Document:

<PAGE>   1
                                                                Exhibit 10 (xlv)

                       THE NORTH AMERICAN COAL CORPORATION

                        2001 INCENTIVE COMPENSATION PLAN

<PAGE>   2

                        2001 INCENTIVE COMPENSATION PLAN

SUMMARY

The Incentive Compensation Plan (Plan) offers a highly attractive incentive
compensation opportunity to senior managers when all performance objectives
under their control or influence are achieved. This is accomplished through a
structure containing the following elements:

         -    Each participant is assigned an individual incentive target,
              stated as a percentage of their salary midpoint, that establishes
              the incentive compensation amount they will receive when
              performance objectives are met.

         -    The individual target amount is allocated among the following
              performace components:

                  -     North American Coal (NAC) corporate performance.

                  -     Bellaire Corporation cash flow.

                  -     Business unit results.

                  -     Individual achievement.

         -    Percentage weightings are assigned to each component, based on the
              participant's accountabilities and their impact on each component.

         -    One or more performance objectives will be established at the
              beginning of the year for each performance component.

         -    A performance range, which defines the acceptable level of
              results, from threshold to maximum, is created for each
              performance objective.

         -    A payout range is defined, which provides for incentive payments
              of up to 150 percent of the incentive target, except to the extent
              the Committee elects to increase the actual pool by up to 10
              percent, as described below.

         -    A performance/payout schedule combines the two ranges into a
              matrix that defines the level of incentive compensation payment
              that will result from each level of performance.

         -    After audited financials are available, awards will be calculated
              based on actual results against the established objectives.

         -    A final individual performance adjustment may be made, within a
              range of +10 percent of the calculated award, based on a judgment
              of the participant's overall performance.

This Incentive Compensation Plan will allow management and the Board to
establish, in advance, the performance expectations and related incentive
compensation potential that NAC's executives can expect for the year. At
year-end, the Plan focuses judgment of the management team's performance on
predetermined objectives that should produce fairness in the determination of
rewards.

<PAGE>   3
2001 INCENTIVE COMPENSATION PLAN
page 2

PLAN STRUCTURE

         INDIVIDUAL INCENTIVE TARGETS
         ----------------------------

         The primary focus of the proposed Plan is the individual incentive
         compensation target. Each participant is assigned a target, stated as a
         percentage of the mid-point of base salary, which will be paid when all
         relevant performance objectives are achieved. The Plan provides for
         payments above or below the target to reflect acceptable variances from
         performance objectives.

         PERFORMANCE GOALS
         -----------------

         Four sets of goals are proposed:

                            INTENTIONALLY LEFT BLANK

         INCENTIVE AWARD RANGE
         ---------------------

         Actual performance results attained probably will not match the
         established performance goals exactly. Therefore, the Plan is designed
         to provide incentive compensation payouts of up to 150 percent of the
         target award if actual results fall within a predetermined range of
         acceptable performance.

         The award range is defined as follows:

                                  % OF
               AWARD LEVEL       TARGET                    DESCRIPTION
         -------------------   -----------     ---------------------------------
         Maximum                   150%        Highest level of incentive paid.

         Target                    100%        Competitive incentive opportunity
                                               for achieving all-important
                                               goals.

         Threshold                  50%        Incentive paid when results meet
                                               minimum acceptable standards.

         Below threshold             0%        Performance does not merit
                                               incentive payment.

<PAGE>   4
2001 INCENTIVE COMPENSATION PLAN
page 3

         COMPONENT WEIGHTINGS
         --------------------

         Participants' potential incentive awards will be allocated between
         performance components based on their individual impact on results. The
         allocations allow for awards to be earned based on the achievement of
         the performance objectives over which each executive has the most
         control. Weightings will be stated as a percentage and total 100
         percent for each participant. The weightings will be established each
         year to reflect current organizational accountabilities and the
         relative importance of the various performance components. Our
         recommended weightings are as follows:

                            INTENTIONALLY LEFT BLANK

         When there is more than one goal for a performance component, further
         percentage weightings may be assigned, within the overall weightings,
         to reflect the relative priority of each goal. For example, if the
         individual component has a 40 percent weighting and there are five
         individual goals, each individual goal might be assigned a priority
         weighting of 20 percent.

         PERFORMANCE RANGE
         -----------------

         A range of performance acceptable for incentive compensation payment
         will be established for each performance objective. For quantitative
         goals, the range may be set as a percentage of the objective. For goals
         that cannot be quantified, the range will be defined in narrative form.

         The following general definitions will apply. The percentage ranges
         indicated are only guidelines; specific percentage ranges or narrative
         descriptions should be determined for each goal based on the
         definitions.

<PAGE>   5
2001 INCENTIVE COMPENSATION PLAN
page 4

<TABLE>
<CAPTION>
                                             PERFORMANCE
               PERFORMANCE                    PERCENTAGE
                  LEVEL                       GUIDELINE                               DEFINITION
         ------------------------         -------------------        ----------------------------------------------
<S>                                              <C>
         Threshold                               75%                 Minimum acceptable results justifying payment
                                                                     of incentives.

         Objective                                                   100% Results meet high performance demands
                                                                     justifying fully competitive rewards.

         Maximum                                 125%                Highest foreseeable level of performance.
</TABLE>

         PERFORMANCE/PAYOUT SCHEDULE

         Combining the performance and payout ranges yields a performance/
         payout schedule as in the following example:

<TABLE>
<CAPTION>
             PERFORMANCE                 DEFINITION               RESULTS          AWARD LEVELS           PAYOUT
         --------------------    ----------------------------    -----------    --------------------    -----------
<S>                              <C>                                  <C>       <C>                           <C>
         Threshold               Minimum                                75%     Threshold                      50%
         Objective               On plan                               100%     Target                        100%
         Maximum                 Exceeding expectations                125%     Maximum                       150%
</TABLE>

         This schedule is applied separately to the results of each established
         performance element to determine the incentive amount earned in
         accordance with assigned weightings. Performance that falls between the
         defined levels would result in proportionally adjusted payouts, which
         may be calculated mathematically or determined judgmentally.

         CORPORATE PERFORMANCE THRESHOLD

         No incentive compensation awards will be earned under the Plan in any
         year unless the threshold level of the corporate performance component
         is achieved. Once the corporate performance threshold is attained, each
         performance objective is separate and distinct. This means that partial
         awards can be earned for the attainment of one performance objective
         even if another is not sufficient to generate a payout.

         INDIVIDUAL ADJUSTMENT FACTOR

         Each individual award, as calculated above, may be adjusted upward or
         downward by as much as 10 percent of the total award, based on
         management's' perceptions of each individual's overall performance.

         PARTIAL AWARDS

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2001 INCENTIVE COMPENSATION PLAN
page 5

         Executives who are hired or promoted during the year to positions
         eligible for participation in the Plan may be included in the Plan on a
         prorata basis.

         COMMITTEE DISCRETION

         It is the intent of the Plan that the total incentive compensation, as
         determined above, will be the final total corporate incentive
         compensation to be paid. However, the Committee, in its sole
         discretion, may increase or decrease, by up to 10 percent, the total
         incentive compensation or may approve an incentive compensation payment
         where normally there would be no payment, due to corporate performance
         which is below the criteria established for the year.

2001 PERFORMANCE TARGETS

         See Plan Summary.<PAGE>   1
                                                               Exhibit 10 (liii)

                       THE NORTH AMERICAN COAL CORPORATION
                           VALUE APPRECIATION PLAN FOR
                               YEARS 2000 TO 2009

1.       PURPOSE OF THE PLAN
         -------------------

         The purpose of this Value Appreciation Plan ("VAP" or the "Plan") is to
further the long-term profits and growth of The North American Coal Corporation
(the "Company") by offering long-term incentive to those officers and key
management employees of the Company and its Subsidiaries who will be in a
position to make significant contributions to such profits or growth. This
incentive is in addition to annual compensation and is intended to reflect
growth in the value of the Company.

2.       DEFINITIONS
         -----------

         (a)      "Award" means an award of a VAP Amount under the provisions of
                  the Plan.

         (b)      "Committee" shall mean the Nominating, Organization and
                  Compensation Committee of the Company's Board of Directors
                  appointed to administer the Plan in accordance with Section 3.

         (c)      "Current Projects" shall mean the Company's existing projects,
                  such as Coteau, Falkirk, Sabine, Red River Mining, Mississippi
                  Lignite Mining, San Miguel, Florida Dragline Operations, and
                  interest income from notes receivable.

<PAGE>   2
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

         (d)      "New Projects" shall mean any new mining activities or
                  projects, such as the Dos Republicas Project, the Jayamkondam
                  Project (India), Guney Ege Enerji Project (Turkey), expansions
                  at current operations, and other new projects and activities.

         (e)      "Plan Term" shall mean the ten (10) year period from January
                  1, 2000 through December 31, 2009.

         (f)      "Salary Grade" shall mean the salary grade assigned to a Plan
                  Participant by the Company.

         (g)      "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.

         (h)      "Value Appreciation" shall mean an amount equal to after-tax
                  net income less a capital charge which is ten percent (10%) of
                  the book value of the entity.

         (i)      "VAP Amount" shall mean a Plan Participant's VAP Target Amount
                  times a VAP Multiplier, as determined in accordance with
                  Section 8.

         (j)      "VAP Goals for Current Projects" shall mean the expected Value
                  Appreciation for the Company and its Subsidiaries over the
                  Plan Term as determined by the Committee.

                                      -2-
<PAGE>   3
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

         (k)      "VAP Goal for New Projects" shall be the cumulative amount of
                  Value Appreciation to be obtained over the Plan Term from New
                  Projects, as determined by the Committee.

         (l)      "VAP Multiplier" shall mean a factor based on VAP Ratio as
                  further described herein.

         (m)      "VAP Percentage" shall mean a percentage of the Plan
                  Participant's salary range midpoint, and shall be determined
                  for each Plan Participant by the Committee.

         (n)      "VAP Ratio" shall mean a factor determined based on actual
                  performance versus VAP Goals as further described herein.

         (o)      "VAP Target Amount" shall mean (i) a dollar amount equal to
                  the VAP Percentage for a Plan Participant's Salary Grade times
                  the Plan Participant's salary range midpoint or (ii) such
                  amount as otherwise determined by the Committee.

         (p)      "VAP Targets for New Projects" shall mean those targets
                  calculated based on the expected capital investment and income
                  projections that are used, in good faith as realistic best
                  estimates, to obtain Management approval of the New Project.

                                      -3-
<PAGE>   4
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN FOR

3.       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 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 the Plan.

4.       ELIGIBILITY
         -----------

         Any salaried employee of the Company or any Subsidiary (including any
Subsidiary acquired after adoption of this Plan) generally at a Salary Grade no
lower than 16, 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 or Subsidiary may receive an Award under this
Plan. Directors of the Company or any Subsidiary who are not employees of the
Company or any Subsidiary are not eligible to participate in this Plan.
Any person receiving an Award shall be referred to as a "Participant."

5.       VAP AMOUNTS
         -----------

         5.1 AWARDS. As to each Award under this Plan, the Committee shall
determine and approve (a) the VAP Target Amount that may be awarded for each
Salary Grade, (b) the employees to whom VAP Amounts are to be awarded and (c)
the VAP Amount to be awarded to each individual employee. All Awards under this
Plan shall be effective as of January 1 of the year determined by the Committee.
Each

                                      -4-
<PAGE>   5
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

Award shall vest and the amount represented thereby shall be payable upon the
terms and conditions set forth in Section 5.2.

         5.2 VESTING; PAYMENT OF VAP AMOUNTS.

             (a) Each Participant's interest in his VAP Account under this
Plan shall vest at the rate of 20 percent for each year following the effective
date of the Participant's initial Award under this Plan during which the
Participant remains in the continuous employ of the Company or a Subsidiary;
provided, however, a Participant's interest in his VAP Account shall vest 100
percent in the event (x) of such Participant's death or permanent disability,
(y) such Participant remains in the continuous employ of the Company or a
Subsidiary through December 31, 2009, or (z) of such Participant's retirement
from his employment with the Company or Subsidiary. All payments under this Plan
shall be approved by the Committee. Subject to the provisions of Section 5.2(f),
the vested amounts in a Participant's VAP Account, including any Award for the
year 2009, shall be payable as soon as practicable following approval thereof by
the Committee following the earlier to occur of:

                      (i)   December 31, 2009,

                      (ii)  the date of a Participant's termination of
                            employment for death, permanent disability or
                            retirement,

                      (iii) the date of a Participant's termination of
                            employment other than for death, disability or
                            retirement, upon a determination by the Chief
                            Executive Officer of the Company and the Committee
                            that extraordinary circumstances exist which warrant
                            such payment, or

                      (iv)  the termination of this Plan pursuant to Section 9.

                                      -5-
<PAGE>   6
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

Notwithstanding the foregoing, the Committee may vest a Participant whose
employment otherwise terminates in such amounts, up to 100 percent of his VAP
Account, as the Committee may in its sole discretion determine.

             (b) In the event that all or any portion of a Participant's VAP
Account does not vest pursuant to Section 5.2(a), the VAP Amount represented
thereby shall terminate and be forfeited.

             (c) As soon as practicable following Committee approval following
the payment dates specified in Sections 5.2(a) (i), (ii), (iii) and (iv), the
Company shall deliver to the Participant or, if applicable, his heirs or
designated beneficiaries, a check in full payment of the amount represented by
the Participant's vested interest in his VAP Account.

             (d) The amounts payable under this Plan shall be calculated as of a
valuation date determined by the Committee, and in the absence of such
determination, shall be calculated based on the value of the VAP Account as of
the December 31 coincident with or immediately preceding the date of payment.

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

             (f) At any time a Participant may request in writing that the
Committee permit the Participant to exercise and receive payment of an amount up
to his then

                                      -6-
<PAGE>   7
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

vested interest in his VAP Account if such funds are needed because of a
financial hardship or unforeseen financial emergency; provided, however, that
the amount withdrawn may not be more than the lesser of the amount necessary to
satisfy the hardship or financial emergency or 40 percent of the total VAP
Account.

         5.3 FORFEITURE OF VAP AMOUNTS. Notwithstanding anything to the contrary
contained in this Plan, in the event a Participant shall intentionally commit an
act materially adverse to the interests of the Company or a Subsidiary, and the
Board of Directors of the Company or the Committee shall so find, his Award
shall be deemed to have terminated at the time of such act and his interest in
his VAP Account shall immediately be terminated and forfeited.

6.       ASSIGNABILITY
         -------------

         No Award to an employee under this Plan shall be transferable by him
for any reason whatsoever; provided, however, that the right to the proceeds of
an Award which are payable upon vesting pursuant to Section 5.2 may be
transferred by will or the laws of descent and distribution.

7.       VAP ACCOUNTS
         ------------

         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 of each Participant shall be adjusted in
accordance with the provisions of Section 8 hereof. Each Participant's VAP
Account also shall be credited with earnings as determined in accordance with
provisions of this Section 7 and shall be debited for any distributions made to
the Participant from his VAP Account.

                                      -7-
<PAGE>   8

THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

         As of the end of each 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.

         The Treasurer of the Company shall keep an accurate record of the
amounts credited or debited to each Participant's VAP Account and, as of
December 31 of each year, shall deliver to each Participant a written statement
showing the credits and debits made during the year to this VAP Account and the
accumulated balance thereof.

8.       CALCULATION OF VALUE APPRECIATION;
         ----------------------------------
         ADJUSTMENTS OF VAP AMOUNTS
         --------------------------

         Value Appreciation and all VAP Amounts to be credited to a
Participant's VAP Account under this Plan shall be determined based on the
actual performance of Current Projects and on the acquisition and actual
performance of New Projects as hereinafter described. Following the acquisition
of New Projects, the VAP Targets for New Projects shall be included in the VAP
Goals for Current and New Projects.

         (a) Annual Value Appreciation of Current and New Projects

             As of December 31 of each year, the amount to be credited to a
Participant's VAP Account based on the annual Value Appreciation of all Current
and New Projects shall be determined as follows:

         VAP AMOUNT FOR ANNUAL VALUE APPRECIATION OF ALL CURRENT AND NEW
         PROJECTS = VAP MULTIPLIER X 30% X VAP TARGET AMOUNT

where

                                      -8-
<PAGE>   9
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

         VAP MULTIPLIER = 4 X VAP RATIO - 3

where

<TABLE>

<S>                                                                                     <C>
         VAP RATIO = TOTAL ACTUAL ANNUAL VALUE APPRECIATION OF ALL CURRENT AND NEW PROJECTS
                     ----------------------------------------------------------------------
                           TOTAL ANNUAL VAP GOAL OF ALL CURRENT PROJECTS
                           (INCLUDING VAP TARGETS FOR NEW PROJECTS)
</TABLE>

                  However, if the VAP Multiplier calculated above is less than
0, it shall be 0, and if greater than 2.00, it shall be 2.00. See Exhibit 1
hereto.

         (b) Cumulative Value Appreciation of Current and New Projects
As of December 31 of each year, the amount to be credited to a Participant's VAP
Account based on the cumulative Value Appreciation of all Current and New
Projects from the beginning of the Plan Term (or from the beginning of a
Participant's participation in this Plan, in the case of a Participant whose
initial Award is effective after January 1, 2000) shall be determined as
follows:

<TABLE>

<S>                                                                               <C>
         VAP AMOUNT FOR CUMULATIVE VALUE APPRECIATION OF ALL CURRENT AND NEW PROJECTS
         = VAP MULTIPLIER X 30% X VAP TARGET AMOUNT
</TABLE>

where

         VAP MULTIPLIER = 4 X VAP RATIO - 3

where

<TABLE>
<CAPTION>
<S>                                                                                   <C>
         VAP RATIO = ACTUAL CUMULATIVE VALUE APPRECIATION OF ALL CURRENT AND NEW PROJECTS
                   CUMULATIVE VAP GOAL OF ALL CURRENT PROJECTS
                    (INCLUDING VAP TARGETS FOR NEW PROJECTS)
</TABLE>

                  However, if the VAP Multiplier calculated above is less than
0, it shall be 0, and if greater than 2.00, it shall be 2.00. See Exhibit 1
hereto.
         (c) VAP Amounts for the Acquisition of New Projects

                                      -9-
<PAGE>   10
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

             The acquisition of a New Project for purposes of this Plan shall be
determined by the Committee. The amount to be credited to a Participant's VAP
Account for the Acquisition of a New Project shall be determined as follows:

                           VAP AMOUNT FOR THE ACQUISITION OF NEW PROJECTS = VAP
                           MULTIPLIER X 40% X VAP TARGET AMOUNT X 10

where

                           VAP MULTIPLIER = A
                                            -
                                            B

where

                           A = THE PRESENT VALUE OF THE EXPECTED CUMULATIVE
                               VALUE APPRECIATION OF ALL NEW PROJECTS FOR THE
                               ACTUAL EXPECTED TERM(S) OF THE NEW PROJECT(S)
                               BASED ON A DISCOUNT FACTOR OF 10%, AND

                           B = THE TOTAL VAP GOAL FOR NEW PROJECTS OVER THE
                               PLAN TERM AS DETERMINED BY THE COMMITTEE.

                  The expected cumulative Value Appreciation for each New
Project shall be reviewed from time to time and the VAP Amount for the
Acquisition of the New Projects shall be adjusted, as appropriate. Any earnings
on such VAP Amount during the period between reviews shall not be adjusted.

         (d) Total VAP Amount for Current and New Projects

             The total VAP Amount to be credited to each  Participant's
VAP Account shall be determined as of December 31 of each year by adding the VAP
amounts for Current and New Projects (as determined under Section 8(a) and 8(b))
to the VAP Amounts for the Acquisition of New Projects (as determined under
Section 8(c)).

         (e) Committee Discretion

             Notwithstanding the provisions of this Plan, the Committee, in
its sole discretion, may make equitable adjustments by increasing or decreasing
the VAP

                                      -10-
<PAGE>   11
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

Amount to be credited to a Participant's VAP Account or may approve an Award
where one otherwise would not be made.

9.       AMENDMENT AND TERMINATION
         -------------------------

         The Committee or Board of Directors of the Company may alter, amend or
terminate this Plan from time to time; provided, however, that no modification
or amendment of this Plan shall, without the consent of a Participant, affect
the Participant's rights in an outstanding Award under this Plan; and further
provided, however, that upon a termination of this Plan, all outstanding Awards
shall vest 100 percent immediately thereupon, and shall be paid in accordance
with Section 5.2.

10.      GENERAL PROVISIONS
         ------------------

         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 the Company or any Subsidiary,
or shall in any way affect the right and power of the Company or any Subsidiary
to terminate the employment of any employee at any time with or without
assigning a reason therefor to the same extent as the Company or a Subsidiary
might have done if this Plan had not been adopted.

         The provisions of the Plan shall be governed by and construed in
accordance with the laws of the State of Texas.

         No trust has been created by the Company or any Subsidiary for the
payment of VAP Amounts granted under this Plan; nor have the Participants been
granted any lien on any assets of the Company or any Subsidiary to secure
payment of such benefits.

                                      -11-
<PAGE>   12
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

This Plan represents only an unfunded, unsecured promise to pay by the Company,
and the Participants hereunder are unsecured creditors of the Company.

         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.

11.      EFFECTIVE DATE
         --------------

         The effective date of this Plan is as of January 1, 2000.

                                      -12-
<PAGE>   13
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN

                                    EXHIBIT 1

                                       TO

                       THE NORTH ANERICAN COAL CORPORATION

                             VALUE APPRECIATION PLAN
                             -----------------------

                           VAP RATIO       VAP MULTIPLIER
                           ---------       --------------

                              INTENTIONALLY OMITTED

                                      -13-

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