteagainstProposal4.

ForProposal5,youmayvote“FOR”or“AGAINST”orabstainfromvoting.Thisproposalrequirestheaffirmativevoteofamajorityofthesharescastonthematter.Abstentionswillnotbeconsideredascastand,asaresult,willnothaveanyeffectontheproposal.Becausetheratificationoftheappointmentoftheindependentauditorisconsidereda“routine”matter,therewillbenobrokernon-voteswithrespecttoProposal5.

ForProposal6,youmayvote“FOR”or“AGAINST”orabstainfromvoting.Proposal6requirestheaffirmativevoteofamajorityofthesharesofourcommonstockpresentinpersonorrepresentedbyproxyattheAnnualMeetingandentitledtovoteonthematterinordertobeadopted.AbstentionsarecountedforpurposesofdeterminingaquorumandareconsideredpresentandentitledtovoteonProposal6.Asaresult,abstentionshavetheeffectofan“AGAINST”vote.Brokernon-voteswillnotbeconsideredasentitledtovoteonProposal6,eventhoughtheyareconsideredpresentforpurposesofdeterminingaquorumandmaybeentitledtovoteonothermatters.Asaresult,brokernon-voteswillnothaveanyeffectonProposal6.

ForProposal7,youmayvote“FOR”or“AGAINST”orabstainfromvoting.Proposal7requirestheaffirmativevoteofamajorityofthesharescastonthematter.AbstentionsareconsideredasvotescastonProposal7.Asaresult,abstentionshavetheeffectofan“AGAINST”vote.Ingeneral,brokersdonothavediscretionaryauthorityonproposalsrelatingtoequitycompensationplans.Therefore,absentinstructionsfromyou,yourbrokermaynotvoteoursharesonProposal7.Brokernon-voteswillhavenoeffectonthevoteonProposal7.

HowVotesareCounted

Forstockholdersofrecord,allsharesrepresentedbytheproxieswillbevotedattheAnnualMeetinginaccordancewithinstructionsgivenbythestockholders.Whereastockholderreturnstheirproxyandnoinstructionsaregivenwithrespecttoagivenmatter,theshareswillbevoted:(1)“FOR”theapprovalofamendmentstotheCertificateofIncorporationtodeclassifytheBoardandprovideforannualelectionsofalldirectorsbeginningatthe2020annualmeetingofstockholders;(2)IfProposal1isapproved,“FOR”theelectionoftheBoard’snomineesasClassIdirectors;(3)IfProposal1isnotapproved,“FOR”theelectionoftheBoard’snomineesasClassIIIdirectors;(4)“FOR”theapprovalofamendmentstotheCertificateofIncorporationtoremoveprovisionsthatrequiretheaffirmativevoteofholdersofatleast80%ofthevotingpowertoapprovecertainamendmentstotheCertificateofIncorporationandtheBylaws;(5)“FOR”theratificationoftheappointmentofDeloitteasourindependentregisteredpublicaccountingfirm;(6)“FOR”theapprovalofthecompensationofournamedexecutiveofficers;(7)“FOR”theapprovaloftheBabcock&WilcoxEnterprises,Inc.AmendedandRestated2015Long-TermIncentivePlan;and(8)inthediscretionoftheproxyholdersuponsuchotherbusinessasmayproperlycomebeforetheAnnualMeeting.Ifyouareastockholderofrecordandyoudonotreturnyourproxy,novoteswillbecastonyourbehalfonanyoftheitemsofbusinessattheAnnualMeeting.

Forbeneficialownersofsharesheldinstreetname,thebrokers,banks,ornomineesholdingsharesforbeneficialownersmustvotethosesharesasinstructed.Absentinstructionsfromyou,brokers,banksandnomineesmayvoteyoursharesonlyastheydecideastomattersforwhichtheyhavediscretionaryauthorityundertheapplicableNewYorkStockExchangerules.Abroker,bankornomineedoesnothavediscretiontovoteontheelectionofdirectorsorapprovalof

executivecompensation.Ifyoudonotinstructyourbroker,bankornomineehowtovoteonthosematters,novoteswillbecastonyourbehalfontheelectionofdirectorsortheadvisoryvoteonexecutivecompensation.Yourbrokerwillbeentitledtovoteyoursharesinitsdiscretion,absentinstructionsfromyou,ontheratificationoftheappointmentofDeloitteasourindependentregisteredpublicaccountingfirm.

AnysharesofourcommonstockheldintheThriftPlanthatarenotvotedorforwhichVanguarddoesnotreceivetimelyvotinginstructions,willbevotedinthesameproportionasthesharesforwhichVanguardreceivestimelyvotinginstructionsfromotherparticipantsintheThriftPlan.

WearenotawareofanyothermattersthatmaybepresentedoractedonattheAnnualMeeting.IfyouvotebysigningandreturningtheenclosedproxycardorusingtheInternetortelephonevotingprocedures,theindividualsnamedasproxiesonthecardmayvoteyourshares,intheirdiscretion,onanyothermatterrequiringastockholdervotethatcomesbeforetheAnnualMeeting.

ConfidentialVoting

Allvotedproxiesandballotswillbehandledtoprotectyourvotingprivacyasastockholder.Yourvotewillnotbedisclosedexcept:

• tomeetanylegalrequirements;• inlimitedcircumstancessuchasaproxycontestinoppositiontoourBoard;• topermitindependentinspectorsofelectiontotabulateandcertifyyourvote;or• toadequatelyrespondtoyourwrittencommentsonyourproxycard.

ByOrderoftheBoardofDirectors,

J.AndréHallCorporateSecretaryDated:April12,2018

APPENDIX A*IfProposal1isapproved,ArticleFifthoftheCompany'sRestatedCertificateofIncorporationwillbeamendedassetforthinthisAppendixA.IfProposal4isalsoapproved,ArticleFifthoftheCompany'sRestatedCertificateofIncorporationwillbefurtheramendedassetforthinAppendixB.

FIFTH: (a)Directors.ThebusinessandaffairsoftheCorporationwillbemanagedbyorunderthedirectionoftheBoardofDirectors.InadditiontotheauthorityandpowersconferredontheBoardofDirectorsbytheDGCLorbytheotherprovisionsofthisCertificateofIncorporation,theBoardofDirectorsherebyisauthorizedandempoweredtoexerciseallsuchpowersanddoallsuchactsandthingsasmaybeexercisedordonebytheCorporation,subjecttotheprovisionsoftheDGCL,thisCertificateofIncorporationandanyBylawsoftheCorporation;provided,however,thatnoBylawshereafteradopted,oranyamendmentsthereto,willinvalidateanyprioractoftheBoardofDirectorsthatwouldhavebeenvalidifsuchBylawsoramendmenthadnotbeenadopted.

(b)Number,Election,ClassificationandTermsofDirectors.ThenumberofthedirectorswhichwillconstitutethewholeoftheCompanywillbedeterminedsolelybyresolutionoftheBoardofDirectorsshallbefixedfromtimetotimeexclusivelyby,andmaybeincreasedordecreasedfromtimetotimeexclusivelyby,theaffirmativevoteofatleastamajorityofthedirectorstheninoffice(subjecttosuchrightsofholdersofaclassorseriesofsharesofPreferredStocktoelectoneormoredirectorspursuanttoanyprovisionscontainedinaDirectors’Resolutionwithrespecttosuchseries),butinanyeventwillnotbelessthanthree.Thedirectors,otherthanthosewhomaybeelectedby.SubjecttosuchrightsoftheholdersofanyaclassorseriesofPreferredStock:

,willbe(i)

Priortotheelectionofdirectorsatthe2018annualmeetingofstockholders(the“2018AnnualMeeting”),theBoardDirectorswasdividedintothreeclasses:,ClassI,ClassIIandClassIII.EachdirectorwillserveforatermendingonthethirdannualmeetingofstockholdersoftheCorporationfollowingtheannualmeetingofstockholdersatwhichthatdirectorwaselected;provided,however,that,withthedirectorsfirstdesignatedasinClassIdirectorswillserveforhavingatermexpiringattheannualmeeting2019AnnualMeetingofstockholdersnextfollowingtheendofthecalendaryear2015(the“2019AnnualMeeting”),thedirectorsfirstdesignatedasinClassIIdirectorswillserveforhavingatermexpiringatthe2020annualmeetingofstockholdersnextfollowingtheendofthecalendaryear2016,(the“2020AnnualMeeting”)andthedirectorsfirstdesignatedasinClassIIIdirectorswillserveforhavingatermexpiringattheannualmeetingofstockholdersnextfollowingtheendofthecalendaryear2017.Eachdirectorwillholdofficeuntiltheannualmeetingofstockholdersatwhichthatdirector’stermexpiresand,theforegoingnotwithstanding,eachdirectorwillserveuntilhisorhersuccessorshallhavebeendulyelectedandqualifiedoruntilhisorherearlierdeath,resignationorremoval.2018AnnualMeeting.

(ii) Followingtheelectionofdirectorsatthe2018AnnualMeeting,theBoardofDirectorswillbedividedintotwoclasses,ClassIandClassII,withthedirectorsinClassIhavingatermexpiringatthe2020AnnualMeetingandthedirectorsinClassIIhavingatermexpiringatthe2019AnnualMeeting.ThedirectorsinClassIwillbethedirectorselectedtotheBoardofDirectorsatthe2018AnnualMeetingandthedirectorsinClassIIwillbethedirectorselectedtotheBoardofDirectorspriortothe2018AnnualMeeting.

(iii) Commencingwiththeelectionofdirectorsatthe2019AnnualMeeting,thedirectorsinClassIIwillbeupforelectionforaone-yeartermendingatthe2020AnnualMeetingand,commencingwiththeelectionofdirectorsatthe2020AnnualMeeting,theBoardofDirectorswillnolongerhaveclassifiedtermsandalldirectorswillbeelectedforatermexpiringatthefollowingannualmeetingofstockholders,orifearlier,theirdeathorresignationandmayberemovedwithorwithoutcauseasprovidedintheDGCL.

Ateachannualelectionpriortothe2020AnnualMeeting,thedirectorschosentosucceedthosewhosetermsthenexpirewillbeofthesameclassasthedirectorstheysucceed,unless,byreasonofanyinterveningchangesintheauthorizednumberofdirectors,theBoardofDirectorsshallhavehasdesignatedoneormoredirectorshipswhosetermthenexpiresasdirectorshipsofanotherclassinordermorenearlytoachieveequalityofnumberofdirectorsamongtheclasses.

Priortothe2020AnnualMeeting,(i)inIntheeventofanychangeintheauthorizednumberofdirectors,eachdirectorthencontinuingtoserveassuchwillneverthelesscontinueasadirectoroftheclassofwhichheorsheisamemberuntiltheexpirationofhisorhercurrentterm,orhisorherpriordeath,resignationorremoval.The,and(ii)theBoardofDirectorswillspecifytheclasstowhichanewlycreateddirectorshipwillbeallocated.

ElectionofdirectorsneednotbebywrittenballotunlesstheBylawsoftheCorporationsoprovide.

(c)RemovalofDirectors.NodirectoroftheCorporationmayberemovedfromofficeasadirectorbyvoteorotheractionofthestockholdersorotherwise,exceptforcauseoraBoardDetermination(asdefinedbelow),andthenonlybytheaffirmativevoteoftheholdersofatleasteightypercent(80%)ofthevotingpowerofallthenoutstandingsharesofcapitalstockoftheCorporationgenerallyentitledtovoteintheelectionofdirectors,votingtogetherasasingleclass.ExceptasapplicablelawotherwiseprovidesandunlesstheBoardofDirectorshasmadeadeterminationthatremovalisinthebestinterestsoftheCorporation(inwhichcaseafindingofcauseisnotrequiredforremoval),whichdeterminationshallrequiretheaffirmativevoteofatleasteightypercent(80%)ofthedirectorstheninofficeatanymeetingoftheBoardofDirectorscalledforthatpurpose(a“BoardDetermination”),“cause”fortheremovalofadirectorwillbedeemedtoexistonlyifthedirectorwhoseremovalisproposed:(i)hasbeenconvicted,orhasbeengrantedimmunitytotestifyinanyproceedinginwhichanotherhasbeenconvicted,ofafelonybyacourtofcompetentjurisdictionandthatconvictionisnolongersubjecttodirectappeal;(ii)hasbeenfoundtohavebeengrosslynegligentorguiltyofmisconductintheperformanceofhisdutiestotheCorporationinanymatterofsubstantialimportancetotheCorporationby(A)theaffirmativevoteofatleasteightypercent(80%)ofthedirectorstheninofficeatanymeetingoftheBoardofDirectorscalledforthatpurposeor(B)acourtofcompetentjurisdiction;or(iii)hasbeenadjudicatedbyacourtofcompetentjurisdictiontobementallyincompetent,whichmentalincompetencydirectlyaffectshisabilitytoserveasadirectoroftheCorporation.Notwithstandingtheforegoing,wheneverholdersofoutstandingsharesofoneormoreseriesofPreferredStockareentitledtoelectmembersoftheBoardofDirectorsvotingseparatelyasaclasspursuanttotheprovisionsapplicableinthecaseofarrearagesinthepaymentofdividendsorotherdefaultscontainedintheDirectors’ResolutionprovidingfortheestablishmentofanyseriesofPreferredStock,anysuchdirectoroftheCorporationsoelectedmayberemovedinaccordancewiththeprovisionsofthatDirectors’Resolution.TheforegoingprovisionsofthisArticleFIFTHaresubjecttothetermsofanyseriesofPreferredStockwithrespecttothedirectorstobeelectedsolelybytheholdersofsuchseriesofPreferredStock.

(dc)Vacancies.ExceptasaDirectors’ResolutionprovidingfortheestablishmentofanyseriesofPreferredStockmayprovideotherwise,newlycreateddirectorshipsresultingfromanyincreaseinthenumberofdirectorsandanyvacanciesontheBoardofDirectorsresultingfromdeath,resignation,removalorothercausewillbefilledbytheaffirmativevoteofatleastamajorityoftheremainingdirectorstheninoffice,eventhoughlessthanaquorumoftheBoardofDirectors,orbythesoleremainingdirector.Anydirectorelectedinaccordancewiththeprecedingsentencewillholdofficefortheremainderofthefulltermoftheclassofdirectorsinwhichthenewdirectorshipwascreatedorthevacancyoccurredanduntilthatdirector’ssuccessorshallhavebeenelectedandqualifiedoruntilhisorherearlierdeath,resignationorremoval.ExceptasaDirectors’ResolutionprovidingfortheestablishmentofanyseriesofPreferredStockmayprovideotherwisewithrespecttodirectorselectedpursuanttoanyprovisionscontainedinaDirectors’Resolutionwithrespecttosuchseries,nodecreaseinthenumberofdirectorsconstitutingtheBoardofDirectorswillshortenthetermofanyincumbentdirector.

(ed)AmendmentofBylaws.TheBoardofDirectorsshallhavethepowertoadopt,amendorrepealtheBylawsoftheCorporation.Anyadoption,amendmentorrepealoftheBylawsoftheCorporationbytheBoardofDirectorsshallrequiretheapprovalofatleastamajorityofthedirectorstheninoffice.Thestockholdersshallalsohavethepowertoadopt,amendorrepealtheBylawsoftheCorporationatanyannualmeetingbeforewhichsuchmatterhasbeenproperlybroughtinaccordancewiththeBylawsoftheCorporation,oratanyspecialmeetingifnoticeoftheproposedamendmentiscontainedinthenoticeofsaidspecialmeeting;provided,however,that,inadditiontoanyvoteoftheholdersofanyclassorseriesofcapitalstockoftheCorporationrequiredbylaworbythisCertificateofIncorporation,theaffirmativevoteoftheholdersofatleasteightypercent(80%)ofthevotingpowerofallthenoutstandingsharesofthecapitalstockoftheCorporationentitledtovotegenerallyintheelectionofdirectors,votingtogetherasasingleclass,shallberequiredtoadopt,amendorrepealanyprovisionoftheBylawsoftheCorporation.

(fe)CertainAmendments.NotwithstandinganythinginthisCertificateofIncorporationortheBylawsoftheCorporationtothecontrary,theaffirmativevoteoftheholdersofatleast80%ofthevotingpowerofallthenoutstandingsharesofcapitalstockoftheCorporationentitledtovotegenerallyintheelectionofdirectors,votingtogetherasasingleclass,shallberequiredtoalter,amendoradoptanyprovisioninconsistentwith,ortorepeal,thisArticleFIFTHorArticleSIXTH.

APPENDIX B*IfProposal4isapproved,ArticleFifthoftheCompany'sRestatedCertificateofIncorporationwillbeamendedassetforthinthisAppendixB.IfProposal1isalsoapproved,ArticleFifthoftheCompany'sRestatedCertificateofIncorporationwillbefurtheramendedassetforthinAppendixA.

FIFTH: (a)Directors.ThebusinessandaffairsoftheCorporationwillbemanagedbyorunderthedirectionoftheBoardofDirectors.InadditiontotheauthorityandpowersconferredontheBoardofDirectorsbytheDGCLorbytheotherprovisionsofthisCertificateofIncorporation,theBoardofDirectorsherebyisauthorizedandempoweredtoexerciseallsuchpowersanddoallsuchactsandthingsasmaybeexercisedordonebytheCorporation,subjecttotheprovisionsoftheDGCL,thisCertificateofIncorporationandanyBylawsoftheCorporation;provided,however,thatnoBylawshereafteradopted,oranyamendmentsthereto,willinvalidateanyprioractoftheBoardofDirectorsthatwouldhavebeenvalidifsuchBylawsoramendmenthadnotbeenadopted.

(b)Number,Election,ClassificationandTermsofDirectors.ThenumberofdirectorswhichwillconstitutethewholeBoardofDirectorsshallbefixedfromtimetotimeexclusivelyby,andmaybeincreasedordecreasedfromtimetotimeexclusivelyby,theaffirmativevoteofatleastamajorityofthedirectorstheninoffice(subjecttosuchrightsofholdersofaseriesofsharesofPreferredStocktoelectoneormoredirectorspursuanttoanyprovisionscontainedinaDirectors’Resolutionwithrespecttosuchseries),butinanyeventwillnotbelessthanthree.Thedirectors,otherthanthosewhomaybeelectedbytheholdersofanyseriesofPreferredStock,willbedividedintothreeclasses:ClassI,ClassIIandClassIII.EachdirectorwillserveforatermendingonthethirdannualmeetingofstockholdersoftheCorporationfollowingtheannualmeetingofstockholdersatwhichthatdirectorwaselected;provided,however,thatthedirectorsfirstdesignatedasClassIdirectorswillserveforatermexpiringattheannualmeetingofstockholdersnextfollowingtheendofthecalendaryear2015,thedirectorsfirstdesignatedasClassIIdirectorswillserveforatermexpiringattheannualmeetingofstockholdersnextfollowingtheendofthecalendaryear2016,andthedirectorsfirstdesignatedasClassIIIdirectorswillserveforatermexpiringattheannualmeetingofstockholdersnextfollowingtheendofthecalendaryear2017.Eachdirectorwillholdofficeuntiltheannualmeetingofstockholdersatwhichthatdirector’stermexpiresand,theforegoingnotwithstanding,eachdirectorwillserveuntilhisorhersuccessorshallhavebeendulyelectedandqualifiedoruntilhisorherearlierdeath,resignationorremoval.

Ateachannualelection,thedirectorschosentosucceedthosewhosetermsthenexpirewillbeofthesameclassasthedirectorstheysucceed,unless,byreasonofanyinterveningchangesintheauthorizednumberofdirectors,theBoardofDirectorsshallhavedesignatedoneormoredirectorshipswhosetermthenexpiresasdirectorshipsofanotherclassinordermorenearlytoachieveequalityofnumberofdirectorsamongtheclasses.

Intheeventofanychangeintheauthorizednumberofdirectors,eachdirectorthencontinuingtoserveassuchwillneverthelesscontinueasadirectoroftheclassofwhichheorsheisamemberuntiltheexpirationofhisorhercurrentterm,orhisorherpriordeath,resignationorremoval.TheBoardofDirectorswillspecifytheclasstowhichanewlycreateddirectorshipwillbeallocated.

ElectionofdirectorsneednotbebywrittenballotunlesstheBylawsoftheCorporationsoprovide.

(c)RemovalofDirectors.NodirectoroftheCorporationmayberemovedfromofficeasadirectorbyvoteorotheractionofthestockholdersorotherwise,exceptforcauseoraBoardDetermination(asdefinedbelow),andthenonlybytheaffirmativevoteoftheholdersofatleasteightypercent(80%)ofthevotingpowerofallthenoutstandingsharesofcapitalstockoftheCorporationgenerallyentitledtovoteintheelectionofdirectors,votingtogetherasasingleclass.ExceptasapplicablelawotherwiseprovidesandunlesstheBoardofDirectorshasmadeadeterminationthatremovalisinthebestinterestsoftheCorporation(inwhichcaseafindingofcauseisnotrequiredforremoval),whichdeterminationshallrequiretheaffirmativevoteofatleasteightypercent(80%)ofthedirectorstheninofficeatanymeetingoftheBoardofDirectorscalledforthatpurpose(a“BoardDetermination”),“cause”fortheremovalofadirectorwillbedeemedtoexistonlyifthedirectorwhoseremovalisproposed:(i)hasbeenconvicted,orhasbeengrantedimmunitytotestifyinanyproceedinginwhichanotherhasbeenconvicted,ofafelonybyacourtofcompetentjurisdictionandthatconvictionisnolongersubjecttodirectappeal;(ii)hasbeenfoundtohavebeengrosslynegligentorguiltyofmisconductintheperformanceofhisdutiestotheCorporationinanymatterofsubstantialimportancetotheCorporationby(A)theaffirmativevoteofatleasteightypercent(80%)ofthedirectorstheninofficeatanymeetingoftheBoardofDirectorscalledforthatpurposeor(B)acourtofcompetentjurisdiction;or(iii)hasbeenadjudicatedbyacourtofcompetentjurisdictiontobementallyincompetent,whichmentalincompetencydirectlyaffectshisabilitytoserveasadirectoroftheCorporation.Notwithstandingtheforegoing,wheneverholdersofoutstandingsharesofoneormoreseriesofPreferredStockareentitledtoelectmembersoftheBoardofDirectorsvotingseparatelyasaclasspursuanttotheprovisionsapplicableinthecaseofarrearagesinthepaymentofdividendsorotherdefaultscontainedintheDirectors’Resolution

providingfortheestablishmentofanyseriesofPreferredStock,anysuchdirectoroftheCorporationsoelectedmayberemovedinaccordancewiththeprovisionsofthatDirectors’Resolution.TheforegoingprovisionsofthisArticleFIFTHaresubjecttothetermsofanyseriesofPreferredStockwithrespecttothedirectorstobeelectedsolelybytheholdersofsuchseriesofPreferredStock.

(d)Vacancies.ExceptasaDirectors’ResolutionprovidingfortheestablishmentofanyseriesofPreferredStockmayprovideotherwise,newlycreateddirectorshipsresultingfromanyincreaseinthenumberofdirectorsandanyvacanciesontheBoardofDirectorsresultingfromdeath,resignation,removalorothercausewillbefilledbytheaffirmativevoteofatleastamajorityoftheremainingdirectorstheninoffice,eventhoughlessthanaquorumoftheBoardofDirectors,orbythesoleremainingdirector.Anydirectorelectedinaccordancewiththeprecedingsentencewillholdofficefortheremainderofthefulltermoftheclassofdirectorsinwhichthenewdirectorshipwascreatedorthevacancyoccurredanduntilthatdirector’ssuccessorshallhavebeenelectedandqualifiedoruntilhisorherearlierdeath,resignationorremoval.ExceptasaDirectors’ResolutionprovidingfortheestablishmentofanyseriesofPreferredStockmayprovideotherwisewithrespecttodirectorselectedpursuanttoanyprovisionscontainedinaDirectors’Resolutionwithrespecttosuchseries,nodecreaseinthenumberofdirectorsconstitutingtheBoardofDirectorswillshortenthetermofanyincumbentdirector.

(e)AmendmentofBylaws.TheBoardofDirectorsshallwillhavethepowertoadopt,amendorrepealtheBylawsoftheCorporation.Anyadoption,amendmentorrepealoftheBylawsoftheCorporationbytheBoardofDirectorsshallwillrequiretheapprovalofatleastamajorityofthedirectorstheninoffice.Thestockholdersshallwillalsohavethepowertoadopt,amendorrepealtheBylawsoftheCorporationatanyannualmeetingbeforewhichsuchmatterhasbeenproperlybroughtinaccordancewiththeBylawsoftheCorporation,oratanyspecialmeetingifnoticeoftheproposedamendmentiscontainedinthenoticeofsaidspecialmeeting;meeting;provided,however,that,inadditiontoanyvoteoftheholdersofanyclassorseriesofcapitalstockoftheCorporationrequiredbylaworbythisCertificateofIncorporation,theaffirmativevoteoftheholdersofatleasteightypercent(80%)amajorityofthevotingpowerofallthenoutstandingsharesofthecapitalstockoftheCorporationentitledtovotegenerallyintheelectionofdirectors,votingtogetherasasingleclass,shallwillberequiredtoadopt,amendorrepealanyprovisionoftheBylawsoftheCorporation.

(f)CertainAmendments.NotwithstandinganythinginthisCertificateofIncorporationortheBylawsoftheCorporationtothecontrary,theaffirmativevoteoftheholdersofatleast80%ofthevotingpowerofallthenoutstandingsharesofcapitalstockoftheCorporationentitledtovotegenerallyintheelectionofdirectors,votingtogetherasasingleclass,shallberequiredtoalter,amendoradoptanyprovisioninconsistentwith,ortorepeal,thisArticleFIFTHorArticleSIXTH.

APPENDIX C

BABCOCK & WILCOX ENTERPRISES, INC.

AMENDED AND RESTATED 2015 LONG-TERM INCENTIVE PLAN(Amended and Restated as of May [__], 2018)

ARTICLE 1

Establishment, Objectives and Duration

1.1 EstablishmentofthePlan. Babcock&WilcoxEnterprises,Inc.,acorporationorganizedandexistingunderthelawsoftheStateofDelaware(hereinafterreferredtoasthe“Company”),establishedtheBabcock&WilcoxEnterprises,Inc.2015Long-TermIncentivePlanasofJune1,2015(the“2015Plan”).TheCompanyamendedandrestatedinitsentiretythe2015Plan,asofMay6,2016,intheformoftheAmendedandRestatedBabcock&WilcoxEnterprises,Inc.2015Long-TermIncentivePlan(the“AmendedandRestated2015Plan”).TheCompanyherebyagainamendsandrestatesinitsentirety,asoftheShareholderApprovalDate,theAmendedandRestatedBabcock&WilcoxEnterprises,Inc.2015Long-TermIncentivePlanintheformofthisdocument(the“SecondAmendedandRestated2015Plan”).Hereinafter,the2015Plan,asamendedandrestatedbytheAmendedandRestated2015PlanandtheSecondAmendedandRestated2015Plan,isreferredtoasthis“Plan”).ThisPlanpermitsthegrantof,amongotherpermittedawards,NonqualifiedStockOptions,IncentiveStockOptions,AppreciationRights,RestrictedStock,RestrictedStockUnits,PerformanceShares,PerformanceUnits,andCashIncentiveAwards(eachashereinafterdefined).Forclarificationpurposes,thetermsandconditionsoftheSecondAmendedandRestated2015Plan,totheextenttheydifferfromthetermsandconditionsofeitherthe2015PlanortheAmendedandRestated2015Plan,shallnotapplytoorotherwiseimpactpreviouslygrantedoroutstandingawardsunderthe2015PlanortheAmendedandRestated2015Plan,asapplicable.

1.2 Objectives. ThisPlanisdesignedtopromotethesuccessandenhancethevalueoftheCompanybylinkingthepersonalinterestsofParticipants(ashereinafterdefined)tothoseoftheCompany’sstockholders,andbyprovidingParticipantswithanincentiveforperformance.ThisPlanisfurtherintendedtoprovideflexibilitytotheCompanyinitsabilitytomotivate,attractandretaintheemploymentand/orservicesofParticipants.

1.3 Duration. The2015PlancommencedonJune1,2015andtheAmendedandRestated2015PlancommencedonMay6,2016.TheSecondAmendedandRestated2015PlanshallcommenceontheShareholderApprovalDate,andthenthisPlanshallremainineffect,subjecttotherightoftheBoardofDirectors(ashereinafterdefined)toamendorterminatethisPlanatanytimepursuanttoArticle16hereof,untilallShares(ashereinafterdefined)subjecttoitshallhavebeenpurchasedoracquiredaccordingtothisPlan’sprovisions;provided,however,thatinnoeventmayanAward(ashereinafterdefined)begrantedunderthisPlanonorafterthetenthanniversaryoftheShareholderApprovalDate,butallgrantsmadepriortosuchdatewillcontinueineffectthereaftersubjecttothetermsthereofandofthisPlan.

ARTICLE 2

DefinitionsAsusedinthisPlan,thefollowingtermsshallhavetherespectivemeaningssetforthbelow:

2.1 “ AppreciationRight” meansarightgrantedpursuanttoArticle7ofthisPlan,andwillincludebothFree-StandingAppreciationRightsandTandemAppreciationRights.

2.2 “ Award” meansagrantunderthisPlanofanyNonqualifiedStockOption,IncentiveStockOption,AppreciationRight,RestrictedStock,RestrictedStockUnit,CashIncentiveAward,PerformanceShareorPerformanceUnit,dividendequivalentsthataresettledinShares,orotherawardgrantedpursuanttoArticle11ofthePlan.

2.3 “ AwardAgreement” meansanagreement,certificate,resolutionorothertypeorformofwritingorotherevidenceapprovedbytheCommitteethatsetsforththetermsandprovisionsapplicabletoanAwardgrantedunderthisPlan.AnAwardAgreementmaybeinanelectronicmedium,maybelimitedtonotationonthebooksandrecordsofthe

Companyand,unlessotherwisedeterminedbytheCommittee,neednotbesignedbyarepresentativeoftheCompanyoraParticipant.

2.4 “ AwardLimitations” hasthemeaningascribedtosuchterminSection4.2.

2.5 “ BasePrice” meansthepricetobeusedasthebasisfordeterminingtheSpreadupontheexerciseofaFree-StandingAppreciationRight.

2.6 “ BeneficialOwner” or“ BeneficialOwnership” shallhavethemeaningascribedtosuchterminRule13d-3oftheGeneralRulesandRegulationsundertheExchangeAct.

2.7 “ Board” or“ BoardofDirectors” meanstheBoardofDirectorsoftheCompany.

2.8 “ CashIncentiveAward” meansacashawardgrantedpursuanttoArticle9ofthisPlan.

2.9 “ ChangeinControl” means,forpurposesofthisPlanandanyAwards,unlessotherwisesetforthinanapplicableAwardAgreementbytheCommittee,theoccurrenceofanyofthefollowing:

(a)30%OwnershipChange:AnyPerson,otherthananERISA-regulatedpensionplanestablishedbytheCompany,makesanacquisitionofOutstandingVotingStockandis,immediatelythereafter,thebeneficialownerof30%ormoreofthethenOutstandingVotingStock,unlesssuchacquisitionismadedirectlyfromtheCompanyinatransactionapprovedbyamajorityoftheIncumbentDirectors;oranygroupisformedthatisthebeneficialownerof30%ormoreoftheOutstandingVotingStock(otherthanagroupformationforthepurposeofmakinganacquisitiondirectlyfromtheCompanyandapproved(priortosuchgroupformation)byamajorityoftheIncumbentDirectors);or

(b)BoardMajorityChange:IndividualswhoareIncumbentDirectorsceaseforanyreasontoconstituteamajorityofthemembersoftheBoard;or

(c)MajorMergersandAcquisitions:ConsummationofaBusinessCombinationunless,immediatelyfollowingsuchBusinessCombination,(i)allorsubstantiallyalloftheindividualsandentitiesthatwerethebeneficialownersoftheOutstandingVotingStockimmediatelybeforesuchBusinessCombinationbeneficiallyown,directlyorindirectly,morethan51%ofthethenoutstandingsharesofvotingstockoftheparentcorporationresultingfromsuchBusinessCombinationinsubstantiallythesamerelativeproportionsastheirownership,immediatelybeforesuchBusinessCombination,oftheOutstandingVotingStock,(ii)iftheBusinessCombinationinvolvestheissuanceorpaymentbytheCompanyofconsiderationtoanotherentityoritsshareholders,thetotalfairmarketvalueofsuchconsiderationplustheprincipalamountoftheconsolidatedlong-termdebtoftheentityorbusinessbeingacquired(ineachcase,determinedasofthedateofconsummationofsuchBusinessCombinationbyamajorityoftheIncumbentDirectors)doesnotexceed50%ofthesumofthefairmarketvalueoftheOutstandingVotingStockplustheprincipalamountoftheCompany’sconsolidatedlong-termdebt(ineachcase,determinedimmediatelybeforesuchconsummationbyamajorityoftheIncumbentDirectors),(iii)noPerson(otherthananycorporationresultingfromsuchBusinessCombination)beneficiallyowns,directlyorindirectly,30%ormoreofthethenoutstandingsharesofvotingstockoftheparentcorporationresultingfromsuchBusinessCombinationand(iv)amajorityofthemembersoftheboardofdirectorsoftheparentcorporationresultingfromsuchBusinessCombinationwereIncumbentDirectorsoftheCompanyimmediatelybeforeconsummationofsuchBusinessCombination;or

(d)MajorAssetDispositions:ConsummationofaMajorAssetDispositionunless,immediatelyfollowingsuchMajorAssetDisposition,(i)individualsandentitiesthatwerebeneficialownersoftheOutstandingVotingStockimmediatelybeforesuchMajorAssetDispositionbeneficiallyown,directlyorindirectly,morethan70%ofthethenoutstandingsharesofvotingstockoftheCompany(ifitcontinuestoexist)andoftheentitythatacquiresthelargestportionofsuchassets(ortheentity,ifany,thatownsamajorityoftheoutstandingvotingstockofsuchacquiringentity)and(ii)amajorityofthemembersoftheBoard(ifitcontinuestoexist)andoftheentitythatacquiresthelargestportionofsuchassets(ortheentity,ifany,thatownsamajorityoftheoutstandingvotingstockofsuchacquiringentity)wereIncumbentDirectorsoftheCompanyimmediatelybeforeconsummationofsuchMajorAssetDisposition.

Forpurposesofthisdefinitionof“ChangeinControl”,(1) “ Person” meansanindividual,entityorgroup;

(2) “ group” isusedasitisdefinedforpurposesofSection13(d)(3)oftheExchangeAct;

(3) “ beneficialowner” isusedasitisdefinedforpurposesofRule13d-3undertheExchangeAct;

(4) “ OutstandingVotingStock” meansoutstandingvotingsecuritiesoftheCompanyentitledtovotegenerallyintheelectionofdirectors;andanyspecifiedpercentageorportionoftheOutstandingVotingStock(orofothervotingstock)isdeterminedbasedonthecombinedvotingpowerofsuchsecurities;

(5) “ IncumbentDirector” meansadirectoroftheCompany(x)whowasadirectoroftheCompanyontheEffectiveDateor(y)whobecomesadirectoraftersuchdateandwhoseelection,ornominationforelectionbytheCompany’sshareholders,wasapprovedbyavoteofamajorityoftheIncumbentDirectorsatthetimeofsuchelectionornomination,exceptthatanysuchdirectorwillnotbedeemedanIncumbentDirectorifhisorherinitialassumptionofofficeoccursasaresultofanactualorthreatenedelectioncontestorotheractualorthreatenedsolicitationofproxiesbyoronbehalfofaPersonotherthantheBoard;

(6) “ BusinessCombination” means:

(x)amergerorconsolidationinvolvingtheCompanyoritsstock;or(y)anacquisitionbytheCompany,directlyorthroughoneormoresubsidiaries,ofanotherentityoritsstockorassets.

(7) “ parentcorporationresultingfromaBusinessCombination” meanstheCompanyifitsstockisnotacquiredorconvertedintheBusinessCombinationandotherwisemeanstheentitywhichasaresultofsuchBusinessCombinationownstheCompanyorallorsubstantiallyalltheCompany’sassetseitherdirectlyorthroughoneormoresubsidiaries;and

(8) “ MajorAssetDisposition” meansthesaleorotherdispositioninonetransactionoraseriesofrelatedtransactionsof70%ormoreoftheassetsoftheCompanyanditssubsidiariesonaconsolidatedbasis;andanyspecifiedpercentageorportionoftheassetsoftheCompanywillbebasedonfairmarketvalue,asdeterminedbyamajorityoftheIncumbentDirectors.

However,innoeventshallaChangeinControlbedeemedtohaveoccurredunderthisPlanwithrespecttoaParticipantiftheParticipantispartofapurchasinggroupwhichconsummatesatransactionresultinginaChangeinControl.AParticipantshallbedeemed“partofapurchasinggroup”forpurposesoftheprecedingsentenceiftheParticipantisanequityparticipantinthepurchasingcompanyorgroup(exceptfor:(x)passiveownershipoflessthanthreepercent(3%)ofthestockofthepurchasingcompany;or(y)ownershipofequityparticipationinthepurchasingcompanyorgroupwhichisotherwisenotsignificant,asdeterminedpriortotheChangeinControlbyamajorityofthenon-employeecontinuingdirectors).

2.10 “ Code” meanstheInternalRevenueCodeof1986,asamendedfromtimetotime.

2.11 “ Committee” meanstheCompensationCommitteeoftheBoard,orsuchothercommitteeoftheBoardappointedbytheBoardtoadministerthisPlan,asspecifiedinArticle3hereof.

2.12 “ Consultant” meansanaturalperson(qualifyingasan“employee”forpurposesofFormS-8)whoisneitheranEmployeenoraDirectorandwhoperformsservicesfortheCompanyoraSubsidiarypursuanttoacontract,providedthatthoseservicesarenotinconnectionwiththeofferorsaleofsecuritiesinacapital-raisingtransactionanddonotdirectlyorindirectlypromoteormaintainamarketfortheCompany’ssecurities.

2.13 “ CoveredEmployee” meansaParticipantwhois,orisdeterminedbytheCommitteetobelikelytobecome,a“coveredemployee”withinthemeaningofSection162(m)oftheCode(oranysuccessorprovision).

2.14 “ DateofGrant” meansthedatespecifiedbytheCommitteeonwhichagrantofOptions,AppreciationRights,PerformanceShares,PerformanceUnits,orotherawardscontemplatedbyArticle11ofthisPlan,oragrantorsaleofRestrictedShares,RestrictedStockUnits,orotherawardscontemplatedbyArticle11ofthisPlan,willbecomeeffective(whichdatewillnotbeearlierthanthedateonwhichtheCommitteetakesactionwithrespectthereto).

2.15 “ Director” meansanyindividualwhoisamemberoftheBoardofDirectors;provided,however,thatanymemberoftheBoardofDirectorswhoisemployedbytheCompanyshallbeconsideredanEmployeeunderthisPlan.

2.16 “ Disability” means,unlessotherwisesetforthinanapplicableAwardAgreementbytheCommitteeandasdeterminedbytheCommitteeinitssolediscretion,aParticipant’sinabilitytoengageinanysubstantialgainfulactivitybyreasonofanymedicallydeterminablephysicalormentalimpairmentthatcanbeexpectedtoresultindeathorcanbeexpectedtolastforacontinuousperiodofnotlessthantwelve(12)months.

2.17 “ EconomicValueAdded” meansnetoperatingprofitaftertaxminustheproductofcapitalandthecostofcapital.

2.18 “ EffectiveDate” shallmeanJune1,2015.

2.19 “ Employee” meansanypersonwhoisemployedbytheCompany.

2.20 “ ERISA” meanstheEmployeeRetirementIncomeSecurityActof1974,asamendedfromtimetotime.

2.21 “ ExchangeAct” meanstheSecuritiesExchangeActof1934,asamended,andtherulesandregulationsthereunder,assuchlaw,rulesandregulationsmaybeamendedfromtimetotime.

2.22 “ FairMarketValue” ofaShareshallmean,asofaparticulardate,(a)ifSharesarelistedonanationalsecuritiesexchange,theclosingsalespriceperShareontheconsolidatedtransactionreportingsystemfortheprincipalnationalsecuritiesexchangeonwhichSharesarelistedonthatdate,or,ifnosuchsaleissoreportedonthatdate,onthelastprecedingdateonwhichsuchasalewassoreported,(b)ifSharesarenotsolistedbutaretradedonanover-the-countermarket,themeanbetweentheclosingbidandaskedpricesforSharesonthatdate,or,iftherearenosuchquotationsavailableforthatdate,onthelastprecedingdateforwhichsuchquotationsareavailable,asreportedbytheNationalQuotationBureauIncorporated,or(c)ifnoSharesarepubliclytraded,avaluedeterminedingoodfaithbytheCommittee,providedthatsuchvalueisincompliancewiththefairmarketvaluepricingrulessetforthinSection409AoftheCode.

2.23 “ FiscalYear” meanstheyearcommencingJanuary1andendingDecember31.

2.24 “ Free-StandingAppreciationRight” meansanAppreciationRightgrantedpursuanttoArticle7ofthisPlanthatisnotgrantedintandemwithanOption.

2.25 “ IncentiveStockOption” or“ ISO” meansanOptiontopurchaseSharesgrantedunderArticle6hereofandwhichisdesignatedasanIncentiveStockOptionandisintendedtomeettherequirementsofCodeSection422,oranysuccessorprovision.

2.26 “ NonqualifiedStockOption” or“ NQSO” meansanoptiontopurchaseSharesgrantedunderArticle6hereofandwhichisnotanIncentiveStockOption.

2.27 “ Officer” meansanEmployeeoftheCompanyincludedinthedefinitionof“Officer”underSection16oftheExchangeActandrulesandregulationspromulgatedthereunderorsuchotherEmployeeswhoaredesignatedas“Officers”bytheBoard.

2.28 “ Option” meansanIncentiveStockOptionoraNonqualifiedStockOption.

2.29 “ OptionPrice” meansthepriceatwhichaSharemaybepurchasedbyaParticipantpursuanttoanOption,asdeterminedbytheCommittee.

2.30 “ Participant” meansaneligibleOfficer,Director,ConsultantorEmployeewhohasbeenselectedforparticipationinthisPlaninaccordancewithSection5.2.

2.31 “ Performance-BasedAward” meansanAward(otherthananOption)toaCoveredEmployeethatisdesignedtoqualifyforthePerformance-BasedException.

2.32 “ Performance-BasedException” meanstheperformance-basedexceptionfromthedeductibilitylimitationsofSection162(m)oftheCode.

2.33 “ PerformancePeriod” means,withrespecttoaPerformance-BasedAward,theperiodoftimeduringwhichtheperformancegoalsspecifiedinsuchAwardmustbemetinordertodeterminethedegreeofpayoutand/or

vestingwithrespecttothatPerformance-BasedAward,andwithrespecttoanAwardthatisnotaPerformance-BasedAward,theperiodoftimeduringwhichtheperformancegoalsspecifiedinsuchAwardmustbemetinordertodeterminethedegreeofpayoutand/orvestingwithrespecttosuchAward.

2.34 “ PerformanceShare” meansabookkeepingentrythatrecordstheequivalentofoneShareawardedpursuanttoArticle9ofthisPlan.

2.35 “ PerformanceUnit” meansabookkeepingentryawardedpursuanttoArticle9ofthisPlanthatrecordsaunitequivalentto$1.00orsuchothervalueasisdeterminedbytheCommittee.

2.36 “ PeriodofRestriction” meanstheperiodduringwhichthetransferofSharesofRestrictedStockislimitedinsomeway(basedonthepassageoftime,theachievementofperformancegoals,orupontheoccurrenceofothereventsasdeterminedbytheCommittee,initssolediscretion)assetforthintherelatedAwardAgreement,and/ortheSharesaresubjecttoasubstantialriskofforfeiture(withinthemeaningofSection83oftheCode),asprovidedinArticle8hereof.

2.37 “ Person” shallhavethemeaningascribedtosuchterminSection3(a)(9)oftheExchangeActandusedinSection13(d)and14(d)thereof,includinga“group”(asthattermisusedinSection13(d)(3)thereof).

2.38 “ RestrictedStock” meansSharesgrantedorsoldpursuanttoArticle8ofthisPlanastowhichneitherthesubstantialriskofforfeiture(withinthemeaningofSection83oftheCode)northeprohibitionontransfershasexpired.

2.39 “ RestrictedStockUnit” or“ RSU” meansacontractualpromisetodistributetoaParticipantoneShareand/orcashequaltotheFairMarketValueofoneShare,determinedinthesolediscretionoftheCommittee,whichshallbedeliveredtotheParticipantuponsatisfactionofthevestingandanyotherrequirementssetforthintherelatedAwardAgreement.

2.40 “ Retirement” shallhavethemeaningascribedtosuchtermbytheCommittee,assetforthintheapplicableAwardAgreement.

2.41 “ ShareholderApprovalDate” meansMay4,2018,orsuchotherdateonwhichtheCompany’sstockholdersapprovetheSecondAmendedandRestated2015Plan.

2.42 “ Shares” meansthecommonstock,parvalue$0.01pershare,oftheCompany,oranysecurityintowhichsuchcommonstockmaybechangedbyreasonofanytransactionoreventofthetypereferredtoinSection4.4.

2.43 “Spread”meanstheexcessoftheFairMarketValueperShareonthedatewhenanAppreciationRightisexercisedovertheOptionPriceorBasePriceprovidedforintherelatedOptionorFree-StandingAppreciationRight,respectively.

2.44 “ Subsidiary” meansanycorporation,partnership,jointventure,affiliateorotherentityinwhichtheCompanyhasamajorityvotinginterest;provided,however,thatforpurposesofdeterminingwhetheranypersonmaybeaParticipantforpurposesofanygrantofIncentiveStockOptions,“Subsidiary”meansanycorporationinwhichatthetimetheCompanyownsorcontrols,directlyorindirectly,morethan50percentofthetotalcombinedvotingpowerrepresentedbyallclassesofstockissuedbysuchcorporation.

2.45 “ TandemAppreciationRight” meansanAppreciationRightgrantedpursuanttoArticle7ofthisPlanthatisgrantedintandemwithanOption.

2.46 “ VestingPeriod” meanstheperiodduringwhichanAwardgrantedhereunderissubjecttoaserviceorperformance-relatedrestriction,assetforthintherelatedAwardAgreement.

ARTICLE 3

Administration

3.1 TheCommittee. ThisPlanshallbeadministeredbytheCommittee,asconstitutedfromtimetotime.ThemembersoftheCommitteeshallbeappointedfromtimetotimeby,andshallserveatthediscretionof,theBoardofDirectors.TheCommitteeshallbecomposedofnotlessthanthreemembersoftheBoard,eachofwhomshall(a)meetallapplicableindependencerequirementsoftheNewYorkStockExchange,oriftheSharesarenottradedontheNewYorkStockExchange,theprincipalnationalsecuritiesexchangeonwhichtheSharesaretraded,(b)bea“non-employeedirector”withinthemeaningofExchangeActRule16b-3and(c)bean“outsidedirector”withinthemeaningofSection162(m)oftheCode.TheCommitteemayfromtimetotimedelegatealloranypartofitsauthorityunderthisPlantoanysubcommitteethereof.Totheextentofanysuchdelegation,referencesinthisPlantotheCommitteewillbedeemedtobereferencestosuchsubcommittee.

3.2 AuthorityoftheCommittee. ExceptaslimitedbylaworbytheArticlesofIncorporationorBy-LawsoftheCompany(eachasamendedfromtimetotime),theCommitteeshallhavefullandexclusivepowerandauthoritytotakeallactionsspecificallycontemplatedbythisPlanorthatarenecessaryorappropriateinconnectionwiththeadministrationhereofandshallalsohavefullandexclusivepowerandauthoritytointerpretthisPlanandtoadoptsuchrules,regulationsandguidelinesforcarryingoutthisPlanastheCommitteemaydeemnecessaryorproper.TheCommitteeshallhavefullpowerandsolediscretionto:selectOfficers,Directors,ConsultantsandEmployeeswhoshallbegrantedAwardsunderthisPlan;determinethesizesandtypesofAwards;determinethetimewhenAwardsaretobegrantedandanyconditionsthatmustbesatisfiedbeforeanAwardisgranted;determinethetermsandconditionsofAwardsinamannerconsistentwiththisPlan;determinewhethertheconditionsforearninganAwardhavebeenmetandwhetheraPerformance-BasedAwardwillbepaidattheendofanapplicableperformanceperiod;determinetheguidelinesand/orproceduresforthepaymentorexerciseofAwards;anddeterminewhetheraPerformance-BasedAwardshouldqualify,regardlessofitsamount,asdeductibleinitsentiretyforfederalincometaxpurposes,includingwhetheraPerformance-BasedAwardgrantedtoanOfficershouldqualifyasperformance-basedcompensation.TheCommitteemay,initssolediscretion,acceleratethevestingorexercisabilityofanAward,eliminateormakelessrestrictiveanyrestrictionscontainedinanAward,waiveanyrestrictionorotherprovisionofthisPlanoranyAwardorotherwiseamendormodifyanyAwardinanymannerthatiseither(a)notadversetotheParticipanttowhomsuchAwardwasgrantedor(b)consentedtoinwritingbysuchParticipant,and(c)consistentwiththerequirementsofSection12.2and12.3hereof,andSection409Aand162(m)oftheCode,ifapplicable.TheCommitteemaycorrectanydefectorsupplyanyomissionorreconcileanyinconsistencyinthisPlanorinanyAwardinthemannerandtotheextenttheCommitteedeemsnecessaryordesirabletofurtherthisPlan’sobjectives.Further,theCommitteeshallmakeallotherdeterminationsthatmaybenecessaryoradvisablefortheadministrationofthisPlan.AspermittedbylawandthetermsofthisPlan,theCommitteemaydelegateitsauthorityasidentifiedherein.

3.3 DelegationofAuthority. Totheextentpermittedunderapplicablelaw,theCommitteemaydelegatetotheChiefExecutiveOfficerandtootherseniorofficersoftheCompanyitsdutiesunderthisPlanpursuanttosuchconditionsorlimitationsastheCommitteemayestablish;provided,however,that(a)theCommitteemaynotdelegateanyauthoritytograntAwardstoaDirectororanEmployeewhoisanofficer,directorormorethan10%beneficialownerofanyclassoftheCompany’sequitysecuritiesthatisregisteredpursuanttoSection12oftheExchangeAct,asdeterminedbytheCommitteeinaccordancewithSection16oftheExchangeAct,oranypersonsubjecttoSection162(m)oftheCode,(b)theresolutionprovidingforsuchauthorizationtograntAwardssetsforththetotalnumberofSharessuchofficer(s)maygrantandthetermsofanyAwardthatsuchofficer(s)maygrant,and(c)theofficer(s)shallreportperiodicallytotheCommitteeregardingthenatureandscopeoftheAwardsgrantedpursuanttotheauthoritydelegated.

3.4 DecisionsBinding. Allinterpretations,determinationsanddecisionsmadebytheCommitteepursuanttotheprovisionsofthisPlan,anyAwardAgreementandallrelatedordersandresolutionsoftheCommitteeshallbefinal,conclusiveandbindingonallpersonsconcerned,includingtheCompany,itsstockholders,Officers,Directors,Employees,Consultants,Participantsandtheirestatesandbeneficiaries.NomemberoftheCommitteeshallbeliableforanysuchactionordeterminationmadeingoodfaith.Inaddition,theCommitteeisauthorizedtotakeanyactionitdeterminesinitssolediscretiontobeappropriatesubjectonlytotheexpresslimitationscontainedinthisPlan,andnoauthorizationinanyprovisionofthisPlanisintendedormaybedeemedtoconstitutealimitationontheauthorityoftheCommittee.

3.5 Non-U.S.Participants. InordertofacilitatethemakingofanygrantorcombinationofgrantsunderthisPlan,theCommitteemayprovideforsuchspecialtermsforawardstoParticipantswhoareforeignnationalsorwhoareemployedbytheCompanyoranySubsidiaryoutsideoftheUnitedStatesofAmericaorwhoprovideservicestotheCompanyunderanagreementwithaforeignnationoragency,astheCommitteemayconsidernecessaryorappropriate

toaccommodatedifferencesinlocallaw,taxpolicyorcustom.Moreover,theCommitteemayapprovesuchsupplementstooramendments,restatementsoralternativeversionsofthisPlan(including,withoutlimitation,sub-plans)asitmayconsidernecessaryorappropriateforsuchpurposes,withouttherebyaffectingthetermsofthisPlanasineffectforanyotherpurpose,andtheSecretaryorotherappropriateofficeroftheCompanymaycertifyanysuchdocumentashavingbeenapprovedandadoptedinthesamemannerasthisPlan.Nosuchspecialterms,supplements,amendmentsorrestatements,however,willincludeanyprovisionsthatareinconsistentwiththetermsofthisPlanasthenineffectunlessthisPlancouldhavebeenamendedtoeliminatesuchinconsistencywithoutfurtherapprovalbytheshareholdersoftheCompany.

ARTICLE 4

Shares Subject to this Plan

4.1 NumberofSharesAvailableforGrantsofAwards. SubjecttoadjustmentasprovidedinSection4.4hereofandtheSharecountingrulessetforthinthisPlan,therearereservedforAwardsunderthisPlan9,300,000Shares(consistingof5,800,000Sharesoriginallyapprovedin2015,2,500,000Sharesapprovedin2016,and1,000,000SharesanticipatedtobeapprovedbytheCompany’sstockholdersattheCompany’s2018AnnualMeetingofStockholders).SharessubjecttoAwardsunderthisPlanthatarecancelled,forfeited,terminatedorexpireunexercised,aresettledincash,orareunearned,inwholeorinpart,shallimmediatelybecomeavailableforthegrantingofAwardsunderthisPlantotheextentofsuchcancellation,forfeiture,termination,expiration,cashsettlementorunearnedamount.Additionally,theCommitteemayfromtimetotimeadoptandobservesuchproceduresconcerningthecountingofSharesagainstthisPlanmaximumasitmaydeemappropriate,providedthatnotwithstandinganythingtothecontrarycontainedherein,thefollowingShareswillnotbeaddedtotheaggregatenumberofSharesavailableforAwardsunderthisSection4.1:(a)ShareswithheldbytheCompany,tenderedorotherwiseusedinpaymentoftheOptionPriceofanOption,(b)ShareswithheldbytheCompany,tenderedorotherwiseusedtosatisfyataxwithholdingobligation,(c)SharessubjecttoanAppreciationRightthatarenotactuallyissuedinconnectionwithitsSharessettlementonexercisethereof,and(d)SharesreacquiredbytheCompanyontheopenmarketorotherwiseusingcashproceedsfromtheexerciseofOptions.TheSharesreservedforissuanceunderthisSection4.1maybeSharesoforiginalissuanceorSharesheldintreasury,oracombinationthereof.

4.2 LimitsonGrantsinAnyFiscalYear. SubjecttoadjustmentasprovidedinSection4.4andtheotherSharecountingrulessetforthinthisPlan,thefollowingrules(“AwardLimitations”)shallapplytograntsofAwardsunderthisPlan(orotherwisewithrespecttoDirectors):

(a)OptionandAppreciationRights.ThemaximumaggregatenumberofSharesissuablepursuanttoAwardsofOptionsand/orAppreciationRightsthatmaybegrantedinanyoneFiscalYearoftheCompanytoanyoneParticipantshallbeOneMillionTwoHundredThousand(1,200,000).

(b)RestrictedStockandRestrictedStockUnits.ThemaximumaggregatenumberofSharessubjecttoPerformance-BasedAwardsofRestrictedStockandRSUsthatmaybegrantedinanyoneFiscalYeartoanyoneParticipantshallbeOneMillionTwoHundredThousand(1,200,000).

(c)PerformanceShares.ThemaximumaggregatenumberofSharessubjecttoPerformance-BasedAwardsofPerformanceSharesthatmaybegrantedinanyoneFiscalYeartoanyoneParticipantshallbeOneMillionTwoHundredThousand(1,200,000).

(d)PerformanceUnits.ThemaximumaggregatecashpayoutwithrespecttoPerformance-BasedAwardsofPerformanceUnitsgrantedinanyoneFiscalYeartoanyoneParticipantshallbe$6,000,000,withsuchcashvaluedeterminedasoftheDateofGrant.

(e)CashIncentiveAwards.ThemaximumaggregatecashpayoutwithrespecttoPerformance-BasedAwardsofCashIncentiveAwardsgrantedinanyoneFiscalYeartoanyoneParticipantshallbe$6,000,000.

(f)OtherAwards.ThemaximumaggregatecashpayoutwithrespecttoPerformance-BasedAwardsofotherawardspayableincashunderArticle11grantedinanyoneFiscalYeartoanyoneParticipantshallbe$6,000,000,withsuchcashvaluedeterminedasoftheDateofGrant,andthemaximumaggregatenumberofSharessubjecttoPerformance-BasedAwardsofotherawardspayableinSharesunderArticle11grantedinanyoneFiscalYeartoanyoneParticipantshallbeOneMillionTwoHundredThousand(1,200,000).

(g)DirectorCompensation.SubjecttoadjustmentasdescribedinSection4.4,innoeventwillanyDirectorinanyonecalendaryearbegrantedcompensationforsuchservicehavinganaggregatemaximumvalue(measuredattheDateofGrantasapplicable,andcalculatingthevalueofanyAwardsbasedonthegrantdatefairvalueforfinancialreportingpurposes)inexcessof$500,000.

4.3 LimitonIncentiveStockOptions.NotwithstandinganythinginthisArticle4orelsewhereinthisPlantothecontraryandsubjecttoadjustmentasprovidedinSection4.4,themaximumaggregatenumberofSharesactuallyissuedpursuanttotheexerciseofIncentiveStockOptionsshallbe1,200,000.

4.4 Adjustments. TheexistenceofoutstandingAwardsshallnotaffectinanymannertherightorpoweroftheCompanyoritsstockholderstomakeorauthorizeanyoralladjustments,recapitalizations,reorganizationsorotherchangesinthecapitalstockoftheCompanyoritsbusinessoranymergerorconsolidationoftheCompany,oranyissueofbonds,debentures,preferredorpriorpreferencestock(whetherornotsuchissueispriorto,onaparitywithorjuniortotheShares)orthedissolutionorliquidationoftheCompany,oranysaleortransferofalloranypartofitsassetsorbusinessoranyothercorporateactorproceedingofanykind,whetherornotofacharactersimilartothatoftheactsorproceedingsenumeratedabove.

IfthereshallbeanychangeintheSharesoftheCompanyorthecapitalizationoftheCompanythroughmerger,consolidation,reorganization,recapitalization,stockdividend,stocksplit,reversestocksplit,split-up,spin-off,combinationofshares,exchangeofshares,partialorcompleteliquidationorotherdistributionofassets,issuanceofrightsorwarrantstopurchasesecurities,dividendinkindorotherlikechangeincapitalstructureordistribution(otherthannormalcashdividends)tostockholdersoftheCompany,oranyothercorporatetransactionoreventhavinganeffectsimilartoanyoftheforegoing,theCommittee,initssolediscretion,inordertopreventdilutionorenlargementofParticipants’rightsunderthisPlan,shalladjust,insuchmannerasitdeemsequitableandthatcomplieswithSection409AoftheCode,asapplicable,thenumberandkindofSharesthatmaybegrantedasAwardsunderthisPlan,thenumberandkindofSharessubjecttooutstandingAwards,theexerciseorotherpriceapplicabletooutstandingAwards,theAwardLimitations(totheextentthatsuchadjustmentwouldnotcauseanyOptionintendedtoqualifyasanIncentiveStockOptiontofailtosoqualify),theFairMarketValueoftheShares,CashIncentiveAwardsandothervaluedeterminationsandothertermsapplicabletooutstandingAwards;provided,however,thatthenumberofSharessubjecttoanyAwardshallalwaysbeawholenumber.Intheeventofanysuchtransactionorevent,orintheeventofaChangeinControl,theCommitteeshallbeauthorized,initssolediscretion(butsubjecttocompliancewithSection409AoftheCodetotheextentapplicable),to:(a)grantorassumeAwardsbymeansofsubstitutionofnewAwards,asappropriate,forpreviouslygrantedAwardsortoassumepreviouslygrantedAwardsaspartofsuchadjustment;(b)makeprovision,priortothetransaction,fortheaccelerationofthevestingandexercisabilityof,orlapseofrestrictionswithrespectto,AwardsandtheterminationofOptionsthatremainunexercisedatthetimeofsuchtransaction;or(c)providefortheaccelerationofthevestingandexercisabilityofOptionsandthecancellationthereofinexchangeforsuchpaymentastheCommittee,initssolediscretion,determinesisareasonableapproximationofthevaluethereof.Moreover,intheeventofanysuchtransactionoreventorintheeventofaChangeinControl,theCommitteeshallprovideinsubstitutionforanyoralloutstandingAwardsunderthisPlansuchalternativeconsideration(includingcash),ifany,asit,ingoodfaith,shalldeterminetobeequitableinthecircumstancesandshallrequireinconnectiontherewiththesurrenderofallawardssoreplacedinamannerthatcomplieswithSection409AoftheCode.Inaddition,foreachOptionorAppreciationRightwithanOptionPriceorBasePricegreaterthantheconsiderationofferedinconnectionwithanysuchtransactionoreventorChangeinControl,theCommitteemayinitsdiscretionelecttocancelsuchOptionorAppreciationRightwithoutanypaymenttothepersonholdingsuchOptionorAppreciationRight.Notwithstandingtheforegoing,anyadjustmenttothenumberspecifiedinSection4.3inaccordancewiththisSection4.4willbemadeonlyifandtotheextentthatsuchadjustmentwouldnotcauseanyOptionintendedtoqualifyasanISOtofailtosoqualify.

ARTICLE 5

Eligibility and Participation

5.1 Eligibility. PersonseligibletoparticipateinthisPlanincludeallOfficers,Directors,EmployeesandConsultants,asdeterminedinthesolediscretionoftheCommittee.

5.2 ActualParticipation. SubjecttotheprovisionsofthisPlan,theCommitteemay,fromtimetotime,selectfromallOfficers,Directors,EmployeesandConsultantsthosepersonstowhomAwardsshallbegrantedandshalldeterminethenatureandamountofeachAward.NoOfficer,Director,EmployeeorConsultantshallhavetherighttobeselectedforparticipationinthisPlan,or,havingbeensoselected,tobeselectedtoreceiveafutureaward.

ARTICLE 6

Options

6.1 GrantofOptions. SubjecttothetermsandprovisionsofthisPlan,OptionsmaybegrantedtoParticipantsinsuchnumber,uponsuchterms,atanytime,andfromtimetotime,asshallbedeterminedbytheCommittee;provided,however,thatISOsmaybeawardedonlytoEmployeeswhomeetthedefinitionof“employees”underSection3401(c)oftheCode.SubjecttothetermsofthisPlan,theCommitteeshallhavediscretionindeterminingthenumberofSharessubjecttoOptionsgrantedtoeachParticipant.

6.2 OptionAwardAgreement. EachOptiongrantshallbeevidencedbyanAwardAgreementthatshallspecifytheOptionPrice,thedurationoftheOption,thenumberofSharestowhichtheOptionpertains(subjecttothelimitationssetforthinArticle4ofthisPlan),andsuchotherprovisionsastheCommitteeshalldeterminethatarenotinconsistentwiththetermsofthisPlan.TheAwardAgreementalsoshallspecifywhethertheOptionisintendedtobeanISOoranNQSO(providedthat,intheabsenceofsuchspecification,theOptionshallbeanNQSO).

6.3 OptionPrice. TheOptionPriceforeachgrantofanOptionunderthisPlanshallbeasdeterminedbytheCommittee;provided,however,that,subjecttoanysubsequentadjustmentthatmaybemadepursuanttotheprovisionsofSectioný4.4hereof,theOptionPriceshallbenotlessthanonehundredpercent(100%)oftheFairMarketValueofaShareontheDateofGrant(exceptwithrespecttoawardsunderArticle22ofthisPlan).ExceptasotherwiseprovidedinSectioný4.4hereof,withoutpriorstockholderapproval,norepricingofOptionsawardedunderthisPlanshallbepermittedsuchthatthetermsofoutstandingOptionsmaynotbeamendedtoreducetheOptionPrice;further,exceptasotherwiseprovidedinSection4.4hereof,withoutpriorstockholderapproval,Optionsmaynotbereplacedorregrantedthroughcancellation,inexchangeforcashorotherAwards,oriftheeffectofthereplacementorregrantwouldbetoreducetheOptionPriceoftheOptionsorwouldconstitutearepricingundergenerallyacceptedaccountingprinciplesintheUnitedStates(asapplicabletotheCompany’spublicreporting).

6.4 DurationofOptions. SubjecttoanyearlierexpirationthatmaybeeffectedpursuanttotheprovisionsofSectioný4.4hereof,eachOptionshallexpireatsuchtimeastheCommitteeshalldetermineatthetimeofgrant;provided,however,thatanOptionshallnotbeexercisableonorafterthetenth(10th)anniversarydateofitsgrant.

6.5 ExerciseofOptions. OptionsgrantedunderthisPlanshallbeexercisableatsuchtimesandbesubjecttosuchrestrictionsandconditionsastheCommitteeshallineachinstanceapprove,whichneednotbethesameforeachgrantorforeachParticipant,andmayprovidethatsuchOptionsbeexercisableearlyorcontinuetovest,includingintheeventoftheretirement,deathordisabilityofaParticipantorintheeventofaChangeinControl.TheexerciseofanOptionwillresultinthecancellationonashare-for-sharebasisofanyTandemAppreciationRightauthorizedunderArticle7ofthisPlan.

6.6 Payment. (a)AnyOptiongrantedunderthisArticle6shallbeexercisedbythedeliveryofanoticeofexercisetotheCompanyinthemannerprescribedintherelatedAwardAgreement,settingforththenumberofShareswithrespecttowhichtheOptionistobeexercised,andeither(i)accompaniedbyfullpaymentoftheOptionPricefortheSharesissuableonsuchexerciseor(ii)exercisedinamannerthatisinaccordancewithapplicablelawandthe“cashlessexercise”procedures(ifany)approvedbytheCommitteeinvolvingabrokerordealer.

(b)TheOptionPriceuponexerciseofanyOptionshallbepayabletotheCompanyinfull,subjecttoapplicablelaw:(i)incashorbycheckacceptabletotheCompanyorbywiretransferofimmediatelyavailablefunds;(ii)bytenderingpreviouslyacquiredSharesownedbytheParticipantshavingavalueatthetimeofexerciseequaltothetotalOptionPrice;(iii)subjecttoanyconditionsorlimitationsestablishedbytheCommittee,bytheCompany’swithholdingofSharesotherwiseissuableuponexerciseofanOptionpursuanttoa“netexercise”arrangement;(iv)byacombinationofsuchmethodsofpayment;or(v)anyothermethodapprovedbytheCommittee,initssolediscretion.

(c)Subjecttoanygoverningrulesorregulations,assoonaspracticableafterreceiptofanotificationofexerciseandfullpayment,theCompanyshalldelivertotheParticipant,intheParticipant’sname,SharecertificatesinanappropriateamountbaseduponthenumberofSharespurchasedundertheOption.

6.7 RestrictionsonShareTransferability. TheCommitteemayimposesuchrestrictionsonanySharesacquiredpursuanttotheexerciseofanOptiongrantedunderthisPlanasitmaydeemadvisable,including,withoutlimitation,restrictionsunderapplicableU.S.federalsecuritieslaws,undertherequirementsofanystockexchangeor

marketuponwhichsuchSharesarethenlistedand/ortraded,andunderanyblueskyorstatesecuritieslawsapplicabletosuchShares.

6.8 TerminationofEmployment,ServiceorDirectorship. EachOptionAwardAgreementshallsetforththeextenttowhichtheParticipantshallhavetherighttoexercisetheOptionfollowingterminationoftheParticipant’semployment,serviceordirectorshipwiththeCompanyand/oritsSubsidiaries.SuchprovisionsshallbedeterminedinthesolediscretionoftheCommittee,shallbeincludedineachAwardAgreemententeredintowithaParticipantwithrespecttoanOptionAward,neednotbeuniformamongallOptionsgrantedpursuanttothisArticle6andmayreflectdistinctionsbasedonthereasonsfortermination.

6.9 TransferabilityofOptions.

(a)IncentiveStockOptions.NoISOgrantedunderthisPlanmaybesold,transferred,pledged,assignedorotherwisealienatedorhypothecated,otherthanbywillorbythelawsofdescentanddistributionorpursuanttoaqualifieddomesticrelationsorderasdefinedbytheCodeorTitleIofERISA,ortheregulationsthereunder.Further,allISOsgrantedtoaParticipantunderthisPlanshallbeexercisableduringhisorherlifetimeonlybysuchParticipant.

(b)NonqualifiedStockOptions.ExceptasotherwiseprovidedinaParticipant’sAwardAgreement,NQSOsgrantedunderthisPlanmaynotbesold,transferred,pledged,assignedorotherwisealienatedorhypothecated,otherthanbywillorbythelawsofdescentanddistributionorpursuanttoaqualifieddomesticrelationsorderasdefinedbytheCodeorTitleIofERISA,ortheregulationsthereunder.Further,exceptasotherwiseprovidedinaParticipant’sAwardAgreement,allNQSOsgrantedtoaParticipantunderthisPlanshallbeexercisableduringhisorherlifetimeonlybysuchParticipant.

6.10 NoDividendRights. OptionsgrantedunderthisPlanmaynotprovideforanydividendordividendequivalentsthereon.

6.11 DeferredPayment. Totheextentpermittedbylaw,anygrantmayprovidefordeferredpaymentoftheOptionPricefromtheproceedsofsalethroughabankorbrokeronadatesatisfactorytotheCompanyofsomeorallofthesharestowhichsuchexerciserelates.

6.12 PerformanceGoals.AnygrantofOptionsmayspecifyperformancegoalsthatmustbeachievedasaconditiontotheexerciseofsuchOptions.

ARTICLE 7

Appreciation Rights

7.1 GrantofAppreciationRights. SubjecttothetermsandprovisionsofthisPlan,theCommitteemay,fromtimetotimeanduponsuchtermsandconditionsasitmaydetermine,authorizethegranting(a)toanyOptionee,ofTandemAppreciationRightsinrespectofOptionsgrantedhereunder,and(b)toanyParticipant,ofFree-StandingAppreciationRights.ATandemAppreciationRightwillbearightoftheOptionee,exercisablebysurrenderoftherelatedOption,toreceivefromtheCompanyanamountdeterminedbytheCommittee,whichwillbeexpressedasapercentageoftheSpread(notexceeding100percent)atthetimeofexercise.TandemAppreciationRightsmaybegrantedatanytimepriortotheexerciseorterminationoftherelatedOptions;provided,however,thataTandemAppreciationRightawardedinrelationtoanIncentiveStockOptionmustbegrantedconcurrentlywithsuchIncentiveStockOption.AFree-StandingAppreciationRightwillbearightoftheParticipanttoreceivefromtheCompanyanamountdeterminedbytheCommittee,whichwillbeexpressedasapercentageoftheSpread(notexceeding100percent)atthetimeofexercise.

7.2 AppreciationRightsAwardAgreement. EachAppreciationRightgrantshallbeevidencedbyanAwardAgreementthatshallspecifytheBasePrice(ifapplicable),thedurationoftheAppreciationRight,identifytherelatedOptions(ifapplicable),andsuchotherprovisionsastheCommitteeshalldeterminethatarenotinconsistentwiththetermsofthisPlan.

7.3 Payment. EachgrantofAppreciationRightsmayspecifythattheamountpayableonexerciseofanAppreciationRight(a)willbepaidbytheCompanyincash,Sharesoranycombinationthereofand(b)maynotexceedamaximumspecifiedbytheCommitteeattheDateofGrant.

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7.4 WaitingPeriodandExercisability.AnygrantofAppreciationRightsmayspecifywaitingperiodsbeforeexerciseandpermissibleexercisedatesorperiods.Furthermore,eachgrantmayspecifytheperiodorperiodsofcontinuousservicebytheParticipantwiththeCompanyoranySubsidiarythatisnecessarybeforetheAppreciationRightsorinstallmentsthereofwillbecomeexercisable.Moreover,anygrantofAppreciationRightsmayprovidethatsuchAppreciationRightsbeexercisableearlyorcontinuetovest,includingintheeventoftheretirement,deathordisabilityofaParticipantorintheeventofaChangeinControl.

7.5 PerformanceGoals.AnygrantofAppreciationRightsmayspecifyperformancegoalsthatmustbeachievedasaconditionoftheexerciseofsuchAppreciationRights.

7.6 TerminationofEmployment,ServiceorDirectorship. EachAppreciationRightsAwardAgreementshallsetforththeextenttowhichtheParticipantshallhavetherighttoexercisetheAppreciationRightsfollowingterminationoftheParticipant’semployment,serviceordirectorshipwiththeCompanyand/oritsSubsidiaries.SuchprovisionsshallbedeterminedinthesolediscretionoftheCommittee,shallbeincludedineachAwardAgreemententeredintowithaParticipantwithrespecttoanAppreciationRightsAward,neednotbeuniformamongallAppreciationRightsgrantedpursuanttothisArticle7andmayreflectdistinctionsbasedonthereasonsfortermination.

7.7 TandemAppreciationRights. AnygrantofTandemAppreciationRightswillprovidethatsuchTandemAppreciationRightsmaybeexercisedonlyatatimewhentherelatedOptionisalsoexercisableandatatimewhentheSpreadispositive,andbysurrenderoftherelatedOptionforcancellation.SuccessivegrantsofTandemAppreciationRightsmaybemadetothesameParticipantregardlessofwhetheranyTandemAppreciationRightspreviouslygrantedtotheParticipantremainunexercised.

7.8 NoDividendRights. AppreciationRightsgrantedunderthisPlanmaynotprovideforanydividendsordividendequivalentsthereon.

7.9 Transferability.ExceptasotherwiseprovidedinaParticipant’sAwardAgreement,AppreciationRightsgrantedunderthisPlanmaynotbesold,transferred,pledged,assignedorotherwisealienatedorhypothecated,otherthanbywillorbythelawsofdescentanddistributionorpursuanttoaqualifieddomesticrelationsorderasdefinedbytheCodeorTitleIofERISA,ortheregulationsthereunder.Further,exceptasotherwiseprovidedinaParticipant’sAwardAgreement,allAppreciationRightsgrantedtoaParticipantunderthisPlanshallbeexercisableduringhisorherlifetimeonlybysuchParticipant.

7.10 Free-StandingAppreciationRights.ThesetermsapplyonlytoFree-StandingAppreciationRights:

(a)BasePrice.EachgrantwillspecifyinrespectofeachFree-StandingAppreciationRightaBasePrice,which(exceptwithrespecttoawardsunderArticle22ofthisPlan)maynotbelessthantheFairMarketValueperShareontheDateofGrant.ExceptasotherwiseprovidedinSection4.4hereof,withoutpriorstockholderapproval,norepricingofAppreciationRightsawardedunderthisPlanshallbepermittedsuchthatthetermsofoutstandingAppreciationRightsmaynotbeamendedtoreducetheBasePrice;further,exceptasotherwiseprovidedinSection4.4hereof,withoutpriorstockholderapproval,AppreciationRightsmaynotbereplacedorregrantedthroughcancellation,inexchangeforcashorotherAwards,oriftheeffectofthereplacementorregrantwouldbetoreducetheBasePriceoftheAppreciationRightsorwouldconstitutearepricingundergenerallyacceptedaccountingprinciplesintheUnitedStates(asapplicabletotheCompany’spublicreporting).

(b)Duration. NoFree-StandingAppreciationRightgrantedunderthisPlanmaybeexercisedmorethan10yearsfromtheDateofGrant.

ARTICLE 8

Restricted Stock

8.1 GrantofRestrictedStock. SubjecttothetermsandprovisionsofthisPlan,theCommitteeatanytime,andfromtimetotime,maygrantorsellSharesasRestrictedStock(“SharesofRestrictedStock”)toParticipantsinsuchamountsastheCommitteeshalldetermine.

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8.2 RestrictedStockAwardAgreement. EachAwardofRestrictedStockshallbeevidencedbyanAwardAgreementthatshallspecifythePeriodofRestriction,thenumberofSharesofRestrictedStockgrantedortobesold,andsuchotherprovisionsastheCommitteeshalldetermine.

8.3 Transferability. ExceptasprovidedintheParticipant’srelatedAwardAgreementand/orthisArticle8,theSharesofRestrictedStockgrantedorsoldtoaParticipantunderthisPlanmaynotbesold,transferred,pledged,assignedorotherwisealienatedorhypothecateduntiltheendoftheapplicablePeriodofRestrictionestablishedbytheCommitteeandspecifiedintherelatedAwardAgreemententeredintowiththatParticipant,oruponearliersatisfactionofanyotherconditions,asspecifiedbytheCommitteeinitssolediscretionandsetforthintheAwardAgreement.DuringtheapplicablePeriodofRestriction,allrightswithrespecttotheRestrictedStockgrantedtoaParticipantunderthisPlanshallbeavailableduringhisorherlifetimeonlytosuchParticipant.AnyattemptedassignmentofRestrictedStockinviolationofthisSection8.3shallbenullandvoid.

8.4 OtherRestrictions. (a)TheCommitteemayimposesuchotherconditionsand/orrestrictionsonanySharesofRestrictedStockgrantedpursuanttothisPlanasitmaydeemadvisable,including,withoutlimitation,arequirementthatParticipantspayastipulatedpurchasepriceforeachShareofRestrictedStock,restrictionsbasedupontheachievementofspecificperformancegoals,time-basedrestrictionsonvestingfollowingtheattainmentoftheperformancegoalsand/orrestrictionsunderapplicableU.S.federalorstatesecuritieslaws.Further,agrantorsaleofSharesofRestrictedStockmayprovideforcontinuedvestingorearlierterminationofrestrictions,includingintheeventoftheretirement,deathordisabilityofaParticipantorintheeventofaChangeinControl;provided,thatnosuchadjustmentwillbemadeinthecaseofaPerformance-BasedAward(otherthaninconnectionwiththedeathordisabilityoftheParticipantoraChangeinControl)wheresuchactionwouldresultinthelossoftheotherwiseavailableexemptionoftheawardunderSection162(m)oftheCode.

(b)UnlessotherwisedirectedbytheCommittee,(i)allcertificatesrepresentingSharesofRestrictedStockwillbeheldincustodybytheCompanyuntilallrestrictionsthereonwillhavelapsed,togetherwithastockpowerorpowersexecutedbytheParticipantinwhosenamesuchcertificatesareregistered,endorsedinblankandcoveringsuchsharesor(ii)allSharesofRestrictedStockwillbeheldattheCompany’stransferagentinbookentryformwithappropriaterestrictionsrelatingtothetransferofsuchSharesofRestrictedStock.

8.5 RemovalofRestrictions. ExceptasotherwiseprovidedinthisArticle8,SharesofRestrictedStockcoveredbyeachRestrictedStockAwardmadeunderthisPlanshallbecomefreelytransferablebytheParticipantafterallconditionsandrestrictionsapplicabletosuchShareshavebeensatisfiedorhavelapsed.

8.6 VotingRights. TotheextentpermittedbytheCommitteeorrequiredbylaw,ParticipantsholdingSharesofRestrictedStockgrantedhereundermayexercisefullvotingrightswithrespecttothoseSharesduringtheapplicablePeriodofRestriction.

8.7 Dividends. DuringtheapplicablePeriodofRestriction,ParticipantsholdingSharesofRestrictedStockgrantedorsoldhereundershall,unlesstheCommitteeotherwisedetermines,becreditedwithcashdividendspaidwithrespecttotheShares,inamannerdeterminedbytheCommitteeinitssolediscretion.TheCommitteemayapplyanyrestrictionstothedividendsthatitdeemsappropriate;provided,however,thatdividendsorotherdistributionsonSharesofRestrictedStockwillinallcasesbedeferreduntilandpaidcontingentuponthevestingoftheRestrictedStock.

8.8 TerminationofEmployment,ServiceorDirectorship. EachRestrictedStockAwardAgreementshallsetforththeextenttowhichtheParticipantshallhavetherighttoreceiveunvestedSharesofRestrictedStockfollowingterminationoftheParticipant’semployment,serviceordirectorshipwiththeCompanyand/oritsSubsidiaries.SuchprovisionsshallbedeterminedinthesolediscretionoftheCommittee,shallbeincludedineachAwardAgreemententeredintowithaParticipantwithrespecttoSharesofRestrictedStock,neednotbeuniformamongallSharesofRestrictedStockgrantedpursuanttothisArticle8andmayreflectdistinctionsbasedonthereasonsfortermination.

ARTICLE 9

Performance Units, Performance Shares and Cash Incentive Awards

9.1 GrantofPerformanceUnits,PerformanceSharesandCashIncentiveAwards. SubjecttothetermsofthisPlan,PerformanceUnits,PerformanceSharesandCashIncentiveAwardsmaybegrantedtoParticipantsinsuchamountsanduponsuchterms,andatanytimeandfromtimetotime,asshallbedeterminedbytheCommittee.

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9.2 AwardAgreement. EachAwardofPerformanceUnits,PerformanceSharesorCashIncentiveAwardshallbeevidencedbyanAwardAgreementthatshallspecifythePerformancePeriod,thenumberofPerformanceUnitsorPerformanceSharesoramountofCashIncentiveAwardgranted,andsuchotherprovisionsastheCommitteeshalldetermine.Further,thePerformancePeriodmaybesubjecttoearlierlapseormodification,includingintheeventofretirement,deathordisabilityofaParticipantorintheeventofaChangeinControl;furtherprovided,thatnosuchadjustmentwillbemadeinthecaseofaPerformance-BasedAward(otherthaninconnectionwiththedeathordisabilityoftheParticipantoraChangeinControl)wheresuchactionwouldresultinthelossoftheotherwiseavailableexemptionoftheawardunderSection162(m)oftheCode.Insuchevent,theAwardAgreementwillspecifythetimeandtermsofdelivery.

9.3 ValueofPerformanceUnits,PerformanceSharesandCashIncentiveAwards. EachPerformanceUnitshallhaveaninitialvaluethatisestablishedbytheCommitteeatthetimeofgrant.EachPerformanceShareshallhaveaninitialvalueequaltoonehundredpercent(100%)oftheFairMarketValueofaShareonthedateofgrant.TheCommitteeshallsetperformancegoalsinitsdiscretionthat,dependingontheextenttowhichtheyaremet,willdeterminethenumberand/orvalueofPerformanceUnits,PerformanceSharesorCashIncentiveAwardswhichwillbepaidouttotheParticipant.

9.4 FormandTimingofPaymentofPerformanceUnits,PerformanceSharesandCashIncentiveAwards. SubjecttotheprovisionsofArticle13hereoforasotherwisedeterminedbytheCommitteeintheAwardAgreement,paymentofearnedPerformanceUnits,PerformanceSharesorCashIncentiveAwardstoaParticipantshallbemadenolaterthanMarch15followingtheendofthecalendaryearinwhichsuchPerformanceUnits,PerformanceSharesorCashIncentiveAwardsvest,orassoonasadministrativelypracticablethereafterifpaymentisdelayedduetounforeseeableevents.SubjecttothetermsofthisPlan,theCommittee,initssolediscretion,maypayearnedPerformanceUnitsorPerformanceSharesintheformofcashorinShares(orinacombinationthereof)thathaveanaggregateFairMarketValueequaltothevalueoftheearnedPerformanceUnitsorPerformanceSharesatthecloseoftheapplicablePerformancePeriod.AnySharesissuedortransferredtoaParticipantforthispurposemaybegrantedsubjecttoanyrestrictionsthataredeemedappropriatebytheCommittee.

9.5 TerminationofEmployment,ServiceorDirectorship. EachAwardAgreementprovidingforaPerformanceUnit,PerformanceShareorCashIncentiveAwardshallsetforththeextenttowhichtheParticipantshallhavetherighttoreceiveapayoutofcashorShareswithrespecttounvestedPerformanceUnits,PerformanceSharesorCashIncentiveAwardfollowingterminationoftheParticipant’semployment,serviceordirectorshipwiththeCompanyand/oritsSubsidiaries.SuchprovisionsshallbedeterminedinthesolediscretionoftheCommittee,shallbeincludedintheAwardAgreemententeredintowiththeParticipant,neednotbeuniformamongallAwardsofPerformanceUnits,PerformanceSharesorCashIncentiveAwardsgrantedpursuanttothisArticle9andmayreflectdistinctionsbasedonthereasonsfortermination.

9.6 Transferability. ExceptasotherwiseprovidedinaParticipant’srelatedAwardAgreement,PerformanceUnits,PerformanceSharesandCashIncentiveAwardsmaynotbesold,transferred,pledged,assignedorotherwisealienatedorhypothecated,otherthanbywillorbythelawsofdescentanddistributionorpursuanttoaqualifieddomesticrelationsorderasdefinedbytheCodeorTitleIofERISA,ortheregulationsthereunder.Further,exceptasotherwiseprovidedinaParticipant’srelatedAwardAgreement,aParticipant’srightswithrespecttoPerformanceUnits,PerformanceSharesorCashIncentiveAwardsgrantedtothatParticipantunderthisPlanshallbeavailableduringtheParticipant’slifetimeonlytotheParticipant.AnyattemptedassignmentofPerformanceUnits,PerformanceSharesorCashIncentiveAwardinviolationofthisSection9.6shallbenullandvoid.

9.7 VotingRightsandDividends. DuringtheapplicableVestingPeriod,ParticipantsholdingPerformanceUnitsorPerformanceSharesshallnothavevotingrightswithrespecttotheSharesunderlyingsuchunitsorshares.DuringtheapplicableVestingPeriod,ParticipantsholdingPerformanceUnitsorPerformanceSharesgrantedhereundershall,unlesstheCommitteeotherwisedetermines,becreditedwithdividendequivalents,intheformofcashoradditionalPerformanceUnitsorPerformanceShares(asdeterminedbytheCommitteeinitssolediscretion),ifacashdividendispaidwithrespecttotheShares.TheextenttowhichdividendequivalentsshallbecreditedshallbedeterminedinthesolediscretionoftheCommittee.SuchdividendequivalentsshallbesubjecttoaVestingPeriodequaltotheremainingVestingPeriodofthePerformanceUnitsorPerformanceShareswithrespecttowhichthedividendequivalentsarepaid.DividendequivalentscreditedwithrespecttoPerformanceUnitsorPerformanceSharesthatdonotvestshallbeforfeited.

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ARTICLE 10

Restricted Stock Units

10.1 GrantofRSUs. SubjecttothetermsandprovisionsofthisPlan,theCommitteeatanytime,andfromtimetotime,maygrantorsellRSUstoeligibleParticipantsinsuchamountsastheCommitteeshalldetermine.

10.2 RSUAwardAgreement. EachRSUAwardtoaParticipantshallbeevidencedbyanRSUAwardAgreemententeredintowiththatParticipant,whichshallspecifytheVestingPeriod,thenumberofRSUsgranted,thetimeandmannerofpaymentforearnedRSUs,andsuchotherprovisionsastheCommitteeshalldetermineinitssolediscretion.Further,anygrantorsaleofRestrictedStockUnitsmayprovideforcontinuedvestingortheearlyterminationofrestrictions,includingintheeventofretirement,deathordisabilityofaParticipantorintheeventofaChangeofControl;furtherprovided,thatnoawardofRestrictedStockUnitsintendedtobeaPerformance-BasedAwardwillprovideforsuchearlylapseormodificationoftheRestrictionPeriod(otherthaninconnectionwiththedeathordisabilityoftheParticipantoraChangeinControl)totheextentsuchprovisionswouldcausesuchawardtofailtobeaPerformance-BasedAward.

10.3 Transferability. ExceptasprovidedinaParticipant’srelatedAwardAgreement,RSUsgrantedhereundermaynotbesold,transferred,pledged,assignedorotherwisealienatedorhypothecated,otherthanbywillorbythelawsofdescentanddistributionorpursuanttoaqualifieddomesticrelationsorderasdefinedbytheCodeorTitleIofERISA,ortheregulationsthereunder.Further,exceptasotherwiseprovidedinaParticipant’srelatedAwardAgreement,aParticipant’srightswithrespecttoanRSUAwardgrantedtothatParticipantunderthisPlanshallbeavailableduringhisorherlifetimeonlytosuchParticipant.AnyattemptedassignmentofanRSUAwardinviolationofthisSection10.3shallbenullandvoid.

10.4 FormandTimingofDelivery. IfaParticipant’sRSUAwardAgreementprovidesforpaymentincash,paymentequaltotheFairMarketValueoftheSharesunderlyingtheRSUAward,calculatedasofthelastdayoftheapplicableVestingPeriod,shallbemadeinasinglelump-sumpayment.IfaParticipant’sRSUAwardAgreementprovidesforpaymentinShares,theSharesunderlyingtheRSUAwardshallbedeliveredtotheParticipant.SubjecttotheprovisionsofArticle13hereoforasotherwisedeterminedbytheCommitteeintheAwardAgreement,suchpaymentofcashorSharesshallbemadenolaterthanMarch15followingtheendofthecalendaryearduringwhichtheRSUAwardvests,orassoonaspracticablethereafterifpaymentisdelayedduetounforeseeableevents.SuchdeliveredSharesshallbefreelytransferablebytheParticipant.

10.5 VotingRightsandDividends. DuringtheapplicableVestingPeriod,ParticipantsholdingRSUsshallnothavevotingrightswithrespecttotheSharesunderlyingsuchRSUs.DuringtheapplicableVestingPeriod,ParticipantsholdingRSUsgrantedhereundershall,unlesstheCommitteeotherwisedetermines,becreditedwithdividendequivalents,intheformofcashoradditionalRSUs(asdeterminedbytheCommitteeinitssolediscretion),ifacashdividendispaidwithrespecttotheShares.TheextenttowhichdividendequivalentsshallbecreditedshallbedeterminedinthesolediscretionoftheCommittee.SuchdividendequivalentsshallbesubjecttoaVestingPeriodequaltotheremainingVestingPeriodoftheRSUswithrespecttowhichthedividendequivalentsarepaid.DividendequivalentscreditedwithrespecttoRSUsthatdonotvestshallbeforfeited.

10.6 TerminationofEmployment,ServiceorDirectorship. EachRSUAwardAgreementshallsetforththeextenttowhichtheapplicableParticipantshallhavetherighttoreceiveapayoutofcashorShareswithrespecttounvestedRSUsfollowingterminationoftheParticipant’semployment,serviceordirectorshipwiththeCompanyand/oritsSubsidiaries.SuchprovisionsshallbedeterminedinthesolediscretionoftheCommittee,shallbeincludedineachAwardAgreemententeredintowithaParticipantwithrespecttoRSUs,neednotbeuniformamongallRSUsgrantedpursuanttothisArticle10andmayreflectdistinctionsbasedonthereasonsfortermination.

ARTICLE 11

Other Awards

11.1 GrantofOtherAwards.SubjecttoapplicablelawandthelimitssetforthinArticle4ofthisPlan,theCommitteemaygranttoanyParticipantsuchotherawardsthatmaybedenominatedorpayablein,valuedinwholeorinpartbyreferenceto,orotherwisebasedon,orrelatedto,Sharesorfactorsthatmayinfluencethevalueofsuchshares,including,withoutlimitation,convertibleorexchangeabledebtsecurities,otherrightsconvertibleorexchangeableintoShares,purchaserightsforShares,awardswithvalueandpaymentcontingentuponperformanceoftheCompanyor

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specifiedSubsidiaries,affiliatesorotherbusinessunitsthereoforanyotherfactorsdesignatedbytheCommittee,andawardsvaluedbyreferencetothebookvalueoftheSharesorthevalueofsecuritiesof,ortheperformanceofspecifiedSubsidiariesoraffiliatesorotherbusinessunitsoftheCompany.TheCommitteewilldeterminethetermsandconditionsofsuchawards.SharesdeliveredpursuanttoanawardinthenatureofapurchaserightgrantedunderthisArticle11willbepurchasedforsuchconsideration,paidforatsuchtime,bysuchmethods,andinsuchforms,including,withoutlimitation,Shares,otherawards,notesorotherproperty,astheCommitteedetermines.

11.2 TandemAwards.Cashawards,asanelementof,orsupplementto,anyotherawardgrantedunderthisPlan,mayalsobegrantedpursuanttothisArticle11.

11.3 SharesasBonus.TheCommitteemaygrantSharesasabonus,ormaygrantotherawardsinlieuofobligationsoftheCompanyoraSubsidiarytopaycashordeliverotherpropertyunderthisPlanorunderotherplansorcompensatoryarrangements,subjecttosuchtermsaswillbedeterminedbytheCommitteeinamannerthatcomplieswithSection409AoftheCode.

11.4 EarlyTerminations.AnygrantofanawardunderthisArticle11mayprovideforcontinuedvestingortheearlyvestingorterminationofrestrictions,includingintheeventofretirement,deathordisabilityofaParticipantorintheeventofaChangeinControl;furtherprovided,thatnoawardgrantedunderthisArticle11thatisintendedtobeaPerformance-BasedAwardwillprovideforsuchearlylapseormodification(otherthaninconnectionwiththedeathordisabilityoftheParticipantoraChangeinControl)totheextentsuchprovisionswouldcausesuchawardtofailtobeaPerformance-BasedAward.Insuchevent,theAwardAgreementwillspecifythetimeandtermsofdelivery.

11.4 Dividends and Dividend Equivalents .TheCommitteemay,atoraftertheDateofGrant,authorizethepaymentofdividendsordividendequivalentsonAwardsgrantedunderthisArticle11onadeferredandcontingentbasis,eitherincashorinadditionalShares;provided,however,thatdividendequivalentsorotherdistributionsonSharesunderlyingAwardsgrantedunderthisArticle11willbedeferreduntilandpaidcontingentupontheearningofsuchAwards.

ARTICLE 12

Performance Measures

12.1 PerformanceMeasures. UnlessanduntiltheCommitteeproposesandstockholdersapproveachangeinthegeneralperformancemeasuressetforthinthisArticle12,theattainmentofwhichmaydeterminethedegreeofpayoutand/orvestingwithrespecttoAwardstoCoveredEmployeeswhicharedesignedtoqualifyforthePerformance-BasedException,theperformancemeasure(s)tobeusedforpurposesofsuchPerformance-BasedAwardsshallbechosenfromamongthefollowingalternatives(includingrelativeorgrowthachievementregardingsuchalternatives):(a)CashFlow(includingoperatingcashflowandfreecashflow);(b)CashFlowReturnonCapital;(c)CashFlowReturnonAssets;(d)CashFlowReturnonEquity;(e)NetIncome;(f)ReturnonCapital;(g)ReturnonInvestedCapital;(h)ReturnonAssets;(i)ReturnonEquity;(j)SharePrice;(k)EarningsPerShare(basicordiluted);(l)EarningsBeforeInterestandTaxes;(m)EarningsBeforeInterest,Taxes,DepreciationandAmortization;(n)TotalandRelativeShareholderReturn;(o)OperatingIncome;(p)ReturnonNetAssets;(q)GrossorOperatingMargins;(r)Safety;and(s)EconomicValueAddedorEVA.

SubjecttothetermsofthisPlan,eachofthesemeasuresmaybedescribedintermsofCompany-wideobjectivesorobjectivesthatarerelatedtotheperformanceoftheindividualParticipantorofoneormoreoftheSubsidiaries,divisions,departments,regions,functionsorotherorganizationalunitswithintheCompanyoritsSubsidiaries.Eachofthesemeasuresmaybemaderelativetotheperformanceofothercompaniesorsubsidiaries,divisions,departments,regions,functionsorotherorganizationalunitswithinsuchothercompanies,andmaybemaderelativetoanindexoroneormoreoftheperformanceobjectivesthemselves.Furthermore,inthecaseofaPerformance-BasedAward,eachperformancemeasurewillbeobjectivelydeterminabletotheextentrequiredunderSection162(m)oftheCode,and,unlessotherwisedeterminedbytheCommitteeandtotheextentconsistentwithSection162(m)oftheCode,mayincludeorexcludespecifiedresearchanddevelopmentexpenses,acquisitioncosts,operatingexpensesfromacquiredbusinessesorcorporatetransactions,andsuchotherunusualorinfrequentitemsasdefinedbytheCommitteeinitssolediscretionandasidentifiedontheDateofGrant.

12.2 Adjustments. TheCommitteeshallhavethesolediscretiontoadjustdeterminationsofthedegreeofattainmentofthepre-establishedperformancegoals;provided,however,that,exceptinconnectionwithaChangein

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Control,aPerformance-BasedAwardmaynotbeadjustedinamannerthatwouldresultintheAwardnolongerqualifyingforthePerformance-BasedException.TheCommitteeshallretainthediscretiontoadjustsuchAwardsdownward.

12.3 CompliancewithCodeSection162(m). Intheeventthatapplicabletaxand/orsecuritieslawsorregulationschangetopermitCommitteediscretiontoalterthegoverningperformancemeasureswithoutobtainingstockholderapprovalofsuchchanges,theCommitteeshallhavesolediscretiontomakesuchchangeswithoutobtainingstockholderapproval;providedthataftersuchchangeorchangestheAwardcontinuestoqualifyforthePerformance-BasedException.Inaddition,intheeventthattheCommitteedeterminesthatitisadvisabletograntAwardsthatwillnotqualifyforthePerformance-BasedException,theCommitteemaymakesuchgrantswithoutsatisfyingtherequirementsofSection162(m)oftheCodeandtheregulationsissuedthereunder.Anyperformance-basedAwardsgrantedtoOfficersorDirectorsthatarenotintendedtoqualifyasqualifiedperformance-basedcompensationunderSection162(m)oftheCodeshallbebasedonachievementofsuchperformancemeasure(s)andbesubjecttosuchterms,conditionsandrestrictionsastheCommitteeshalldetermine.

ARTICLE 13

DeferralsTheCommitteemay,initssolediscretion,permitselectedParticipantstoelecttodeferpaymentofsomeoralltypesofAwards,ormay

provideforthedeferralofanAwardinanAwardAgreement;provided,however,thatthetimingofanysuchelectionandpaymentofanysuchdeferralshallbespecifiedintheAwardAgreementandshallconformtotherequirementsofSection409A(a)(2),(3)and(4)oftheCodeandtheregulationsandrulingsissuedthereunder.Anydeferredpayment,whetherelectedbyaParticipantorspecifiedinanAwardAgreementorbytheCommittee,maybeforfeitedifandtotheextentthattheapplicableAwardAgreementsoprovides.

ARTICLE 14

Rights of Employees, Directors and Consultants

14.1 EmploymentorService. NothinginthisPlanshallinterferewithorlimitinanywaytherightoftheCompanytoterminateanyParticipant’semploymentorserviceatanytime,norconferuponanyParticipantanyrighttocontinueintheemployorserviceoftheCompany.

14.2 NoContractofEmployment. NeitheranAwardnoranybenefitsarisingunderthisPlanshallconstitutepartofaParticipant’semploymentcontractwiththeCompanyoranySubsidiary,andaccordingly,subjecttotheprovisionsofArticle16hereof,thisPlanandthebenefitshereundermaybeterminatedatanytimeinthesoleandexclusivediscretionoftheBoardwithoutgivingrisetoliabilityonthepartoftheCompanyoranySubsidiaryforseverancepayments.

14.3 TransfersBetweenParticipatingEntities. ForpurposesofthisPlan,atransferofaParticipant’semploymentbetweentheCompanyandaSubsidiary,orbetweenSubsidiaries,shallnotbedeemedtobeaterminationofemployment.Uponsuchatransfer,subjecttothetermsofthisPlan,theCommitteemaymakesuchadjustmentstooutstandingAwardsasitdeemsappropriatetoreflectthechangeinreportingrelationships.

ARTICLE 15

Change in ControlThetreatmentofoutstandingAwardsupontheoccurrenceofaChangeinControl,unlessotherwisespecificallyprohibitedunderapplicable

laws,orbytherulesandregulationsofanygoverninggovernmentalagenciesornationalsecuritiesexchanges,shallbedeterminedinthesolediscretionoftheCommitteeinaccordancewiththetermsofthisPlanandshallbedescribedintheAwardAgreementsandneednotbeuniformamongallParticipantsorAwardsgrantedpursuanttothisPlan.

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ARTICLE 16

Amendment, Modification and Termination

16.1 Amendment,Modification,andTermination. TheBoardmayatanytimeandfromtimetotime,alter,amend,suspendorterminatethisPlaninwholeorinpart;provided,however,ifanamendmenttothePlan,forpurposesofapplicablestockexchangerulesandexceptaspermittedunderSection4.4ofthisPlan,(a)wouldmateriallyincreasethebenefitsaccruingtoParticipantsunderthePlan,(b)wouldmateriallyincreasethenumberofsecuritieswhichmaybeissuedunderthePlan,(c)wouldmateriallymodifytherequirementsforparticipationinthePlanor(d)mustotherwisebeapprovedbythestockholdersoftheCompanyinordertocomplywithapplicablelawortherulesoftheNewYorkStockExchangeor,iftheSharesarenottradedontheNewYorkStockExchange,theprincipalnationalsecuritiesexchangeuponwhichtheSharesaretradedorquoted,allasdeterminedbytheBoard,thensuchamendmentwillbesubjecttostockholderapprovalandwillnotbeeffectiveunlessanduntilsuchapprovalhasbeenobtained.NoamendmentoralterationthatwouldadverselyaffecttherightsofanyParticipantunderanyAwardpreviouslygrantedtosuchParticipantshallbemadewithouttheconsentofsuchParticipant.NotwithstandinganythinginthisPlantothecontrary,ParticipantconsentshallnotberequiredforanyamendmenttoArticle20hereoforotherwisethatisdeemednecessaryorappropriatebytheCompanytoensurecompliancewithSection409AoftheCode,theDodd-FrankWallStreetReformandConsumerProtectionActorSection10DoftheExchangeAct,oranyrulesorregulationspromulgatedthereunder.

16.2 AdjustmentofAwardsUpontheOccurrenceofCertainUnusualorNonrecurringEvents. IfpermittedbySection409AoftheCodeandSection162(m)oftheCodeandsubjecttoSections4.4,6.3and7.10(a)ofthisPlan,theCommitteemaymakeadjustmentsinthetermsandconditionsof,andthecriteriaincludedin,Awardsinrecognitionofunusualornonrecurringevents(including,withoutlimitation,theeventsdescribedinSection4.4hereof)affectingtheCompanyorthefinancialstatementsoftheCompanyorinrecognitionofchangesinapplicablelaws,regulationsoraccountingprinciples,whenevertheCommitteedeterminesthatsuchadjustmentsareappropriate.

ARTICLE 17

WithholdingTheCompanyshallhavetherighttodeductapplicabletaxesfromanyAwardpaymentandwithhold,atthetimeofdeliveryorvestingofcash

orSharesunderthisPlan,oratthetimeapplicablelawotherwiserequires,anappropriateamountofcashornumberofSharesoracombinationthereofforpaymentoftaxesrequiredbylawortotakesuchotheractionasmaybenecessaryintheopinionoftheCompanytosatisfyallobligationsforwithholdingofsuchtaxes.TheCommitteemaypermitwithholdingtobesatisfiedbythetransfertotheCompanyofSharestheretoforeownedbytheholderoftheAwardwithrespecttowhichwithholdingisrequired.IfSharesareusedtosatisfytaxwithholding,suchSharesshallbevaluedattheirfairmarketvalueonthedatewhenthetaxwithholdingisrequiredtobemadeandthevaluewithheldshallnotexceedtheminimumamountoftaxesrequiredtobewithheld.

ARTICLE 18

IndemnificationEachpersonwhoisorshallhavebeenamemberoftheCommittee,oroftheBoard,oranofficeroftheCompanytowhomtheCommitteehas

delegatedauthorityinaccordancewithArticle3hereof,shallbeindemnifiedandheldharmlessbytheCompanyagainstandfrom:(a)anyloss,cost,liability,orexpensethatmaybeimposeduponorreasonablyincurredbyhimorherinconnectionwithorresultingfromanyclaim,action,suitorproceedingtowhichheorshemaybeapartyorinwhichheorshemaybeinvolvedbyreasonofanyactiontakenorfailuretoactunderthisPlan,exceptforanysuchactionorfailuretoactthatconstituteswillfulmisconductonthepartofsuchpersonorastowhichanyapplicablestatuteprohibitstheCompanyfromprovidingindemnification;and(b)anyandallamountspaidbyhimorherinsettlementofanyclaim,action,suitorproceedingastowhichindemnificationisprovidedpursuanttoclause(a)ofthissentence,withtheCompany’sapproval,orpaidbyhimorherinsatisfactionofanyjudgmentorawardinanysuchaction,suitorproceedingagainsthimorher,providedheorsheshallgivetheCompanyanopportunity,atitsownexpense,tohandleanddefendthesamebeforeheorsheundertakestohandleanddefenditonhisorherownbehalf.TheforegoingrightofindemnificationshallbeinadditiontoanyotherrightsofindemnificationtowhichsuchpersonsmaybeentitledundertheCompany’sArticlesofIncorporationorBy-Laws(each,asamendedfromtimetotime),asamatteroflaw,orotherwise.

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ARTICLE 19

SuccessorsAllobligationsoftheCompanyunderthisPlanwithrespecttoAwardsgrantedhereundershallbebindingonanysuccessortotheCompany,

whethertheexistenceofsuchsuccessoristhedirectorindirectresultofamerger,consolidation,purchaseofallorsubstantiallyallofthebusinessand/orassetsoftheCompanyorothertransaction.

ARTICLE 20

Clawback ProvisionsAnyAwardAgreementmayreferenceaclawbackpolicyoftheCompanyorprovideforthecancellationorforfeitureofanAwardorthe

forfeitureandrepaymenttotheCompanyofanygainrelatedtoanAward,orotherprovisionsintendedtohaveasimilareffect,uponsuchtermsandconditionsasmaybedeterminedbytheCommitteefromtimetotime,ifaParticipant,eitherduringemploymentorservicewiththeCompanyoritsSubsidiaries,orwithinaspecifiedperiodafterterminationofsuchemploymentorservice,shallengageinanydetrimentalactivity(asdescribedintheapplicableAwardAgreementorsuchclawbackpolicy).Inaddition,notwithstandinganythinginthisPlantothecontrary,anyAwardAgreementorsuchclawbackpolicymayalsoprovideforthecancellationorforfeitureofanAwardortheforfeitureandrepaymenttotheCompanyofanySharesissuedunderand/oranyotherbenefitrelatedtoanAward,orotherprovisionsintendedtohaveasimilareffect,uponsuchtermsandconditionsasmayberequiredbytheCommitteeorunderSection10DoftheExchangeActandanyapplicablerulesorregulationspromulgatedbytheSecuritiesandExchangeCommissionoranynationalsecuritiesexchangeornationalsecuritiesassociationonwhichtheSharesmaybetraded.

ARTICLE 21

General Provisions

21.1 RestrictionsandLegends. NoSharesorotherformofpaymentshallbeissuedortransferredwithrespecttoanyAwardunlesstheCompanyshallbesatisfiedthatsuchissuanceortransferwillbeincompliancewithapplicableU.S.federalandstatesecuritieslaws.TheCommitteemayrequireeachpersonreceivingSharespursuanttoanAwardunderthisPlantorepresenttoandagreewiththeCompanyinwritingthattheParticipantisacquiringtheSharesforinvestmentwithoutaviewtodistributionthereof.AnycertificatesevidencingSharesdeliveredunderthisPlan(totheextentthatsuchSharesaresoevidenced)maybesubjecttosuchstop-transferordersandotherrestrictionsastheCommitteemaydeemadvisableundertherules,regulationsandotherrequirementsoftheSecuritiesandExchangeCommission,anysecuritiesexchangeortransactionreportingsystemuponwhichtheSharesarethenlistedortowhichtheyareadmittedforquotationandanyapplicableU.S.federalorstatesecuritieslaw.InadditiontoanyotherlegendrequiredbythisPlan,anycertificatesforsuchSharesmayincludeanylegendthattheCommitteedeemsappropriatetoreflectanyrestrictionsontransferofsuchShares.

21.2 GenderandNumber. Exceptwhereotherwiseindicatedbythecontext,anymasculinetermusedhereinalsoshallincludethefeminine,thepluralshallincludethesingularandthesingularshallincludetheplural.

21.3 Severability. IfanyprovisionofthisPlanshallbeheldillegalorinvalidforanyreason,theillegalityorinvalidityshallnotaffecttheremainingpartsofthisPlan,andthisPlanshallbeconstruedandenforcedasiftheillegalorinvalidprovisionhadnotbeenincluded.

21.4 RequirementsofLaw. ThegrantingofAwardsandtheissuanceofSharesunderthisPlanshallbesubjecttoallapplicablelaws,rulesandregulations,andtosuchapprovalsbyanygovernmentalagenciesornationalsecuritiesexchangesasmayberequired.

21.5 UncertificatedShares. TotheextentthatthisPlanprovidesforissuanceofcertificatestoreflectthetransferofShares,thetransferofsuchSharesmaybeeffectedonanoncertificatedbasis,totheextentnotprohibitedbyapplicablelawortherulesofanystockexchangeortransactionreportingsystemonwhichtheSharesarelistedortowhichtheSharesareadmittedforquotation.

21.6 UnfundedPlan. InsofarasthisPlanprovidesforAwardsofcash,Sharesorrightsthereto,itwillbeunfunded.AlthoughtheCompanymayestablishbookkeepingaccountswithrespecttoParticipantswhoareentitledtocash,SharesorrightstheretounderthisPlan,itwilluseanysuchaccountsmerelyasabookkeepingconvenience.

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Participantsshallhavenoright,titleorinterestwhatsoeverinortoanyinvestmentsthattheCompanymaymaketoaiditinmeetingitsobligationsunderthisPlan.NothingcontainedinthisPlan,andnoactiontakenpursuanttoitsprovisions,shallcreateorbeconstruedtocreateatrustofanykind,orafiduciaryrelationshipbetweentheCompanyandanyParticipant,beneficiary,legalrepresentativeoranyotherperson.TotheextentthatanypersonacquiresarighttoreceivepaymentsfromtheCompanyunderthisPlan,suchrightshallbenogreaterthantherightofanunsecuredgeneralcreditoroftheCompany.AllpaymentstobemadehereundershallbepaidfromthegeneralfundsoftheCompanyandnospecialorseparatefundshallbeestablishedandnosegregationofassetsshallbemadetoassurepaymentofsuchamounts,exceptasexpresslysetforthinthisPlan.ThisPlanisnotintendedtobesubjecttoERISA.

21.7 NoFractionalShares. NofractionalSharesshallbeissuedordeliveredpursuanttothisPlanoranyAward.TheCommitteeshalldeterminewhethercash,AwardsorotherpropertyshallbedeliveredorpaidinlieuoffractionalSharesorwhethersuchfractionalSharesoranyrightstheretoshallbeforfeitedorotherwiseeliminated.

21.8 GoverningLaw. ThisPlanandalldeterminationsmadeandactionstakenpursuanthereto,totheextentnototherwisegovernedbymandatoryprovisionsoftheCodeorthesecuritieslawsoftheUnitedStates,willbegovernedbyandconstruedinaccordancewiththelawsoftheStateofDelaware,withoutgivingeffecttoanyconflictsoflawsprovisionsthereofthatwouldresultintheapplicationofthelawsofanyotherjurisdiction.

21.9 CompliancewithCodeSection409A. (a)Totheextentapplicable,itisintendedthatthisPlanandanygrantmadehereundercomplywithorbeexemptfromtheprovisionsofSection409AoftheCode,sothattheincomeinclusionprovisionsofSection409A(a)(1)oftheCodedonotapplytotheParticipants.ThisPlanandanygrantsmadehereundershallbeadministeredandinterpretedinamannerconsistentwiththisintent.AnyreferenceinthisPlantoSection409AoftheCodewillalsoincludeanyregulationsoranyotherformalguidancepromulgatedwithrespecttosuchSectionbytheU.S.DepartmentoftheTreasuryortheInternalRevenueService.

(b)NeitheraParticipantnoranyofaParticipant’screditorsorbeneficiarieswillhavetherighttosubjectanydeferredcompensation(withinthemeaningofSection409AoftheCode)payableunderthisPlanandgrantshereundertoanyanticipation,alienation,sale,transfer,assignment,pledge,encumbrance,attachmentorgarnishment.ExceptaspermittedunderSection409AoftheCode,anydeferredcompensation(withinthemeaningofSection409AoftheCode)payabletoaParticipantorforaParticipant’sbenefitunderthisPlanandgrantshereundermaynotbereducedby,oroffsetagainst,anyamountowingbyaParticipanttotheCompanyoranyofitsSubsidiaries.

(c)If,atthetimeofaParticipant’sseparationfromservice(withinthemeaningofSection409AoftheCode),(i)theParticipantwillbeaspecifiedemployee(withinthemeaningofSection409AoftheCodeandusingtheidentificationmethodologyselectedbytheCompanyfromtimetotime)and(ii)theCompanymakesagoodfaithdeterminationthatanamountpayablehereunderconstitutesdeferredcompensation(withinthemeaningofSection409AoftheCode)thepaymentofwhichisrequiredtobedelayedpursuanttothesix-monthdelayrulesetforthinSection409AoftheCodeinordertoavoidtaxesorpenaltiesunderSection409AoftheCode,thentheCompanywillnotpaysuchamountontheotherwisescheduledpaymentdatebutwillinsteadpayit,withoutinterest,onthefirstbusinessdayoftheseventhmonthaftersuchseparationfromservice.

(d)SolelywithrespecttoanyAwardthatconstitutesnonqualifieddeferredcompensationsubjecttoSection409AoftheCodeandthatispayableonaccountofaChangeinControl(includinganyinstallmentsorstreamofpaymentsthatareacceleratedonaccountofaChangeinControl),aChangeinControlshalloccuronlyifsucheventalsoconstitutesa“changeintheownership,”“changeineffectivecontrol,”and/ora“changeintheownershipofasubstantialportionofassets”oftheCompanyasthosetermsaredefinedunderTreasuryRegulation§1.409A-3(i)(5),butonlytotheextentnecessarytoestablishatimeandformofpaymentthatcomplieswithSection409AoftheCode,withoutalteringthedefinitionofChangeinControlforanypurposeinrespectofsuchAward.

(e)NotwithstandinganyprovisionofthisPlanandgrantshereundertothecontrary,inlightoftheuncertaintywithrespecttotheproperapplicationofSection409AoftheCode,theCompanyreservestherighttomakeamendmentstothisPlanandgrantshereunderastheCompanydeemsnecessaryordesirabletoavoidtheimpositionoftaxesorpenaltiesunderSection409AoftheCode.Inanycase,aParticipantwillbesolelyresponsibleandliableforthesatisfactionofalltaxesandpenaltiesthatmaybeimposedonaParticipantorforaParticipant’saccountinconnectionwiththisPlanandgrantshereunder(includinganytaxesandpenaltiesunderSection409AoftheCode),andneithertheCompanynoranyofitsaffiliateswillhaveanyobligationtoindemnifyorotherwiseholdaParticipantharmlessfromanyorallofsuchtaxesorpenalties.

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21.10 IncentiveStockOptionCompliance. TotheextentanyprovisionofthisPlanwouldpreventanyISOthatwasintendedtoqualifyasanISOfromqualifyingassuch,thatprovisionwillbenullandvoidwithrespecttosuchISO.Suchprovision,however,willremainineffectforotherOptionsandtherewillbenofurthereffectonanyprovisionofthisPlan.

ARTICLE 22

Stock-Based Awards in Substitution for Options or Awards Granted by Other Company

NotwithstandinganythinginthisPlantothecontrary:

(a)AwardsmaybegrantedunderthisPlaninsubstitutionfororinconversionof,orinconnectionwithanassumptionof,stockoptions,stockappreciationrights,restrictedstock,restrictedstockunitsorotherstockorstock-basedawardsheldbyawardeesofanentityengaginginacorporateacquisitionormergertransactionwiththeCompanyoranySubsidiary.Anyconversion,substitutionorassumptionwillbeeffectiveasofthecloseofthemergeroracquisition,and,totheextentapplicable,willbeconductedinamannerthatcomplieswithSection409AoftheCode.TheawardssograntedmayreflecttheoriginaltermsoftheawardsbeingassumedorsubstitutedorconvertedforandneednotcomplywithotherspecifictermsofthisPlan,andmayaccountforSharessubstitutedforthesecuritiescoveredbytheoriginalawardsandthenumberofsharessubjecttotheoriginalawards,aswellasanyexerciseorpurchasepricesapplicabletotheoriginalawards,adjustedtoaccountfordifferencesinstockpricesinconnectionwiththetransaction.

(b)IntheeventthatacompanyacquiredbytheCompanyoranySubsidiaryorwithwhichtheCompanyoranySubsidiarymergeshassharesavailableunderapre-existingplanpreviouslyapprovedbystockholdersandnotadoptedincontemplationofsuchacquisitionormerger,thesharesavailableforgrantpursuanttothetermsofsuchplan(asadjusted,totheextentappropriate,toreflectsuchacquisitionormerger)maybeusedforawardsmadeaftersuchacquisitionormergerunderthePlan;provided,however,thatawardsusingsuchavailablesharesmaynotbemadeafterthedateawardsorgrantscouldhavebeenmadeunderthetermsofthepre-existingplanabsenttheacquisitionormerger,andmayonlybemadetoindividualswhowerenotemployeesordirectorsoftheCompanyoranySubsidiarypriortosuchacquisitionormerger.

(c)AnySharesthatareissuedortransferredby,orthataresubjecttoanyawardsthataregrantedby,orbecomeobligationsof,theCompanyunderSections22(a)or22(b)abovewillnotreducetheSharesavailableforissuanceortransferunderthePlanorotherwisecountagainstthelimitscontainedinArticle4ofthePlan.Inaddition,noSharesthatareissuedortransferredby,orthataresubjecttoanyawardsthataregrantedby,orbecomeobligationsof,theCompanyunderSections22(a)or22(b)abovewillbeaddedtotheaggregateplanlimitcontainedinArticle4ofthePlan.

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Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLYTHIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. E39031-P01527 ! !! !! !! !! !! !! !! ! ! ! ! !! ! !! ! !! ! BABCOCK & WILCOX ENTERPRISES, INC. 13024 BALLANTYNE CORPORATE PLACE, SUITE 700 CHARLOTTE, NORTH CAROLINA 28277 2. If proposal 1 is approved, the election of the nominees listed to Class I: 3. If proposal 1 is not approved, the election of the nominees listed to Class III: 1. Approval of amendment to Certificate of Incorporation to declassify Board of Directors and provide for annual elections of all directors beginning in 2020. Nominees: The Board of Directors recommends you vote FOR proposal 1. The Board of Directors recommends you vote FOR proposals 4, 5, 6 and 7. Vote on Directors For address changes and/or comments, please check this box and write them on the back where indicated. Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer. 4. Approval of amendment to Certificate of Incorporation to remove provisions requiring affirmative vote of least 80% of voting power for certain amendments to our Certificate of Incorporation and Bylaws. 5. Ratification of Appointment of Deloitte & Touche LLP as Independent Registered Public Accounting Firm for the year ending December 31, 2018. 6. Approval, on a non-binding advisory basis, of executive compensation. 7. Approval of Amended and Restated 2015 Long-Term Incentive Plan. 2a. Thomas A. Christopher 3a. Thomas A. Christopher 3b. Brian R. Kahn 3c. Leslie C. Kass 2b. Brian R. Kahn 2c. Leslie C. Kass Nominees: Vote on Proposal Vote on Proposals BABCOCK & WILCOX ENTERPRISES, INC. For Against Abstain For Withhold The shares represented by this proxy, when properly executed, will be voted in the manner directed herein by the undersigned Stockholder(s). If no direction is made, this proxy will be voted FOR all nominees and FOR proposals 1, 4, 5, 6 and 7. If any other matters properly come before the meeting, the persons named in this proxy will vote in their discretion. VOTE BY INTERNET Before The Meeting - Go to www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern Time on May 15, 2018 (May 14, 2018 for participants in B&W's Thrift Plan). Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. During The Meeting - Go to www.virtualshareholdermeeting.com/BW2018 You may attend the meeting via the Internet and vote during the meeting. Have the information that is printed in the box marked by the arrow available and follow the instructions. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 p.m. Eastern Time on May 15, 2018 (May 14, 2018 for participants in B&W's Thrift Plan). Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. For Against Abstain

E39032-P01527 Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Proxy Statement and Annual Report are available at www.proxyvote.com. Babcock & Wilcox Enterprises, Inc. Annual Meeting of Stockholders May 16, 2018 at 9:30 a.m. www.virtualshareholdermeeting.com/BW2018 IF YOU HAVE NOT VOTED VIA THE INTERNET OR TELEPHONE, FOLD ALONG PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE BABCOCK & WILCOX ENTERPRISES, INC. THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS ANNUAL MEETING OF STOCKHOLDERS May 16, 2018 The undersigned stockholder(s) hereby appoint(s) Matthew E. Avril and J. André Hall, or either of them, as proxies, each with the power to appoint his substitute, to represent and to vote, as designated on the reverse side of this ballot, all of the shares of common stock of Babcock & Wilcox Enterprises, Inc. ("B&W") that the stockholders(s) is/are entitled to vote at the Annual Meeting of Stockholders to be held at 9:30 a.m. Eastern Time on May 16, 2018, at www.virtualshareholdermeeting.com/BW2018, and any adjournment or postponement thereof. THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED HEREIN. IF NO SUCH DIRECTION IS MADE, THIS PROXY WILL BE VOTED IN ACCORDANCE WITH THE BOARD OF DIRECTORS' RECOMMENDATIONS. ATTENTION PARTICIPANTS IN B&W'S THRIFT PLAN: If you held shares of B&W common stock through The B&W Thrift Plan (the "Thrift Plan"), this proxy covers all shares for which the undersigned has the right to give voting instructions to Vanguard Fiduciary Trust Company ("Vanguard"), Trustee of the Thrift Plan. Your proxy must be received no later than 11:59 p.m. Eastern Time on May 14, 2018. Any shares of B&W common stock held inthe Thrift Plan that are not voted or for which Vanguard does not receive timely voting instructions, will be voted in the same proportion as the shares for which Vanguard receives timely voting instructions for other participants in the Thrift Plan. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED REPLY ENVELOPED Address Changes/Comments: _______________________________________________________________________________ ________________________________________________________________________________________________________ (If you noted any Address Changes/Comments above, please mark corresponding box on the reverse side.) CONTINUED AND TO BE SIGNED ON REVERSE SIDE

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Babcock & Wilcox Enterprises, Inc.s22.q4cdn.com/178702546/files/doc_presentations/2018/04/... · 2018-04-18 · DESCRIPTION. DRIVERS. Award . Size. Global demand for power generation

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BABCOCK & WILCOX ENTERPRISES, INC.d18rn0p25nwr6d.cloudfront.net/CIK-0001630805/edad7bd3... · 2019. 5. 9. · SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ... registrant

APPENDIX 02: BABCOCK-WILCOX MILLS - … (U1-6... · APPENDIX 02: BABCOCK-WILCOX MILLS The Babcock 12.9 E coal mill is described as a vertical spindle, low speed type “E” pressurised