Document:

exv10w1

Exhibit 10.1

FOURTH AMENDMENT TO LEASE

     THIS FOURTH AMENDMENT TO LEASE (this “Amendment”) is made and entered into as of March
31, 2008, by and between O.P., L.L.C., an Illinois limited liability company, as
Landlord or its assignees (the “Landlord”) and CytoCore, Inc., (fka Molecular Diagnostics, Inc.)
a corporation as (“Tenant”).

RECITALS

     WHEREAS, Tenant is currently occupying office space on the fifth floor in the building
commonly known as 414 North Orleans Street, in Chicago, Illinois (the “Building”) pursuant to
that certain Lease by and between Landlord and Tenant dated May 18, 2000, as amended by First
Amendment dated June 13, 2003; Second Amendment, dated October 1, 2003; and Third Amendment,
dated September 22, 2004.

     WHEREAS, Tenant desires to expand its space and vacate Suite 502 consisting of 700 square
feet as described below.

     WHEREAS, Landlord and Tenant desire to amend the Lease according to the terms hereof;

     NOW THEREFORE, for and in consideration of the covenants and agreements hereinafter set
forth, and also in consideration of the sum of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant
hereby mutually agree as follows:

     1. Controlling Language. Insofar as the specific terms and provisions of this
Amendment purport to amend or modify or are in conflict with the specific term, provisions and
exhibits of the Lease, the terms and provisions of this Amendment shall govern and control; in all
other respects, the terms, provisions and exhibits of the Lease shall remain unmodified and in full
force and effect.

     2. Premises Covered by the Amendment. Landlord and Tenant hereby agree that for
purposes of this Amendment and for purposes of the Lease,; Effective April 17, 2008, Tenant shall
vacate existing Suite 502 consisting of 700 square feet; Effective April 15, 2008, the remaining
Premises (Suite 503 consisting of 1,840 square feet) shall include Suite 510 consisting of 3,787
square feet (“Expansion Premises”) together the total of 5,627 square feet shall be hereinafter
now referred to as the (“Premises”).

     3. Term of the Lease. The Term of the Lease including the Expansion Premises is hereby
extended for a period of five (5) years terminating on October 31, 2013.

     4. Rent Schedule. Effective April 15, 2008, the Rent Schedule to the Lease shall be
amended and superseded in its entirety by the Rent Schedule shown on Attachment 2.

     5. Rent Abatement. Abatement of two (2) months Rent for Expansion Premises Suite 510
consisting of 3,787 square feet beginning on April 15, 2008 and ending on June 14, 2008.

 

 

     6. Tenant’s Share. Tenant’s Proportionate Share of Expenses shall become 2.94% of all
increases in Real Estate Taxes and Operating Expenses of the Building over a 2008 Base Year.

     7. Security Deposit. Prior to April 15, 2008, Tenant shall increase the Security
Deposit by $3,466.10 from a balance of $7,607.50 prior to this Amendment to a new total of $11,073.60.

     8. Contingency. Contingent upon Landlord’s receipt of a fully executed Termination
Agreement for Suite 510 from Tenant, U.S. Fiduciary, L.P.

     9. Landlord’s Work. Landlord shall deliver Suite 510 in “as-is” condition.

     10. Tenant’s
Work. Tenant is taking possession of the Premises “as
is.” Any Tenant
Work shall be submitted to Landlord for approval prior to the commencement of such Work.

     11. Other. Tenant’s chosen vendors shall have access to Suite 510 up to five (5)
business days prior to the Commencement Date for telephone and data set-up.

     12. Signage. Landlord at its expense, shall install Building Standard signage and make
appropriate changes to Tenant Directory.

     13. Option To Terminate. Tenant shall have a one time right to cancel the Lease
effective October 31, 2011 with nine (9) months’s prior written notice of its intent to cancel.

     14. Miscellaneous.

          A. Landlord and Tenant hereby agree that (i) this Amendment is incorporated into and made a
part of the Lease, (ii) any and all references to the Lease hereinafter shall include this
Amendment, and (iii) the Lease and all terms, conditions and provisions of the Lease are in full
force and effect as to the date hereof, except as expressly modified and amended hereinabove.

          B. All terms capitalized but not defined herein shall have the same meaning ascribed to such
terms in the Lease.

          C. This Amendment shall be governed by and construed under the laws of the State of Illinois.

 

 

     IN WITNESS WHEREOF, the parties have executed this Fourth Amendment to Lease as of the date
first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	O.P., L.L.C., Inc.,	 	 	 	CytoCore, Inc., (fka Molecular Diagnostics,
	   an Illinois limited liability company	 	 	 	Inc.), a corporation
	By: SPECTRUM REAL ESTATE SERVICES, INC.	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ [ILLEGIBLE]
	 	 	 	By:
	 	/s/ Robert McCullough, Jr.	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:
	 	Robert McCullough, Jr.	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:
	 	CEO	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 

 

 

ATTACHMENT 1

	 	 	 
	 

	 	Spectrum Real Estate Services, Inc.
	 

	 	414 N. Orleans Suite 503
	 

	 	1,840 R.S.F.

 

 

EXPANSION PREMISES FLOOR PLAN

	 	 	 
	 

	 	Spectrum Real Estate Services, Inc.
	 

	 	414 N. Orleans Suite 510 (As is)
	 

	 	3,787 R.S.F.

 

 

ATTACHMENT 2

RENT SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Suite 503	 	 	 	 	 	Total
	 	 	 	 	Annual	 	Suite 510	 	Monthly
	Year	 	$/RSF	 	Rent	 	$/RSF	 	Annual Rent	 	Rent
	04/15/08 - 06/14/08

	 	$26.24
	 	$48,281.60
	 	Abated
	 	N/A
	 	$  4,023.47
	06/15/08 - 10/31/08

	 	$26.24
	 	$48,281.60
	 	$22.34
	 	$84,601.58
	 	$11,073.60
	11/01/08 - 10/31/09

	 	$24.00
	 	$44,160.00
	 	$23.03
	 	$87,214.61
	 	$10,947.88
	11/01/09 - 10/31/10

	 	$24.72
	 	$45,484.80
	 	$24.00
	 	$90,888.00
	 	$11,364.40
	11/01/10 - 10/31/11

	 	$25.46
	 	$46,849.34
	 	$24.72
	 	$93,614.64
	 	$11,705.33
	11/01/11 - 10/31/12

	 	$26.23
	 	$48,254.82
	 	$25.46
	 	$96,417.02
	 	$12,055.99
	11/01/12 - 10/31/13

	 	$27.01
	 	$49,702.47
	 	$26.23
	 	$99,333.01
	 	$12,419.62EX-10.1

Exhibit 10.1

HAMILTON BEACH BRANDS, INC.

LONG-TERM INCENTIVE COMPENSATION PLAN

(Effective January 1, 2008)

1. Effective Date

     Subject to Section 15, the Effective Date of this Hamilton Beach Brands, 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 Hamilton Beach
Brands, Inc. (the “Company”) by enabling the Employers to attract and retain key management
employees by offering long-term incentive compensation to those key management employees who will
be in a position to make significant contributions to such profits and growth. This incentive 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 Employers do not guarantee any
particular tax result to Participants or Beneficiaries with respect to any amounts deferred or any
payments provided hereunder, including tax treatment under Code Section 409A.

4. Definitions

     (a)  “Account” shall mean the record maintained by the Employer in accordance with
Section 7 to reflect the Participants’ Awards under this 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 a Participant under this Plan for the Award
Terms.

     (c) “Award Term” shall mean the period of one or more years on which an Award is based, as
specified in the Guidelines. The Committee shall establish the applicable Award Term not later
than 90 days after the commencement of the Award Term on which the Award is based and prior to the
completion of 25% of such Award Term.

     (d) “Beneficiary” shall mean the person(s) designated in writing (on a form acceptable to the
Committee) to receive the payment of all amounts 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.

     (e) “Change in Control” shall mean the occurrence of an event described in Appendix 1 hereto.

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

     (g) “Committee” shall mean the Compensation Committee of the Board of Directors of the
Company, any other committee appointed by such Board of Directors, or any sub-committee appointed
by the Compensation Committee to administer this Plan in accordance with Section 5; provided that
such committee or sub-committee consists of not less than two directors of the Company and so long
as each such member of the committee or sub-committee is an “outside director” for purposes of Code
Section 162(m).

     (h) “Covered Employee” shall mean any Participant who is a “covered employee” for purposes of
Code Section 162(m) or any Participant who the Committee determines in its sole discretion could
become such a covered employee.

     (i) “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.

     (j) “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 thereunder which is designated
as the successor to such fund.

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

     (l) “Guidelines” shall mean the guidelines that are approved by the Committee for each Award
Term 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 the Plan regarding the time and form of payment of the Awards, the Plan shall
control.

2

 

     (m) “Hay Salary Grade” shall mean the salary grade or points assigned to a Participant by the
Employers pursuant to the Hay Salary System, or any successor salary system subsequently adopted by
the Employers; provided, however, that for purposes of determining Target Awards for U.S.
Participants, the midpoint of the national salary ranges (unadjusted for geographic location) shall
be used.

     (n) “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 the Participant’s relationship with the Employers
and their 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 as
defined in Treasury Regulation 1.415(c)-2(d)(4) (i.e., the 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.

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

     (p) “Non-U.S. Participant” shall mean a Participant who is classified by the Committee as a
non-resident alien with no U.S.-earned income. Such classification shall be determined as of the
Grant Date of a particular Award. Once a Participant is classified by the Committee as a Non-U.S.
Participant with respect to a particular Award, such classification shall continue in effect until
the Sub-Account holding such Award is paid, regardless of any subsequent change in classification.

     (q) “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.

     (r) “Retirement” or “Retire” shall mean the termination of a Participant’s employment with the
Employers after the Participant has reached age 55 and completed at least 5 years of service.

3

 

     (s) “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.

     (t) “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 Term assuming
that the applicable performance targets are exactly met.

     (u) “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).

     (v) “Subsidiary” shall mean any corporation, partnership or other entity, the
majority of the outstanding voting securities of which is owned, directly or indirectly, by the
Company. The Company and the Subsidiaries shall be referred to herein collectively as the
“Employers.”

     (w) “U.S. Participant” shall mean, with respect to any Award, any Participant who is not a
Non-U.S. Participant.

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. Notwithstanding the foregoing, except as specifically provided
elsewhere in the Plan, no such action may be taken by the Committee that would cause any Awards
made to a Covered Employee be treated as “applicable employee remuneration” of such Participant, as
such term is defined in Code Section 162(m).

4

 

6. Eligibility

     Any person who is classified by the Employers as a salaried employee of the Employers
generally at a Hay Salary Grade of 17 or above (or a compensation level equivalent thereto), who in
the judgment of the Committee occupies an officer or other key executive position in which his
efforts may significantly contribute to the profits or growth of the Employers, 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 Employers and (b) leased employees (as such term is defined
in Code Section 414) shall not be eligible to participate in the Plan. A person who satisfies
the requirements of this Section 6 shall become a Participant in the Plan when granted an Award
under Section 8(b)(ii).

7. Accounts and Sub-Accounts

     Each Employer shall establish and maintain on its books an Account for each Participant who is
or was employed by the Employer which shall reflect the Awards described in Section 8 hereof. Such
Account shall also (i) reflect credits for the interest described in Section 10(b) and debits for
any distributions therefrom and (ii) 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 determines, authorize the
granting of Awards to Participants for each Award Term, 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 Term (and prior to
completion of 25% of such Award Term), the Committee shall approve (i) a Target Award to be granted
to each Participant for such Award Term and (ii) a formula for determining the amount of each such
Award, which formula shall be based upon the Company’s return on total capital employed for such
Award Term.

     (b) Effective no later than April 30th of the calendar year following the end of
the Award Term, the Committee shall approve (i) a preliminary calculation of the amount of each
Award based upon the application of the formula 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 Award Term (with the specified
Grant Date of such Award being January 1st of the calendar year following the end of the
Award Term). Such approval shall be certified in writing by the Committee before any amount is
paid for any Award granted with respect to an Award Term. Notwithstanding the foregoing, (1) the
Committee shall have the power to decrease the amount of any Award below the amount determined in
accordance with the foregoing provisions and (2) the Committee shall have the power to increase the
amount of

5

 

any Award above the amount determined in accordance with the foregoing provisions and/or
adjust the amount thereof in any other manner determined by the Committee, in its sole and absolute
discretion. Notwithstanding the foregoing, (X) no such decrease may occur following a Change in
Control; (Y) no such increase, adjustment or other change may be made that would cause an amount to
be paid to a Participant who is a Covered Employee be includable as “applicable employee
remuneration” of such Participant, as such term is defined in Code Section 162(m) and (Z) 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 U.S. Participants for an Award Term shall initially be
based on a Participant’s Hay Salary Grade as of January 1st of the first year of the
Award Term. Calculations of Target Awards for Non-U.S. Participants for an Award Term shall be
determined in accordance with the Guidelines in effect for such Award Term. However, such Target
Awards may be changed during or after the Award Term 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 Term, 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 Term will, if designated as a Plan
Participant by the Committee, be assigned a pro-rated Target Award based on their length of service
during an Award Term and (iii) the Committee may increase or decrease the amount of the Target
Award at any time, in its sole and absolute discretion; provided, however, that (X) no such
decrease may occur following a Change in Control and (Y) no such increase, adjustment or other
change may be made that would cause an amount to be paid to a Participant who is a Covered Employee
be includable as “applicable employee remuneration” of such Participant, as such term is defined in
Code Section 162(m). In order to be eligible to receive an Award for an Award Term, the
Participant must be employed by the Employers and must be a Participant on December 31st
of the last year of the Award Term. Notwithstanding the foregoing, if a Participant dies, becomes
Disabled or Retires during the Award Term, the Participant shall be entitled to a pro-rata portion
of the Award for such Award Term, calculated based on actual Company performance for the entire
Award Term in accordance with Section 8(b)(ii) above and based on the number of days the
Participant was actually employed by the Employers during the Award Term.

     (d) After approval by the Compensation Committee, each Award shall be credited to the
Participant’s Account in accordance with the following rules. The cash value of each Award for
each Award Term 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 1/1/10 shall be credited to the 2010 Sub-Account,
etc.

6

 

     (e) Notwithstanding any other provision of the Plan, (1) the maximum cash value of the Awards
granted to a Participant under this Plan for any Award Term shall not exceed $2,250,000 and (2) the
maximum cash value of the payment from the Sub-Account that holds the Awards for any Award Term
(including interest) shall not exceed $4,000,000.

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

     (g) All determinations under this Section shall be made by the Committee. Each Award granted
to a Covered Employee shall be granted and administered to comply with the requirements of Code
Section 162(m).

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 Date. 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 the Award 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, (A) the payment date of amounts that were credited to a
particular Sub-Account while the Participant was a Non-U.S. Participant may be any earlier
date determined by the Committee and (B) 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, (1) 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 (2) the Award earned for the Award Term in which
the date of death or Termination of Employment occurs shall be paid during the period from
January 1st though April 30th of the calendar year following the last
day of the Award Term; 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 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).

7

 

     (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 a Sub-Account after the last day of the month
preceding the payment date of such Sub-Account.

     (i) Interest Rate for Non-Covered Employees. At the end of each month during a
calendar year, the Sub-Accounts of Participants who are not Covered Employees shall be
credited with an amount determined by multiplying the Participant’s 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 Participant’s 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.

     (ii) Interest Rate for Covered Employees. At the end of each month during a
calendar year, the Sub-Accounts of Participants who are Covered Employees shall be credited
with an amount determined by multiplying the Participant’s average Sub-Account balances during
such month by the blended rate earned during such month by the Fixed Income Fund. In
addition, if the Fixed Income Fund rate for such year is less than 14%, the Sub-Accounts shall
retroactively be credited with an additional amount determined by multiplying the
Participant’s average Sub-Account balances during each month of such calendar year by the
excess of 14% over the Fixed Income Fund Rate for such calendar year, compounded monthly.
Notwithstanding the foregoing, in the event that the ROTCE Table Rate adopted by the Committee
for such year is less than 14%, the ROTCE Table Rate shall be substituted for 14% in the
preceding sentence.

     (iii) Special Rules. In the event that, prior to an applicable Maturity Date, a
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 immediately preceding such date. When making such calculations, (X) the Fixed
Income Fund rate shall be equal to the blended rate earned during the preceding month by the
Fixed Income Fund, (Y) the ROTCE Table Rate shall be equal to the year-to-date ROTCE Table
Rate as of the last day of the prior month and (Z) the 14% rate (when applicable) shall apply
until the last day of the month prior such date.

8

 

     (iv) Changes. The Committee may change (or suspend) the interest rate credited
on Accounts hereunder at any time. Notwithstanding the foregoing, no such change may be made
in a manner that would cause an amount to be paid to a Participant who is a Covered Employee
to be includable as “applicable employee remuneration” of such Participant, as such term is
defined in Code Section 162(m).

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

     (i) Payment Date and Form. Except as otherwise described in Section 11 hereof,
the Participant’s Employer (or former Employer) shall deliver to the Participant (or, if
applicable, his Beneficiary), a check in full payment of each Sub-Account hereunder 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); provided, however, that 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) from the date of such Termination of Employment
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. Amounts that are payable to
Non-U.S. Participants shall be converted from U.S. dollars to local currency in accordance
with the terms of the Guidelines.

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 Term, 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 Term
and prior to the Change in Control) for such Award Term shall be equal to the Participant’s Target
Award for such Award Term multiplied by a fraction, the numerator of which is the number of days
during the Award Term during which the Participant was employed by the Employers prior to the
Change in Control and the denominator of which is the number of days in the Award Term.

     (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 Term

9

 

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 no such amendment shall, without the written consent of a
Participant, (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 as of the date 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 as permitted under Code Section 409A or are required to bring
such provisions into compliance with the requirements of Code Section 409A and the regulations
issued thereunder.

     (b) The Committee, in its sole and absolute discretion, may terminate this Plan (or any
portion thereof) at any time; provided that, without the written 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 as of the date of the termination or (iii) alter the time of payment
provisions described in Sections 10 or 11of the Plan, except for modifications that accelerate the
time of payment or are required to bring such provisions into compliance with the requirements of
Code Section 409A and, in either case, are permitted under 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 Employers, or shall in any way affect the right and
power of the Employers to terminate the employment of any employee at any time with or without
assigning a reason therefor to the same extent as the Employers 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 Commonwealth of Virginia, except when preempted by federal law.

10

 

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

     (d) Assignability. No Award granted to a Participant under this Plan and no Account
balance of 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, any 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 Employers for the payment of any benefits 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 Employer or former Employer of the Participant, and the
Participants and Beneficiaries are merely unsecured creditors of the Participant’s
Employer or former Employer.

     (g) Payment to Guardian. If a Sub-Account balance 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 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 Sub-Account. Such distribution shall completely discharge the Employers from
all liability with respect to such Sub-Account.

11

 

     (h) Miscellaneous.

     (i) Headings. 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) Construction. 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 due hereunder may be accelerated to the extent necessary to
(i) comply with federal, state, local or foreign ethics or conflicts of interest laws or
agreements or (ii) 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, 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 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.

     (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.

12

 

14. Liability of Employers. The Employers shall each be liable for the payment of the Awards/Sub-Account
balances that are payable hereunder to or on behalf of the Participants who are (or were) its employees.

15. Approval by Stockholders

     This Plan shall be submitted for approval by the stockholders of NACCO Industries, Inc. If
such approval has not been obtained by July 1, 2008, all grants of Target Awards made on or after
January 1, 2008 shall be rescinded.

	 	 	 	 	 	 	 	 	 
	Date:	 	May 14, 2008	 	 	 	HAMILTON BEACH BRANDS, INC.
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Charles A. Bittenbender
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	 Assistant Secretary

13

 

Appendix 1.            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 The Kitchen Collection, 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);

14

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	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

15

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	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 Hamilton Beach Brands, Inc. and its successors (“HB”), any direct or indirect subsidiary of HB and
any entity that directly or indirectly controls HB.

16

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