Document:

EX-10.15

 

Exhibit 10.15

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)

	1.	 	Effective Date

     The general Effective Date of this amendment and restatement of The Kitchen Collection, Inc.
Long- Term Incentive Compensation Plan (the “Plan”) is December 1, 2007.

	2.	 	Purpose of the Plan

     For periods prior to January 1, 2008, the purpose of this Plan was 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 is in addition to annual compensation and is intended
to reflect growth in the value of the Company’s stockholders’ equity. For all purposes other than
crediting of interest, the Plan shall be frozen effective December 31, 2007.

	3.	 	Application of Code Section 409A

All amounts payable hereunder are subject to the provisions of Code Section 409A It is
intended that the compensation arrangements under of 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 the Sub-Accounts as described in Sections 7 and 8.

     (b) “Award” shall mean the award of Book Value Units that were granted to a Participant under
this Plan for the pre-2007 Award Years or the cash award granted to a Participant under this Plan
for the 2007 Award Year.

 

 

     (c) “Award Units” shall mean Book Value Units that were issued pursuant to this Plan and the
Guidelines for the pre-2007 Award Terms.

     (d) “Award Year” shall mean the calendar year on which an Award is based. The last Award Year
shall be the 2007 calendar year.

     (e) “Beneficiary” shall mean the person(s) designated in writing (on a form acceptable to the
Committee) to receive the payment of all Awards hereunder in the event of the death of a
Participant. 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.

     (f) “Book Value” as to any Book Value Unit shall mean an amount determined by the Committee
or, if no amount is set by the Committee, as of any date (i) the stockholders’ equity (as
determined in accordance with generally accepted accounting principles, applied on a consistent
basis) allocable to the Common Stock of the Company, as set forth on the balance sheet of the
Company as of the Quarter Date coincident with or immediately preceding such date, divided by (ii)
the number of Notional Shares existing as of such Quarter Date; provided, however, that Book Value
and/or the number of Notional Shares may be adjusted to such an extent as may be determined by the
Committee to preserve the benefit of the arrangement for holders of Book Value Units and the
Company, if in the opinion of the Committee, after consultation with the Company’s independent
public accountants, changes in the Company’s accounting policies, acquisitions or other unusual or
extraordinary items have materially affected the stockholders’ equity allocable to the Notional
Shares.

     (g) Book Value Unit” or “Unit” shall mean a right previously granted under the prior versions
of this Plan for the pre-2007 Award Years.

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

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

     (j) “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.

     (k) “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.

     (l) “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.

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

     (n) “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 restated Plan document regarding the time and form of payment of the Awards,
this Plan document shall control.

     (o) “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.

     (p) “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.

     (q) “Maturity Date” shall mean the date established under Section 10(a) of the Plan.

     (r) “Notional Shares” shall mean the number of assumed shares of Common Stock of the Company
as determined by the Committee from time to time in order to implement the purposes of the Plan.
The number of Notional Shares under the Plan (including the Plan as in effect prior to the
Effective Date) shall equal one million shares.

     (s) “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.

     (t) “Quarter Date” shall mean the last business day of each calendar quarter. The final
Quarter Date hereunder shall be December 31, 2007.

     (u) “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.

     (v) “ROTCE Table Rate” shall mean the interest rate determined under the annual ROTCE Table
that is adopted and approved by the Committee within the first 90 days of each calendar year, which
Rate is used to calculate the interest on the Participant’s Sub-Accounts under the Plan for
calendar years beginning on or after January 1, 2008.

     (w) “Target Award” shall mean the dollar value of the Award to be paid to a Participant under
the Plan assuming that the applicable performance targets are met.

     (x) “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, and to make all other
determinations necessary or advisable for the administration of this Plan.

	6.	 	Eligibility

     For periods prior to January 1, 2008, 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 hereunder. No new Participants shall be added to the Plan for periods on or after
January 1, 2008.

	7.	 	Accounts; Conversion of Outstanding Book Value Units to Sub-Account Balances

     (a) The Company shall establish and maintain on its books an Account for each Participant
which shall reflect the credits described in Section 7(c) and 8(d) hereof. Such Account shall also
reflect credits for the interest described in Section 10(b) and debits for any distributions
therefrom.

     (b) Participants in this Plan previously received Awards with Grant Dates of 1/1/04, 1/1/05
and 1/1/07. Those Awards were previously converted to Book Value Units in accordance with the
terms of the prior
versions of the Plan. These outstanding Book Value Units shall be converted to cash values in
accordance with the following rules. The outstanding Book Value Units of Participants who incurred
a Termination of

 

 

Employment for reasons other than Retirement or Disability prior to December 31,
2007 (the “Frozen Participants”) shall be multiplied by the Book Value in effect on the Quarter
Date preceding the date of their Termination of Employment to determine a cash value. The
outstanding Book Value Units of all other Participants (the “Non-Frozen Participants”) shall be
multiplied by the Book Value in effect on December 31, 2007 to determine a cash value.

     (c) As of December 31, 2007, the cash values determined under Subsection (b) above shall be
credited to the Participants’ Accounts established under Subsection (a) above. Specifically, the
cash values determined from the Awards with a Grant Date of 1/1/04 and 1/1/05 shall be credited to
the Pre-2006 Sub-Account and the cash values determined from the Awards with a Grant Date of 1/1/07
shall be credited to the 2007 Sub-Account.

	8.	 	Granting of Awards for the 2007 Award Year.

     The Committee may authorize the granting of Awards to Participants for the 2007 Award Year,
which shall be not inconsistent with, and shall be subject to all of the requirements of, the
following provisions:

     (a) Not later than the ninetieth day of the 2007 Award Year, the Committee approved (i) a
Target Award to be granted to each Participant for such Award Year and (ii) a formula for
determining the amount of each 2007 Award, which formula is based upon the Company’s average return
on total capital employed for such 2007 Award Year.

     (b) Effective no later than April 1, 2008, 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 of the amount of each Award to be granted to each Participant
for the 2007 Award Year(which Award shall have a Grant Date of 1/1/08) . 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, no 2007 Award,
including any Award equal to the Target Award, shall be payable under the Plan to any
Participant except as determined by the Committee.

     (c) Calculations of Target Awards for the 2007 Award Year shall initially be based on a
Participant’s Hay Salary Grade as January 1, 2007. However such Target Awards may be changed
during or after the 2007 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, 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 2007 and (iii) the Committee may
increase or decrease the amount of the Target Award at any time, in its sole and absolute
discretion. In order to be eligible to receive an Award for the 2007 Award Year, the Participant
must be employed by the Company and must be a Participant on December 31, 2007; provided, however,
that if a Participant dies, becomes Disabled or Retires during 2007, the Participant shall be
entitled to a pro-rata portion of the Award for such Award Year, based on the number of days the
Participant was actually employed by the Company during the 2007 Award Year.

     (d) After approval by the Compensation Committee, the 2007 Award shall be credited to the
Participant’s 2008 Sub-Account retroactively as of January 1, 2008. Notwithstanding any other
provision of the Plan, the maximum cash value of the Awards granted to a Participant under this
Plan for the 2007 Award Year shall not exceed $250,000 or such lower amount specified in the
Guidelines.

     (e) 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 Awards

     (a) Maturity Date.

     (i) Notwithstanding any provision of any prior version of the Plan or the Guidelines to
the contrary, or any prior deferral election made by the Participants, hereunder, the
Maturity Date for each of the Participant’s Sub-Accounts shall be as follows:

 

 

	 	 	 
	Sub-Account	 	Maturity Date
	Pre-2006 Sub-Account

	 	January 1, 2008
	2007 Sub-Account

	 	January 1, 2010
	2008 Sub-Account

	 	January 1, 2011

 

 

     (ii) Notwithstanding the foregoing, (A) in the event a Participant dies prior to the
applicable Maturity Date, the Maturity Date of the Participant’s entire Account balance shall
be the date of such Participant’s death, (B) in the event of a Change in Control prior to the
applicable Maturity Date, the Maturity Date of the Participant’s entire Account balance shall
be the date of the Change in Control and (C) in the event a Participant incurs a Termination
of Employment as a result of becoming Disabled or Retirement prior to the applicable Maturity
Date, the Maturity Date of the Participant’s entire Account balance shall be the date of his
Disability or Retirement; provided, however, that if a Participant who incurs a Termination
of Employment on account of Disability or Retirement is a Key Employee, the Participant’s
Maturity Date shall be 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. No interest shall be credited to the Sub-Accounts of the Frozen
Participants. No interest shall be credited to the Pre-2006 Sub-Accounts of the Non-Frozen
Participants. The 2007 and 2008 Sub-Accounts of the Non-Frozen Participants shall be credited with
interest as follows. 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 Participant’s average Sub-Account balance during such month by the blended rate
earned during such month by the Fixed Income Fund. Notwithstanding the foregoing, in the event the
ROTCE Table Rate determined for such calendar year exceeds the Fixed Income Fund rate, such
Sub-Accounts shall be retroactively credited with the difference (if any) between (i) the ROTCE
Table Rate and (ii) the Fixed Income Fund Rate, compounded monthly. In the event that a Non-Frozen
Participant incurs a Termination of Employment or 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
immediately preceding the date of Termination of Employment or the payment date (as applicable) and
shall be based on (i) the blended rate earned during the preceding month by the Fixed Income Fund
and/or (ii) the year-to-date ROTCE Table Rate as of such date, as calculated by the Company, as
applicable. No additional interest shall be credited to such Sub-Accounts, except as described in
Section 10(d)(ii) with respect to delayed payments made to Key Employees on account of a
Termination of Employment. 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. The Company shall deliver to the Participant (or, if
applicable, his Beneficiary), a check in full payment of the Pre-2006 Sub-Account by March
31, 2008 and a check in full payment of the other Sub-Accounts within 90 days of the
applicable Maturity Date of such Sub-Accounts; provided, however, that in the event of a
Change in Control, such payments shall be made within 30 days prior to, or within two (2)
business days after, the Change in Control, as determined by the Committee.

 

 

     (ii) Amount. Each Participant shall be paid the full value of each Sub-Account.
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.

     (d) Cancellation of Deferral Elections. As of November 19, 2007, Participants shall
not be entitled to make any deferral elections hereunder. In addition, any deferral elections
previously made under any prior version of the Plan are hereby null and void and no longer
effective as of such date; provided, however, that if the cash value of any prior Awards was
previously credited to an account established for the Participant under The Kitchen Collection,
Inc. Deferred Compensation Plan for Management Employees, such amount shall be paid in accordance
with the terms of such plan, as in effect from time to time.

	11.	 	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 or any Award Units of such Participant
as in effect at the time of the amendment or (iii) alter the time of payment provisions described
in Section 10 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 Plan shall automatically terminate when the last Participant receives the last
remaining distribution from his Account hereunder. In addition, the Committee, in its sole and
absolute discretion, may terminate this Plan in its entirety at any earlier 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 or any Award Units of such
Participant as in effect at the time of the termination or (iii) alter the time of payment
provisions described in Section 10 of the Plan, except for any termination that accelerates the
time of payment.

     (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.

 

 

	12.	 	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 Award or Sub-Account balances 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 and/or Sub-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 Award or Sub-Account. Such distribution shall
completely discharge the Company from all liability with respect to such Award or Sub-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: December 14, 2007	 
	 

 

 

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 occurs on or after January 1,
2008 and 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,
Inc. and its successors (“KCI”), any direct or indirect subsidiary of KCI
and any entity that directly or indirectly controls KCI.EX-10.16

 

Exhibit 10.16

THE NORTH AMERICAN COAL CORPORATION

VALUE APPRECIATION PLAN FOR

YEARS 2000 TO 2009

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

	1.	 	PURPOSE OF THE PLAN/BENEFIT FREEZE AND PLAN TERMINATION

     The purpose of this Value Appreciation Plan (“VAP” or the “Plan”) was to further the long-term
profits and growth of The North American Coal Corporation (the “Company”) by offering long-term
incentive compensation to those officers and key management employees of the Employers who were in
a position to make significant contributions to such profits or growth. The Plan was frozen as of
January 1, 2006 and, as of such date, no additional employees were eligible to participate in the
Plan and no further Awards were granted hereunder.

     The Plan is hereby terminated in its entirety effective December 31, 2007.

	2.	 	CODE SECTION 409A

     All amounts payable under the Plan are subject to the provisions 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 Employers do not guarantee to
Participants or beneficiaries any particular tax result with respect to any amounts deferred or any
payments provided hereunder, including tax treatment under Code Section 409A.

	3.	 	DEFINITIONS

	 	(a)	 	“Account” means the account established in accordance with Section 4
hereof to reflect the Participant’s interest under the Plan.
	 
	 	(b)	 	“Award” means a VAP award that was credited to the Participant’s VAP
Account for the 2000 through 2005 award years.

 

 

	 	(c)	 	“Committee” shall mean the Compensation Committee of the Company’s
Board of Directors appointed to administer the Plan in accordance with Section 4.
	 
	 	(d)	 	“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 twelve 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 twelve months, receiving income replacement benefits for a period of not less
than three months under an employer-sponsored accident and health plan.
	 
	 	(e)	 	“Employer” shall mean the Company and the Company’s subsidiaries who
adopted the Plan and who employ the Participants.
	 
	 	(f)	 	“Key Employee.” For periods prior to April 1, 2008, “Key Employee”
shall mean a key employee, as defined in Section 416(i) of the Code (without regard to
paragraph (5) thereof) of the Company or a Subsidiary (or related entity) so long as
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 Employee’s Separation
From Service. Key Employees are identified on a controlled group-wide basis and
include non-resident alien employees (whether or not such employees are eligible to
participate in the Plan). The selected identification date for Key Employees is
December 31st. As such, any employee who was classified

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	 	 	 	by the Company as a Key Employee as of December 31st of a particular Plan
Year shall maintain such classification for the 12-month period commencing the
following April 1st. The Company shall have the sole and absolute
discretion to classify employees as Key Employees hereunder. To the extent
determined by the Company, such classification may include up to 75 highly
compensated employees (including some who do not meet the statutory requirements of
a Key Employee) as long as such determination is made in a consistent, reasonable
and good faith manner.

	 	(g)	 	“Participant” shall mean any person with a VAP Account balance
hereunder.
	 
	 	(h)	 	“Separation From Service” means, with respect to any Participant’s
relationship with the Employers and their affiliates, a separation from service as
defined in Code Section 409A (and the regulations and guidance issued thereunder).

	4.	 	ADMINISTRATION

     This Plan shall be administered by the Committee. The Committee shall have complete authority
to interpret all provisions of this Plan consistent with law, 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 the Plan. 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 Employers and its Subsidiaries, 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.

-3-

 

	5.	 	VAP ACCOUNTS

     5.1 Account Balance. The Company shall maintain an account (“VAP Account”) on its
books and records in the name of each Participant to reflect the Participant’s interest under this
Plan. The VAP Account balance shall equal the sum of the Awards that were credited to
Participants’ VAP Accounts for the years 2000 through 2005, plus interest. As of August 8, 2006, a
Participant’s VAP Account shall be frozen except for interest credits and debits for distributions.

     5.2 Interest. For the 2007 calendar year, each Participant’s VAP Account shall be
credited with an amount determined by multiplying the Participant’s average VAP Account balance
during such year by the average monthly rate during such year for 10-year U.S. Treasury Bonds. In
the event that a Participant incurs a Separation from Service prior to the end of 2007 and becomes
entitled to a payment of his VAP Account hereunder, the Participant’s VAP Account shall be credited
with a pro-rata share of interest, based on the portion of the year prior to the payment date. For
the period from January 1, 2008 until January 31, 2008, the Participant’s VAP Account shall be
credited with 31 days of interest, based on average monthly rate for 10-year U.S. Treasury Bonds
during 2007.

     5.3 Statements. The Company shall deliver to each Participant a written statement
showing the accumulated balance of the VAP Account as of the date of payment.

	6.	 	VESTING AND PAYMENT

     6.1 Vesting. Each Participant’s interest in his VAP Account shall vest at the rate
of 20 percent for each year during which a Participant remains in the continuous employ of the
Employers following the January 1st of the year in which a Participant was first
credited with a “VAP Target Amount” under the Plan (as such term was defined in the prior version
of the

-4-

 

Plan); provided however, that a Participant’s interest in his VAP Account shall become
immediately 100 percent vested in the event (i) of such Participant’s death or Disability while
employed by an Employer; (ii) such Participant remains in the continuous employ of the Employers
through December 31, 2007 or (iii) of such Participant’s Separation From Service with the Employers
at or after age 55 with at least 10 years of service or at or after age 65 (i.e., retirement). In
the event that all or any portion of a Participant’s VAP Account does not vest pursuant to the
foregoing provisions, the portion of the VAP Account represented thereby shall terminate and be
forfeited.

     6.2 Payment.

	 	(a)	 	The vested amounts in a Participant’s VAP Account shall be paid on the earliest
to occur of:

	 	(i)	 	January 31, 2008; or
	 
	 	(ii)	 	the date of a Participant’s Separation From Service for death,
Disability or retirement (as defined above); provided, however, that if the
Participant is a Key Employee, such payment will be delayed until the
1st day of the 7th month following Disability or
retirement (with interest continuing to accrue until the actual payment date).

     (b) The actual payment will be made within 90 days of the applicable payment date specified
above. The Participant’s Employer shall deliver to the Participant or, if applicable, his
designated beneficiaries (or, if none, his estate) a check in full payment of the amount
represented by the Participant’s vested interest in his VAP Account. The Employer by which the
Participant was last employed prior to the payment date of the VAP Account shall be liable for the
payment of such Account to or on behalf of such Participant, but such Employer’s liability shall be
limited to its proportionate share of such amount, as hereinafter provided. If the Awards that
were credited to a Participants’ VAP Account are based on the Participant’s employment with more
than one Employer, the liability for such payment shall be shared by all such

-5-

 

Employers (by reimbursement to the Employer making such payment(s)) as determined by the
Company (taking into consideration the Participant’s service and compensation paid by each such
Employer) and as will permit the income tax deduction by each such Employer of its portion of the
payments made and to be made hereunder.

     (c) The amounts payable under this Plan shall be calculated based on the value of the VAP
Account as of the date of payment.

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

	7.	 	ASSIGNABILITY

     No right or interest under this Plan of any Participant or beneficiary shall be assignable or
transferable in any manner 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.

	8.	 	AMENDMENT AND TERMINATION

     (a) The Committee or the Board of Directors of the Company, in its sole and absolute
discretion, may alter or amend this Plan from time to time; provided, however, that no such
amendment shall, without the consent of a Participant, reduce the value of the Participant’s VAP
Account as in effect on the date of the amendment (except as otherwise permitted under the terms of
the Plan).

     (b) The Committee has taken action to terminate this Plan effective December 31, 2007. A
Participant’s VAP Account shall be paid as specified in Section 6.2 hereof.

     (c) Any amendment or termination of the Plan shall be in the form of a written instrument
approved and adopted on the order of the Committee or the Board of Directors of the

-6-

 

Company. 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 adoption.

	9.	 	GENERAL PROVISIONS

     (a) Expenses. Expenses of administering the Plan shall be paid by the Employers, as
directed by the Company.

     (b) No Guarantee of Employment. Neither the adoption or operation of this Plan, nor
any document describing or referring to the Plan, or any part thereof, shall confer upon any
employee any right to continue in the employ of an Employer, 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 therefore to the same extent as the Employer might have done if this Plan had
not been adopted.

     (c) Applicable Law. The provisions of the Plan shall be governed by and construed in
accordance with the laws of the State of Texas, except when pre-empted by Federal law.

     (d) 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 Employer from all
liability with respect to such Account.

     (e) Limitation on Rights of Participants; No Lien. No trust has been created by the
Employers for the payment of VAP Accounts 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

-7-

 

represents only an unfunded, unsecured promise to pay by the Employers, and each Participant
is an unsecured creditor of his Employer.

     (f) Headings/Construction. Headings are given to the sections of the 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 the 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 with its meaning the plural, and vise versa. If any
provision of this Plan or the application thereof to any circumstance or person is held to be
invalid by a court of competent jurisdiction, the remainder of the Plan and the application of such
provision to other circumstances or persons shall not be affected thereby

     (g) 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 Accounts 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, (ii) to
the extent necessary to pay the FICA taxes imposed under Code Section 3101, and the income
withholding taxes related thereto or (iii) 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.

     (h) Delayed Payments due to Solvency Issues. Notwithstanding any provision of the
Plan to the contrary, an Employer 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
Employer to continue as a going concern; provided that any missed payment is made during the

-8-

 

first calendar year in which the funds of the Employer are sufficient to make the payment
without jeopardizing the going concern status of the Employer.

     (i) 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 Employer 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
Employer reasonably anticipates that making the payment will not cause such violation.

	10.	 	EFFECTIVE DATE

     The original effective date of this Plan was January 1, 2000. This amendment and restatement
is effective as of December 1, 2007.

-9-

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