NACCO INDUSTRIES, INC. (NYSE:NC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On February 14, 2018, the Compensation Committee of the Board of Directors of NACCO Industries, Inc. (the “Company”) approved the termination of The NACCO Industries, Inc. 1975 Stock Option Plan and The NACCO Industries, Inc. 1981 Stock Option Plan because the Company no longer utilizes stock options to compensate senior management.

On the same date, the Company’s Compensation Committee also approved the termination of The Retirement Benefit Plan for Alfred M. Rankin, Jr. and The NACCO Industries, Inc. Unfunded Benefit Plan, both of which have been frozen since 2008 (together, the “Frozen Plans”) and can be terminated without adverse tax consequences to the Company. The Compensation Committee also approved the termination of The North American Coal Corporation Long-Term Incentive Compensation Plan to reflect the changes in the Company’s compensation philosophy.

The termination of the Frozen Plans necessitates the termination of portions of The NACCO Industries, Inc. Executive Excess Retirement Plan and The North American Coal Corporation Excess Retirement Plan in order to satisfy requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

The Company’s termination action applies only with respect to benefits under the above plans which are subject to Section 409A of the Code, which generally applies to benefits credited, earned or vested after December 31, 2004. Benefits under the above plans that are exempt from Section 409A of the Code are not affected by the Company’s termination action.

The account balances under the above plans that are subject to Section 409A of the Code will be distributed to plan participants or their beneficiaries in accordance with Section 409A of the Code during the period beginning February 14, 2019 and ending February 13, 2020. The following current and former executive officers will receive distributions from the above plans during such period based on the following amounts as of December 31, 2017:

About NACCO INDUSTRIES, INC. (NYSE:NC)

NACCO Industries, Inc. is a holding company with principal businesses, including mining, small appliances and specialty retail. The Company operates through three segments: NACoal, HBB and KC. Its subsidiaries include The North American Coal Corporation (NACoal), Hamilton Beach Brands, Inc. (HBB) and Kitchen Collection (KC). Its NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. NACoal’s mining operations include Mississippi Lignite Mining Company and Centennial Natural Resources. Its HBB segment designs, markets and distributes a range of small electric household and specialty housewares appliances, including blenders, can openers, coffeemakers, food processors, indoor electric grills, irons, mixers, slow cookers, toasters and toaster ovens. Its KC is a national specialty retailer of kitchenware and gourmet foods operating under the Kitchen Collection and Le Gourmet Chef store names in outlets and malls.