Document:

exv10w4

 

EXHIBIT 10.4

Award Control Number: <insert #> 

NACCO MATERIALS HANDLING GROUP, INC.

LONG-TERM INCENTIVE COMPENSATION AWARD

(NOT TRANSFERABLE)

Form of Award Unit CERTIFICATE

NACCO MATERIALS HANDLING GROUP, INC.

(the “Company”) pursuant to action of the Compensation

Committee of its Board of Directors (the “Committee”), hereby 

grants to

 <insert employee name> (the “Grantee”), <insert units>

Award Units

having a Award Unit Price $       per Unit

pursuant to and subject to the provisions of the

NACCO MATERIALS HANDLING GROUP, INC. Long-Term

Compensation Plan (the “Plan”). This Award granted

on and this Certificate executed at Portland, Oregon, as of

January 1, 20 —, the “Date of Grant”

The Award Units granted in this Certificate shall have a maturity

date of January 1, 20 —  (but shall mature earlier in

accordance with Plan terms on death, disability or retirement).

Recipient acknowledges having received a complete copy of the Plan.

BY

President and Chief Executive Officer

Please review carefully the summary of general provisions pertinent to this award on the reverse side.

 

 

Form of Award Unit Certificate

General Provisions**

	1.	 	Vesting/Taxes: These Award Units are fully vested as of the Grant Date. As a
result, they are subject to US FICA taxes when granted. (However, under current tax law, they
are not subject to US Federal, state or local income taxes until paid out.) All payments
under the Plan will be reduced by the amount of any employment or other taxes that are
required to be withheld therefrom.
	 
	2.	 	Payment Restrictions: The Book Value Units granted under the Award are subject to a
payment restriction for a period of five years from the Grant Date (the “Maturity Date”).
However, these payment restrictions automatically lapse upon death or a Termination of
Employment due to Disability or Retirement. The Committee may not accelerate the time at
which such payment restrictions will lapse. In addition, the Maturity Date for certain “key
employees” (generally, the top 50 paid employees across the NACCO group) will be delayed until
6 months after retirement.
	 
	3.	 	Payment Date / Value: Unless a Participant makes a deferral election under Section 4,
as soon as practicable following the lapse of a payment restriction applicable to an Award
pursuant to Section 2, the employer or former employer of the Participant will deliver to the
Participant (or, if applicable, his Beneficiary), a check in full payment of the Book Value
Units granted pursuant to the Award. For participants who are employed on the Maturity Date,
the value of the Book Value Units is based on the Book Value as of the Quarter Date coincident
with or immediately preceding the Maturity Date. For Participants who incur a Termination of
Employment before the Maturity Date for reasons other than Disability or Retirement, the value
of the Book Value Units is based on the Book Value as of the ending Quarter Date coincident
with or immediately preceding the date of termination (despite the fact that payment is not
made until Maturity Date). Finally, for Participants who die or who incur a Termination of
Employment before the Maturity Date due to Disability or Retirement, the value of the Book
Value Units is based on the Book Value as of the ending Quarter Date coincident with or
immediately preceding the death, Disability or Retirement (or 6 months later in the case of
key employees).
	 
	4.	 	Deferral Option: A Participant who is a citizen or resident of the United States has
the ability to make an irrevocable election to defer receipt of his entire Award under the
Plan. A separate deferral election must be made with respect to each Award granted under the
Plan. The Awards which are subject to a deferral election continue to be subject to the terms
and conditions of the Plan until the date of payment. In order to make a deferral election,
the election (i) must apply to 100% of an Award granted for a particular year, (ii) must be
made at least 12 months prior to the Maturity Date of the Award and (iii) will not be given
effect until at least 12 months after the date on which the election is made. If a valid and
timely deferral election is made with respect to an Award, the payment of the Award will
automatically be deferred until the 10th anniversary of the Grant Date of such
Award and will then be paid in the form of a lump sum payment as soon as practicable after the
10th anniversary date. Deferred Awards will be valued based on the Book Value as
of the Quarter Date coincident with or immediately preceding the 10th anniversary
date. Notwithstanding the foregoing, the deferral election of a Participant who incurs a
Termination of Employment on account of death or Disability shall receive a payment of the
deferred Awards as soon as practicable thereafter, with the awards valued as of the Quarter
Date coincident with or immediately preceding such date. A Participant who incurs a
Termination of Employment for any other reason (including Retirement) shall not be entitled to
receive payment for his Award until the 10th anniversary of the Grant Date. The
Awards for Participants whose Termination of Employment is on account of Retirement shall
continue to be valued in accordance with the terms of the Plan until the date of payment. The
Awards for these Participants shall be valued based on the Book Value as of the Quarter Date
coincident with or immediately preceding the date of such Termination of Employment (despite
the fact that such amounts are not paid until the 10th anniversary of the Grant
Date). The Awards are then credited with interest, at the end of each calendar month, using a
rate equal to the “10_Year U.S. Treasury Yield” rate plus 2%, until the payment date.
	 
	 	 	Assignability: This Award is not transferable for any reason whatsoever; provided,
however, that upon the death of a Participant the right to the proceeds of this Award will be
transferred to a Beneficiary.
	 
	 	 	No Right of Employment: Neither the adoption or operation of the Plan, nor any document
describing or referring to this Plan, or any part thereof, shall confer upon any employee any
right to continue in the employ of the Company or 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 any
Subsidiary might have done if this Plan had not been adopted.
	 
	 	 	Limitation of Rights: No trust has been created by the Company or any Subsidiary for the
payment of Book Value Units granted under this Plan; nor have the grantees of Awards been
granted any lien on any assets of the Company or any Subsidiary to secure payment of such
benefits. This Plan represents only an unfunded, unsecured promise to pay by the Company and
the Subsidiaries, and the grantees hereunder are unsecured creditors of the Company and
Subsidiaries.
	 
	 	 	**Disclaimers:

      The IRS has not issued the final guidance that is needed to bring the Plan into
compliance with the requirements of the American Jobs Creation Act of 2004 (the “Act”).
Additional Plan amendments may be required. You will be notified if any amendments are
made and, if any substantive changes are required, you will be issued a revised
Certificate at that time.

 Words used in this Award Certificate that are defined in the Plan are used herein as so
defined. The terms of this Award are subject to all terms and conditions of the Plan document.
The Company reserves the right to amend or terminate the Plan at any time.exv10w5

 

EXHIBIT 10.5

THE KITCHEN COLLECTION, INC.

2007 ANNUAL INCENTIVE COMPENSATION PLAN

Introduction

     The Kitchen Collection, Inc. (“the Company”) has established an Annual Incentive Compensation
Plan (“Plan”) as part of a competitive program for the officers and key management employees of the
Company.

Plan Objectives

     The Company desires to attract and retain talented employees to enable the Company to meet its
financial and business objectives. The objective of the Plan is to provide an opportunity to earn
annual incentive compensation to those employees whose performance has a significant impact on the
Company’s short-term and long-term profitability.

Administration

     The Plan is administered by the Compensation Committee of the Board of Directors of the
Company (the “Committee”). The Committee:

	 	A.	 	May amend, modify, or discontinue the Plan.

	 
	 	B.	 	Will designate Plan Participants.
	 
	 	C.	 	Will determine the annual performance criteria which generate the incentive
compensation pool.
	 
	 	D.	 	Will determine the total amount of both the target and actual annual incentive
compensation pool.
	 
	 	E.	 	Will approve individual incentive Awards to Participants who are officers of
the Company.
	 
	 	F.	 	May delegate to the Chief Executive Officer of the Company the approval of
incentive compensation Awards to Participants below officer level.
	 
	 	G.	 	May approve a pro rata incentive compensation Award for Participants in the
Plan whose employment is terminated before the end of the Award Term (1) due to death,
disability, retirement or facility closure or (2) under other circumstances at the
recommendation of the Chief Executive Officer of the Company. In furtherance of, but
without limiting the foregoing, except as determined by the Committee, a Participant
must be employed on December 31 of the Award Term in order to be entitled to receive an
Award hereunder.

     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 or paid
under this Plan, to adopt, amend and rescind general and special rules and regulations for its
administration, and to make all other determinations necessary or advisable for the administration
of this Plan. 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 and employees 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.

Determination of Corporate Incentive Compensation Pool

     Each Participant in the Plan will have an individual target incentive compensation percentage
which is determined by the Participant’s salary grade. This percentage is multiplied by the
mid-point of the Participant’s salary grade to determine his individual target incentive
compensation Award. The total

 

 

of the target incentive compensation Awards of all participants equals the target corporate
incentive compensation pool (“Target Pool”). The Target Pool is approved at the beginning of each
Award Year by the Committee.

     The actual corporate incentive compensation pool (”Actual Pool”) is determined as of the end
of each Award Year based on the Company’s actual performance against specific criteria established
in the beginning of the Award Year by the Committee. The Target Pool is adjusted upwards or
downwards by corporate performance adjustment factors to determine the Actual Pool. In no event
will the Actual Pool exceed 150% of the Target Pool, except that the Committee elects to increase
the Actual Pool by up to 10% as described below.

     The Target and Actual Pools may consist of the sum of two or more subpools, provided the
subpools have individual objectives.

     Subject to the Committee’s right to amend or terminate the Plan at any time, it is the intent
of the Plan that the Actual Pool, as determined above, will be the final total corporate incentive
compensation pool. However, the Committee, in its sole discretion, may increase or decrease by up
to 10% of the Actual Pool or may approve an incentive compensation pool where there would normally
be no pool due to Company performance which is below the criteria established for the year.

     The Actual and Target Pools exclude the Marketing Incentive Plan for regional, district, store
and support managers. However, total compensation for employees covered by the Marketing Incentive
Plan will be based on competitive levels.

Determination of Individual Incentive Compensation Awards

     Salary grades and the corresponding target incentive percentage for each Participant in the
Plan will be established at the beginning of each Award Year and approved by the Committee.
Individual target incentive compensation will then be adjusted by the appropriate pool or subpool
factor. Such adjusted individual incentive compensation will be further modified based on a
Participant’s performance as compared to his individual goals for the Award Year.

     The total of all individual incentive compensation Awards must not exceed the Actual Pool for
the Award Year.

	 	A.	 	Example Calculation for Determination of Actual Pool
	 
	 	 	 	Intentionally Omitted
	 
	 	B.	 	Example Calculation for Determination of Individual Incentive Compensation Awards
	 
	 	 	 	Intentionally Omitted

Payment Date/Taxes

     Promptly following the Committee’s approval of the final Awards, the Company shall pay the
amount of such Awards to the Participants in cash, subject to all withholdings and deductions
described in the following sentence; provided, however, that (i) no Award shall be payable to a
Participant except as determined by the Committee and (ii) in no event shall the Awards be paid
later than two and one-half months after the close of the Award Term. Any Award paid to a
Participant under this Plan shall be subject to all applicable federal, state and local income tax,
social security and other standard withholdings and deductions.

 

 

Definitions

     (a) “Award” means cash paid to a Participant under the Plan for the Award Term in an amount
determined in accordance with the Plan.

     (b) “Award Term” means the period from January 1, 2007 through December 31, 2007.

     (c) “Participant” means any person who is classified by the Company as a salaried employee and
in salary grades 4 and above, who in the judgment of the Committee occupies a key position in which
his efforts may significantly contribute to the profits or growth of the Company; provided,
however, that the Committee may select any employee who is expected to contribute, or who has
contributed, significantly to the Company’s profitability to participate in the Plan and receive an
Award hereunder; and further provided, however, that following the end of the Award Term the
Committee may make one or more discretionary Awards to employees of the Company who were not
previously designated as Participants. Directors of the Company who are also employees of the
Company are eligible to participate in the Plan. The Committee shall have the power to add
Participants at any later date in the Award Term if individuals subsequently become eligible to
participate in the Plan. Each Participant shall be notified that he is eligible to receive an
Award and the amount of his target Award. If a Participant receives a change in salary midpoint,
such Participant shall be notified of any resulting change in his target Award.

General Plan Provisions

     (a) No Right of Employment. Neither the adoption or operation of this Plan, nor any
document describing or referring to this Plan, or any part thereof, shall confer upon any employee
any right to continue in the employ of the Company, or shall in any way affect the right and power
of the Company to terminate the employment of any employee at any time with or without assigning a
reason therefor to the same extent as the Company might have done if this Plan had not been
adopted.

     (b) Governing Law. The provisions of this Plan shall be governed by and construed in
accordance with the laws of the State of Ohio.

     (c) Miscellaneous. 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. 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.

     (d) American Jobs Creation Act. It is intended that this Plan be exempt from the
requirements of Section 409A of the Internal Revenue Code, as enacted by the American Jobs Creation
Act.

     (e) Limitation on Rights of Participants; No trust. No trust has been created
by the Company for the payment of Awards granted under this Plan; nor have the Participants been
granted any lien on any assets of the Company to secure payment of such benefits. This Plan
represents only an unfunded, unsecured promise to pay by the Company and a Participant hereunder is
a mere unsecured creditor of the Company.

     (f) Payment to Guardian. If an Award is payable to a minor, to a person declared
incompetent or to a person incapable of handling the disposition of his property, the Committee may
direct payment of such Award to the guardian, legal representative or person having the care and
custody of such minor, incompetent or person. The Committee may require such proof of
incompetency, minority, incapacity or guardianship as it may deem appropriate prior to the
distribution of such Award. Such distribution shall completely discharge the Company from all
liability with respect to such Award.

     (g) Effective Date. This Plan shall become effective as of January 1, 2007.

 

 

2007 Performance Targets

The performance targets for the Plan are attached as an Addendum to this document.

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