Document:

EX-10.4 Ham. Beach/Proctor Long Term Incent Comp A

 

Exhibit 10.4

HAMILTON BEACH/PROCTOR-SILEX, INC.

LONG TERM INCENTIVE

COMPENSATION AWARD

(NOT TRANSFERABLE)

Form of Award Unit CERTIFICATE

Hamilton Beach/Proctor-Silex, Inc. (the “Company”) pursuant to action of the
Compensation Committee of its Board of Directors (the “Committee”), hereby
grants to «Name» (the “Grantee”), «Award_Units» Award Units having an
Award Unit Price of $«Unit_Price» per Unit pursuant to and subject to the
provisions of the Hamilton Beach/Proctor-Silex, Inc. Long Term Incentive
Compensation Plan (the “Plan”). This Award is granted, and this Certificate has
been executed at Glen Allen, VA, as of January 1, 2007, the “Date of Grant”.
The Award Units granted in this Certificate shall have a maturity date of
January 1, 2012 (but shall mature earlier in accordance with Plan terms on
death, disability or retirement).

Recipient acknowledges having received a complete copy of the Plan.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	By:
	 	****************************	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Michael J. Morecroft	 	 
	 

	 	 	 	     President & Chief Executive Officer	 	 

Please review carefully the summary of general provisions pertinent to this award on the
reverse side.

 

 

Form of Award Unit Certificate

General Provisions **

	1.	 	Vesting/Taxes: These Award Units are fully vested as of the Grant Date. As a
result, they are subject to US FICA taxes when granted. (However, under current tax law, they
are not subject to US Federal, state or local income taxes until paid out.) All payments
under the Plan will be reduced by the amount of any employment or other taxes that are
required to be withheld therefrom.

	2.	 	Payment Restrictions: The Award Units granted under the Award are subject to a
payment restriction for a period of five years from the Grant Date (the “Maturity Date”).
However, these payment restrictions automatically lapse upon death or a termination of
employment due to Disability or Retirement. The Committee may not accelerate the time at
which such payment restrictions will lapse. In addition, the Maturity Date for certain “key
employees” (generally, the top 50 paid employees across the NACCO group) will be delayed until
6 months after retirement.

	3.	 	Payment Date / Value: Unless a Participant makes a deferral election under Paragraph
4 below, as soon as practicable following the lapse of a payment restriction applicable to an
Award pursuant to Paragraph 2 above, the Company will deliver to the Participant (or, if
applicable, his Beneficiary), a check in full payment of the Book Value Units granted pursuant
to the Award. For participants who are employed on the Maturity Date, the value of the Book
Value Units is based on the Book Value as of the Quarter Date immediately preceding the
Maturity Date. For Participants who terminate employment before the Maturity Date for reasons
other than Disability or Retirement, the value of the Book Value Units is based on the Book
Value as of the ending Quarter Date coincident with or immediately preceding the date of
termination (despite the fact that payment is not made until Maturity Date). Finally, for
Participants who die or who terminate employment before the Maturity Date due to Disability or
Retirement, the value of the Book Value Units is based on the Book Value as of the ending
Quarter Date coincident with or immediately preceding the death, Disability or Retirement (or
6 months later in the case of key employees).

	4.	 	Deferral Option: A U.S. participant has the ability to make an irrevocable election
to defer receipt of his entire Award under the Plan. A separate deferral election must be
made with respect to each Award granted under the Plan. The Awards that are subject to a
deferral election continue to be subject to the terms and conditions of the Plan and will
continue to be valued in accordance with the terms of the Plan until the date of payment. In
order to make a deferral election, the election (i) must apply to 100% of an Award granted for
a particular year, (ii) must be made at least 12 months prior to the Maturity Date of the
Award and (iii) will not be given effect until at least 12 months after the date on which the
election is made. If a valid and timely deferral election is made with respect to an Award,
the payment of the Award will automatically be deferred until the 10th anniversary
of the Grant Date of such Award and will then be paid in the form of a lump sum payment as
soon as practicable after the 10th anniversary date. Deferred Awards will be
valued based on the Book Value as of the Quarter Date coincident with or immediately preceding
the 10th anniversary date. Notwithstanding the foregoing, all deferral elections
will automatically terminate (and will be void and of no further effect) upon a Participant’s
death or termination of employment due to Disability. If a deferral election is voided,
payment of the deferred Awards will be made as soon as practicable following the date of the
Participant’s death or termination of employment due to Disability, based on the Book Value as
of the Quarter Date coincident with or immediately preceding such date.

	5.	 	Assignability: This Award is not transferable for any reason whatsoever; provided,
however, that upon the death of a Participant the right to the proceeds of this Award will be
transferred to a Beneficiary.

	6.	 	No Right of Employment: Neither the adoption or operation of the 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.

	7.	 	Limitation of Rights: No trust has been created by the Company for the payment of
Book Value Units granted under this Plan; nor have the grantees of Awards 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 grantees hereunder are
unsecured creditors of the Company.

     **Disclaimers:

	 	•	 	The IRS has not issued the final guidance that is needed to bring the Plan
into compliance with the requirements of the American Jobs Creation Act of 2004
(the “Act”). Additional Plan amendments may be required. You will be notified
if any amendments are made and, if any substantive changes are required, you
will be issued a revised Certificate at that time.
	 
	 	•	 	Words used in this Award Certificate that are defined in the Plan are used
herein as so defined. The terms of this Award are subject to all terms and
conditions of the Plan document. The Company reserves the right to amend or
terminate the Plan at any time.EX-10.5 NACCO Materials 2006 Ann Incent Compensatn

 

Exhibit 10.5

NACCO MATERIALS HANDLING GROUP, INC.

2006 ANNUAL INCENTIVE COMPENSATION PLAN

Introduction

     NACCO Materials Handling Group, Inc., (the “Company”) has established an Annual Incentive
Compensation Plan (“Plan”) as part of a competitive compensation program for the officers and key
management employees of the Employers.

Plan Objective

     The Employers desire to attract and retain talented employees to enable the Employers to meet
their financial and business objectives. The objective of the Plan is to provide an opportunity to
earn annual incentive compensation to those employees whose performance has a significant impact on
the Company’s short-term and long-term profitability.

Administration 

     The Plan is administered by the Compensation Committee of the Board of Directors of the
Company (the “Committee”). The Committee:

	     a.	 	May amend, modify or discontinue the Plan.
	 
	     b.	 	Will designate Plan Participants.

	     c.	 	Will determine the annual performance criteria which generate the incentive
compensation pool.

	     d.	 	Will determine the total amount of both the target and actual annual incentive
compensation pool.

	     e.	 	Will approve individual incentive compensation Awards to Participants who are
officers and employees classified above salary grade 30.

	     f.	 	May delegate to the Chief Executive Officer of the Company the approval of
incentive compensation Awards to Participants who are classified in salary grade 30 and
below.

	     g.	 	Except as determined by the Committee, a Participant must be employed on
December 31 of the Award Term in order to be entitled to receive an Award hereunder.
Notwithstanding the foregoing, the Committee may approve a pro-rated incentive
compensation Award for Participants in the Plan whose employment is terminated (1) due
to death, Disability, Retirement or facility closure or (2) under other circumstances
at the recommendation of the Chief Executive Officer of the Company.

     The Committee shall have complete authority to interpret all provisions of this Plan
consistent with law, to prescribe the form of any instrument evidencing any Award granted or paid
under this Plan, to adopt, amend and rescind general and special rules and regulations for its
administration, and to make all other determinations necessary or advisable for the administration
of this Plan. 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 Employers all present and former Participants and employees 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.

Determination of Corporate Incentive Compensation Pool

     Each Participant in the Plan will have an individual target incentive compensation percentage,
which is determined by the Participant’s salary grade. This percentage is multiplied by the
mid-point of the

 

 

Participant’s salary grade to determine his individual target incentive
compensation Award. The total of the target incentive compensation Awards of all Participants
equals the target corporate incentive compensation pool (“Target Pool”). The Target Pool is
approved at the beginning of each Award Term by the Committee.

     The actual corporate incentive compensation pool (“Actual Pool”) is determined as of the end
of each Award Term based on the Company’s actual performance against specific criteria established
in the beginning of the Award Term by the Committee. The Target Pool is adjusted upwards or
downwards by corporate performance adjustment factors to determine the Actual Pool. In no event
will the Actual Pool exceed 150% of the Target Pool, except to the extent that the Committee elects
to increase the Actual Pool by up to 10%, as described below.

     The Target and Actual Pools may consist of the sum of two or more subpools, provided the
subpools have individual objectives.

     Subject to the Committee’s right to amend or terminate the Plan at any time, it is the intent
of the Plan that the Actual Pool, as determined above, will be the final total corporate incentive
compensation pool. However, the Committee, in its sole discretion, may increase or decrease by up
to 10% the Actual Pool or may approve an incentive compensation pool where there would normally be
no pool due to Company performance which is below the criteria established for the Award Term.

     The Actual and Target Pools exclude the Marketing Incentive Plan for regional parts, service,
sales and national account managers. However, total compensation or employees covered by the
Marketing Incentive Plan will be based on competitive levels.

Determination of Individual Incentive Compensation Awards

     Salary grades and the corresponding target incentive percentages for each Participant in the
Plan will be established at the beginning of each Award Term and approved by the Committee.
Individual target incentive compensation will then be adjusted by the appropriate pool or subpool
factor. Such adjusted individual incentive compensation will then be further modified based on the
team performance to which an individual belongs compared to the team goals for the Award Term, and
may be further modified based on a Participant’s performance as compared to their individual goals
for the Award Term.

     The total of all individual incentive compensation Awards must not exceed the Actual Pool for
the Year.

     Below are examples of actual pool and individual Award calculations.

     a. Example calculation for determination actual pool:

Intentionally Omitted

     b. Example calculation for determination of individual incentive compensation Award:

Intentionally Omitted

Payment Date/Taxes

     Promptly following the Committee’s approval of the final Awards, the Employers shall pay the
amount of such Awards to the Participants in cash, subject to all withholdings and deductions
described in the following sentence; provided, however, that (i) no Award shall be payable to a
Participant except as determined by the Committee and (ii) in no event shall the Awards be paid
later than two and one-half months after the close of the Award Term. Any Award paid to a
Participant under this Plan shall be subject to all applicable federal, state and local income tax,
social security and other standard withholdings and deductions.

 

 

Definitions

     (a) “Award” means cash paid to a Participant under the Plan for the Award Term in an amount
determined in accordance with the Plan.

     (b) “Award Term” means the period from January 1, 2006 through December 31, 2006.

     (c) “Disability” means an approved application for disability benefits under the Company’s
long term disability plan or under any applicable government program.

     (d) “Employers” mean the Company, NMHG Oregon, LLC and their Subsidiaries.

     (e) “Participant” means any person who is classified by the Employers as a salaried employee
and in salary grade 22 and above, who in the judgment of the Committee occupies a key position in
which his efforts may significantly contribute to the profits or growth of the Employers; provided,
however, that the Committee may select any employee who is expected to contribute, or who has
contributed, significantly to the Employers’ profitability to participate in the Plan and receive
an Award hereunder; and further provided, however, that following the end of the Award Term the
Committee may make one or more discretionary Awards to employees of the Employers who were not
previously designated as Participants. Directors of the Company who are also employees of the
Company are eligible to participate in the Plan. The Committee shall have the power to add
Participants at any later date in the Award Term if individuals subsequently become eligible to
participate in the Plan; provided that they are employed by an Employer for at least 90 calendar
days during the Award Term.

     (f) “Retirement” means (i) the termination of a U.S. Participant’s employment with the
Employers after the Participant has reached age 60 and completed at least 15 years of service with
the Employers or (ii) the termination of a non-U.S. Participant’s employment with the Employers
which qualifies as retirement under local practices and procedures and/or which qualifies the
non-U.S. Participant for foreign retirement benefits.

General Plan 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 Employers, or shall in any way affect the right and
power of an Employer to terminate the employment of any employee at any time with or without
assigning a reason therefor to the same extent as the Employer 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 North Carolina.

     (c) Miscellaneous. 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. 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.

     (d) American Jobs Creation Act. It is intended that this Plan be exempt from the
requirements of Section 409A of the Internal Revenue Code, as enacted by the American Jobs Creation
Act.

     (e) Limitation on Rights of Participants; No trust. No trust has been created by the
Employers for the payment of Awards granted under this Plan; nor have the Participants been granted
any lien on any assets of the Employers to secure payment of such benefits. This Plan represents
only an unfunded, unsecured promise to pay by the Participant’s Employer and a Participant
hereunder is a mere unsecured creditor of his Employer. Notwithstanding the foregoing, in the
event that NMHG Oregon, LLC is

 

 

unable or refuses to satisfy its obligations hereunder with respect
to the payment of Awards to or on behalf of its employees, the Company shall guarantee and be
responsible for the payment thereof.

     (f) Payment to Guardian. If an Award 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 Award 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 Award. Such distribution shall completely discharge the Company from all
liability with respect to such Award.

     (g) Effective Date. This Plan shall become effective as of January 1, 2006.

2006 Performance Targets

     The performance targets for the Plan are attached as an Addendum to this document.

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