Document:

Bucyrus International, Inc. 
		P. O. Box 500 • 1100 Milwaukee Avenue 
		South Milwaukee, Wisconsin, 53172-0500, USA 
		(414)768-4883 • Fax: (414)768-5060 

August 8, 2007 

Mr. Luis deLeon
Bucyrus
International, Inc.
1100 Milwaukee Avenue
South Milwaukee, WI 53172  

Dear Luis: 

I am delighted to extend to you a
formal offer of employment with Bucyrus International, Inc. as Chief Operating Officer,
DBT Operations. I am confident you will make a valuable contribution to the company and
believe you will find the work challenging and fulfilling. You will be reporting directly
to Tim Sullivan, President and Chief Executive Officer of Bucyrus International, Inc. The
effective date for your transition to this role will be August 1, 2007. 

With regard to your compensation and
benefits, you are eligible for all of the benefits available to salaried employees of
Bucyrus International, Inc. This includes health and dental insurance, short and long-term
disability, vision care, 401(k) savings plan, cash balance pension plan and paid vacation
and holidays. Specifically: 

	• 	Your
monthly base salary will be approximately $29,550 USD, equivalent to $354,600 USD on an
annual basis. 

	• 	For
the remainder of 2007, you will continue to participate in your current DBT bonus plan
structure, with a target bonus based on your new salary. In 2008, you will be eligible to
participate in the Bucyrus International, Inc. Management Incentive Plan, subject to the
determination of our Compensation Committee of the Board of Directors. 

	• 	In
accordance with the approval by the Compensation Committee of the Board of Directors, you
are eligible to participate in the 2007 Long Term Incentive Plan (the “LTIP”).
The LTIP program is based on certain performance measures, consists of Restricted Stock
and Stock Appreciation Rights (SARs), and is structured for additional grants to be made
in the future, subject to approval by the Compensation Committee of the Board of
Directors. The grant date and fair market value will be established in accordance with
the plan. 

	• 	You
will be eligible for medical, dental, and vision benefit plans. In addition, you are
eligible to participate in our matching 401(K) plan and our cash balance pension plan. A
summary of those benefits accompanies this offer. In addition, you will be eligible to
participate in the Bucyrus International, Inc. Supplemental Executive Retirement Plan
(SERP) and Deferred Compensation Plan available to senior executives of Bucyrus
International, Inc. 

	• 	You
will be eligible for the Company’s relocation policy, Relocation of Salaried
Employees (102.20), a copy of which is enclosed. In addition to the standard relocation
policy, because you are relocating from a foreign country, you will be eligible for
certain enhanced relocation benefits that are detailed as an attachment to that policy. 

	• 	You
will be eligible for six holidays plus the Friday after Thanksgiving and Christmas
Holiday period per calendar year. 

	• 	You
will be eligible for four (4) weeks of vacation per year, prorated for the remainder of
2007 based on your start date. Any additional vacation earned will be per Bucyrus policy. 

As a condition to our offer of
employment, you are asked to execute the enclosed noncompetition, confidentiality and
intellectual property agreement. In addition, as a condition of our offer of employment,
you agree that all prior agreements, plans and arrangements relating to your employment by
DBT GmbH or its affiliates or Bucyrus International, Inc. are nullified and superceded
hereby, including that certain employment agreement, dated April 13, 2004 and amended
December 22, 2005, between you and DBT GmbH under the authority of RAG Coal International
AG, and that certain change-in-control letter agreement, dated August 9, 2006, between you
and RAG Coal International AG (collectively, the “Prior Employment Agreements”).
You acknowledge and agree that the termination of the Prior Employment Agreements and the
termination of your employment with DBT GmbH will not provide you with, and you hereby
waive and fully release, any right to demand the payment of any termination,
change-in-control, severance or other similar benefits pursuant to the provisions of the
Prior Employment Agreements. In return, Bucyrus International, Inc. agrees that should
your employment be terminated by the Company for any reason other than “Cause”
during your first two years of employment (but not thereafter), you will receive an amount
equivalent to twelve (12) months of your annual base salary in effect at the date of your
termination payable on our normal payroll payment dates over such period and provided you
continue to comply with your noncompetition, confidentiality and intellectual property
agreement. For purposes of this letter, “Cause” means you having: (i) violated
the provisions of the attached noncompetition, confidentiality and intellectual property
agreement or any similar agreement with Bucyrus International, Inc.; (ii) violated any
other obligations or conditions of employment (such as failure to perform up to reasonable
standards or the violation of Bucyrus International, Inc. policies) and failure to cure
such breach within ten (10) calendar days after written demand by Bucyrus International,
Inc., unless the Company in its discretion determines a longer period shall apply; (iii)
become, in the sole opinion of Bucyrus International, Inc., as determined in good faith,
addicted or dependent on intoxicants or drugs of any nature; (iv) committed any
misdemeanor involving theft or deception or any felony; (v) engaged in dishonesty
involving Bucyrus International, Inc.‘s business; or (vi) engaged in any other
conduct, either within or outside the scope of employment, that, if known to the public or
any person or entity having business dealings with Bucyrus International, Inc. (including
any of its employees, customers or suppliers), could reflect unfavorably on Bucyrus
International, Inc.‘s reputation or its ability to deal with any person or entity
having business dealings with Bucyrus International, Inc. 

Bucyrus International, Inc. espouses
the doctrine of employment “at-will”, which is specifically applicable to you
and this employment offer. Therefore, your employment can be terminated by us at any time
with or without Cause, subject only to the above paragraph. Other than as set forth above,
nothing in this letter should be construed as a guarantee of employment for any specific
period or of any particular level of benefits or of your participation in any benefit plan
of any level or type. Further, Bucyrus International, Inc. reserves the right to amend,
modify, or terminate, in its sole discretion, all benefit and compensation plans in effect
from time to time. You understand that you will be subject to all applicable Bucyrus
International, Inc. policies and procedures including, but not limited to, its Worldwide
Business Ethics and Conduct Policy, Foreign Corrupt Practices Act Compliance and its
Non-Discrimination and Anti-Harassment Policy. 

By accepting this offer and signing
below, you also agree that the terms of your employment, this letter and the attached
noncompetition, confidentiality and intellectual property agreement will be subject solely
to the laws of the State of Wisconsin, United States of America and that no other laws of
any other court or jurisdiction shall apply. Any dispute under this letter or with respect
to your employment and any subsequent termination may only be resolved by binding
arbitration in Milwaukee, Wisconsin, as described more completely in the attached
noncompetition, confidentiality and intellectual property agreement. 

We ask that you confirm your
acceptance by signing and dating this offer letter in the area designated below and
returning this letter to me at 1100 Milwaukee Ave, South Milwaukee, Wisconsin 53172. Your
signature below confirms that you are subject to no contractual or other restriction or
obligation that is inconsistent with your accepting this offer of employment and
performing your duties, nor does it alter your “at-will” employment status.
Please retain the additional copy of this offer letter for your reference. 

Welcome to the Bucyrus
International, Inc. family!  We look forward to having you on our team. 

Sincerely, 

/s/ Barbara H. Stephens 

Barbara H. Stephens
Senior Vice
President, Human Resources  

Signed: /s/ Luis de Leon

Dated: August 8, 2007NONCOMPETITION,
CONFIDENTIALITY AND 
INTELLECTUAL PROPERTY
AGREEMENT 

        In
consideration of my employment with Bucyrus International, Inc., a Delaware corporation,
or any of its subsidiaries, affiliates or divisions and its successors and assigns (the
“Company”), and in further consideration of the compensation to be paid to me by
the Company, I agree to the following terms and conditions: 

     1.    
          Nondisclosure of Confidential Information. During my employment with the
          Company, I have obtained or will obtain information or access to information
          regarding the Company. Such information may include, but is not limited to,
          customer lists, customer purchasing histories and plans, costs, budgets,
          acquisition strategies, policies, procedures, methods of operation, pricing,
          marketing plans, financial information, vendor sources, vendor identities and
          capabilities, manufacturing processes, research, field performance reports,
          machine and component histories, repair and failure frequencies and occurrences,
          engineering data, designs and drawings, design standards, contemplated or new
          product developments, computer software and programs, trade secrets, and other
          data, as well as information which the Company receives from a third party and
          holds in confidence (collectively, “Confidential Information”).
          Confidential Information may be oral or written and may reside in works which I
          have originated or will originate, as well as that which otherwise has come or
          will come into my possession or knowledge. 

        I
agree that I will treat all matters relating to the business and activities of the Company
as confidential and I will not at any time during or following my employment with the
Company, directly or indirectly, disclose to any person or entity, or use, any
Confidential Information except in the normal course of my duties as an employee of the
Company or as otherwise required by law or legal process. 

        This
prohibition does not apply to Confidential Information after it has become generally known
(other than as a result of my violation of this Section 1). This prohibition also does not
prohibit my use of my general skills and knowledge acquired during and prior to my
employment by the Company, as long as such use does not involve the use or disclosure of
Confidential Information. 

     2.    
          Noncompetition. While employed and for an eighteen (18) month period
          beginning on the effective date of the termination of my employment with the
          Company (the “Date of Termination”), I will not, except upon prior
          written permission signed by an authorized officer of the Company, consult with
          or advise or, directly or indirectly, as owner, partner, officer or employee,
          engage in business with any company in competition with the Company or any of
          its affiliates or with any corporation or entity controlled by, controlling or
          under common control with any such company. Notwithstanding the foregoing, I may
          make and retain investments in not more than three percent of the equity of any
          such company if such equity is listed on a national securities exchange or
          regularly traded in an over-the-counter market. 

     3.    
          Nonsolicitation. While employed and for a two-year (2) period beginning
          on the Date of Termination, I will not, directly or indirectly, solicit for
          employment or employ on behalf of any organization other than the Company or one
          of its affiliates or employ any person employed by the Company or any of its
          affiliates, nor will I, directly or indirectly, solicit for employment on behalf
          of any organization other than the Company or one of its affiliates or be
          involved in any way in the hiring process of any person known by me (after
          reasonable inquiry) to be employed at the time by the Company or any of its
          affiliates. 

     4.    
          Ownership of Materials and Return. All books, records, papers, notes,
          catalogs, compilations of information, drawings, correspondence, recordings,
          information stored for use in or with computers, tools, equipment, and other
          items and materials, including copies thereof, that I have developed or will
          develop or which have come or will come into my possession or control during my
          employment by the Company and which relate to the business of the Company are
          the property of the Company. I will promptly deliver all such materials and
          items to the Company upon termination of my employment, or at any time the
          Company may so request. 

     5.    
          Inventions. All inventions, discoveries, improvements, or ideas
          (collectively, “Inventions”) made, developed or conceived by me,
          individually or jointly with others, during my employment with the Company and
          which relate to the Company’s present or future business shall be the
          property of the Company. Without further compensation, I will promptly disclose
          such Inventions to the Company and execute any patent applications, assignments,
          and other instruments deemed necessary by the Company, that relate thereto. The
          Company shall have exclusive control of all such Inventions and I will cooperate
          fully, even after the termination of my employment, in a lawful manner and at
          the expense of the Company, in the prosecution of patent applications and in any
          legal actions and proceedings concerning such Inventions. 

     6.    
          Creations. I hereby assign, convey, and transfer to the Company, any and
          all manuscripts, writings, pictorial materials, computer programs or software,
          and other creations (collectively, “Creations”) created by me, either
          individually or jointly with others, during his employment with the Company and
          which relate to the present or future business of the Company. All such
          Creations shall be “work made for hire.” The Company shall have the
          full right to seek and procure copyright registration on the Creations, and I
          will cooperate fully, even after the termination of my employment, in a lawful
          manner and at the expense of the Company, in securing copyrights and in any
          legal actions and proceedings concerning the Creations. 

     7.    
          Post-Termination Rights. Without diminishing the rights granted to the
          Company above, if within one (1) year after leaving the employ of the Company,
          an Invention related to existing or potential products or business for the
          Company is described in a patent application or is disclosed to third parties by
          me or if a Creation is published or is disclosed to third parties by me, there
          shall be a presumption that the Invention or the Creation was conceived, made,
          developed, acquired, or created by me during my employment with the Company and
          the Invention or Creation shall belong to the Company. 

     8.    
          Remedies. Irreparable damage will result to the Company in the event of
          the breach by me of this Agreement. In the event of a breach or threatened
          breach by me, the Company shall be entitled to all remedies, including money
          damages, as well as injunctive relief and such other equitable relief to prevent
          or restrain any breach or threatened breach of this Agreement. Each remedy of
          the Company shall be cumulative and not in limitation of any injunctive relief
          or other rights or remedies which the Company is or may be entitled at law or in
          equity. The Company shall be entitled to its attorneys’ fees, expert
          witness fees, and other expenses and costs it incurs in enforcing this Agreement
          or pursuing damages for my breach of this Agreement. 

     9.    
          No Employment Agreement. The employment relationship between the Company
          and me is one of my employment-at-will and no rights to employment for a
          definite period of time are created by this Agreement. I acknowledge this
          Agreement survives the termination of my employment with the Company. 

     10.    
          Severability. The provisions of this Agreement are severable. The
          invalidity or unenforceability of any provisions of this Agreement in any
          jurisdiction shall not affect the validity or enforceability of the remaining
          provisions in such jurisdiction or the validity or enforceability of such
          provision in any other jurisdiction. 

     11.    
          Governing Law. This Agreement shall be construed and enforced solely in
          accordance with the laws of the State of Wisconsin, United States of America,
          regardless of where I am employed by the Company or where I reside. I
          specifically agree that no laws of any other country, state or jurisdiction
          shall apply. 

     12.    
          Arbitration. I agree that any dispute, disagreement or action to enforce
          this Agreement shall take place solely by binding arbitration under the
          commercial arbitration rules of the American Arbitration Association in
          Milwaukee, Wisconsin, and that the costs and expenses of such arbitration and
          incurred by the prevailing party shall be borne by the non-prevailing party in
          such arbitration. I agree that no other court or authority shall have
          jurisdiction to resolve disputes under this Agreement. 

     13.    
          Assignability. This Agreement and the rights and obligations of the
          Company hereunder may be assigned by the Company. No rights or obligations of
          mine under this Agreement may be assigned or transferred by me. 

        I
acknowledge that I enter into this Agreement voluntarily and for the valuable
consideration described above, and that I have this day received a copy of this Agreement. 

	Employee’s Signature: /s/ William S. Tate	Date: August 8, 2007

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