Summary of NACCO INDUSTRIES INC

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
ANNUAL INCENTIVE COMPENSATION PLANS
On June 18, 2009, the Compensation Committees of the Board of Directors of NACCO Industries, Inc., which is referred to as NACCO, and its wholly owned subsidiary, The North American Coal Corporation, which is referred to as NA Coal, each adopted a 2009 Annual Incentive Compensation Plan, which are referred to as the NACCO Annual Incentive Plan and the NA Coal Annual Incentive Plan, respectively, and are collectively referred to as the Annual Incentive Plans, for the benefit of certain of their respective executive and management employees.
Additionally, performance criteria were established for the Annual Incentive Plans.
The Annual Incentive Plans provide that each participant is eligible to earn a target incentive award during the award term of January 1, 2009 through December 31, 2009. Final payouts for each individual under the Annual Incentive Plans are based on the participant's target award measured against established performance criteria and performance by the participant against individual goals for the January 1, 2009 through December 31, 2009 performance period. The Compensation Committee of the Board of Directors of each of NACCO and NA Coal, which are collectively referred to as the Compensation Committees, in its discretion, may also increase or decrease awards under its respective company's Annual Incentive Plan and may approve the payment of awards where performance would otherwise not meet the minimum criteria set for payment of awards. Payouts under the Annual Incentive Plans generally range from 0% to 150% of the participant's target award amount.
For 2009, the performance criteria under the Annual Incentive Plans are as follows:

 Name of Plan                                   Performance Criteria
 NA Coal Annual Incentive Plan       40% of the award is based NA Coal's return
                                     on total capital employed, which is
                                     referred to as ROTCE, for two of its
                                     consolidated mining subsidiaries; 30% of
                                     the award is based on adjusted net income
                                     and 30% of the award is based on new
                                     business development

 NACCO Annual Incentive Plan         (1)   The performance criteria for the
                                     short-term award under the plan are the
                                     same performance criteria as shown above
                                     for the NA Coal Annual Incentive Plan.

                                     (2)   The performance criteria for the
                                     long-term award under the plan are the same
                                     performance criteria that apply under the
                                     NA Coal Value Appreciation Plan, referred
                                     to as the NA Coal Long-Term Plan, for 2009.
                                     These criteria were established when the NA
                                     Coal Long-Term Plan was initially adopted
                                     in 2006 and include net income appreciation
                                     goals for various projects on an annual and
                                     cumulative basis. These goals are adjusted
                                     for inflation and for any new projects
                                     initiated during the 10-year term of the NA
                                     Coal Long-Term Plan.

Final payouts under the Annual Incentive Plans will be determined by the respective Compensation Committees following December 31, 2009. Final payouts will be paid in cash to participants no later than March 15, 2010.

The Annual Incentive Plans described above are attached to this Current Report on Form 8-K as Exhibits 10.1 and 10.2 and are hereby incorporated herein by reference. The foregoing summary of the Annual Incentive Plans is qualified in its entirety by reference to the full text of such plans, which are attached hereto as Exhibits 10.1 and 10.2.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.

Exhibit No.    Exhibit Description

10.1           NACCO Industries, Inc. 2009 Annual Incentive Compensation Plan

10.2           The North American Coal Corporation 2009 Annual Incentive Compensation Plan