Document:

Ex-10.8

 

Exhibit 10.8

AMENDMENT NO. 4

TO

THE NACCO MATERIALS HANDLING GROUP, INC.

SENIOR EXECUTIVE LONG TERM INCENTIVE COMPENSATION PLAN

(Effective as of January 1, 2000)

WITH RESPECT TO

THE AMERICAN JOBS CREATION ACT OF 2004

     WHEREAS, NACCO Materials Handling Group, Inc. (the “Company”) adopted the
Senior Executive Long-Term Incentive Compensation Plan (the “Plan”) effective
as of January 1, 2000; and

     WHEREAS, the Plan is classified as a “nonqualified deferred compensation
plan” under the Internal Revenue Code of 1986, as amended (the “Code”); and

     WHEREAS, the American Jobs Creation Act of 2004, P.L. 108-357 (the “AJCA”)
added a new Section 409A to the Code, which significantly changed the Federal
tax law applicable to “amounts deferred” under the Plan after December 31,
2004; and

     WHEREAS, pursuant to the AJCA, the Secretary of the Treasury and the
Internal Revenue Service will issue proposed, temporary or final regulations
and/or other guidance with respect to the provisions of new Section 409A of the
Code (collectively, the “AJCA Guidance”); and

     WHEREAS, the AJCA Guidance has not yet been issued; and

     WHEREAS, pursuant to Section 6(a) of the Plan, all Awards under the Plan
are 100% vested as of the Grant Date (meaning that Awards with Grant Dates of
January 1, 2001, January 1, 2002, January 1, 2003 and January 1, 2004 are 100%
vested as of December 31, 2004); and

     WHEREAS, to the fullest extent permitted by Code Section 409A and the AJCA
Guidance, the Company wants to protect the “grandfathered” status of the Awards
that are deferred prior to January 1, 2005; and

     NOW THEREFORE, the Company hereby adopts this Amendment No. 4 to the Plan,
which amendment is intended to (1) allow amounts deferred prior to January 1,
2005 to qualify for “grandfathered” status and to continue to be governed by
the law applicable to nonqualified deferred compensation prior to the addition
of Code Section 409A (as specified in the Plan as in effect before the adoption
of this Amendment No. 4) and (2) cause amounts deferred after December 31, 2004
to be deferred in compliance with the requirements of Code Section 409A.

Words used herein with initial capital letters that are defined in the Plan are
used herein as so defined.

Section 1

     Article I of the Plan is hereby amended by adding the following new
Section 1A to the end thereof, to read as follows:

     “1A. American Jobs Creation Act (AJCA).

     (a) It is intended that the Plan (including any Amendments thereto) comply
with the provisions of Section 409A of the Internal Revenue Code (the “Code”),
as enacted by the AJCA, so as to prevent the inclusion in gross income of any
Awards hereunder in a taxable year that is prior to the taxable year or years
in which such Awards would otherwise be actually paid or made available to the
Participant. The Plan shall

 

 

be administered in a manner that will comply with Section 409A of the Code,
including proposed, temporary or final regulations or any other guidance issued
by the Secretary of the Treasury and the Internal Revenue Service with respect
thereto (collectively with the AJCA, the “AJCA Guidance”). Any Plan provision
that would cause the Plan to fail to satisfy Section 409A of the Code
(including any provision added by this Amendment) shall have no force and
effect until amended to comply with Code Section 409A (which amendment may be
retroactive to the extent permitted by the AJCA Guidance).

     (b) The Committee shall not take any action hereunder that would violate
any provision of Section 409A of the Code. It is intended that all
Participants’ elections hereunder will comply with Code Section 409A and the
AJCA Guidance. The Committee is authorized to adopt rules or regulations
deemed necessary or appropriate in connection therewith to anticipate and/or
comply with the requirements thereof (including any transition or grandfather
rules thereunder). In this regard, the Committee is authorized to permit
Participant elections with respect to amounts deferred after December 31, 2004
and is also permitted to give the Participants the right to amend or revoke
such elections in accordance with the AJCA Guidance.

     (c) The effective date of Amendment No. 4 to this Plan is January 1, 2005.
Amendment No. 4 creates two sets of Awards hereunder — (i) the “Pre-2005
Awards” for Awards that are “deferred” (as such terms is defined in the AJCA
Guidance) as of December 31, 2004 and (ii) the “Post-2004 Awards” for amounts
that are deferred after December 31, 2004. Amendment No. 4 also modifies the
distribution elections and provisions for the Post-2004 Awards to comply with
the requirements of Code Section 409A.

     (d) In furtherance of, but without limiting the foregoing, the Awards that
are deemed to have been deferred prior to January 1, 2005 and that qualify for
“grandfathered status” under Section 409A of the Code shall continue to be
governed by the law applicable to nonqualified deferred compensation prior to
the addition of Section 409A to the Code and shall be subject to the terms and
conditions specified in the Plan as in effect prior to the effective date of
Amendment No. 1 thereto. In particular (a) the Awards with Grant Dates of
January 1, 2001, January 1, 2002, January 1, 2003 and January 1, 2004 shall be
designated as Pre-2005 Awards and (b) to the extent permitted by AJCA Guidance,
the Awards with a Grant Date of January 1, 2005 shall also be designated as
Pre-2005 Awards.”

Section 2

     Section 2(a) of the Plan is hereby amended by adding the following
sentence to the end thereof, to read as follows:

     “The Participant’s Awards shall be further divided into the following two
sub-sets (i) the “Pre-2005 Awards” for amounts that are “deferred” (as such
term is defined in the AJCA Guidance) as of December 31, 2004 and (ii) the
“Post-2004 Awards” for amounts that are deferred after December 31, 2004 (and
earnings thereon).”

Section 3

     Section 2 of the Plan is hereby amended by adding the following new
definitions to the end thereof, to read as follows:

     “(r) “Disability” or “Disabled.” A Participant shall be deemed to have a
“Disability” or be “Disabled” if the Participant (1) 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 (2)
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.

2

 

     (s) “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 so long as the Company (or a related entity) is a corporation, any
stock in which is publicly traded on an established securities market or
otherwise.

     (t) “Termination of Employment” means a separation of service as defined
in the AJCA Guidance issued under Code Section 409A.

     (u) “Unforeseeable Emergency” shall mean an event which results in a
severe financial hardship to the Participant as a consequence of (1) an illness
or accident of the Participant, the Participant’s spouse or a dependent within
the meaning of Code Section 152, (2) loss of the Participant’s property due to
casualty or (3) other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant.”

Section 4

     The second sentence of Section 3 of the Plan is hereby amended by adding
the following new clause to the end thereof, to read as follows:

     “;provided, however, that the Committee shall not have any authority to
interpret any provision of the Plan or to adopt or amend any rules or
regulations (or amend the Guidelines) in any manner that would cause the Plan
to fail to meet the requirements of Code Section 409A).”

Section 5

     Section 5(a) of the Plan is hereby amended by deleting the phrase “return
on equity” and replacing it with the phrase “return on total capital employed”
therein.

Section 6

     Section 6 of the Plan is hereby amended (1) by renaming the Section as
“Vesting and Payment of Pre-2005 Awards” and (2) adding the following new
Subsection (f) to the end thereof, to read as follows:

     “(f) The provisions of this Section shall apply only to the Participants’
Pre-2005 Awards. In addition, the Committee shall not exercise any discretion
with respect to the Pre-2005 Awards that would result in a “material amendment”
to the Plan that would jeopardize the “grandfathered” status of the Pre-2005
Awards under Code Section 409A.”

Section 7

     The last sentence of Section 6(e) of the Plan is hereby amended by adding
the following clause to the end thereof, to read as follows:

     “to the extent permitted under Code Section 409A.”

Section 8

     The Plan is hereby amended by adding the following new Section 6A thereto,
immediately following Section 6, to read as follows:

     6A. Vesting and Payment of Post-2004 Awards.

3

 

     (a) Vesting. All Book Value Units granted pursuant to an Award hereunder
shall be immediately 100% vested as of the Grant Date.

     (b) Maturity Date.

     (i) In the Guidelines adopted for each Award Year, the Committee shall
establish a maturity date for the Book Value Units granted in each Award for
such Award Year which shall generally be the fifth anniversary of the Grant
Date of such Award (or such other date specified in the Guidelines) (the
“Maturity Date”); provided, however, that once established, the Maturity Date
of an Award as specified in the Guidelines may not thereafter be changed.

     (ii) Notwithstanding the foregoing, in the event of a Participant’s
Termination of Employment caused by death, Disability or Retirement, the
Maturity Date of all of the Participant’s outstanding Post-2004 Awards shall be
the date of such Participant’s Termination of Employment; provided, however,
that if the Participant is a Key Employee, the Participant’s Maturity Date
shall be the six month anniversary of the date of his Termination of Employment
(or, if earlier, the date of the Participant’s death).

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

     (i) Payment Date and Form. Unless a Participant timely makes a deferral
election under Subsection (d) hereof, the Company or the Subsidiary (as
applicable) shall deliver to the Participant (or, if applicable, his
Beneficiary), a check in full payment of the Book Value Units granted pursuant
to each Post-2004 Award as soon as practicable following the Maturity Date of
such Award.

     (ii) Value. For Participants who are employed on the Maturity Date, the
value of the Book Value Units shall be based on the Book Value as of the
Quarter Date immediately preceding the Maturity Date. For Participants who
terminate employment for reasons other than death, Disability or Retirement,
the value of the Book Value Units shall be based on the Book Value as of the
Quarter Date coincident with or immediately preceding the date of termination
(despite the fact that such amounts are not paid until the Maturity Date). For
Participants who terminate employment due to death, Disability or Retirement,
the value of such Book Value Units shall be based on the Book Value as of the
Quarter Date coincident with or immediately preceding the Maturity Date;
provided, however, that if a Participant is a Key Employee whose payment is
delayed for 6 months, the value of his Book Value Units shall be based on the
Book Value as of the Quarter Date coincident with or immediately preceding the
payment date.

     (d) Deferral Option. No deferral options are currently available with
respect to Post-2004 Awards under the Plan. However, the Company intends to
give Participants the right to defer payment of their Post-2004 Awards, in
accordance with the AJCA Guidance issued under Code Section 409A. The Company,
in its sole and absolute discretion shall have the right to determine what
deferral options will be available and shall amend the Plan to reflect those
options, subject to the requirements of Code Section 409A.”

Section 9

     The Plan is hereby amended by adding the following new Section 6B thereto,
immediately following Section 6A, to read as follows:

     “6B. Unforeseeable Emergency Distributions for Post-2004 Awards.
Notwithstanding any provision of the Plan to the contrary, the Committee may at
any time, upon written request of the Participant, cause to be paid to such
Participant an amount equal to all or any part of the Participant’s vested
Post-2004

4

 

Awards, if the Committee determines, based on such reasonable evidence that it
shall require, that such a payment or payments is necessary for the purpose of
alleviating the consequences of an Unforeseeable Emergency occurring with
respect to the Participant. Payments made on account of an Unforeseeable
Emergency shall be permitted only to the extent the amount does not exceed the
amount reasonably necessary to satisfy the emergency need (plus an amount
necessary to pay taxes reasonably anticipated as a result of the distribution)
and may not be made to the extent such Unforeseeable Emergency is or may be
relieved through reimbursement or compensation by insurance or otherwise or by
liquidation of the Participant’s assets (to the extent such liquidation would
not itself cause severe financial hardship).”

Section 10

     Section 8 of the Plan is hereby amended by adding the following new
Subsection (e) to the end thereof, to read as follows:

     “(e) The provisions of this Section shall apply only to the extent
permitted by Code Section 409A.”

Section 11

     Subsection 9(d) of the Plan is hereby amended by adding the following new
clause (iii) to the end thereof, to read as follows:

     “(iii) The provisions of this Subsection shall apply only to the extent
permitted by Code Section 409A.”

     Executed
this 28th day of December, 2004.

	 	 	 	 	 
	 	 	NACCO MATERIALS HANDLING GROUP, INC.
	 
	 	 	 	 
	

	 	By:   	 	/s/ Charles A.
Bittenbender
	

	 	 	 	

	 	 	Title: Assistant Secretary

5Ex-10.9

 

Exhibit 10.9

AMENDMENT NO. 1 AND INSTRUMENT OF BENEFIT FREEZE

TO THE

NACCO MATERIALS HANDLING GROUP, INC.

EXCESS PENSION PLAN FOR UK TRANSFEREES

Effective as of October 1, 2002

          WHEREAS, effective as of October 1, 2002, NACCO Materials Handling Group,
Inc. (the “Company”) adopted the NACCO Materials Handling Group, Inc. Excess
Pension Plan for UK Transferees (the “Plan”); and

          WHEREAS, the Plan is classified as a “nonqualified deferred compensation
plan” under the Internal Revenue Code of 1986, as amended (the “Code”); and

          WHEREAS, the American Jobs Creation Act of 2004, P.L. 108-357 (the “AJCA”)
added a new Section 409A to the Code, which significantly changed the Federal
tax law applicable to “amounts deferred” under the Plan after December 31,
2004; and

          WHEREAS, pursuant to the AJCA, the Secretary of the Treasury and the
Internal Revenue Service will issue proposed, temporary or final regulations
and/or other guidance with respect to the provisions of new Section 409A of the
Code (collectively, the “AJCA Guidance”); and

          WHEREAS, the AJCA Guidance has not yet been issued; and

          WHEREAS, pursuant to Article IV of the Plan, all Excess Pension Benefits
under the Plan are 100% vested; and

          WHEREAS, to the fullest extent permitted by Section 409A of the Code and
the AJCA Guidance, the Company wants to protect the “grandfathered” status of
the Excess Pension Benefits that are accrued prior to January 1, 2005; and

          WHEREAS, due to the uncertainty regarding the affect of the AJCA on Excess
Pension Benefits under the Plan, the Company has decided to temporarily freeze
all Excess Pension Benefits as of December 31, 2004.

          NOW, THEREFORE, the Company hereby adopts this Amendment No. 1 to the
Plan, which amendment is intended to allow amounts deferred prior to January 1,
2005 to qualify for “grandfathered” status and continue to be governed by the
law applicable to nonqualified deferred compensation prior to the addition of
Section 409A of the Code (as specified in the Plan as in effect prior to
January 1, 2005).

Words and phrases used herein with initial capital letters that are defined in
the Plan are used herein as so defined and the provisions hereof shall be
effective as of the close of business on December 31, 2004.

1

 

Section 1

          Article I of the Plan is hereby amended by the addition of the following
new Section 1.5 at the end thereof to read as follows:

          “Section 1.5 American Jobs Creation Act (AJCA).

     (a) To the extent applicable, it is intended that the Plan (including all
Amendments thereto) comply with the provisions of Section 409A of the Code, as
enacted by the AJCA, so as to prevent the inclusion in gross income of any
amount Excess Pension Benefit accrued hereunder in a taxable year that is prior
to the taxable year or years in which such amounts would otherwise be actually
distributed or made available to the Participants. The Plan shall be
administered in a manner that will comply with Section 409A of the Code,
including proposed, temporary or final regulations or any other guidance issued
by the Secretary of the Treasury and the Internal Revenue Service with respect
thereto (collectively with the AJCA, the “AJCA Guidance”). Any Plan provisions
(including, without limitation, those added or amended by Amendment No. 1) that
would cause the Plan to fail to satisfy Section 409A of the Code shall have no
force and effect until amended to comply with Code Section 409A (which
amendment may be retroactive to the extent permitted by the AJCA Guidance).

     (b) The Plan Administrator shall not take any action that would violate
any provision of Section 409A of the Code. The Plan Administrator is
authorized to adopt rules or regulations deemed necessary or appropriate in
connection with the AJCA Guidance to anticipate and/or comply with the
requirements thereof (including any transition or grandfather rules
thereunder).

     (c) The effective date of Amendment No. 1 to this Plan is December 31,
2004. This Amendment temporarily freezes the Excess Pension Benefits effective
as of December 31, 2004, with the intent being that the Company will rescind
the freeze upon issuance of the AJCA Guidance. In furtherance of, but without
limiting the foregoing, any Excess Pension Benefit that is deemed to have been
deferred prior to January 1, 2005 and that qualifies for “grandfathered status”
under Section 409A of the Code shall continue to be governed by the law
applicable to nonqualified deferred compensation prior to the addition of
Section 409A to the Code and shall be subject to the terms and conditions
specified in the Plan as in effect prior to January 1, 2005.”

Section 2

          Section 3.1(a) of the Plan is hereby amended by the addition of the
following new paragraph to the end thereof to read as follows:

     “Benefit Freeze. Notwithstanding any provision of the Plan to the
contrary, all Excess Pension Benefits under the Plan shall be frozen as
of December 31, 2004. In furtherance thereof, but without limiting the
foregoing, a Participant shall not receive

2

 

credit under this Plan for any service or compensation that is earned
after December 31, 2004. The Company intends that Excess Pension
Benefits that are accrued and vested on or before December 31, 2004 will
qualify for “grandfathered” status under the AJCA and will continue to be
governed by the law applicable to nonqualified deferred compensation
prior to the addition of Section 409A of the Code.”

Section 3

          The last sentence of Section 3.1(b)(iv) of the Plan is hereby amended to
read as follows:

“The Compensation Committee of the Board of Directors of the Company (the
“Compensation Committee”), in its sole and absolute discretion, shall
have the authority to waive this payment restriction (in whole or in
part) upon the written request of the Participant, to the extent
permitted by Code Section 409A.”

Section 4

          Section 6.1 of the Plan is hereby amended by adding the following new
Subsection (c) to the end thereof, to read as follows:

     (c) Notwithstanding any provision of the Plan to the contrary, the
Plan Administrator (or its delegate) shall not have the right to
interpret the Plan in a manner, or make any rules or regulations, that is
inconsistent with the requirements of Section 409A of the Code (including
the grandfather rules thereunder).”

Section 5

     The last paragraph of Section 6.3 of the Plan is hereby amended by adding
the following new sentence to the end thereof, to read as follows:

“Such a decision shall include statements that (i) the claimant is
entitled to receive, upon request and free of charge, reasonable access
to, and copies of, all documents, records and other information relevant
to the claimant’s claim for benefits and (ii) a statement of the
claimant’s right to bring an action under Section 502(a) of ERISA.”

Section 6

          The first sentences of Sections 6.5 and 6.6 of the Plan are each amended
by adding the following new clause to the end thereof, to read as follows:

     “; provided that such limitations shall not apply to the extent such
amendment or termination is deemed necessary by the Company to comply with the
requirements of Code Section 409A.”

3

 

Section 7

          Section 6.6(b) of the Plan is hereby amended by adding the following new
clause to the end thereof, to read as follows:

     “; to the extent permitted by Code Section 409A.”

     EXECUTED
this 28th day of December, 2004.

	 	 	 	 	 
	 	 	NACCO MATERIALS HANDLING GROUP, INC.
	 
	 	 	 	 
	

	 	By:	 	  /s/ Charles A.
Bittenbender
	

	 	 	 	

	 	 	 	 	Title: Assistant Secretary

4

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