Document:

EX-10.2

 

EXHIBIT 10.2

AMENDMENT NO. 1

TO THE KITCHEN COLLECTION, INC.

LONG-TERM INCENTIVE COMPENSATION PLAN

FOR THE PERIOD FROM JANUARY 1, 2003 THROUGH DECEMBER 31, 2007

(AS AMENDED AND RESTATED EFFECTIVE AS OF DECEMBER 1, 2007)

     The Kitchen Collection, Inc. (the “Company”), hereby adopts this Amendment No. 1 to The
Kitchen Collection, Inc. Long-Term Incentive Compensation Plan For the Period From January 1, 2003
through December 31, 2007 (As Amended and Restated Effective as of December 1, 2007) (the “Plan”),
effective as of January 1, 2008. Words and phrases used herein with initial capital letters that
are defined in the Plan are used herein as so defined.

Section 1

     Section 10(b) of the Plan is hereby amended in its entirety to read as follows:

     “(b) Interest.

     (i) The 2007 and 2008 Sub-Accounts of the Non-Frozen Participants shall be credited with
interest in accordance with the rules described in this Subsection; provided, however, that (1) no
interest shall be credited to the Sub-Accounts of the Frozen Participants, (2) no interest shall
be credited to the Pre-2006 Sub-Accounts of the Non-Frozen Participants; (3) no interest shall be
credited to a Sub-Account after the Maturity Date of the Sub-Account, (4) no interest shall be
credited to a Sub-Account following a Participant’s Termination of Employment prior to a Maturity
Date (except as described in Section 10(c)(ii) with respect to delayed payments made to Key
Employees on account of a Termination of Employment) and (5) no interest shall be credited to the
Sub-Accounts after the last day of the month preceding the payment date of such Sub-Account.

     (ii) Subject to the limitations described in clause (i), at the end of each calendar month
during the year, the 2007 and 2008 Sub-Accounts of each Non-Frozen Participant shall be credited
with an amount determined by multiplying the average Sub-Account balances during such month by the
blended rate earned during such month by the Fixed Income Fund. In addition, as of the end of each
calendar year in which the ROTCE Table Rate adopted by the Compensation Committee for such year
exceeds the Fixed Income Fund rate for such year, the Sub-Accounts shall be retroactively credited
with an additional amount (if any) determined by multiplying the average Sub-Account balances
during each month of such calendar year by the excess of the ROTCE Table Rate over the Fixed Income
Fund Rate, compounded monthly. In the event that, prior to an applicable Maturity Date, a
Non-Frozen Participant (X) incurs a Termination of Employment or (Y) becomes eligible for a payment
from a Sub-Account hereunder prior to the Maturity Date, the foregoing interest calculations shall
be made as of the last day of the month immediately preceding such date and shall be based on (1)
the blended rate earned during the preceding month by the Fixed Income Fund and/or (2) the
year-to-date ROTCE Table Rate as of such date, as calculated by the Company, as applicable.

     (iii) The Committee may change (or suspend) the interest rate credited on Accounts at any
time.”

     EXECUTED this 12th day of February, 2008.

	 	 	 	 	 
	 	 	THE KITCHEN COLLECTION, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Charles A. Bittenbender
	 

	 	 	 	 
	 

	 	Title:
	 	Assistant SecretaryEX-10.3

 

EXHIBIT 10.3

AMENDMENT NO. 1

TO THE

HAMILTON BEACH BRANDS, INC.

LONG-TERM INCENTIVE COMPENSATION PLAN

FOR THE PERIOD FROM JANUARY 1, 2003 THROUGH DECEMBER 31, 2007

(AS AMENDED AND RESTATED EFFECTIVE AS OF DECEMBER 1, 2007)

     Hamilton Beach Brands, Inc. (the “Company”), hereby adopts this Amendment No. 1 to the
Hamilton Beach Brands, Inc. Long-Term Incentive Compensation Plan For the Period From January 1,
2000 through December 31, 2007 (As Amended and Restated Effective as of December 1, 2007) (the
“Plan”), effective as of January 1, 2008. Words and phrases used herein with initial capital
letters that are defined in the Plan are used herein as so defined.

Section 1

     Section 10(b) of the Plan is hereby amended in its entirety to read as follows:

     “(b) Interest.

     (i) The Non-Frozen Participant’s Sub-Accounts shall be credited with interest in accordance
with the rules described in this Subsection; provided, however, that (1) no interest shall be
credited to the Sub-Accounts of the Frozen Participants, (2) no interest shall be credited to the
2004 or 2005 Sub-Accounts of the Non-Frozen Participants who are not Covered Employees; (3) no
interest shall be credited to a Sub-Account after the Maturity Date of the Sub-Account, (4) no
interest shall be credited to a Sub-Account following a Participant’s Termination of Employment
prior to a Maturity Date (except as described in Section 10(c)(ii) with respect to delayed payments
made to Key Employees on account of a Termination of Employment) and (5) no interest shall be
credited to the Sub-Accounts after the last day of the month preceding the payment date of such
Sub-Account.

     (ii) Subject to the limitations described in clause (i), at the end of each month during a
calendar year, the applicable Sub-Accounts shall be credited with an amount determined by
multiplying the average Sub-Account balances during such month by the blended rate earned during
such month by the Fixed Income Fund. In addition, as of the end of each calendar year in which the
ROTCE Table Rate adopted by the Compensation Committee for such year exceeds the Fixed Income Fund
rate for such year, the Sub-Accounts shall also be credited with an additional amount (if any)
determined by multiplying the average Sub-Account balances during each month of such calendar year
by the excess of the ROTCE Table Rate over the Fixed Income Fund rate for such calendar year,
compounded monthly. In the event that, prior to an applicable Maturity Date, a Non-Frozen
Participant (1) incurs a Termination of Employment or (2) becomes eligible for a payment from a
Sub-Account hereunder, the foregoing interest calculations shall be made as of the last day of the
month prior to such date and shall be based on (X) the blended rated earned during the preceding
month by the Fixed Income Fund and/or (Y) the year-to-date ROTCE Table Rate as of the last day of
the prior month (as calculated by the Company), as applicable.

     (iii) The Committee may change (or suspend) the interest rate credited on Accounts at any
time.”

     EXECUTED this 12th day of February, 2008.

	 	 	 	 	 
	 	 	HAMILTON BEACH BRANDS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Charles A. Bittenbender
	 

	 	 	 	 
	 

	 	Title:
	 	Assistant SecretaryEX-10.4

 

EXHIBIT 10.4

THE KITCHEN COLLECTION, INC

LONG-TERM INCENTIVE COMPENSATION PLAN

(Effective January 1, 2008)

1. Effective Date

     The Effective Date of The Kitchen Collection, Inc. Long- Term Incentive Compensation Plan (the
“Plan”) is January 1, 2008.

2. Purpose of the Plan

     The purpose of this Plan is to further the long-term profits and growth of The Kitchen
Collection, Inc. (the “Company”) by enabling the Company to attract and retain key management
employees by offering long-term incentive compensation to those officers and key management
employees who will be in a position to make significant contributions to such profits and growth.
This incentive compensation is in addition to all other compensation.

3. Application of Code Section 409A

It is intended that the compensation arrangements under the Plan be in full compliance with
the requirements of Code Section 409A. The Plan shall be interpreted and administered in a
manner to give effect to such intent. Notwithstanding the foregoing, the Company does not
guarantee Participants or Beneficiaries any particular tax treatment under Code Section
409A.

4. Definitions

     (a) “Account” shall mean the record maintained by the Company in accordance with Section 7 to
reflect the Participants’ Awards under the Plan (plus interest thereon). The Account shall be
further sub-divided into various Sub-Accounts as described in Section 8.

     (b) “Award” shall mean the cash awards granted to Participants under this Plan for the Award
Years.

     (c) “Award Year” shall mean the calendar year on which an Award is based, as specified in the
Guidelines.

 

 

     (d) “Beneficiary” shall mean the person(s) designated in writing (on a form acceptable to the
Committee) to receive the payment of a Participant’s Sub-Accounts hereunder in the event of his
death. In the absence of such a designation and at anytime when there is no existing Beneficiary
hereunder, a Participant’s beneficiary shall be his surviving legal spouse or, if none, his estate.

     (e) “Change in Control” shall mean the occurrence of an event described in Appendix A hereto.

     (f) “Code” shall mean the Internal Revenue Code of 1986, as amended.

     (g) “Committee” shall mean the Compensation Committee of the Company’s Board of Directors or
any other committee appointed by the Company’s Board of Directors to administer this Plan in
accordance with Section 5.

     (h) “Disability” or “Disabled.” A Participant shall be deemed to have a “Disability” or be
“Disabled” if the Participant is determined to be totally disabled by the Social Security
Administration or if the Participant (i) is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be expected to result
in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is,
by reason of any medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than 3 months under an
employer-sponsored accident and health plan.

     (i) “Fixed Income Fund” shall mean the Vanguard Retirement Savings Trust IV under the
Company’s qualified 401(k) plan or any equivalent fixed income fund that is designated as the
successor to such fund.

     (j) “Grant Date” shall mean the effective date of an Award, which is the January
1st following the end of the Award Year.

     (k) “Guidelines” shall mean the annual guidelines that are approved by the Committee for each
Award Year for the administration of the Awards granted under the Plan. To the extent that there
is any inconsistency between the Guidelines and the Plan on matters other than the time and form of
payment of the Awards, the Guidelines shall control. If there is any inconsistency between the
Guidelines and this Plan document regarding the time and form of payment of the Awards, this Plan
document shall control.

     (l) “Hay Salary Grade” shall mean the salary grade or points assigned to a Participant by the
Company pursuant to the Hay Salary System, or any successor salary system subsequently adopted by
the Company.

 

 

     (m) “Key Employee.” Effective April 1, 2008, a Participant shall be classified as a Key Employee
if he meets the following requirements:

	 	•	 	The Participant, with respect to his relationship with the Company and its
affiliates, met the requirements of Section 416(i)(1)(A)(i), (ii) or (iii) of the Code
(without regard to Section 416(i)(5) thereof) and the Treasury Regulations issued
thereunder) at any time during the 12-month period ending on the most recent
Identification Date (defined below) and his Termination of Employment occurs during the
12-month period beginning on the most recent Effective Date (defined below). When
applying the provisions of Code Section 416(i)(1)(A)(i), (ii) or (iii) for this
purpose: (i) the definition of “compensation” (A) shall be the definition contained in
Treasury Regulation Section 1.415(c)-2(d)(4) (i.e., wages and other compensation for
which the Employer is required to furnish the Employee with a Form W-2 under Code
Sections 6041, 6051 and 6052, plus amounts deferred at the election of the Employee
under Code Sections 125, 132(f)(4) or 401(k)) and (B) shall apply the rule of Treasury
Regulation Section 1.415-2(g)(5)(ii) which excludes compensation of non-resident alien
employees and (ii) the number of officers described in Code Section 416(i)(1)(A)(i)
shall be 60 instead of 50.
	 
	 	•	 	The Identification Date for Key Employees is each December 31st and the
Effective Date is the following April 1st. As such, any Employee who is
classified as a Key Employee as of December 31st of a particular Plan Year
shall maintain such classification for the 12-month period commencing on the following
April 1st.
	 
	 	•	 	Notwithstanding the foregoing, a Participant shall not be classified as a Key
Employee unless the stock of NACCO Industries, Inc. (or a related entity) is publicly
traded on an established securities market or otherwise on the date of the
Participant’s Termination of Employment.

     (n) “Maturity Date” shall mean the date established in Section 10(a)(i) for each Sub-Account
under the Plan.

     (o) “Participant” shall mean any person who meets the eligibility criteria set forth in
Section 6 and who is granted an Award under the Plan or a person who maintains an Account balance
hereunder.

     (p) “Retirement” or “Retire” shall mean the termination of a Participant’s employment with the
Company after the Participant has reached age 60 and completed at least 15 years of service.

     (q) “ROTCE Table Rate” shall mean the interest rate determined under the ROTCE Table that is
adopted and approved by the Committee within the first 90 days of each calendar year, which rate
shall be in effect for such calendar year.

     (r) “Target Award” shall mean the dollar value of the Award initially approved by the
Committee that would be paid to an individual under the Plan for a particular Award Year assuming
that the applicable performance targets are exactly met.

 

 

     (s) “Termination of Employment” shall mean, with respect to any Participant’s relationship
with the Company and its affiliates, a separation from service as defined in Code Section 409A (and
the regulations and guidance issued thereunder).

5. Administration

     (a) This Plan shall be administered by the Committee. A majority of the Committee shall
constitute a quorum, and the action of members of the Committee present at any meeting at which a
quorum is present, or acts unanimously approved in writing, shall be the act of the Committee. All
acts and decisions of the Committee with respect to any questions arising in connection with the
administration and interpretation of this Plan, including the severability of any or all of the
provisions hereof, shall be conclusive, final and binding upon the Company and all present and
former Participants, all other employees of the Company, and their respective descendants,
successors and assigns. No member of the Committee shall be liable for any such act or decision
made in good faith.

     (b) The Committee shall have complete authority to interpret all provisions of this Plan, to
prescribe the form of any instrument evidencing any Award granted under this Plan, to adopt, amend
and rescind general and special rules and regulations for its administration (including, without
limitation, the Guidelines), and to make all other determinations necessary or advisable for the
administration of this Plan.

6. Eligibility

     Any person who is classified by the Company as a salaried employee of the Company generally
with Hay points of 800 or above (or a compensation level equivalent thereto), who in the judgment
of the Committee occupies an officer or other key management position in which his efforts may
significantly contribute to the profits or growth of the Company, may be eligible to participate in
the Plan; provided, however, that (a) directors of the Company who are not classified as salaried
employees of the Company and (b) leased employees (as such term is defined in Code Section 414)
shall not be eligible to participate in this Plan. A person who satisfies the requirements of this
Section shall become a Participant in the Plan when granted an Award under Section 8(b)(ii).

 

 

7. Accounts and Sub-Accounts

     The Company shall establish and maintain on its books an Account for each Participant which
shall reflect the Awards described in Section 8 hereof. Such Account shall also (a) reflect
credits for the interest described in Section 10(b) and debits for any distributions and (b) be
divided into the Sub-Accounts specified in Section 8(d).

8. Granting of Awards/Crediting to Sub-Accounts.

     The Committee may, from time to time and upon such conditions as it may determine, authorize
the granting of Awards to Participants for each Award Year, which shall be consistent with, and
shall be subject to all of the requirements of, the following provisions:

     (a) Not later than the ninetieth day after the commencement of each Award Year (and prior to
completion of 25% of such Award Year), the Committee shall approve (i) a Target Award to be granted
to each Participant for such Award Year and (ii) a formula for determining the amount of each
Award, which formula shall be based upon the Company’s average return on total capital employed for
such Award Year.

     (b) Effective no later than April 30th of the calendar year following the end of
the Award Year, the Committee shall approve:

     (i) a preliminary calculation of the amount of each Award based upon the application of
the formula (as in effect at the calculation date) and actual Company performance to the
Target Awards previously determined in accordance with Section 8(a); and

     (ii) a final calculation and approval of the amount of each Award to be granted to each
Participant for the such Award Year (with the specified “Grant Date” of such Award being
January 1st of the calendar year following the end of the Award Year). Such
approval shall be certified by the Committee before any amount is paid for any Award granted
with respect to such Award Year. Notwithstanding the foregoing, the Committee shall have the
power to increase or decrease the amount of any Award above or below the amount determined in
accordance with the foregoing provisions; provided, however, that (1) no such decrease may
occur following a Change in Control and (2) no Award, including any Award equal to the Target
Award, shall be payable under the Plan to any Participant except as determined and approved
by the Committee.

     (c) Calculations of Target Awards for an Award Year shall initially be based on a
Participant’s Hay Salary Grade of the Award Year. However such Target Awards may be changed during
or after the Award Year under the following circumstances: (i) if a Participant receives a change
in Hay Salary Grade, salary midpoint and/or long-term incentive compensation target percentage
during an Award Year, such change will be reflected in a pro-rata Target Award, (ii) employees
hired into or promoted to a position eligible to participate in the Plan (as specified in Section 6
above) during an Award Year will, if designated as a Plan Participant by the Committee, be assigned
a pro-rated Target Award based on their length of service during the Award Year and (iii) the
Committee may increase or decrease the amount of the Target Award at any time, in its sole and
absolute discretion; provided that no such decrease may occur after a Change in Control. In order
to be eligible to receive an Award for an Award Year, the Participant must be employed by the
Company and must

 

 

be a Participant on December 31st of the Award Year; provided, however, that if a
Participant dies, becomes Disabled or Retires during the Award Year, the Participant shall be
entitled to a pro-rata portion of the Award for such Award Year, calculated based on actual Company
performance for the entire Award Year in accordance with Section 8(b)(ii) above and the number of
days the Participant was actually employed by the Company during the Award Year.

     (d) After approval by the Compensation Committee, each Award shall be credited to the
Participant’s Account hereunder in accordance with the following rules. The cash value of each
Award for each Award Year shall be credited to a separate Sub-Account for each Participant. Such
Sub-Accounts shall be classified based on the Grant Date of the particular Award. For example, the
cash value of the Awards with a Grant Date of 1/1/09 shall be credited to the 2009 Sub-Account, the
cash value of the Awards with a Grant Date of 1/1/0 shall be credited to the 2010 Sub-Account, etc.

     (e) Notwithstanding any other provision of the Plan, the maximum cash value of the Awards
granted to a Participant under this Plan for any Award Year shall not exceed $250,000 or such lower
amount specified in the Guidelines for a particular Award Year.

     (f) Multiple Awards may be granted to a Participant; provided, however, that no two Awards to
a Participant may have identical performance periods.

9. Vesting

     All Awards granted hereunder shall be immediately 100% vested as of the Grant Date.
Participants shall be 100% vested in all amounts credited to their Accounts hereunder.

 

 

10. Payment of Sub-Account Balances/Interest

     (a) Payment Dates.

     (i) Maturity Dates. The Maturity Date of each Sub-Account shall be the third
anniversary of the Grant Date of the Award that was credited to such Sub-Account. For
example, the Maturity Date of the 2009 Sub-Account (containing Awards with a Grant Date of
1/1/09) shall be 1/1/12. Subject to the provisions of clause (ii) below, the balance of each
Sub-Account shall be paid to the Participant on the Maturity Date of such Sub-Account.

     (ii) Other Payment Dates. Notwithstanding the foregoing, but subject to the
provisions of Section 11 hereof, in the event a Participant dies or incurs a Termination of
Employment as a result of becoming Disabled or Retirement prior to the applicable Maturity
Date, (A) the payment date of all amounts credited to the Participant’s Sub-Accounts as of
the date of death or such Termination of Employment shall be the date of such death or
Termination of Employment and (B) the Award earned for the Award Term including the date of
death or Termination of Employment shall be paid during the period from January
1st through April 30th of the calendar year following the end of such
Award Year; provided, however, that if a Participant who incurs a Termination of Employment
on account of Disability or Retirement is a Key Employee, such payment date shall not be any
earlier than the 1st day of the 7th month following the date of his
Termination of Employment (or, if earlier, the date of the Participant’s death).

     (b) Interest. The Participant’s Sub-Accounts shall be credited with interest as
follows; provided, however, that (1) no interest shall be credited to a Sub-Account after the
Maturity Date of the Sub-Account; (2) no interest shall be credited to a Sub-Account following a
Participant’s Termination of Employment prior to a Maturity Date (except as described in Section
10(c)(ii) with respect to delayed payments made to Key Employees on account of a Termination of
Employment) and (3) no interest shall be credited to the Sub-Accounts after the last day of the
month preceding the payment date of such Sub-Account.

     (i) In General. At the end of each calendar month during the year, the
Sub-Accounts of each Participant shall be credited with an amount determined by multiplying
the average Sub-Account balances during such month by the blended rate earned during such
month by the Fixed Income Fund. In addition, as of the end of each calendar year in which
the ROTCE Table Rate adopted by the Committee for such year exceeds the Fixed Income Fund
rate for such year, the Sub-Accounts shall be retroactively credited with an additional
amount determined by multiplying the average Sub-Account balances during each month of such
calendar year by the excess of the ROTCE Table Rate over the Fixed Income Fund Rate,
compounded monthly.

     (ii) Special Rules. In the event that, prior to an applicable Maturity Date, a
Participant (X) incurs a Termination of Employment or (Y) becomes eligible for a payment from
a Sub-Account hereunder prior to the Maturity Date, the foregoing interest calculations shall
be made as of the last day of the month immediately preceding such date and shall be based on
(1) the blended rate earned during the preceding month by the Fixed Income Fund and/or (2)
the year-to-date ROTCE Table Rate as of the last day of the prior month, as calculated by the
Company, as applicable.

 

 

     (iii) Changes. The Committee may change (or suspend) the interest rate credited
on Accounts at any time.

     (c) Payment Date, Form of Payment and Amount.

     (i) Payment Date and Form. Except as otherwise described in Section 11 hereof,
the Company shall deliver to the Participant (or, if applicable, his Beneficiary), a check in
full payment of each Sub-Account within 90 days of the applicable payment date of such
Sub-Account.

     (ii) Amount. Each Participant shall be paid the entire balance of each
Sub-Account (including interest). If a Participant who incurs a Termination of Employment on
account of Disability or Retirement is a Key Employee whose payment is delayed until the
1st day of the 7th month following such Termination of Employment, such
Participant’s Sub-Accounts shall continue to be credited with interest (at the Fixed Income
Fund rate) through the last day of the month prior to the actual payment date. Any amounts
that would otherwise be payable to the Key Employee prior to the 1st day of the
7th month following Termination of Employment shall be accumulated and paid in a
lump sum make-up payment within 10 days following such delayed payment date.

11. Change in Control

     (a) The following provisions shall apply notwithstanding any other provision of the Plan to
the contrary.

     (b) Amount of Award for Year of Change In Control. In the event of a Change in
Control during an Award Year, the amount of the Award payable to a Participant who is employed on
the date of the Change in control (or who died, became Disabled or Retired during such Award Year
and prior to the Change in Control) for such Award Year shall be equal to the Participant’s Target
Award for such Award Year, multiplied by a fraction, the numerator of which is the number of days
during the Award Year during which the Participant was employed by the Company prior to the Change
in Control and the denominator of which is the number of days in the Award Year.

     (c) Time of Payment. In the event of a Change in Control, the payment date of all
amounts credited to the Participant’s Sub-Accounts (including, without limitation, the pro-rata
Target Award for the Award Year during which the Change in Control occurred) shall be the date that
is between two days prior to, or within 30 days after, the date of the Change in Control, as
determined by the Committee in its sole and absolute discretion.

12. Amendment, Termination and Adjustments

     (a) The Committee, in its sole and absolute discretion, may alter or amend this Plan from time
to time; provided, however, that without the written consent of the affected Participant, no such
amendment shall (i) reduce a Participant’s Account balance as in effect on the date of the
amendment, (ii) reduce the amount of any outstanding Award that was previously approved by the
Committee but not yet paid at the time of the amendment, (iii) modify Section 11(b) hereof or (iv)
alter the time of payment provisions described in Sections 10 and 11 of the Plan, except for any
amendments that

 

 

accelerate the time of payment in a manner permitted by Code Section 409A or are required to
bring such provisions into compliance with the requirements of Code Section 409A.

     (b) The Committee, in its sole and absolute discretion, may terminate this Plan in its
entirety at any time; provided that, such termination is permitted under Code Section 409A and,
without the consent of a Participant, no such termination shall (i) reduce a Participant’s Account
balance as in effect on the date of the termination, (ii) reduce the amount of any outstanding
Award that was previously approved by the Committee but not yet paid at the time of the termination
or (iii) alter the time of payment provisions described in Sections 10 and 11 of the Plan, except
for a termination that accelerate the time of payment in a manner permitted by Code Section 409A or
is required to bring such provisions into compliance with the requirements of Code Section 409A.

     (c) Any amendment or termination of the Plan shall be in the form of a written instrument
executed by an officer of the Company on the order of the Committee. Such amendment or termination
shall become effective as of the date specified in the instrument or, if no such date is specified,
on the date of its execution.

13. General Provisions

     (a) No Right of Employment. Neither the adoption or operation of this Plan, nor any
document describing or referring to this Plan, or any part thereof, shall confer upon any employee
any right to continue in the employ of the Company, or shall in any way affect the right and power
of the Company to terminate the employment of any employee at any time with or without assigning a
reason therefor to the same extent as the Company might have done if this Plan had not been
adopted.

     (b) Governing Law. The provisions of this Plan shall be governed by and construed in
accordance with the laws of the State of Ohio, except when preempted by federal law.

 

 

     (c) Liability for Payment/Expenses.

     (i) The Company shall be liable for the payment of any amount to or on behalf of a
Participant.

     (ii) Expenses of administering the Plan shall be paid by the Company.

     (d) Assignability. No amount payable to a Participant under this Plan shall be
transferable by him for any reason whatsoever or be subject to alienation, anticipation, sale,
pledge, encumbrance or other legal process or in any manner be liable for or subject to the debts
or liabilities of the Participant or Beneficiary; provided, however, that upon the death of a
Participant the right to the amounts payable hereunder shall be paid to the Participant’s
Beneficiary.

     (e) Taxes. There shall be deducted from each payment under the Plan the amount of any
tax required by any governmental authority to be withheld and paid over to such governmental
authority for the account of the person entitled to such payment.

     (f) Limitation on Rights of Participants; No Trust. 

No trust has been created by the Company for the payment of any benefits under this
Plan; nor have the Participants been granted any lien on any assets of the Company to
secure payment of such benefits. This Plan represents only an unfunded, unsecured
promise to pay by the Company, and the Participants and Beneficiaries are merely
unsecured creditors of the Company.

     (g) Payment to Guardian. If an Account is payable to a minor, to a person declared
incompetent or to a person incapable of handling the disposition of his property, the Committee may
direct payment of such Account to the guardian, legal representative or person having the care and
custody of such minor, incompetent or person. The Committee may require such proof of
incompetency, minority, incapacity or guardianship as it may deem appropriate prior to the
distribution of such Account. Such distribution shall completely discharge the Company from all
liability with respect to such Account.

 

 

     (h) Miscellaneous.

     (i) Headings are given to the sections of this Plan solely as a convenience to
facilitate reference. Such headings, numbering and paragraphing shall not in any case be
deemed in any way material or relevant to the construction of this Plan or any provisions
thereof.

     (ii) The use of the masculine gender shall also include within its meaning the feminine.
The use of the singular shall also include within its meaning the plural, and vice versa.

     (iii) Acceleration of Payments. Notwithstanding any provision of the Plan to
the contrary, to the extent permitted under Code Section 409A and the Treasury Regulations
issued thereunder, payments of amounts hereunder may be accelerated (i) to the extent
necessary to comply with federal, state, local or foreign ethics or conflicts of interest
laws or agreements or (ii) to the extent necessary to pay the FICA taxes imposed under Code
Section 3101, and the income withholding taxes related thereto. Payments may also be
accelerated if the Plan (or a portion thereof) fails to satisfy the requirements of Code
Section 409A; provided that the amount of such payment may not exceed the amount required to
be included as income as a result of the failure to comply with Code Section 409A.

     (iv) Delayed Payments due to Solvency Issues. Notwithstanding any provision of
the Plan to the contrary, the Company shall not be required to make any payment hereunder to
any Participant or Beneficiary if the making of the payment would jeopardize the ability of
the Company to continue as a going concern; provided that any missed payment is made during
the first calendar year in which the funds of the Company are sufficient to make the payment
without jeopardizing the going concern status of the Company.

 

 

     (v) Payments Violating Applicable Law. Notwithstanding any provision of the Plan
to the contrary, the payment of all or any portion of the amounts payable hereunder will be
deferred to the extent that the Company reasonably anticipates that the making of such
payment would violate Federal securities laws or other applicable law (provided that the
making of a payment that would cause income taxes or penalties under the Code shall not be
treated as a violation of applicable law). The deferred amount shall become payable at the
earliest date at which the Company reasonably anticipates that making the payment will not
cause such violation.

	 	 	 	 	 
	 	 	THE KITCHEN COLLECTION, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Charles A. Bittenbender
	 

	 	 	 	 
	 

	 	Title:
	 	Assistant Secretary
	 
	 	 	 	 
	 

	 	Date:
	 	February 12, 2008
	 

	 	 	 	 

 

 

Appendix A. Change in Control.

Change in Control. The term “Change in Control” shall mean the occurrence of any of the
events listed in I or II, below; provided that such occurrence meets the requirements of
Treasury Regulation Section 1.409A-3(i)(5) (or any successor or replacement thereto) with
respect to a Participant :

	 	 	 	 	 	 	 
	I.	 	i.	 	Any “Person” (as such term is used in Sections 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), other than one or more Permitted Holders (as defined below), is or
becomes the “beneficial owner”(as defined in Rules 13d-3 and 13d-5 of the
Exchange Act), directly or indirectly, of more than 50% of the combined voting
power of the then outstanding voting securities of a Related Company (as
defined below) entitled to vote generally in the election of directors (the
“Outstanding Voting Securities”), other than any direct or indirect
acquisition, including but not limited to an acquisition by purchase,
distribution or otherwise, of voting securities by any Person pursuant to an
Excluded Business Combination (as defined below); or
	 
	 	 	 	 	 	 
	 	 	ii.	 	The consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of
the assets of any Related Company or the acquisition of assets of another
corporation, or other transaction involving a Related Company (“Business
Combination”) excluding, however, such a Business Combination pursuant to
which either of the following apply (such a Business Combination, an
“Excluded Business Combination”) (A) a Business Combination involving
Housewares Holding Co. (or any successor thereto) that relates solely to the
business or assets of Hamilton Beach, Inc. (or any successor thereto) or (B)
a Business Combination pursuant to which the individuals and entities who
beneficially owned, directly or indirectly, more than 50% of the combined
voting power of any Related Company immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of the
combined voting power of the then Outstanding Voting Securities of the
entity resulting from such Business Combination (including, without
limitation, an entity that as a result of such transaction owns any Related
Company or all or substantially all of the assets of any Related Company,
either directly or through one or more subsidiaries).
	 
	 	 	 	 	 	 
	II.	 	i.	 	Any “Person” (as such term is used in Sections 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), other than one or more Permitted Holders, is or becomes the “beneficial
owner”(as defined in Rules 13d-3 and 13d-5 of the Exchange Act), directly or
indirectly, of more than 50% of the combined voting power of the then
Outstanding Voting Securities of NACCO Industries, Inc. (“NACCO”), other than
any direct or indirect acquisition, including but not limited to an acquisition
by purchase, distribution or otherwise, of voting securities:
	 
	 	 	 	 	 	 
	 

	 	 	 	(A)
	 	directly from NACCO that is approved by a majority
of the Incumbent Directors (as defined below); or
	 
	 	 	 	 	 	 
	 

	 	 	 	(B)
	 	by any Person pursuant to an Excluded NACCO Business Combination (as defined below);
	 
	 	 	 	 	 	 
	 	 	 	 	provided, that if at least a majority of the individuals who constitute
Incumbent Directors determine in good faith that a Person has become the
“beneficial owner”(as defined in Rules 13d-3 and 13d-5 of the Exchange Act) of
more than 50% of the combined voting power of the Outstanding Voting
Securities of NACCO inadvertently, and such Person divests as promptly as
practicable a sufficient number of shares so that such Person is the
“beneficial owner”(as defined in Rules 13d-3 and 13d-5 of the Exchange Act) of
50% or less of the combined voting power of the Outstanding Voting Securities
of NACCO, then no Change in Control shall have occurred as a result of such
Person’s acquisition; or
	 	 	ii.	 	a majority of the Board of Directors of NACCO ceases to
be comprised of Incumbent Directors; or

 

 

	 	 	 	 	 	 	 	 	 
	 	 	iii.
	 	the consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of
the assets of NACCO or the acquisition of assets of another corporation, or
other transaction involving NACCO (“NACCO Business Combination”) excluding,
however, such a Business Combination pursuant to which both of the following
apply (such a Business Combination, an “Excluded NACCO Business
Combination”):
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(A)
	 	the individuals and entities who beneficially
owned, directly or indirectly, NACCO immediately prior to such NACCO
Business Combination beneficially own, directly or indirectly, more than
50% of the combined voting power of the then Outstanding Voting
Securities of the entity resulting from such NACCO Business Combination
(including, without limitation, an entity that as a result of such
transaction owns NACCO or all or substantially all of the assets of
NACCO, either directly or through one or more subsidiaries); and
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(B)
	 	at the time of the execution of the initial agreement, or of the action
of the Board of Directors of NACCO, providing for such NACCO Business Combination,
at least a majority of the members of the Board of Directors of NACCO were Incumbent Directors.
	 
	 	 	 	 	 	 	 	 
	III.	 	Definitions. The following terms as used herein shall be defined as follow:
	 
	 	 	 	 	 	 	 	 
	 	 	 	1.	 	 	“Incumbent Directors” means the individuals who,
as of December 31, 2007, are Directors of NACCO and any individual becoming
a Director subsequent to such date whose election, nomination for election
by NACCO’s stockholders, or appointment, was approved by a vote of at least
a majority of the then Incumbent Directors (either by a specific vote or by
approval of the proxy statement of NACCO in which such person is named as a
nominee for director, without objection to such nomination);
provided, however, that an individual shall not be an
Incumbent Director if such individual’s election or appointment to the Board
of Directors of NACCO occurs as a result of an actual or threatened election
contest (as described in Rule 14a-12(c) of the Exchange Act) with respect to
the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a person other than
the Board of Directors of NACCO.
	 
	 	 	 	 	 	 	 	 
	 	 	 	2.	 	 	“Permitted Holders” shall mean, collectively,
(i) the parties to the Stockholders’ Agreement, dated as of March 15, 1990,
as amended from time to time, by and among National City Bank, (Cleveland,
Ohio), as depository, the Participating Stockholders (as defined therein)
and NACCO; provided, however, that for purposes of this definition only, the
definition of Participating Stockholders contained in the Stockholders’
Agreement shall be such definition in effect of the date of the Change in
Control, (ii) any direct or indirect subsidiary of NACCO and (iii) any
employee benefit plan (or related trust) sponsored or maintained by NACCO or
any direct or indirect subsidiary of NACCO.
	 
	 	 	 	 	 	 	 	 
	 	 	 	3.	 	 	“Related Company” means The Kitchen Collection,
LLC and its successors (“KCI”), any direct or indirect subsidiary of KCI and
any entity that directly or indirectly controls KCI.

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