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                                                                EXHIBIT 10(xxvi)

                                 AMENDMENT NO. 1
                                     TO THE
                             NACCO INDUSTRIES, INC.
                     2002 ANNUAL INCENTIVE COMPENSATION PLAN

         The Compensation Committee of the Board of Directors of the Company,
hereby adopts this Amendment No. 1 to the 2002 NACCO Industries, Inc. Annual
Incentive Compensation Plan (the "Plan") effective as of January 1, 2002. Words
and phrases used herein with initial capital letters which are defined in the
Plan are used herein as so defined.

                                    Section 1

         The second sentence of Section 4(a) of the Plan is hereby amended by
adding the words "or after" following the word "during" therein.<PAGE>

                                                               EXHIBIT 10(xxvii)

                                 AMENDMENT NO. 1
                                     TO THE
                             NACCO INDUSTRIES, INC.
                 EXECUTIVE LONG-TERM INCENTIVE COMPENSATION PLAN
            (AS AMENDED AND RESTATED EFFECTIVE AS OF JANUARY 1, 2001)

         The Compensation Committee of the Board of Directors of the Company,
hereby adopts this Amendment No. 1 to the NACCO Industries, Inc. Executive
Long-Term Incentive Compensation Plan (As Amended and Restated Effective as of
January 1, 2001) (the "Plan") effective as of January 1, 2001. Words and phrases
used herein with initial capital letters which are defined in the Plan are used
herein as so defined.

                                    Section 1

         The first clause of the second sentence of Section 3 of the Plan is
hereby amended in its entirety by deleting the phrase "rules and regulations for
its administration" and replacing it with the phrase "rules and regulations for
its administration (including, without limitation, the Guidelines)" therefor.

                                    Section 2

         Section 5(b) of the Plan is hereby amended in its entirety to read as
follows:

         "No later than the ninetieth day of the following calendar year, the
Committee shall approve (i) a preliminary calculation of the amount of each
Award based upon the application of the formula and actual performance to the
Target Awards previously determined in accordance with Section 5(a); and (ii) a
final calculation of the amount of each Award to be paid to each Participant for
the prior year. Notwithstanding the foregoing, (1) the Committee shall have the
power to decrease the amount of any Award below the amount determined in
accordance with Section 5(b)(i); (2) the Committee shall have the power to
increase the amount of any Award above the amount determined in accordance with
Section 5(b)(i); provided, however, that no such increase or change may be made
which would cause any amount paid to a Participant who is, or is determined by
the Committee to be likely to become, a 'covered employee' to be includable as
'applicable employee remuneration' of such Participant, as such terms are
defined in Section 162(m) and (3) no Award, including any Award equal to the
Target Award, shall be payable under the Plan to any Participant except as
determined by the Committee."<PAGE>

                                                                 EXHIBIT 10(xlv)

                       THE NORTH AMERICAN COAL CORPORATION
                        2003 INCENTIVE COMPENSATION PLAN

SUMMARY

The Incentive Compensation Plan (Plan) offers a highly attractive incentive
compensation opportunity to senior managers when all performance objectives
under their control or influence are achieved. This is accomplished through a
structure containing the following elements:

         -        Each participant is assigned an individual incentive target,
                  stated as a percentage of their salary midpoint, that
                  establishes the incentive compensation amount they will
                  receive when performance objectives are met.

         -        The individual target amount is allocated among the following
                  performance components:

                  -        North American Coal (NAC) corporate performance.

                  -        Bellaire Corporation cash flow.

                  -        Business unit results.

                  -        Individual achievement.

         -        Percentage weightings are assigned to each component, based on
                  the participant's accountabilities and their impact on each
                  component.

         -        One or more performance objectives will be established at the
                  beginning of the year for each performance component.

         -        A performance range, which defines the acceptable level of
                  results, from threshold to maximum, is created for each
                  performance objective.

         -        A payout range is defined, which provides for incentive
                  payments of up to 150 percent of the incentive target, except
                  to the extent the Committee elects to increase the actual pool
                  by up to 10 percent, as described below.

         -        A performance/payout schedule combines the two ranges into a
                  matrix that defines the level of incentive compensation
                  payment that will result from each level of performance.

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         -        After audited financials are available, awards will be
                  calculated based on actual results against the established
                  objectives.

         -        A final individual performance adjustment may be made, within
                  a range of +/- 10 percent of the calculated award, based on a
                  judgment of the participant's overall performance.

This Incentive Compensation Plan will allow management and the Board to
establish, in advance, the performance expectations and related incentive
compensation potential that NAC's executives can expect for the year. At
year-end, the Plan focuses judgment of the management team's performance on
predetermined objectives that should produce fairness in the determination of
rewards.

PLAN STRUCTURE

         INDIVIDUAL INCENTIVE TARGETS

         The primary focus of the proposed Plan is the individual incentive
         compensation target. Each participant is assigned a target, stated as a
         percentage of the mid-point of base salary, which will be paid when all
         relevant performance objectives are achieved. The Plan provides for
         payments above or below the target to reflect acceptable variances from
         performance objectives.

         PERFORMANCE GOALS

         Four sets of goals are proposed:

                              Intentionally Omitted

         INCENTIVE AWARD RANGE

         Actual performance results attained probably will not match the
         established performance goals exactly. Therefore, the Plan is designed
         to provide incentive compensation payouts of up to 150 percent of the
         target award if actual results fall within a predetermined range of
         acceptable performance.

         The award range is defined as follows:

<TABLE>
<CAPTION>
                                        % OF
      AWARD LEVEL                      TARGET                                 DESCRIPTION
------------------------           ----------------         ----------------------------------------------
<S>                                <C>                      <C>
Maximum                                      150%           Highest level of incentive paid.

Target                                       100%           Competitive incentive opportunity for
                                                            achieving all-important goals.

Threshold                              25% to 50%           Incentive paid when results meet minimum
                                                            acceptable standards.

Below threshold                                0%           Performance does not merit incentive
                                                            payment.
</TABLE>

<PAGE>

         COMPONENT WEIGHTINGS

         Participants' potential incentive awards will be allocated between
         performance components based on their individual impact on results. The
         allocations allow for awards to be earned based on the achievement of
         the performance objectives over which each executive has the most
         control. Weightings will be stated as a percentage and total 100
         percent for each participant. The weightings will be established each
         year to reflect current organizational accountabilities and the
         relative importance of the various performance components. Our
         recommended weightings are as follows:

                              Intentionally Omitted

         When there is more than one goal for a performance component, further
         percentage weightings may be assigned, within the overall weightings,
         to reflect the relative priority of each goal. For example, if the
         individual component has a 40 percent weighting and there are five
         individual goals, each individual goal might be assigned a priority
         weighting of 20 percent.

         PERFORMANCE RANGE

         A range of performance acceptable for incentive compensation payment
         will be established for each performance objective. For quantitative
         goals, the range may be set as a percentage of the objective. For goals
         that cannot be quantified, the range will be defined in narrative form.

         The following general definitions will apply. The percentage ranges
         indicated are only guidelines; specific percentage ranges or narrative
         descriptions should be determined for each goal based on the
         definitions.

<TABLE>
<CAPTION>
                          PERFORMANCE
 PERFORMANCE              PERCENTAGE
    LEVEL                  GUIDELINE                              DEFINITION
-------------          -------------------        -----------------------------------------------
<S>                    <C>                        <C>
Threshold                     75%                 Minimum acceptable results justifying payment
                                                  of incentives.

Objective                    100%                 Results meet high performance demands justifying
                                                  fully competitive rewards.

Maximum                      125%                 Highest foreseeable level of performance.
</TABLE>

<PAGE>

         PERFORMANCE/PAYOUT SCHEDULE

         Combining the performance and payout ranges yields a performance/
         payout schedule as in the following example:

<TABLE>
<CAPTION>
 PERFORMANCE                    DEFINITION               RESULTS          AWARD LEVELS           PAYOUT
-------------           ----------------------------    -----------    --------------------    -----------
<S>                     <C>                             <C>            <C>                     <C>
Threshold                         Minimum                   75%             Threshold              50%

Objective                         On plan                  100%             Target                100%

Maximum                    Exceeding expectations          125%             Maximum               150%
</TABLE>

         This schedule is applied separately to the results of each established
         performance element to determine the incentive amount earned in
         accordance with assigned weightings. Performance that falls between the
         defined levels would result in proportionally adjusted payouts, which
         may be calculated mathematically or determined judgmentally.

         CORPORATE PERFORMANCE THRESHOLD

         No incentive compensation awards will be earned under the Plan in any
         year unless the threshold level of the corporate performance component
         is achieved. Once the corporate performance threshold is attained, each
         performance objective is separate and distinct. This means that partial
         awards can be earned for the attainment of one performance objective
         even if another is not sufficient to generate a payout.

         INDIVIDUAL ADJUSTMENT FACTOR

         Each individual award, as calculated above, may be adjusted upward or
         downward by as much as 10 percent of the total award, based on
         management's' perceptions of each individual's overall performance.

         PARTIAL AWARDS

         Executives who are hired or promoted during the year to positions
         eligible for participation in the Plan may be included in the Plan on a
         prorata basis.

         COMMITTEE DISCRETION

         It is the intent of the Plan that the total incentive compensation, as
         determined above, will be the final total corporate incentive
         compensation to be paid. However, the Committee, in its sole
         discretion, may increase or decrease, by up to 10 percent, the total
         incentive compensation or may approve an incentive compensation payment
         where normally there would be no payment, due to corporate performance
         which is below the criteria established for the year.

2003 PERFORMANCE TARGETS

         See Schedule - Intentionally Omitted.

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