NACCO INDUSTRIES INC
EX-10(XCIV) AMDT. 7 NMHG UNFUNDED PLAN
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<TYPE>EX-10.XCIV
<SEQUENCE>12
<FILENAME>l05650aexv10wxciv.htm
<DESCRIPTION>EX-10(XCIV) AMDT. 7 NMHG UNFUNDED PLAN
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<TITLE>EX-10(XCIV) Amdt. 7 NMHG Unfunded Plan</TITLE>
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<P align="right"><FONT size="2">Exhibit 10(xciv)</FONT>

<P align="center"><FONT size="2"><B>AMENDMENT NO. 7<BR>
TO THE<BR>
NACCO MATERIALS HANDLING GROUP, INC.<BR>
UNFUNDED BENEFIT PLAN<BR>
(As Amended and Restated Effective September&nbsp;1, 2000)</B>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NACCO Materials Handling Group, Inc. hereby adopts this Amendment No.&nbsp;7 to
the NACCO Materials Handling Group, Inc. Unfunded Benefit Plan (As Amended and
Restated Effective September&nbsp;1, 2000) (the &#147;Plan&#148;), to be effective as of
January&nbsp;1, 2003. Words used herein with initial capital letters which are
defined in the Plan are used herein as so defined.
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<P align="center"><FONT size="2"><B>Section&nbsp;1</B>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.2 of the Plan is hereby amended in its entirety to read as
follows:
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Section&nbsp;2.2 (a)&nbsp;ROTCE means the means the Company&#146;s consolidated return
on total capital employed (excluding NMHG Retail-Europe) for the applicable
time period calculated as follows:
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<P align="center"><FONT size="2">Earnings Before Interest After-Tax (after NMHG Retail-Europe Adjustments)<BR>
divided by<BR>
Total Capital Employed (after NMHG Retail-Europe Adjustments)
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">For purposes hereof, the following terms shall have the following
meanings:</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &#147;Earnings Before Interest After-Tax &#147; is defined as the sum of
(A)&nbsp;consolidated net income for the Company for the subject year before
extraordinary items and cumulative effect of accounting changes as defined
by US generally accepted accounting principles (&#147;GAAP&#148;) plus (B)&nbsp;After-Tax
Consolidated Interest Expense;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &#147;After Tax Consolidated Interest Expense&#148; is defined as
Consolidated Interest Expense multiplied by (1 minus the marginal tax
rate). The marginal tax rate is defined as the tax rate applicable to an
incremental amount of income related to federal, state and foreign income
taxes;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &#147;Consolidated Interest Expense&#148; is defined as consolidated
interest expense as defined by GAAP;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) &#147;Total Capital Employed&#148; is defined as the sum of (A)&nbsp;average
consolidated shareholders&#146; equity for the Company as determined under US
GAAP plus (B)&nbsp;average Consolidated Debt as determined under US GAAP, each
determined at the beginning of the subject year and the end of each month
of the subject year and dividing by thirteen;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) &#147;Consolidated Debt&#148; is defined as the consolidated debt incurred
by the Company under revolving credit agreements, capital lease
obligations, current maturities of long-term debt and long-term debt; and</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) &#147;NMHG Retail-Europe Adjustments&#148; is defined as adjustments to
consolidated net income before extraordinary items and cumulative effect
of accounting changes, Consolidated Interest Expense, consolidated
shareholders&#146; equity and Consolidated Debt to exclude: the sum of (A)&nbsp;the
results of the Company&#146;s European Retail Division as determined under US
GAAP plus (B)&nbsp;the corresponding consolidated eliminations related to the
inclusion of the Company&#146;s European Retail Division as determined by US
GAAP, plus (C)&nbsp;the debt and related interest expense recorded by the
Company related to loans to its&#146; European Retail Division.</FONT></TD>
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    <TD width="1%" align="left" nowrap><FONT size="2">(c)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">ROTCE shall be determined at least annually by the Company.&#148;</FONT></TD>
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<P align="center"><FONT size="2"><B>Section&nbsp;2</B>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.7(c)(i) of the Plan is hereby amended by adding the following
new sentence to the end thereof to read as follows:
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    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">&#147;Notwithstanding the foregoing, a deferral election under Section&nbsp;3.2 or
3.3 shall also cease with respect to a particular Sub-Account if the
Participant has reached his elected payment date with respect to such
Sub-Account and has elected to receive such Sub-Account in the form of a
single lump sum payment.&#148;</FONT></TD>
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<P align="center"><FONT size="2"><B>Section&nbsp;3</B>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.1 of the Plan is hereby amended be deleting the phrase &#147;Adjusted
ROE&#148; each time it appears therein and substituting the term &#147;ROTCE&#148; therefor.
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<P align="center"><FONT size="2"><B>Section&nbsp;4</B>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11.4(b) of the Plan is hereby amended in its entirety to read as
follows:
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;(b) Notwithstanding the foregoing, if an Excess Retirement Benefit
payable to or on behalf of a Participant is based on the Participant&#146;s
employment with more than one Employer the following provisions shall apply:
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp; Upon a transfer of employment, the Participant&#146;s Sub-Accounts shall be
transferred from the prior Employer to the new Employer and Excess Retirement
Benefits (and earnings) shall continue to be credited to the Sub-Accounts
following the transfer (to the extent otherwise required under the terms of the
Plan). The last Employer of the Participant shall be responsible for paying
the entire amount which is allocated to the Participant&#146;s Sub-Accounts
hereunder; and
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp; Notwithstanding the provisions of clause (i), (1)&nbsp;each Employer shall
be solely liable for the payment of the amounts credited to a Participant&#146;s
Account which were earned by the Participant while he was employed y that
Employer; (2)&nbsp;each Employer (unless it is Insolvent) shall reimburse the last
Employer for its allocable share of the Participant&#146;s distribution ; (3)&nbsp;if any
responsible Employer is Insolvent at the time of distribution, the last
Employer shall not be required to make a distribution to the Participant with
respect to amounts which are allocable to service with that Employer; and (4)
each Employer shall (to the extent permitted by applicable law) receive an
income tax deduction for the Employer&#146;s allocable share of the Participant&#146;s
distribution.&#148;
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXECUTED this 12<SUP>th</SUP> day of May, 2003.
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<B>NACCO MATERIALS HANDLING GROUP, INC.</B></FONT></TD>
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    <TD><FONT size="2">By:</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
/s/ James M. Phillips</FONT></TD>
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    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">Title:</FONT></TD>
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&nbsp;Vice President Human Resources</FONT></TD>
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<P align="center"><FONT size="2">- 2 -</FONT>



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