Document:

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                                                                 Exhibit 10(xxi)

                                 AMENDMENT NO. 3
                                     TO THE
                             RETIREMENT BENEFIT PLAN
                            FOR ALFRED M. RANKIN, JR.
               (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 1994)

     NACCO Industries, Inc. hereby adopts this Amendment No. 3 to the Retirement
Benefit Plan for Alfred M. Rankin, Jr. (As Amended and Restated Effective
January 1, 1994), to be effective October 1, 1999. Words and phrases used herein
with initial capital letters which are defined in the Plan are used herein as so
defined.

                                    SECTION 1

                  The second sentence of Section 6.4(a) of the Plan is hereby
                  amended in its entirety to read as follows:

                  "The Committee shall have discretion to interpret the
                  provisions of the Plan (including, without limitation, by
                  supplying omissions from, correcting deficiencies in or in
                  resolving inconsistencies or ambiguities in the language of
                  the Plan, to make factual findings with respect to any issue
                  arising under the Plan, to determine the rights and status
                  under the Plan of Participants and Beneficiaries and other
                  persons, to decide disputes arising under the Plan and to make
                  any determinations (including factual determinations) with
                  respect to benefits payable hereunder."

                                    SECTION 2

                  Section 7.1 of the Plan is hereby amended in its entirety to
read as follows:

                  "SECTION 7.1 AMENDMENT. Subject to Section 7.3, the NACCO
                  Industries, Inc. Benefits Committee (the "Benefits Committee")
                  does hereby reserve the right to amend, at any time, any or
                  all of the provisions of the Plan, without the consent of the
                  Participant, Beneficiary or any other person. Any such
                  amendment shall be expressed in an instrument executed by an
                  officer of the Employer on the order of the Benefits Committee
                  and shall become effective as of the date designated in such
                  instrument or, if no such date is specified, on the date of
                  its execution."

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                  EXECUTED this 13TH day of SEPTEMBER, 1999.

                                                   NACCO INDUSTRIES, INC.

                                              By: /S/ CHARLES A. BITTENBENDER
                                                  ------------------------------
                                                  Title: Vice President, General
                                                     Counsel and Secretary<PAGE>   1
                                                                 Exhibit 10(xlv)

                        2000 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
                  performance 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.
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          -       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.

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:

<TABLE>
<CAPTION>
                                                % OF
               AWARD LEVEL                     TARGET                                 DESCRIPTION
         ------------------------          ----------------          ----------------------------------------------
<S>                                            <C>                   <C>
         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.
</TABLE>

<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.

<TABLE>
<CAPTION>
                                             PERFORMANCE
               PERFORMANCE                    PERCENTAGE
                  LEVEL                       GUIDELINE                               DEFINITION
         ------------------------         -------------------        ----------------------------------------------
<S>                                              <C>                 <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>

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         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
         --------------

         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.

2000 PERFORMANCE TARGETS

         See Plan Summary.

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