Document:

Exhibit 10.8

                           BUCYRUS INTERNATIONAL, INC.

                           2004 EQUITY INCENTIVE PLAN

                    (OCTOBER 2006 AMENDMENT AND RESTATEMENT)

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                                TABLE OF CONTENTS

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                           BUCYRUS INTERNATIONAL, INC.

                           2004 EQUITY INCENTIVE PLAN

                    (OCTOBER 2006 AMENDMENT AND RESTATEMENT)

1.   Purpose; Types of Awards; Effective Date................................  1

2.   Definitions.............................................................  1

3.   Administration..........................................................  6

4.   Eligibility.............................................................  7

5.   Stock Subject to the Plan...............................................  7

6.   Specific Terms of Awards................................................  8

7.   General Provisions.....................................................  13

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                           BUCYRUS INTERNATIONAL, INC.

                           2004 EQUITY INCENTIVE PLAN

                    (OCTOBER 2006 AMENDMENT AND RESTATEMENT)

      1.    Purpose; Types of Awards; Effective Date.

      The purposes of the Bucyrus International, Inc. 2004 Equity Incentive Plan
(October 2006 Amendment and Restatement) (the "Plan") are to provide an
incentive to non-employee directors, selected officers and other employees,
advisors and consultants of Bucyrus International, Inc. (the "Company"), or any
Parent or Subsidiary of the Company that now exists or hereafter is organized or
acquired, to continue as non-employee directors, officers or employees, advisors
or consultants, as the case may be, to increase their efforts on behalf of the
Company and its Subsidiaries and to promote the success of the Company's
business. The Plan provides for the grant of Options (including "incentive stock
options" and "nonqualified stock options"), stock appreciation rights,
restricted stock, restricted stock units and other stock-based awards. The Plan
is designed so that Awards granted hereunder intended to comply with the
requirements for "performance-based compensation" under Section 162(m) of the
Code may comply with such requirements, and the Plan and Awards shall be
interpreted in a manner consistent with such requirements. The Plan was
initially adopted effective June 30, 2004. The Plan, as amended and restated
herein, is effective on October 18, 2006.

      2.    Definitions.

      For purposes of the Plan, the following terms shall be defined as set
forth below:

            (a)   "Award" means any Option, SAR, Restricted Stock, Restricted
                  Stock Unit or Other Stock-Based Award granted under the Plan.

            (b)   "Award Agreement" means any written agreement, contract, or
                  other instrument or document evidencing an Award.

            (c)   "Board" means the Board of Directors of the Company.

            (d)   "Cause" with respect to any Participant, shall have the
                  definition set forth in an individual employment, severance or
                  other similar agreement between such Participant and the
                  Company or one of its affiliates or, if there is no such
                  definition in any such agreement, Cause shall mean (i) the
                  continued failure by the Participant substantially to perform
                  his or her duties and obligations to the Company or any of its
                  affiliates, including without limitation repeated refusal to
                  follow the reasonable directions of the Participant's
                  employer, knowing violation of law in the course of
                  performance of the duties of Participant's employment with the
                  Company

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                  or any of its affiliates, repeated absences from work without
                  a reasonable excuse, and intoxication with alcohol or illegal
                  drugs while on the Company's premises or that of any of the
                  Company's affiliates during regular business hours (other than
                  any such failure resulting from his or her incapacity due to
                  physical or mental illness); (ii) fraud or material dishonesty
                  against the Company or any of its subsidiaries; or (iii) a
                  conviction or plea of guilty or nolo contendre for the
                  commission of a felony or a crime involving material
                  dishonesty. Determination of Cause shall be made by the
                  Committee in its sole discretion.

            (e)   "Change in Control" means a change in control of the Company,
                  which will be deemed to have occurred if:

                  (i)   any "person," as such term is used in Sections 13(d) and
                        14(d) of the Exchange Act (other than (A) the Company,
                        (B) any trustee or other fiduciary holding securities
                        under an employee benefit plan of the Company, (C) any
                        corporation owned, directly or indirectly, by the
                        stockholders of the Company in substantially the same
                        proportions as their ownership of Stock or (D) American
                        Industrial Partners or any of its affiliates), is or
                        becomes the "beneficial owner" (as defined in Rule 13d-3
                        under the Exchange Act), directly or indirectly, of
                        securities of the Company representing one-third (33
                        1/3%) or more of the combined voting power of the
                        Company's then outstanding voting securities;

                  (ii)  the following individuals cease for any reason to
                        constitute a majority of the number of directors then
                        serving: individuals who, on the Effective Date,
                        constitute the Board and any new director (other than a
                        director whose initial assumption of office is in
                        connection with an actual or threatened election
                        contest, including but not limited to a consent
                        solicitation, relating to the election of directors of
                        the Company) whose appointment or election by the Board
                        or nomination for election by the Company's stockholders
                        was approved or recommended by a vote of at least
                        two-thirds (2/3) of the directors then still in office
                        who either were directors on the Effective Date or whose
                        appointment, election or nomination for election was
                        previously so approved or recommended;

                  (iii) there is consummated a merger or consolidation of the
                        Company or any direct or indirect subsidiary of the
                        Company with any other corporation, other than a merger
                        or consolidation immediately following which the
                        individuals who comprise the Board immediately prior
                        thereto constitute at least a majority of the Board, the
                        entity surviving such merger or consolidation or, if the
                        Company or the entity surviving such merger is then a
                        subsidiary, the ultimate parent thereof; or

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                  (iv)  the stockholders of the Company approve a plan of
                        complete liquidation of the Company or there is
                        consummated an agreement for the sale or disposition by
                        the Company of all or substantially all of the Company's
                        assets (or any transaction having a similar effect),
                        other than a sale or disposition by the Company of all
                        or substantially all of the Company's assets to an
                        entity, immediately following which the individuals who
                        comprise the Board immediately prior thereto constitute
                        at least a majority of the board of directors of the
                        entity to which such assets are sold or disposed of or,
                        if such entity is a subsidiary, the ultimate parent
                        thereof.

            Notwithstanding the foregoing, a Change in Control shall not be
            deemed to have occurred by virtue of (x) a Public Offering or (y)
            the consummation of any transaction or series of integrated
            transactions immediately following which the holders of the Stock
            immediately prior to such transaction or series of transactions
            continue to have substantially the same proportionate ownership in
            an entity which owns all or substantially all of the assets of the
            Company immediately following such transaction or series of
            transactions.

            (f)   "Code" means the Internal Revenue Code of 1986, as amended
                  from time to time, and the regulations promulgated thereunder.

            (g)   "Committee" means the committee established by the Board to
                  administer the Plan, the composition of which shall at all
                  times satisfy the provisions of Rule 16b-3 and Section 162(m)
                  of the Code.

            (h)   "Company" means Bucyrus International, Inc., a corporation
                  organized under the laws of the State of Delaware, or any
                  successor corporation.

            (i)   "Covered Employee" shall have the meaning set forth in Section
                  162(m)(3) of the Code.

            (j)   "Director Fees" means any amount paid to a Non-Employee
                  Director, including annual retainer and committee meeting
                  fees, but excluding any payment or reimbursement with respect
                  to a Non-Employee Director's expenses arising from his or her
                  service as a member of the Board.

            (k)   "Disability" shall have the meaning set forth in the Company's
                  long-term disability benefits policy.

            (l)   "Effective Date" means March 6, 2006, the date that the Plan
                  was approved by the Compensation Committee of the Board.

            (m)   "Exchange Act" means the Securities Exchange Act of 1934, as
                  amended from time to time, and the rules and regulations
                  promulgated thereunder.

            (n)   "Fair Market Value" means, with respect to Stock or other
                  property, the fair market value of such Stock or other
                  property determined by such

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                  methods or procedures as shall be established from time to
                  time by the Committee. Unless otherwise determined by the
                  Committee in good faith, the per share Fair Market Value of
                  Stock as of a particular date shall mean the closing last
                  reported sales price per share of Stock on the national
                  securities exchange (or other market) on which the Stock is
                  then principally traded on the applicable date.

            (o)   "Grantee" means a person who, as a non-employee director,
                  officer or other employee of the Company or a Parent or
                  Subsidiary of the Company, has been granted an Award under the
                  Plan.

            (p)   "ISO" means any Option intended to be and designated as an
                  incentive stock option within the meaning of Section 422 of
                  the Code.

            (q)   "Non-Employee Director" means any director of the Company who
                  is not also employed by the Company or any of its
                  Subsidiaries.

            (r)   "Non-Employee Director Stock Grant" means an Award of
                  unrestricted shares of Stock to be granted to a Non-Employee
                  Director under Section 6(f) in lieu of payment of such
                  individual's Director Fees.

            (s)   "NQSO" means any Option that is not designated as an ISO.

            (t)   "Option" means a right, granted to a Grantee under Section
                  6(b), to purchase shares of Stock. An Option may be either an
                  ISO or an NQSO, provided that ISOs may be granted only to
                  employees of the Company or a Parent or Subsidiary of the
                  Company.

            (u)   "Other Stock-Based Award" means a right or other interest
                  granted to a Grantee under Section 6(g) that may be
                  denominated or payable in, valued in whole or in part by
                  reference to, or otherwise based on, or related to, Stock,
                  including but not limited to (i) unrestricted Stock awarded as
                  a bonus or upon the attainment of Performance Goals or
                  otherwise as permitted under the Plan, and (ii) a right
                  granted to a Grantee to acquire Stock from the Company
                  containing terms and conditions prescribed by the Committee.

            (v)   "Parent" means a "parent corporation," whether now or
                  hereafter existing, as defined in Section 424(e) of the Code.

            (w)   "Performance Goals" means performance goals based on one or
                  more of the following criteria, determined in accordance with
                  generally accepted accounting principles where applicable: (i)
                  earnings before or after interest, taxes, depreciation,
                  amortization, or extraordinary or special items; (ii) net
                  income, before or after extraordinary or special items; (iii)
                  return on equity (gross or net), before or after extraordinary
                  or special items; (iv) earnings per share, before or after
                  extraordinary or special items; and (v) stock price. Where
                  applicable, the Performance Goals may

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                  be expressed in terms of attaining a specified level of the
                  particular criterion or the attainment of an increase or
                  decrease (expressed as absolute numbers of a percentage) in
                  the particular criterion, and may be applied to one or more of
                  the Company or a Parent or Subsidiary of the Company, or a
                  division or strategic business unit of the Company, all as
                  determined by the Committee. The Performance Goals may include
                  a threshold level of performance below which no payment will
                  be made (or no vesting will occur), levels of performance at
                  which specified payments will be paid (or specified vesting
                  will occur), and a maximum level of performance above which no
                  additional payment will be made (or at which full vesting will
                  occur). Each of the foregoing Performance Goals shall be
                  evaluated in accordance with generally accepted accounting
                  principles, where applicable, and shall be subject to
                  certification by the Committee. The Committee shall have the
                  authority to make equitable adjustments to the Performance
                  Goals in recognition of unusual or non-recurring events
                  affecting the Company or any Parent or Subsidiary of the
                  Company or the financial statements of the Company or any
                  Parent or Subsidiary of the Company, in response to changes in
                  applicable laws or regulations, or to account for items of
                  gain, loss or expense determined to be extraordinary or
                  unusual in nature or infrequent in occurrence or related to
                  the disposal of a segment of a business or related to a change
                  in accounting principles.

            (x)   "Plan" means this Bucyrus International, Inc. 2004 Equity
                  Incentive Plan (October 2006 Amendment and Restatement), as
                  amended from time to time.

            (y)   "Plan Year" means a calendar year.

            (z)   "Public Offering" means an offering of securities of the
                  Company that is registered with the Securities and Exchange
                  Commission.

            (aa)  "Restricted Stock" means an Award of shares of Stock to a
                  Grantee under Section 6(d) that may be subject to certain
                  restrictions and to a risk of forfeiture.

            (bb)  "Restricted Stock Unit" or "RSU" means a right granted to a
                  Grantee under Section 6(e) to receive Stock or cash at the end
                  of a specified deferral period, which right may be conditioned
                  on the satisfaction of specified performance or other
                  criteria.

            (cc)  "Retirement" shall be within the meaning of such term under
                  the Bucyrus International, Inc. Cash Balance Plan.

            (dd)  "Rule 16b-3" means Rule 16b-3, as from time to time in effect
                  promulgated by the Securities and Exchange Commission under
                  Section 16 of the Exchange Act, including any successor to
                  such Rule.

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            (ee)  "Stock" means shares of the Class A common stock, par value
                  $0.01 per share, of the Company.

            (ff)  "Stock Appreciation Right" or "SAR" means the right, granted
                  to a Grantee under Section 6(c), to be paid an amount measured
                  by the appreciation in the Fair Market Value of Stock from the
                  date of grant to the date of exercise of the right.

            (gg)  "Subsidiary" means a "subsidiary corporation," whether now or
                  hereafter existing, as defined in Section 424(f) of the Code.

      3.    Administration.

            The Plan shall be administered by the Board or by such Committee
that the Board may appoint for this purpose. If a Committee is appointed to
administer the Plan, all references herein to the "Committee" shall be
references to such Committee. If no Committee is appointed by the Board to
administer the Plan, all references herein to the "Committee" shall be
references to the Board. The Committee shall have the authority in its
discretion, subject to and not inconsistent with the express provisions of the
Plan, to administer the Plan and to exercise all the powers and authorities
either specifically granted to it under the Plan or necessary or advisable in
the administration of the Plan, including, without limitation, the authority to
grant Awards; to determine the persons to whom and the time or times at which
Awards shall be granted; to determine the type and number of Awards to be
granted, the number of shares of Stock to which an Award may relate and the
terms, conditions, restrictions and performance criteria relating to any Award,
including but not limited to the effect of a Change in Control upon any Award;
to determine, at the time of grant or thereafter, whether and to what extent the
vesting or payment of any Award may be accelerated; to determine Performance
Goals no later than such time as required to ensure that an underlying Award
which is intended to comply with the requirements of Section 162(m) of the Code
so complies; and to determine whether, to what extent, and under what
circumstances an Award may be settled, cancelled, forfeited, exchanged, or
surrendered; to make adjustments in the terms and conditions of, and the
Performance Goals (if any) included in, Awards; to construe and interpret the
Plan and any Award; to prescribe, amend and rescind rules and regulations
relating to the Plan; to determine the terms and provisions of the Award
Agreements (which need not be identical for each Grantee); and to make all other
determinations deemed necessary or advisable for the administration of the Plan.
Notwithstanding the foregoing, neither the Board, the Committee nor their
respective delegates shall have the authority to reprice (or cancel and regrant)
any Option or, if applicable, other Award at a lower exercise, base or purchase
price without first obtaining the approval of the Company's stockholders.

            The Committee may appoint a chairperson and a secretary and may make
such rules and regulations for the conduct of its business as it shall deem
advisable, and shall keep minutes of its meetings. All determinations of the
Committee shall be made by a majority of its members either present in person or
participating by conference telephone at a meeting or by written consent. The
Committee may delegate to one or more of its members or to one or more agents
such administrative duties as it may deem advisable, and the Committee or any
person to whom it has delegated duties as aforesaid may employ one or more
persons to render advice with

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respect to any responsibility the Committee or such person may have under the
Plan. All decisions, determinations and interpretations of the Committee shall
be final and binding on all persons, including but not limited to the Company,
any Parent or Subsidiary of the Company or any Grantee (or any person claiming
any rights under the Plan from or through any Grantee) and any stockholder.

            No member of the Board or Committee shall be liable for any action
taken or determination made in good faith with respect to the Plan or any Award
granted hereunder.

      4.    Eligibility.

            Awards may be granted to selected Non-Employee Directors, officers
and other employees, advisors or consultants of the Company or any Parent or
Subsidiary of the Company, in the discretion of the Committee. In determining
the persons to whom Awards shall be granted and the type of any Award (including
the number of shares to be covered by such Award), the Committee shall take into
account such factors as the Committee shall deem relevant in connection with
accomplishing the purposes of the Plan.

      5.    Stock Subject to the Plan.

            The maximum number of shares of Stock reserved for the grant of
Awards under the Plan shall be 3,000,000, subject to adjustment as provided
herein. All of the shares of Stock reserved for grant hereunder may be awarded
in the form of ISOs. No more than 240,000 shares of Stock may be made subject to
Options or SARs to a single individual in a single Plan Year, subject to
adjustment as provided herein, and no more than 240,000 shares of Stock may be
made subject to stock-based awards other than Options or SARs (including
Restricted Stock and Restricted Stock Units or Other Stock-Based Awards
denominated in shares of Stock) to a single individual in a single Plan Year, in
either case, subject to adjustment as provided herein. Determinations made in
respect of the limitations set forth in the immediately preceding sentence shall
be made in a manner consistent with Section 162(m) of the Code. Such shares may,
in whole or in part, be authorized but unissued shares or shares that shall have
been or may be reacquired by the Company in the open market, in private
transactions or otherwise. If any shares subject to an Award are forfeited,
cancelled, exchanged or surrendered or if an Award terminates or expires without
a distribution of shares to the Grantee, or if shares of Stock are surrendered
or withheld as payment of either the exercise price of an Award and/or
withholding taxes in respect of an Award, the shares of Stock with respect to
such Award shall, to the extent of any such forfeiture, cancellation, exchange,
surrender, withholding, termination or expiration, again be available for Awards
under the Plan. Upon the exercise of any Award granted in tandem with any Awards
such related Awards shall be cancelled to the extent of the number of shares of
Stock as to which the Award is exercised and, notwithstanding the foregoing,
such number of shares shall no longer be available for Awards under the Plan.

            If (i) the Company shall at any time be involved in a merger or
      other transaction in which the shares of Stock are changed or exchanged;
      (ii) the Company shall subdivide or combine the shares of Stock or the
      Company shall declare a dividend payable in shares of Stock or other
      securities; (iii) the Company shall effect any dividend or other
      distribution on the Stock in the form

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      of cash, or a repurchase of Stock, that the Board determines by resolution
      is special or extraordinary in nature or that is in connection with a
      transaction that the Company characterizes publicly as a recapitalization
      or reorganization involving the Stock; or (iv) any other event shall occur
      which, in the case of this clause (iv), in the judgment of the Board or
      Committee necessitates an adjustment to prevent dilution or enlargement of
      the benefits or potential benefits intended to be made available under
      this Plan, then in any case above the Board or Committee shall, in such
      manner as it may deem equitable, adjust any or all of (A) the number and
      type of shares of Stock subject to this Plan and which may after the event
      be made the subject of Awards under this Plan, (B) the number and type of
      shares of Stock subject to outstanding Awards, and/or (C) the grant,
      purchase, or exercise price with respect to any outstanding Award.

      6.    Specific Terms of Awards.

            (a)   General. The Committee is authorized to grant the Awards
                  described in this Section 6, under such terms and conditions
                  as deemed by the Committee to be consistent with the purposes
                  of the Plan. Each Award granted under the Plan shall be
                  evidenced by an Award Agreement containing such terms and
                  conditions applicable to such Award as the Committee shall
                  determine at the date of grant or thereafter. Subject to the
                  terms of the Plan and any applicable Award Agreement, payments
                  to be made by the Company or a Parent or Subsidiary of the
                  Company upon the grant, maturation, or exercise of an Award
                  may be made in such forms as the Committee shall determine at
                  the date of grant or thereafter, including, without
                  limitation, cash, Stock, or other property, and may be made in
                  a single payment or transfer, in installments, or on a
                  deferred basis. The Committee may make rules relating to
                  installment or deferred payments with respect to Awards,
                  including the rate of interest to be credited with respect to
                  such payments. In addition to the foregoing, the Committee may
                  impose on any Award or the exercise thereof, at the date of
                  grant or thereafter, such additional terms and conditions, not
                  inconsistent with the provisions of the Plan, as the Committee
                  shall determine. The date on which the Committee adopts a
                  resolution expressly granting an Award shall be considered the
                  day on which such Award is granted, provided that such Award
                  is communicated to the Grantee within a relatively short time
                  period after the date such resolution is adopted.

            (b)   Options. The Committee is authorized to grant Options to
                  Grantees on the following terms and conditions:

                  (i)   Type of Award. The Award Agreement evidencing the grant
                        of an Option under the Plan shall designate the Option
                        as an ISO or an NQSO.

                  (ii)  Exercise Price. The exercise price per share of Stock
                        purchasable under an Option shall be determined by the
                        Committee, but in no

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                        event shall the exercise price of any Option be less
                        than the Fair Market Value of a share of Stock on the
                        date of grant of such Option. The exercise price for
                        Stock subject to an Option may be paid in cash or by an
                        exchange of Stock previously owned by the Grantee for at
                        least six months (if acquired from the Company), through
                        a "broker cashless exercise" procedure approved by the
                        Committee (to the extent permitted by law), or a
                        combination of the above, in any case in an amount
                        having a combined value equal to such exercise price. An
                        Award Agreement may provide that a Grantee may pay all
                        or a portion of the aggregate exercise price by having
                        shares of Stock with a Fair Market Value on the date of
                        exercise equal to the aggregate exercise price withheld
                        by the Company.

                  (iii) Exercisability of Options. Options shall be exercisable
                        over the exercise period (which shall not exceed ten
                        years from the date of grant), at such times and upon
                        such conditions as the Committee may determine, as
                        reflected in the Award Agreement; provided, that the
                        Committee shall have the authority to accelerate the
                        exercisability of any outstanding Option at such time
                        and under such circumstances as it, in its sole
                        discretion, deems appropriate. An Option may be
                        exercised to the extent of any or all full shares of
                        Stock as to which the Option has become exercisable, by
                        giving written notice of such exercise to the Committee
                        or its designated agent.

                  (iv)  Termination of Employment. An Option may not be
                        exercised unless the Grantee is then a director of, in
                        the employ of, or otherwise providing services to the
                        Company or a Parent or Subsidiary of the Company, and
                        unless the Grantee has remained continuously so
                        employed, or continuously maintained such relationship,
                        since the date of grant of the Option; provided, that
                        the Award Agreement may contain provisions extending the
                        exercisability of Options, in the event of specified
                        terminations, to a date not later than the expiration
                        date of such Option.

                  (v)   Other Provisions. Options may be subject to such other
                        conditions including, but not limited to, restrictions
                        on transferability of the shares acquired upon exercise
                        of such Options, as the Committee may prescribe in its
                        discretion or as may be required by applicable law.

            (c)   SARs. The Committee is authorized to grant SARs to Grantees on
                  the following terms and conditions:

                  (i)   In General. Unless the Committee determines otherwise,
                        an SAR (1) granted in tandem with an NQSO may be granted
                        at the time of

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                        grant of the related NQSO or at any time thereafter or
                        (2) granted in tandem with an ISO may only be granted at
                        the time of grant of the related ISO. An SAR granted in
                        tandem with an Option shall be exercisable only to the
                        extent the underlying Option is exercisable. Payment of
                        an SAR may made in cash, Stock, or property as specified
                        in the Award or determined by the Committee

                  (ii)  SARs. An SAR shall confer on the Grantee a right to
                        receive an amount with respect to each share subject
                        thereto, upon exercise thereof, equal to the excess of
                        (1) the Fair Market Value of one share of Stock on the
                        date of exercise over (2) the grant price of the SAR
                        (which in the case of an SAR granted in tandem with an
                        Option shall be equal to the exercise price of the
                        underlying Option, and which in the case of any other
                        SAR shall be such price as the Committee may determine).

                  (iii) Term and Exercisability of SARs. The date on which the
                        Committee adopts a resolution expressly granting an
                        Option shall be considered the day on which such SAR is
                        granted. Subject to paragraph (i) above, SARs shall be
                        exercisable over the exercise period (which shall not
                        exceed ten years from the date of grant), at such times
                        and upon such conditions as the Committee may determine,
                        as reflected in the Award Agreement; provided, that the
                        Committee shall have the authority to accelerate the
                        exercisability of any outstanding SAR at such time and
                        under such circumstances as it, in its sole discretion,
                        deems appropriate. Subject to paragraph (i) above, an
                        SAR may be exercised to the extent of any or all full
                        shares of Stock as to which the SAR has become
                        exercisable, by giving written notice of such exercise
                        to the Committee or its designated agent.

                  (iv)  Termination of Employment. An SAR may not be exercised
                        unless the Grantee is then a director of, in the employ
                        of, or otherwise providing services to the Company or a
                        Parent or Subsidiary of the Company, and unless the
                        Grantee has remained continuously so employed, or
                        continuously maintained such relationship, since the
                        date of grant of the SAR; provided, that the Award
                        Agreement may contain provisions extending the
                        exercisability of the SAR, in the event of specified
                        terminations, to a date not later than the expiration
                        date of such SAR.

                  (v)   Other Provisions. SARs may be subject to such other
                        conditions including, but not limited to, restrictions
                        on transferability of the shares acquired upon exercise
                        of such SARs, as the Committee may prescribe in its
                        discretion or as may be required by applicable law.

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            (d)   Restricted Stock. The Committee is authorized to grant
                  Restricted Stock to Grantees on the following terms and
                  conditions:

                  (i)   Issuance and Restrictions. Restricted Stock shall be
                        subject to such restrictions on transferability and
                        other restrictions, if any, as the Committee may impose
                        at the date of grant or thereafter, which restrictions
                        may lapse separately or in combination at such times,
                        under such circumstances, in such installments, or
                        otherwise, as the Committee may determine. The Committee
                        may place restrictions on Restricted Stock that shall
                        lapse, in whole or in part, only upon the attainment of
                        Performance Goals. Except to the extent restricted under
                        the Award Agreement relating to the Restricted Stock, a
                        Grantee granted Restricted Stock shall have all of the
                        rights of a stockholder including, without limitation,
                        the right to vote Restricted Stock and the right to
                        receive dividends thereon.

                  (ii)  Forfeiture. Upon termination of employment with or
                        service to the Company, or upon termination of the
                        director or independent contractor relationship, as the
                        case may be, during the applicable restriction period,
                        Restricted Stock and any accrued but unpaid dividends
                        that are then subject to restrictions shall be
                        forfeited; provided, that the Committee may provide, by
                        rule or regulation or in any Award Agreement, or may
                        determine in any individual case, that restrictions or
                        forfeiture conditions relating to Restricted Stock will
                        be waived in whole or in part in the event of
                        terminations resulting from specified causes, and the
                        Committee may in other cases waive in whole or in part
                        the forfeiture of Restricted Stock.

                  (iii) Certificates for Stock. Restricted Stock granted under
                        the Plan may be evidenced in such manner as the
                        Committee shall determine. If certificates representing
                        Restricted Stock are registered in the name of the
                        Grantee, such certificates shall bear an appropriate
                        legend referring to the terms, conditions, and
                        restrictions applicable to such Restricted Stock, and
                        the Company shall retain physical possession of the
                        certificate.

                  (iv)  Dividends. Dividends paid on Restricted Stock shall be
                        either paid at the dividend payment date, or deferred
                        for payment to such date as determined by the Committee,
                        in cash or in shares of unrestricted Stock having a Fair
                        Market Value equal to the amount of such dividends.
                        Stock distributed in connection with a stock split or
                        stock dividend, and other property distributed as a
                        dividend, shall be subject to restrictions and risk of
                        forfeiture to the same extent as the Restricted Stock
                        with respect to which such Stock or other property has
                        been distributed.

                                       11
<PAGE>

            (e)   Restricted Stock Units. The Committee is authorized to grant
                  Restricted Stock Units to Grantees on the following terms and
                  conditions:

                  (i)   Award and Restrictions. Delivery of Stock or cash, as
                        determined by the Committee, will occur upon expiration
                        of the deferral period specified for RSUs by the
                        Committee. The Committee may place restrictions on RSUs
                        that shall lapse, in whole or in part, only upon the
                        attainment of Performance Goals.

                  (ii)  Forfeiture. Upon termination of employment with or
                        service to the Company, or upon termination of the
                        director or independent contractor relationship, as the
                        case may be, during the applicable deferral period or
                        portion thereof to which forfeiture conditions apply, or
                        upon failure to satisfy any other conditions precedent
                        to the delivery of Stock or cash to which such RSUs
                        relate, all RSUs and any accrued but unpaid dividend
                        equivalents that are then subject to deferral or
                        restriction shall be forfeited; provided, that the
                        Committee may provide, by rule or regulation or in any
                        Award Agreement, or may determine in any individual
                        case, that restrictions or forfeiture conditions
                        relating to RSUs will be waived in whole or in part in
                        the event of termination resulting from specified
                        causes, and the Committee may in other cases waive in
                        whole or in part the forfeiture of RSUs.

                  (iii) Non-Employee Director Deferred Compensation Awards. The
                        Committee is authorized to grant RSUs pursuant to this
                        Section 6(e)(iii) for the purpose of fulfilling the
                        Company's obligations under its Amended and Restated
                        Non-Employee Director Deferred Compensation Plan (the
                        "Director Deferred Compensation Plan"); provided, that
                        certain terms and conditions of the grant and payment of
                        such RSUs set forth under the Director Deferred
                        Compensation Plan (and only to the extent set forth in
                        such plan) shall supercede the terms generally
                        applicable to RSUs granted under the Plan. RSUs granted
                        under this paragraph need not be evidenced by an Award
                        Agreement unless the Committee determines that such an
                        Award Agreement is desirable for the furtherance of the
                        purposes of the Plan and the Director Deferred
                        Compensation Plan.

            (f)   Non-Employee Director Stock Grants. The Committee is
                  authorized to grant shares of Stock to Non-Employee Directors,
                  if such a director elects to receive his or her Director Fees
                  in the form of shares of Stock. Such shares of Stock shall be
                  awarded at such times as the Company shall otherwise pay to
                  Non-Employee Directors their Director Fees (the "Fee Payment
                  Date"). The number of shares of Stock to be issued in lieu of
                  Director Fees pursuant to this Section 6(f) shall be
                  determined by dividing (i) the amount otherwise to be paid to
                  such Non-Employee Director on a

                                       12
<PAGE>

                  Fee Payment Date by (ii) the Fair Market Value of a share of
                  Stock as of such Fee Payment Date; provided, that fractional
                  shares resulting from such calculation shall be paid in cash.
                  Such shares of Stock shall be immediately vested and
                  non-forfeitable and a certificate in respect of such shares
                  shall be issued promptly following such Fee Payment Date to
                  such Non-Employee Director.

            (g)   Other Stock-Based Awards. The Committee is authorized to grant
                  Other Stock-Based Awards to Grantees in such form as deemed by
                  the Committee to be consistent with the purposes of the Plan.
                  Awards granted pursuant to this paragraph may be granted with
                  value and payment contingent upon Performance Goals. The
                  Committee shall determine the terms and conditions of such
                  Awards at the date of grant or thereafter. The maximum value
                  of the aggregate payment that any Grantee may receive pursuant
                  to this Section 6(g) in respect of any Plan Year is $1
                  million. Payments earned hereunder may be decreased or, with
                  respect to any Grantee who is not a Covered Employee,
                  increased in the sole discretion of the Committee based on
                  such factors as it deems appropriate. No payment shall be made
                  prior to the certification by the Committee that the
                  Performance Goals have been attained. The Committee may
                  establish such other rules applicable to the Other Stock-Based
                  Awards to the extent not inconsistent with Section 162(m) of
                  the Code.

      7.    General Provisions.

            (a)   Nontransferability. Unless otherwise provided in an Award
                  Agreement, Awards shall not be transferable by a Grantee
                  except by will or the laws of descent and distribution and
                  shall be exercisable during the lifetime of a Grantee only by
                  such Grantee or his guardian or legal representative.

            (b)   No Right to Continued Employment, etc. Nothing in the Plan or
                  in any Award, any Award Agreement or other agreement entered
                  into pursuant hereto shall confer upon any Grantee the right
                  to continue in the employ of or to continue as a director of
                  the Company or any Parent or Subsidiary of the Company or to
                  be entitled to any remuneration or benefits not set forth in
                  the Plan or such Award Agreement or other agreement or to
                  interfere with or limit in any way the right of the Company or
                  any such Parent or Subsidiary to terminate such Grantee's
                  employment, or director or independent contractor
                  relationship.

            (c)   Taxes. The Company or any Parent or Subsidiary of the Company
                  is authorized to withhold from any Award granted, any payment
                  relating to an Award under the Plan, including from a
                  distribution of Stock, or any other payment to a Grantee,
                  amounts of withholding and other taxes due in connection with
                  any transaction involving an Award, and to take such other
                  action as the Committee may deem advisable to enable the
                  Company and Grantees to satisfy obligations for the payment of
                  withholding taxes

                                       13
<PAGE>

                  and other tax obligations relating to any Award. This
                  authority shall include authority to withhold or receive Stock
                  or other property and to make cash payments in respect thereof
                  in satisfaction of a Grantee's tax obligations. The Committee
                  may provide in the Award Agreement that in the event that a
                  Grantee is required to pay any amount to be withheld in
                  connection with the issuance of shares of Stock in settlement
                  or exercise of an Award, the Grantee may satisfy such
                  obligation (in whole or in part) by electing to have a portion
                  of the shares of Stock to be received upon settlement or
                  exercise of such Award equal to the minimum amount required to
                  be withheld.

            (d)   Stockholder Approval; Amendment and Termination.

                        (i)   The Plan shall take effect upon its adoption by
                              the Board but the Plan (and any grants of Awards
                              made prior to the stockholder approval mentioned
                              herein) shall be subject to the requisite approval
                              of the stockholders of the Company. In the event
                              that the stockholders of the Company do not ratify
                              the Plan at a meeting of the stockholders at which
                              such issue is considered and voted upon, then upon
                              such event the Plan and all rights hereunder shall
                              immediately terminate and no Grantee (or any
                              permitted transferee thereof) shall have any
                              remaining rights under the Plan or any Award
                              Agreement entered into in connection herewith.

                        (ii)  The Board may at any time and from time to time
                              alter, amend, suspend, or terminate the Plan in
                              whole or in part; provided, however, that unless
                              otherwise determined by the Board, an amendment
                              that requires stockholder approval in order for
                              the Plan to continue to comply with Section 162(m)
                              or any other law, regulation or stock exchange
                              requirement shall not be effective unless approved
                              by the requisite vote of stockholders.
                              Notwithstanding the foregoing, no amendment to or
                              termination of the Plan shall affect adversely any
                              of the rights of any Grantee, without such
                              Grantee's consent, under any Award theretofore
                              granted under the Plan.

            (e)   Expiration of Plan. Unless earlier terminated by the Board
                  pursuant to the provisions of the Plan, the Plan shall expire
                  on June 30, 2014, the tenth anniversary of the initial
                  effective date of the Plan. No Awards shall be granted under
                  the Plan after such expiration date. The expiration of the
                  Plan shall not affect adversely any of the rights of any
                  Grantee, without such Grantee's consent, under any Award
                  theretofore granted.

            (f)   Deferrals. The Committee shall have the authority to establish
                  such procedures and programs that it deems appropriate to
                  provide Grantees with the ability to defer receipt of cash,
                  Stock or other property payable

                                       14
<PAGE>

                  with respect to Awards granted under the Plan, subject to the
                  provisions of Code Section 409A.

            (g)   No Rights to Awards; No Stockholder Rights. No Grantee shall
                  have any claim to be granted any Award under the Plan, and
                  there is no obligation for uniformity of treatment of
                  Grantees. Except as provided specifically herein, a Grantee or
                  a transferee of an Award shall have no rights as a stockholder
                  with respect to any shares covered by the Award until the date
                  of the issuance of a stock certificate to him for such shares.

            (h)   Unfunded Status of Awards. The Plan is intended to constitute
                  an "unfunded" plan for incentive and deferred compensation.
                  With respect to any payments not yet made to a Grantee
                  pursuant to an Award, nothing contained in the Plan or any
                  Award shall give any such Grantee any rights that are greater
                  than those of a general creditor of the Company.

            (i)   No Fractional Shares. No fractional shares of Stock shall be
                  issued or delivered pursuant to the Plan or any Award. The
                  Committee shall determine whether cash, other Awards, or other
                  property shall be issued or paid in lieu of such fractional
                  shares or whether such fractional shares or any rights thereto
                  shall be forfeited or otherwise eliminated.

            (j)   Regulations and Other Approvals.

                  (i)   The obligation of the Company to sell or deliver Stock
                        with respect to any Award granted under the Plan shall
                        be subject to all applicable laws, rules and
                        regulations, including all applicable federal and state
                        securities laws and the applicable laws, rules and
                        regulations of non-U.S. jurisdictions, and the obtaining
                        of all such approvals by governmental agencies as may be
                        deemed necessary or appropriate by the Committee.

                  (ii)  Each Award is subject to the requirement that, if at any
                        time the Committee determines, in its absolute
                        discretion, that the listing, registration or
                        qualification of Stock issuable pursuant to the Plan is
                        required by any securities exchange or under any state
                        or federal law or any applicable law, rule or regulation
                        of a non-U.S. jurisdiction, or the consent or approval
                        of any governmental regulatory body is necessary or
                        desirable as a condition of, or in connection with, the
                        grant of an Award or the issuance of Stock, no such
                        Award shall be granted or payment made or Stock issued,
                        in whole or in part, unless listing, registration,
                        qualification, consent or approval has been effected or
                        obtained free of any conditions not acceptable to the
                        Committee.

                  (iii) In the event that the disposition of Stock acquired
                        pursuant to the Plan is not covered by a then current
                        registration statement under

                                       15
<PAGE>

                        the Securities Act and is not otherwise exempt from such
                        registration, such Stock shall be restricted against
                        transfer to the extent required by the Securities Act or
                        regulations thereunder, and the Committee may require a
                        Grantee receiving Stock pursuant to the Plan, as a
                        condition precedent to receipt of such Stock, to
                        represent to the Company in writing that the Stock
                        acquired by such Grantee is acquired for investment only
                        and not with a view to distribution.

                  (iv)  The Committee may require a Grantee receiving Stock
                        pursuant to the Plan, as a condition precedent to
                        receipt of such Stock, to enter into a stockholder
                        agreement or "lock-up" agreement in such form as the
                        Committee shall determine is necessary or desirable to
                        further the Company's interests.

            (k)   Governing Law. The Plan and all determinations made and
                  actions taken pursuant hereto shall be governed by the laws of
                  the State of Delaware without giving effect to the conflict of
                  laws principles thereof.

                                       16Exhibit 10.9

                           BUCYRUS INTERNATIONAL, INC.

                        1998 MANAGEMENT STOCK OPTION PLAN

                    (OCTOBER 2006 AMENDMENT AND RESTATEMENT)

            This 1998 Management Stock Option Plan (the "Plan") was initially
adopted by the Board of Directors of Bucyrus International, Inc. (the "Company")
on March 5, 1998. The Plan, as amended and restated herein, is effective October
18, 2006.

                                    ARTICLE I

                                 PURPOSE OF PLAN

            The Plan is adopted by the Board for certain management employees of
the Company and its Subsidiaries as a part of the compensation and incentive
arrangements for such employees. The Plan is intended to advance the best
interests of the Company by allowing such employees to acquire an ownership
interest in the Company, thereby motivating them to contribute to the success of
the Company and to remain in the employ of the Company and its Subsidiaries. The
availability of stock options under the Plan will also enhance the Company's
ability to attract and retain individuals of exceptional talent to contribute to
the sustained progress, growth and profitability of the Company.

                                   ARTICLE II

                                   DEFINITIONS

            For purposes of the Plan, except where the context clearly indicates
otherwise, the following terms shall have the meanings set forth below:

            "Affiliate" means, with respect to any Person, any other Person who,
either directly or through one or more intermediaries, Controls, is Controlled
by or is under common Control with, such first Person.

            "Board" means the Board of Directors of the Company.

            "Cause" means (a) with respect to any Participant with an employment
agreement that defines "Cause," the definition set forth in such employment
agreement and (b) with respect to any other Participant, (i) such Participant's
(1) willful failure to

                                       1
<PAGE>

timely comply in all material respects with the lawful directives of the Board
(as set at a meeting of the Board in accordance with the Company's bylaws) or
such Participant's supervisory personnel (provided such directives are
consistent with such Participant's position with the Company) or (2) gross
negligence or willful misconduct in the performance of the material duties or
responsibilities of his or her position with the Company or any Subsidiary; (ii)
reasonable evidence to indicate that such Participant has committed (1) any
felony, (2) any other criminal act or act of material dishonesty, disloyalty, or
misconduct (other than minor traffic offenses and similar acts) or (3) any act
of moral turpitude that is materially injurious to the property, operations,
business or reputation of the Company or any Subsidiaries (as determined by the
Board in its reasonable good faith discretion); (iii) the use or imparting by
such Participant of any material confidential or proprietary information of the
Company or any Subsidiary in violation of any confidentiality or proprietary
agreement to which such Participant is a party; or (iv) such Participant's
willful failure to comply in any material respect with the terms of this Plan or
the Stockholders Agreement.

            "CEO" means the President and Chief Executive Officer of the
Company.

            "Closing Date" means September 26, 1997.

            "Code" means the Internal Revenue Code of 1986, as amended, and any
successor statute.

            "Commission" means the United States Securities and Exchange
Commission.

            "Committee" means the Compensation Committee or such other committee
of the Board as the Board may designate to administer the Plan or, if for any
reason the Board has not designated such a committee, the Board. The Committee,
if other than the Board, shall be composed of two or more directors as appointed
from time to time by the Board. At any time when the Company is subject to the
reporting requirements of Section 13 or Section 15(d) of the Securities Exchange
Act, this Plan shall be administered by a committee consisting solely of two or
more directors who are "Non-Employee Directors" within the meaning of Rule l6b-3
under the Securities Exchange Act. In addition, at any time and to the extent
that compensation payable under this Plan is subject to Section 162(m) of the
Code, each director who is a member of such committee shall also be an "outside
director" within the meaning of Section 162(m) of the Code.

            "Common Stock" means the Company's common stock, par value $0.01 per
share.

                                       2
<PAGE>

            "Company" means Bucyrus International, Inc., a Delaware corporation.

            "Company Sale" means a transaction involving one or more independent
third parties pursuant to which such party or parties (i) acquire (whether by
merger, consolidation or transfer or issuance of capital stock) capital stock of
the Company (or any surviving or resulting corporation) possessing the voting
power to elect a majority of the board of directors of the Company (or such
surviving or resulting corporation) or (b) acquire all or substantially all of
the Company's assets determined on a consolidated basis.

            "Control" (including, with correlative meaning, all conjugations
thereof) means with respect to any Person, the ability of another Person to
control or direct the actions or policies of such first Person, whether by
ownership of voting securities, by contract or otherwise.

            "Disability" means (a) with respect to a Participant who is covered
by any long-term disability insurance provided by the Company or any of its
Subsidiaries, the occurrence of those events or the existence of those
conditions that constitute "permanent disability" under the terms of such
insurance policy, and (b) with respect to any Participant that is not covered by
any long-term disability insurance provided by the Company or any of its
Subsidiaries, illness, accident, injury, physical or mental incapacity or other
disability which has existed for at least six months and which has continuously
during such period prevented, and can reasonably be expected to continue to
prevent, such Participant from carrying out effectively his duties and
obligations to the Company and its Subsidiaries as determined in good faith by
the Board.

            "Employee" means (a) any full-time employee of the Company or any of
its Subsidiaries or (b) any consultant or advisor of the Company or any of its
Subsidiaries.

            "Exercise Price" means the purchase price of an Option Share upon
exercise of an Option.

                                       3
<PAGE>

            "Fair Market Value" as of any date means (a) with respect to
publicly traded Common Stock, the market trading price of such Common Stock, (b)
with respect to non-publicly traded Common Stock, the fair market value of such
Common Stock (expressed on a per-share basis) as of such date, as determined in
good faith by the Committee taking into consideration the enterprise multiples
paid by equity sponsors at the time of termination utilizing the trailing four
quarters EBITDA less net debt outstanding as of the then-immediately preceding
quarter end, plus such other factors as the Committee may deem appropriate, and
(c) with respect to any Option (or portion thereof), the excess of (i) the
product of the amount described in clause (a) or (b) above (as applicable)
multiplied by the number of Option Shares issuable upon exercise of the Option
(or portion thereof), over (ii) the aggregate Exercise Price of the Option (or
portion thereof).

            "Management Agreement" means the Management Services Agreement,
dated as of September 24, 1997, among the Company, its Subsidiaries and American
Industrial Partners, a Delaware general partnership.

            "Management Stockholder" means a management Stockholder under the
Stockholder Agreement.

            "Option" means any option to purchase shares of Common Stock under
the Plan.

            "Option Shares" means (a) any shares of Common Stock (or other
shares of capital stock of the Company) issued or issuable by the Company upon
exercise of any Option, and (b) any shares of the capital stock of the Company
issued or issuable in respect of any of the securities described in clause (a)
above, by way of stock dividend, stock split, merger, consolidation,
reorganization or other recapitalization.

            "Participant" means any Employee who is selected to participate in
the Plan in accordance with Article III of the Plan.

            "Performance Vesting Period" shall mean the period from January 1,
1998 through December 31, 2001, unless a different period is specified by the
Committee in the Option Certificate (as defined in Section 5.2 below) relating
to any Option.

            "Person" means an individual, a partnership, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization or a governmental entity or any department, agency or political
subdivision thereof.

            "Plan" means this 1998 Management Stock Option Plan

                                       4
<PAGE>

(October 2006 Amendment and Restatement), as amended or supplemented from time
to time in accordance with its terms.

            "Qualified Public Offering" means any primary or secondary public
offering of Common Stock pursuant to an effective registration statement under
the Securities Act, other than pursuant to a registration statement filed in
connection with a transaction of the type described in Rule 145 of the
Securities Act or for the purpose of issuing securities pursuant to an employee
benefit plan, having an aggregate offering value (before underwriters' discounts
and selling commissions) of at least $30 million.

            "Securities Act" means the Securities Act of 1933, as amended.

            "Securities Exchange Act" means the Securities Exchange Act of 1934,
as amended.

            "Stockholders Agreement" means the Stockholders Agreement dated as
of March 17, 1998 among the Company and its stockholders.

            "Subsidiary" means any corporation of which the Company owns,
directly or through one or more Subsidiaries, securities possessing the voting
power to elect a majority of the board of directors of such corporation.

            "Transfer" means, with respect to any Option, the gift, sale,
assignment, transfer, pledge, hypothecation or other disposition (whether for or
without consideration and whether voluntary, involuntary or by operation of law)
of such Option or any interest therein.

                                   ARTICLE III

                                 ADMINISTRATION

            The CEO shall be responsible for the routine administration of the
Plan, subject to the review and approval of the Committee. Subject to the
requirements and limitations of the Plan, the CEO shall have the authority to
recommend to the Committee those Employees who shall be Participants and the
number of Options to be granted to each Participant. Subject to the requirements
and the limitations of the Plan, the Committee shall have the sole and complete
responsibility and authority to: (a) approve the award of and grant Options
under this Plan; (b) determine the terms and conditions of Options granted under
this Plan; (c) interpret the Plan and adopt, amend and rescind administrative
guidelines and other rules and regulations relating to the Plan; (d) correct any
defect or omission or

                                       5
<PAGE>

reconcile any inconsistency in the Plan or in any Option granted hereunder; and
(e) make all other determinations and take all other actions necessary or
advisable for the implementation and administration of the Plan. All authority
not expressly granted to the CEO hereunder shall remain vested in the Committee.
The Committee's determinations on matters within its authority shall be
conclusive and binding upon the Participants, the Company and all other Persons.
All expenses associated with the administration of the Plan shall be borne by
the Company.

                                   ARTICLE IV

                OPTION SHARES AVAILABLE FOR GRANT UNDER THE PLAN

            4.1 Option Shares. The aggregate number of shares of Common Stock
with respect to which Options may be granted under the Plan shall not exceed
2,400,000 shares; provided, however, that such number of shares shall be subject
to adjustment in accordance with the provisions of Section 8.3 below.

            4.2 Status of Option Shares. The shares of Common Stock for which
Options may be granted under the Plan may be either authorized and unissued
shares, treasury shares or a combination thereof, as the Committee shall
determine and shall be reserved by the Company for issuance as provided in the
Plan. To the extent any outstanding Options expire or are terminated prior to
exercise, the Option Shares in respect of which such Options were issued shall
remain available for reissuance to employees of the Company and its Subsidiaries
pursuant to this Plan or any other plan or agreement approved by the Board.

                                    ARTICLE V

                                GRANT OF OPTIONS

            5.1 Option Terms and Conditions. The terms and conditions of each
Option granted under this Plan shall be as determined by the Committee in
consultation with the CEO.

                                       6
<PAGE>

            5.2 Option Certificate. Each Option granted hereunder to a
Participant shall be evidenced by a certificate setting forth certain basic
terms of the Option. The certificate shall be substantially in the form attached
hereto as Annex l (or in such other form as the Committee may from time to time
adopt) (the "Option Certificate"), and shall be signed by the CEO or such other
officer of the Company as the Committee shall designate. For purposes of the
Plan, no Option shall be deemed to be outstanding until it has been granted to a
Participant by the Committee and an Option Certificate has been executed and
delivered by the Company, and an Option shall cease to be outstanding when it is
repurchased by the Company, terminates or is exercised pursuant to the Plan.

            5.3 Joinder Agreement. As a condition to exercising any Options
hereunder, each Participant who is not a Management Stockholder shall be
required to execute a Joinder Agreement substantially in the form attached
hereto as Annex III (the "Joinder") and thereby become a party to the
Stockholders Agreement with respect to any Option Shares issued in connection
with such exercise.

                                   ARTICLE VI

                               EXERCISE OF OPTIONS

            6.1 Right to Exercise. Except as may otherwise be determined by the
Committee, Options may not be Transferred other than by will or the laws of
descent and distribution and, during the lifetime of the Participant, Options
may be exercised only by such Participant (or his legal guardian or legal
representative). Any Transfer or attempted Transfer of an Option contrary to
this Section 6.1 shall be void, and the Company shall not record such Transfer
on its books or treat any purported transferee of such Option as the owner of
such Option for any purpose. In the event of the death of a Participant,
exercise of Options granted hereunder shall be made only by the executor or
administrator of the estate of the deceased Participant or the Person or Persons
to whom the deceased Participant's rights under the Option shall pass by will or
the laws of descent and distribution.

            6.2 Procedure for Exercise. Any Participant may exercise all or any
portion of any of such Participant's outstanding Options, to the extent such
Options have vested as provided in the Option Certificate, at any time and from
time to time prior to the expiration of such Options, by completing, signing and
delivering to the Company (to the attention of the Company's Secretary) the
Option Certificate together with a notice of exercise substantially in the form
attached hereto as Annex II (or in such other form as the Committee may from
time to time adopt and provide to the Participant) (the "Exercise

                                       7
<PAGE>

Notice"), accompanied (in the case of a Participant who is not a Management
Stockholder) by a Joinder to the Stockholder Agreement in the form attached as
Annex III together with the related Option Certificate(s) and payment in full of
the Exercise Price. Payment of the Exercise Price shall be made in cash
(including check, bank draft or money order); provided, that a Participant may,
in lieu of paying the Exercise Price in cash, deliver an Exercise Notice with
respect to a specified number of Option Shares (the "Specified Option Shares")
and indicate in the Exercise Notice that such Participant intends to effect a
cashless exercise thereof and be entitled to receive in respect of the exercise
of the Option therefor, Option Shares with an aggregate Fair Market Value equal
to the excess of (i) the aggregate Fair Market Value of the Specified Option
Shares, over (ii) the aggregate Exercise Price that otherwise would be payable
hereunder in cash upon exercise of the Option for the Specified Option Shares.
Notwithstanding anything in this Section 6.2 to the contrary, in the event that
any Option Certificate granted to a Participant is lost, stolen or destroyed,
the Participant may, in lieu of delivering such Option Certificate at the time
of exercise, deliver an affidavit as to its loss, theft or destruction and any
indemnity that the Company may reasonably request. A Participant's right to
exercise the Option shall be subject to the satisfaction of all conditions set
forth in the Exercise Notice. If a Participant exercises any Options for less
than all of the Option Shares covered by the relevant Option Certificate, the
Company shall issue a new Option Certificate to such Participant in respect of
the portion of such Option remaining unexercised.

            6.3 Securities Laws Restrictions on Transfer of Option Shares. Each
Participant exercising an Option will be required to represent to the Company in
the Exercise Notice that when such Participant exercises his or her Option such
Participant will be purchasing Option Shares for his or her own account for
investment and not on behalf of others or otherwise with a view toward
distributing them. Each Participant is advised that federal and state securities
laws govern and restrict each Participant's right to Transfer, or offer to
Transfer, any Option Shares unless such Participant's Transfer, or offer to
Transfer, is registered under the Securities Act and state securities laws, or
such Transfer, or offer to Transfer, is exempt from registration or
qualification thereunder. Each Participant is further advised that the
Stockholders Agreement, to which each Participant will become a party upon
exercise of such Participant's Options, imposes additional restrictions on the
transfer of Option Shares, and that the stock certificates for any Option Shares
issued in connection with such exercise will bear such legends as the Company
deems necessary or desirable in connection with the Securities Act or other
rules, regulations or laws.

                                       8
<PAGE>

            6.4 Withholding of Taxes. The Company shall be entitled, if
necessary or desirable, to withhold from any amounts due and payable by the
Company to such Participant (or secure payment from such Participant in lieu of
withholding) the amount of any withholding or other tax due from the Company
with respect to any Option Shares issuable under the Plan, and the Company may
defer such issuance unless indemnified to its satisfaction.

            6.5 Listing, Registration and Compliance with Laws and Regulations.
Options granted under the Plan shall be subject to the requirement that if at
any time the Committee shall make a good faith determination that the listing,
registration or qualification of Option Shares upon any securities exchange or
under any state or federal securities or other law or regulation, or the consent
or approval of any governmental regulatory body, is necessary or desirable as a
condition to or in connection with the granting of the Options or the issuance
or purchase of Option Shares thereunder, no Options may be exercised, in whole
or in part, unless such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any conditions not
reasonably acceptable to the Committee. The Company shall in good faith, and to
the extent consistent with its reasonable business judgment, exercise all
reasonable efforts to obtain any such listing, registration, qualification or
approval. The holders of such Options shall supply the Company with such
certificates, representations and information as the Company shall request and
shall otherwise cooperate with the Company in obtaining such listing,
registration, qualification, consent or approval. Any period of time during
which an Option may not be exercised by reason of the first sentence of this
Section 6.5 is referred to herein as an "Option Exercise Suspension Period." If
the expiration date of the Option as set forth in the related Option Certificate
shall fall within an applicable Option Exercise Suspension Period, the term of
the Option shall automatically be extended until the date that is 45 days
following the end of the Option Exercise Suspension Period. The Company shall
provide affected Optionees with timely notice of the commencement and
termination of any Option Exercise Suspension Period. Except as may otherwise be
provided in the Stockholders Agreement, the Company shall be under no obligation
to register any Option Shares.

                                       9
<PAGE>

                                   ARTICLE VII

                      TERMINATION AND REPURCHASE OF OPTIONS

            7.1 Expiration Date of Options. Except as may otherwise be provided
by the Committee, in no event shall any part of any Option be exercisable after
5:00 p.m. Central Standard Time on the tenth anniversary of the date of grant of
the option.

            7.2 Termination for Cause. Upon the termination of a Participant's
employment with the Company or any Subsidiary for Cause, any Options held by the
Participant, regardless of the extent vested or unvested, shall immediately
expire and be forfeited in its entirety to the extent not exercised prior to the
date of such termination.

            7.3 Termination by the Company without Cause. Upon a Participant's
termination of employment by the Company or any Subsidiary without Cause, (a)
except as may otherwise be provided in any applicable employment agreement
between the Company and the Participant (a "Participant Employment Agreement"),
the unvested portion of any Options held by the Participant shall immediately
expire, (b) if such termination occurs prior to a Qualified Public Offering, the
Company shall repurchase the unexercised vested portion of any such Options
(including any Options that vest pursuant to a Participant Employment Agreement)
at a price equal to the Fair Market Value thereof, and (c) if such termination
occurs after a Qualified Public Offering, except as may otherwise be provided in
a Participant Employment Agreement, the unexercised vested portion of any such
Options shall remain exercisable for a period of 90 days following the date of
such termination of employment, whereupon such Options shall terminate in full.

            7.4 Voluntary Termination by the Participant; Death or Disability.
Upon a Participant's voluntary termination of employment with the Company or any
Subsidiary or upon termination of such employment by reason of the Participant's
death or Disability, (a) the unvested portion of any Options held by the
Participant shall immediately expire, (b) if such termination occurs prior to a
Qualified Public Offering, the Company shall repurchase the unexercised vested
portion of any such Options at a price equal to the lower of (i) the Fair Market
Value thereof or (ii) the excess of (x) the Exercise Price of such Options as
increased at the rate of 6% per year from the date of grant through the date of
termination of employment over (y) the Exercise Price of the Options, and (c) if
such termination occurs after a Qualified Public Offering, except as may
otherwise be provided in a Participant Employment Agreement, the unexercised
vested portion of any such Options shall remain exercisable for a period of 90
days following the date of such termination of

                                       10
<PAGE>

employment, whereupon such Options shall terminate in full. Notwithstanding the
foregoing, the Committee shall have the discretion to permit vested Options held
by retirees to remain outstanding following the date of retirement for a period
specified by the Committee.

            7.5 Payment of Repurchase Price. The aggregate purchase price of the
vested portion of any Options to be repurchased by the Company pursuant to this
Article VII shall be paid, either (i) in cash by delivery of a check or wire
transfer of funds, or (ii) prior to the first Company Sale following the Closing
Date, at the sole discretion of the Company, by delivery of a subordinated note
of the Company with interest thereon accruing at the rate of eight percent (8%)
per annum, with all accrued interest and principal payable two years from the
date of issuance (the "Subordinated Note"); provided, however, in the event that
during the term of the Subordinated Note the Participant accepts employment with
Harnischfeger Corp., the term of the Subordinated Note shall be extended for an
additional two years following expiration of the original term. The Subordinated
Note shall be expressly subordinated to all other indebtedness for borrowed
money of the Company. Notwithstanding anything to the contrary herein, the
Company shall not be obligated to repurchase the vested portion of any Options
pursuant to this Article VII to the extent (a) the Company is prohibited from
purchasing such shares by any agreements for borrowed money (each, a "Debt
Instrument") entered into by the Company or any of its Subsidiaries or by
applicable law; (b) a default has occurred under any Debt Instrument and is
continuing; (c) the repurchase of such vested Options would, in the opinion of
the Board, result in the occurrence of an event of default under any Debt
Instrument or create a condition which would, with notice or lapse of time or
both, result in such an event of default; or (d) the purchase of such vested
Options would, in the reasonable opinion of the Board, materially impair the
Company's ability to meet its obligations under any Debt Instrument in
connection with its business and operations. The Company shall provide affected
Optionees with timely notice of the existence and lapse of any of the conditions
described in the foregoing clauses (a)-(d).

                                  ARTICLE VIII

                                  MISCELLANEOUS

            8.1 Rights of Participants. Nothing in this Plan shall interfere
with or limit in any way any right of the Company or any of its Subsidiaries to
terminate any Participant's employment at any time (with or without Cause), nor
confer upon any Participant any right to continued employment by the Company or
any of its Subsidiaries for any period of time or to continue

                                       11
<PAGE>

such employee's present (or any other) rate of compensation. Transfer of an
Employee from the Company to a Subsidiary, from a Subsidiary to the Company and
from one Subsidiary to another shall not be considered a termination of such
Employee's employment for purposes of this Plan. Where applicable, references in
this Plan to "termination of employment" or similar phrases shall be deemed to
include references to termination of service as a consultant or advisor. No
Employee shall have a right to be selected as a Participant or, having been so
selected, to be selected again as a Participant.

            8.2 Amendment, Suspension and Termination of Plan. The Committee may
not suspend, terminate or materially amend the Plan or any portion thereof at
any time without stockholder approval to the extent such approval is required by
law, agreement or the rules of any exchange upon which the Common Stock is
listed. Notwithstanding the foregoing, no suspension, termination or amendment
of or to the Plan may adversely affect the rights of any holder of Options with
respect to Options issued hereunder prior to the date of such suspension,
termination or amendment without the consent of such holder.

            8.3 Adjustments. In the event of any merger, reorganization,
consolidation, recapitalization, stock dividend, stock split, share combination
or other change affecting the shares of Common Stock, the Committee shall make
such adjustments in the number and type of shares authorized by the Plan, the
number and type of shares covered by outstanding Options and the Exercise Prices
specified therein and any other adjustments to the Option as the Committee,
reasonably and in good faith, determines to be appropriate and equitable in
order to prevent the dilution or enlargement of the rights granted hereunder or
under any outstanding Options.

            8.4 Construction of Plan. The validity, construction,
interpretation, administration and effect of the Plan shall be determined in
accordance with the local law, and not the law of conflicts, of the State of
Delaware.

            8.5 Indemnification. The Company will, and will cause each of its
Subsidiaries to, indemnify the CEO and the members of the Committee against all
costs and expenses reasonably incurred by them in connection with any action,
suit or proceeding to which they or any of them may be a party by reason of any
action taken or failure to act under or in connection with the Plan or any
Option granted thereunder or any Option Shares issued pursuant to the exercise
of an Option, and against all amounts paid by them in settlement thereof
(provided such settlement is approved by independent legal counsel selected by
the Company) or paid by them in satisfaction of a judgment in any such action,
suit or proceeding; provided, however, that any such Person shall be entitled to
the indemnification rights set forth in this

                                       12
<PAGE>

Section 8.5 only if such Person has acted in good faith and in a manner that
such Person reasonably believed to be in or not opposed to the best interests of
the Company and, with respect to any criminal action or proceeding, had no
reasonable cause to believe that such conduct was unlawful, and provided further
that upon the institution of any such action, suit or proceeding such Person
shall give the Company written notice thereof and an opportunity, at its own
expense, to handle and defend the same before such Person undertakes to handle
and defend it on his or her own behalf.

                                       13
<PAGE>

                                                                         Annex I

            THIS OPTION AND THE OPTION SHARES ISSUABLE UPON THE EXERCISE HEREOF
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER
THE SECURITIES LAWS OF ANY STATE. THIS OPTION IS ISSUED PURSUANT TO THE BUCYRUS
INTERNATIONAL, INC. 1998 MANAGEMENT STOCK OPTION PLAN ADOPTED AS OF MARCH 5,
1998 BY THE BOARD OF DIRECTORS OF THE ISSUER AND AMENDED AND RESTATED AS OF
OCTOBER 18, 2006 (THE "PLAN") AND THIS OPTION IS SUBJECT TO THE TERMS SET FORTH
IN THE PLAN.

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

                      OPTION TO PURCHASE [______] SHARES OF

                                 COMMON STOCK OF

                           BUCYRUS INTERNATIONAL, INC.

                                OPTION NO. [___]

                          DATE OF GRANT: MARCH 17, 1998

                            VOID AFTER MARCH 17, 2008

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

      This certifies that [____________] is entitled, upon the due exercise
hereof, to purchase up to [_____] shares of Common Stock, par value $0.01 per
share (the "Option Shares") of Bucyrus International, Inc., a Delaware
corporation (the "Company") at a price (the "Exercise Price") of $100 per Option
Share. This option (this "Option") is issued pursuant to the Bucyrus
International, Inc. 1998 Management Stock Option Plan adopted as of March 5,
1998 by the Company's Board of Directors and amended and restated as of October
18, 2006 (the "Plan") and is subject in its entirety to the terms and conditions
of the Plan, as amended from time to time, all of which are hereby incorporated
in the terms of this Option. Capitalized terms which are used but not defined
herein shall have the respective meanings ascribed to them in the Plan.

      The Option shall vest and become exercisable as provided in Schedule 1
attached hereto.

      The Participant may exercise all or any portion of a vested

                                       14
<PAGE>

Option by executing and delivering to the Company an Exercise Notice and a
Joinder to Stockholders Agreement (copies of which may be obtained from the
Company) together with full payment of the aggregate Exercise Price for all
Option Shares being so purchased, such payment to be made (if payable in cash)
by cash, check, bank draft or money order made payable to "Bucyrus
International, Inc." Except as otherwise expressly provided by the Plan, this
Option shall be deemed to have been exercised and the Option Shares issuable
upon such exercise shall be deemed to have been issued as of the close of
business on the date upon which all of the foregoing items are received by the
Company.

      In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, stock split, share combination or similar
change affecting the Common Stock of the Company, the number and, if applicable,
the type of Option Shares issuable upon exercise of this Option and the Exercise
Price therefor shall be adjusted as provided in the Plan.

      THIS OPTION MAY NOT BE TRANSFERRED EXCEPT TO THE LIMITED EXTENT PROVIDED
IN SECTION 6.1 OF THE PLAN.

      Prior to the exercise of this Option as permitted by the Plan, the
Participant shall not, with respect to the Option Shares issuable upon the due
exercise hereof, be entitled to any of the rights of a stockholder of the
Company including, without limitation, the right as a stockholder to (i) vote on
or consent to any proposed action of the Company, (ii) receive dividends or
other distributions made to stockholders, (iii) receive notice of or attend any
meetings of stockholders of the Company, or (iv) receive notice of any other
proceedings of the Company.

      IN WITNESS WHEREOF, the Company has executed this Option as of the date
first above written.

                                        BUCYRUS INTERNATIONAL, INC.

         [SEAL]                         By:
                                            ------------------------------------
                                        Its:
                                            ------------------------------------

Attest:
       ----------------------------

                                       15
<PAGE>

                                                                      Schedule 1

                                 OPTION VESTING

            The Option shall vest as set forth below. Capitalized terms have the
meanings assigned to such terms either in the Plan or in Section 7 below.

            1. Performance-Based EBITDA Targets. The Option shall vest based on
the Company's actual EBITDA performance during each of the Company's 1998
through 2001 fiscal years (each, a "Plan Year" and, in the aggregate, the
"Performance Vesting Period") as compared with the EBITDA Target for such Plan
Year. The EBITDA Targets for each Plan Year are as follows:

                    Plan Year              EBITDA Target

                1/1/98 - 12/31/98           $40,209,000
                1/1/99 - 12/31/99            50,399,000
                1/1/00 - 12/31/00               *
                1/1/01 - 12/31/01               *

*     To be determined by the Company in consultation with the Chief Executive
      Officer based on the Company's business plan.

The actual percentage achievement of the EBITDA Target for a Plan Year is
referred to as the "Performance Level" for that Plan Year. The Performance Level
for each Plan Year shall be determined by the Committee within a reasonable
period of time after the Company's audited financial statements for such Plan
Year become available.

            2. Normal Option Vesting. The Option is targeted to vest at the rate
of 25% of the total Option Shares in each Plan Year (the "Base Option Vesting
Amount"). No portion of the Base Option Vesting Amount for any Plan Year will
vest unless the Performance Level for such Plan Year is greater than 90% of the
EBITDA Target. The entire Base Option Vesting Amount for any Plan Year will vest
effective as of the last day of such Plan Year if the Performance Level for such
Plan Year is equal to or greater than 100%. If the Performance Level for any
Plan Year is between 90% and 100%, the Base Option Vesting Amount will vest pro
rata effective as of the last day of such Plan Year as follows:

                                       16
<PAGE>

Performance Level in Plan Year          % of Total Option Shares
Vesting                                 in Plan Year

      90% or below                                   0%
      91%                                          2.5%
      92%                                          5.0%
      93%                                          7.5%
      94%                                         10.0%
      95%                                         12.5%
      96%                                         15.0%
      97%                                         17.5%
      98%                                         20.0%
      99%                                         22.5%
      100% or above                               25.0%

            If the Performance Level for a Plan Year falls between two whole
number percents, the Percentage of Total Option Shares Vesting in such Plan Year
shall be adjusted pro rata. The number of Option Shares vesting in any Plan Year
will be rounded to the nearest whole share.

            3. Performance Level in Excess of 100% in a Plan Year. If the
Performance Level in any Plan Year exceeds 100%, the amount of actual EBITDA for
such Plan Year in excess of the EBITDA Target for such Plan Year (the "EBITDA
Surplus") will be applied first to "make-up" any portion of the Base Option
Vesting Amount that failed to vest in any prior Plan Year by reason of a
Performance Level less than 100%, and second to "surplus" accelerated vesting of
up to one-quarter of the Option Shares that would otherwise have been eligible
for vesting as part of the Base Option Vesting Amount for the 2001 Plan Year,
each as described below. For purposes of this Section 3, the term "EBITDA
Deficit" shall mean the amount by which, in any Plan Year, the Company's actual
EBITDA for such Plan Year falls short of the EBITDA Target for such Plan Year.

                  (a) Make-Up Vesting. If there is an EBITDA Surplus for any
Plan Year, the amount of such EBITDA Surplus will first be applied to offset the
amount of any EBITDA Deficit for the immediately preceding Plan Year, whereupon
(i) the Performance Level for such preceding Plan Year shall be recalculated,
(ii) the Optionee shall be deemed to vest, effective as of the last day of the
Plan Year as to which such surplus was achieved, in the appropriate additional
number of Option Shares for such preceding Plan Year in accordance with Section
2 above, and (iii) such EBITDA Surplus shall be reduced by the amount of such
offset. Any remaining EBITDA Surplus shall then be applied sequentially to any
EBITDA Deficit for any earlier Plan Years, until the amount of such EBITDA
Surplus has been reduced to zero. In no event shall any EBITDA Surplus (i) be
used to achieve a Performance Level for any prior Plan Year in excess of 100% or
(ii) be carried over to reduce any EBITDA Deficit in any subsequent Plan Year.

                  (b) Surplus Vesting. If, after the application of Section 3(a)
above, any EBITDA Surplus achieved as to the

                                       17
<PAGE>

1998, 1999 or 2000 Plan Years remains, the "Surplus Vesting Percentage" shall be
calculated by dividing the amount of any such remaining EBITDA Surplus by the
EBITDA Target for such Plan Year, whereupon Option Shares that would otherwise
have been eligible for vesting as part of the Base Option Vesting Amount for the
2001 Plan Year shall vest, effective as of the last day of the Plan Year as to
which such EBITDA surplus was achieved, according to the following schedule:

Surplus Vesting Percentage        % of Total Option Shares Subject to
                                            Surplus Vesting

         1%                                      0.625%
         2%                                      1.250%
         3%                                      1.875%
         4%                                      2.500%
         5%                                      3.125%
         6%                                      3.750%
         7%                                      4.375%
         8%                                      5.000%
         9%                                      5.625%
         10% or more                             6.250%

If the Surplus Vesting Percentage for a Plan Year falls between two whole number
percents, the Percentage of Total Option Shares Subject to Surplus Vesting shall
be adjusted pro rata. The number of Option Shares vesting in any Plan Year will
be rounded to the nearest whole share. The Base Option Vesting Amount for the
2001 Plan Year shall be reduced by the amount of any Option Shares subject to
surplus vesting in any prior Plan Year, and for purposes of calculating the
number of Option Shares vesting based on performance during the 2001 Plan Year,
the vesting table set forth in Section 2 shall be adjusted proportionately, such
that the full number of Option Shares remaining in the Base Option Vesting
Amount for the 2001 Plan Year will vest only if the Performance Level for the
2001 Plan Year is 100% or more. In no event shall any EBITDA Surplus for any
Plan Year be carried over to any subsequent Plan Year.

            4. Full Vesting on Company Sale; Termination of Option;.
Notwithstanding the foregoing, if a Company Sale is consummated prior to the end
of the 2001 Plan Year, 100% of the Option Shares shall automatically vest
immediately prior to consummation of such Company Sale. In connection with a
Company Sale, the Company may, in its discretion, either (i) upon not less than
30 days notice prior to consummation of such Company Sale (or such lesser notice
period as shall otherwise be reasonable under the circumstances), permit the
Participant to exercise all or part of the Option in advance of such Company
Sale or (ii) provide for the deemed exercise of all or part of the Option and
payment in cash or other property therefor. In either such event, unless
otherwise determined by the Company in

                                       18
<PAGE>

its discretion, any Option or part thereof not so exercised or deemed exercised
in connection with such Company Sale shall expire upon the consummation of such
Company Sale.

            5. Nine Year Cliff Vesting. Notwithstanding the foregoing, but
subject to Section 6 below, any Option Shares that fail to vest by reason of the
vesting provisions of Sections 1 through 4 above shall nonetheless vest on the
ninth anniversary of the date of grant of the Option.

            6. Termination of Employment. Notwithstanding anything to the
contrary herein or in the Plan, except as may otherwise be provided in any
applicable employment agreement between the Company and the Participant, all
Options held by a Participant shall cease to vest as of the date such
Participant's employment with the Company or any Subsidiary terminates for any
reason and under any circumstances.

            7. Definitions. For purposes of this Schedule 1, the terms set forth
below shall be defined as follows:

            "EBITDA" means, with reference to any period, Net Income for such
period adjusted (a) by adding thereto the amount of all (i) debt interest
expense to the extent included in determining Net Income for such period, (ii)
depreciation and amortization expenses and non-cash charges, including, without
limitation, (A) the non-cash portion of any expenses incurred during such period
pursuant to Financial Accounting Standards Board Statement No. 106, (B) purchase
accounting adjustments that occur as a result of the application of Accounting
Principles Board Opinion No. 16 and (C) non-cash charges for compensation costs
recognized pursuant to Accounting Principles Board Opinion No. 25 (as permitted
under Financial Accounting Standards Board Statement No. 123) in connection with
Options granted to employees of the Company and its Subsidiaries to the extent
included in determining Net Income for such period, (iii) all income taxes to
the extent included in determining Net Income, and (iv) the management fee
payable under the Management Agreement and all directors' fees, in each case, to
the extent included in determining Net Income for such period, and (b) by
subtracting therefrom (i) all interest income to the extent included in
determining Net Income for such period, and (ii) all tax credits to the extent
included in determining Net Income for such period.

The Committee will make equitable adjustments to the EBITDA Targets from time to
time to reflect (i) acquisitions and dispositions made by the Company and its
subsidiaries during the Performance Vesting Period and (ii) the establishment of
accounting reserves prior to January l, 1998 and, in each case, the anticipated
effect on the EBITDA Targets resulting therefrom.

                                       19
<PAGE>

            "Net Income" means, with reference to any period, the net income (or
deficit) of the Company and its Subsidiaries for such period, after deducting
all operating expenses, provisions for taxes, reserves and all other proper
deductions, all determined in accordance with generally accepted accounting
principles applied on a consolidated basis and on a basis consistent with prior
periods after eliminating all intercompany transactions and after deducting
portions of income properly attributable to minority interests, if any, in the
stock and surplus of Subsidiaries; provided, however, that there shall be
excluded (a) any aggregate net gain or net loss during such period arising from
the sale, exchange or other disposition of capital assets, (b) any net income or
gain from the collection of the proceeds of insurance policies (other than
proceeds of business interruption insurance for lost income to the extent such
loss reduced Net Income for such period and proceeds of other insurance in
respect of claims or losses to the extent such claims or losses reduced Net
Income for such period), (c) any gain or loss arising from the acquisition of
any securities, or the extinguishment, under generally accepted accounting
principles, of any indebtedness of the Company or any of its Subsidiaries, or
(d) any net income or gain or net loss during such period from any change in
accounting principles originally used as a basis for the computation of EBITDA
or from any extraordinary items.

                                       20
<PAGE>

                                                                        Annex II

                                 EXERCISE NOTICE

      This Exercise Notice (this "Notice") is given by the undersigned
participant ("Participant") to Bucyrus International, Inc., a Delaware
corporation (the "Company") in connection with the Participant's exercise of an
Option granted pursuant to the Company's 1998 Management Stock Option Plan,
adopted as of March 5, 1998 and amended and restated as of October 18, 2006 (the
"Plan") to purchase Option Shares (as defined in the Plan). Capitalized terms
used but not defined herein shall have the respective meanings ascribed to them
in the Plan.

      1. Purchase and Sale of Option Shares.

            (a) Upon delivery to the Company of this Notice and the Option
Certificate to which it relates, the Company will sell and issue to Participant
the Option Shares that Participant elects to purchase hereunder. Participant
will deliver to the Company herewith the aggregate Exercise Price for the Option
Shares purchased hereunder (if payable in cash) by check, bank draft or money
order made payable to "Bucyrus International, Inc."

            (b) In connection with the purchase and sale of the Option Shares
hereunder, Participant represents and warrants to the Company that:

            (i) The Option Shares to be acquired by Participant pursuant to
Participant's exercise of the Option will be acquired for Participant's own
account and not with a view to, or intention of, distribution thereof in
violation of the Securities Act, or any applicable state securities laws, and
the Option Shares will not be disposed of in contravention of the Securities Act
or any applicable state securities laws;

            (ii) Participant is sophisticated in financial matters and is able
to evaluate the risks and benefits of the investment in the Option Shares;

            (iii) Participant is able to bear the economic risk of his or her
investment in the Option Shares for an indefinite period of time because the
Option Shares have not been registered under the Securities Act and, therefore,
cannot be sold unless subsequently registered under the Securities Act or an
exemption from such registration is available;

            (iv) Participant has had an opportunity to ask questions and receive
answers concerning the terms and conditions of the Option Shares and has had
full access to such other information concerning the Company as he or she has
requested; and

                                       21
<PAGE>

            (v) Participant is a resident and domiciliary of the state or other
jurisdiction hereinafter set forth opposite such Participant's signature and
Participant has no present intention of becoming a resident of any other state
or jurisdiction. If Participant is a resident and domiciliary of a state that
requires the Company to ascertain certain other information regarding the
Participant, the Company may attach a page to this Notice containing additional
representations to be made by Participant in connection with such Participant's
investment in Option Shares, and by signing this Notice, Participant shall be
deemed to have made such additional representations to the Company.

            (c) Participant further acknowledges and agrees that:

            (i) neither the issuance of the Option Shares to Participant nor any
provision contained herein shall entitle Participant to remain in the employment
of the Company and its Subsidiaries or affect any right of the Company to
terminate Participant's employment at any time for any reason;

            (ii) the Company shall have no duty or obligation to disclose to
Participant and Participant shall have no right to be advised of, any material
information regarding the Company and its Subsidiaries in connection with the
repurchase of Option Shares upon the termination of Participant's employment
with the Company and its Subsidiaries or as otherwise provided hereunder; and

            (iii) the Company shall be entitled to withhold from participant
from any amounts due and payable by the Company to Participant (or secure
payment from Participant in lieu of withholding) the amount of any withholding
or other tax due from the Company with respect to the Option Shares and the
Company may defer issuance of the Option Shares until indemnified to its
satisfaction.

            (d) The Company and Participant acknowledge and agree that the
Option Shares issued hereunder are issued as a part of the compensation and
incentive arrangements between the Company and Participant.

            2. Restriction on Option Shares. Participant acknowledges that the
Option Shares being purchased hereunder are being issued pursuant to the Plan,
the terms and conditions of which are incorporated herein as if set forth fully
herein, and that such Option Shares are subject to certain restrictions on
transfer, rights of repurchase and other provisions set forth in the Plan and
the Stockholders Agreement. Purchaser acknowledges that the certificates
evidencing such Option Shares shall be

                                       22
<PAGE>

imprinted with a legend providing notice of such restrictions substantially in
the form set forth in the Stockholders Agreement.

                                    * * * * *

                                       23
<PAGE>

      IN WITNESS WHEREOF, the Participant has executed this Notice as of the
date written below.

No. of Shares of Common Stock:                               _________________
Aggregate Exercise Price Therefor:                           _________________
Cashless Exercise:                                           Yes ____   No ____

--------------------------------                 ---------------------------
Signature of Participant                         Date

--------------------------------                 ---------------------------
Print Participant's Name                         Participant's Social Security
                                                 No.

Participant's Residence Address:                 Mailing Address, if different
                                                 from Residence Address:

--------------------------------                 -------------------------------
Street                                           Street

--------------------------------                 -------------------------------
City           State    Zip Code                 City           State   Zip Code

Acknowledged Receipt of Notice as of _________________________.

BUCYRUS INTERNATIONAL, INC.

By:
   -------------------------------

Its:
    ------------------------------

                                       24
<PAGE>

                                                                       Annex III

                             FORM OF JOINDER TO THE
                             STOCKHOLDERS AGREEMENT

      This Joinder (this "Agreement") is made as of the date written below by
the undersigned (the "Joining Party") in favor of and for the benefit of Bucyrus
International, Inc. and the other parties to the Stockholders Agreement, dated
as of March 17, 1998 (the "Stockholders Agreement"). Capitalized terms used but
not defined herein shall have the meanings given such terms in the Stockholders
Agreement.

      The Joining Party hereby acknowledges, agrees and confirms that, by his or
her execution of this Joinder, the Joining Party will be deemed to be a party to
the Stockholders Agreement and shall have all of the rights and obligations of a
Management Stockholder thereunder as if he or she had executed the Stockholders
Agreement. The Joining Party hereby ratifies, as of the date hereof, and agrees
to be bound by, all of the terms, provisions and conditions contained in the
Stockholders Agreement.

      IN WITNESS WHEREOF, the undersigned has executed this Joinder as of the
date written below.

Date:  ___________________   __________________________________
                             Name:

                                       25

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