Document:

Exhibit 10.6

                           BUCYRUS INTERNATIONAL, INC.
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                           Effective October 20, 2006

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                           BUCYRUS INTERNATIONAL, INC.
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                           Effective October 20, 2006

I.    PURPOSE AND EFFECTIVE DATE.

      1.1.  Purpose.  The Bucyrus  International,  Inc.  Supplemental  Executive
            Retirement  Plan  (the  "Plan")  has  been  established  by  Bucyrus
            International,  Inc. to attract and retain  certain key employees by
            supplementing such key employees'  retirement income available under
            the Bucyrus International,  Inc. Salaried Employees' Retirement Plan
            (the "Qualified Plan"), which retirement income is otherwise limited
            by Sections 415 and 401(a)(17) of the Internal Revenue Code of 1986,
            as amended, and the regulations issued thereunder.

      1.2.  Effective  Date.  The Plan shall be  effective  October 20, 2006 and
            shall remain in effect until  terminated in accordance  with Section
            7.5.

II.   DEFINITIONS.

      When used in the Plan and initially  capitalized,  the following words and
      phrases shall have the meanings indicated:

      2.1.  "Account" means the bookkeeping  account established for purposes of
            accounting for the amount of a Participant's  Supplemental  Benefits
            Amount  determined  and credited in accordance  with Article IV each
            year, if any, as adjusted  periodically to reflect interest earnings
            on such amounts in accordance with Article V.

      2.2.  "Administrator"  means  the  Bucyrus  International,  Inc.  Benefits
            Committee  or  such  other  committee  as  may be  appointed  by the
            Committee to administer the Plan.

      2.3.  "Affiliate"  means  any  corporation,  partnership,  joint  venture,
            trust, association or other business enterprise which is a member of
            the same controlled group of  corporations,  trades or businesses as
            the Company, within the meaning of Code Section 414(b) or (c).

      2.4.  "Beneficiary"   means  the  person  or  entity   designated  by  the
            Participant to receive a Participant's Supplemental Benefits Amounts
            in the event of the Participant's death. If the Participant does not
            designate  a  Beneficiary,   or  if  the  Participant's   designated
            Beneficiary   predeceases   the   Participant,   the   Participant's
            beneficiary under the Qualified Plan shall be the Beneficiary.

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

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      2.6.  "Cash  Balance  Account"  shall  have the  meaning  set forth in the
            Qualified Plan.

      2.7.  "Cash Balance  Participant"  shall have the meaning set forth in the
            Qualified Plan.

      2.8.  "Code" means the  Internal  Revenue  Code of 1986,  as amended.  Any
            reference  to a  specific  provision  of the Code shall be deemed to
            include reference to any successor provision thereto.

      2.9.  "Committee" means the Compensation Committee of the Board.

      2.10. "Company"  means  Bucyrus  International,  Inc.  and  any  successor
            thereto.

      2.11. "Compensation"  shall have the  meaning  set forth in the  Qualified
            Plan.

      2.12. "Eligible  Employee" means a common-law U.S. employee of an Employer
            who (i) is a Cash Balance  Participant,  and (ii) who is employed in
            the position of a General  Manager,  Vice  President or above on the
            date the  allocation  described  in Section 4.1 is to be made to the
            individual's Account.

      2.13. "Employer"  means the  Company  and each  Affiliate  that,  with the
            consent of the Company, has elected to participate in the Plan.

      2.14. "ERISA" means the Employee  Retirement  Income Security Act of 1974,
            as amended.  Any reference to a specific provision of ERISA shall be
            deemed to include reference to any successor provision thereto.

      2.15. "Participant"   means  an  Eligible   Employee   who  has  become  a
            participant in the Plan in accordance with Section 3.1.

      2.16. "Plan" means the Bucyrus International,  Inc. Supplemental Executive
            Retirement  Plan,  as set forth  herein and as amended  from time to
            time.

      2.17. "Plan Year" means the  calendar  year.  The initial  Plan Year shall
            begin January 1, 2006.

      2.18. "Qualified  Plan" means the  Bucyrus  International,  Inc.  Salaried
            Employees' Retirement Plan, or any successor plan thereto.

      2.19. "Separation  from  Service"  means  the date on which a  Participant
            terminates  employment  with the Company and all of its  Affiliates,
            within the  meaning of Code  Section  409A.  A  Participant  has not
            incurred a Separation from Service if the Participant is absent from
            active  employment due to military  leave,  sick leave or other bona
            fide  leave of  absence  if the period of such leave does not exceed
            the greater of (1) six (6) months or (2) the period during which the
            Participant's  right to  reemployment by the Company or an Affiliate
            is provided either by statute or by contract.

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      2.20. "Supplemental  Benefit  Amounts"  means the amounts  credited to the
            Participant's Account in accordance with Article IV.

      2.21. "Valuation Date" means any date on which a Participant's  Account is
            valued,  which  shall be each  business  day of a Plan  Year  unless
            determined otherwise by the Administrator.

III.  PARTICIPATION.

      3.1.  Participation.  An employee shall automatically become a Participant
            in the  Plan on the date he or she is  hired  or  promoted  into the
            position of an Eligible Employee.  In addition,  any employee who is
            an  Eligible  Employee  on the  Effective  Date  of the  Plan  shall
            automatically  become  a  Participant  on  the  Effective  Date.  An
            Eligible  Employee  shall  cease  to  receive  Supplemental  Benefit
            Amounts,  although his or her Account  will  continue to be credited
            with interest  credits,  on the date the individual  ceases to be an
            Eligible Employee.

      3.2.  ERISA  Exemption.  It is the intent of the Company  that the Plan be
            exempt from Parts 2, 3 and 4 of  Subtitle B of Title I of ERISA,  as
            an unfunded plan that is maintained by the Company primarily for the
            purpose of  providing  deferred  compensation  for a select group of
            management and highly compensated employees (the "ERISA Exemption").
            Notwithstanding  anything  to the  contrary in Section 3.1 or in any
            other  provision  of the  Plan,  the  Committee  may,  in  its  sole
            discretion,  exclude any one or more employees  from  eligibility to
            participate  or  from   participation  in  the  Plan,   exclude  any
            Participant  from continued  participation in the Plan, and take any
            further action permissible under Code Section 409A that it considers
            necessary or appropriate if the Committee  reasonably  determines in
            good faith that such  exclusion  or further  action is  necessary in
            order for the Plan to qualify  for, or to  continue to qualify  for,
            the ERISA Exemption.

IV.   SUPPLEMENTAL BENEFIT AMOUNTS.

      4.1.  Computation of Supplemental  Benefit Amounts. A Participant shall be
            entitled to Supplemental  Benefit Amounts for each Plan Year that he
            or she is an Eligible  Employee.  Such  Supplemental  Benefit Amount
            shall be equal to the excess, if any, of:

                  (i)   the amount the Eligible  Employee  otherwise  would have
                        been  entitled  to  have  credited  to his  or her  Cash
                        Balance  Account as a pay credit for the Plan Year under
                        the  Qualified  Plan  if  such  benefit  was  calculated
                        without regard to Code Sections 401(a)(17) and 415, over

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                  (ii)  the amount which is credited to the Eligible  Employee's
                        Cash Balance  Account as a pay credit for such Plan Year
                        under the Qualified Plan.

      4.2.  Vesting.  A Participant's  Account shall vest in accordance with the
            same vesting schedule that applies to the Participants' Cash Balance
            Account  under the Qualified  Plan.  If a Participant  who Separates
            from Service is not vested in his or her Account, such Account shall
            be  forfeited  and the  Participant  shall  not be  entitled  to any
            payments hereunder.

      4.3.  Crediting of Supplemental  Benefit Amounts. The Supplemental Benefit
            Amount  computed  in  Section  4.1 above for each Plan Year shall be
            credited to the Participant's Account as of the last day of the Plan
            Year.  Notwithstanding the foregoing,  if the Participant  Separates
            from Service during the Plan Year, the  Supplemental  Benefit Amount
            shall be  credited  as of the last  day of the  month in which  such
            Separation from Service occurs.

V.    ACCOUNTS AND INVESTMENTS.

      5.1.  Valuation of Accounts.  The Administrator shall establish an Account
            for each  Participant  who has  been  credited  with a  Supplemental
            Benefit Amount.  Such Account shall be credited with a Participant's
            Supplemental Benefit Amount as set forth in Sections 4.3. As of each
            Valuation Date, the Participants'  Accounts shall be adjusted upward
            or downward to reflect:

            (a)   the interest earnings to be credited as of such Valuation Date
                  pursuant to Section 5.2 below, and

            (b)   the amount of distributions, if any, to be debited as of that
                  Valuation Date under Article VI.

      5.2.  Interest Credits. Accounts shall be credited with interest credits
            on the last day of each calendar month. Such interest credit shall
            mirror the interest credit on Cash Balance Accounts (as defined by
            the terms of the Qualified Plan) and shall be determined in the same
            manner as under the Qualified Plan. A Participant's Account shall
            continue to be credited with such interest credits until the date on
            which the Participant's Account is paid out in full.

VI.   DISTRIBUTIONS.

      6.1.  Election. An Eligible Employee shall make a distribution election
            with respect to his or her vested Account within the first thirty
            (30) days following his or her initial participation date under
            Section 3.1. The election shall be in such form as the Administrator
            shall prescribe. The distribution election shall specify whether
            payment of the Participant's benefits are to begin upon the
            Participant's

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            Separation from Service, or such later age as is specified by the
            Participant. The distribution election shall also specify that
            distribution of the Participant's Account be made in accordance with
            one of the following options:

            (a)   A single lump sum payment of the vested Account, valued as of
                  the Valuation Date immediately preceding distribution; or

            (b)   5 or 10 annual installments of the vested Account, with the
                  amount of each installment equal to the balance of the
                  Participant's Account as of the December 31 immediately
                  preceding the distribution date divided by the number of
                  installments remaining to be paid (and with the final
                  distribution being equal to the balance in the Participant's
                  Account as of the Valuation Date immediately preceding the
                  distribution date).

            If no election is in effect, the Participant will be deemed to have
            elected to receive payment in the form of a single lump sum upon
            Separation from Service.

      6.2.  Modified Distribution Election.

            (a)   Prior to January 1, 2008. Provided that distribution of a
                  Participant's Account has not been commenced and is not
                  scheduled to commence during 2007, a Participant may change
                  his or her distribution election until December 31, 2007.

            (b)   After December 31, 2007. A Participant may change his or her
                  distribution election (regarding the time or form of payment
                  or both) only in accordance with the following rules:

                        (i) the revised distribution election must be made at
                        least twelve (12) months prior to the date on which the
                        payment was scheduled to be paid (or begin to be paid,
                        if installments were elected) and may not be given
                        effect until the end of such twelve (12) month period;
                        and

                        (ii) the date of distribution must be delayed for at
                        least five (5) years from the date on which the payment
                        was scheduled to be paid (or begin to be paid, if
                        installments were elected).

      6.3.  Distribution Commencement Date.

            (a)   In General. Except as provided in subsection (b) below,
                  distribution of the Participant's vested Account will be made
                  or commence in February of the calendar year following the
                  calendar year in which the Participant's Account becomes
                  payable, or as soon thereafter as is administratively
                  practicable. For any Participant whose vested Account is
                  distributable in annual installments, each annual installment
                  after the initial payment will

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                  be paid in February, or as soon thereafter as is
                  administratively practicable.

            (b)   Distributions Due to Separation from Service. Notwithstanding
                  the foregoing, if the Participant's vested Account is payable
                  by reason of the Participant's Separation from Service (other
                  than Separation from Service occurring by reason of the
                  Participant's death), distribution of the Participant's vested
                  account will be made or begin in the month that follows the
                  six month anniversary of the Participant's Separation from
                  Service, or as soon thereafter as is administratively
                  practicable, if such date is later than the date specified in
                  Paragraph (a).

      6.4.  Form of Distribution, All payments shall be made in cash.

      6.5.  Distribution of Small Benefits. Notwithstanding anything to the
            contrary herein, including any election made by a Participant as to
            the form or timing of distribution, if the vested balance of a
            Participant's Account is $10,000 or less as of the Valuation Date
            immediately preceding the date the Participant's Account is to be
            distributed, the vested balance of such Participant's Account shall
            be distributed in a lump sum upon the Participant's Separation from
            Service (subject to the timing rules of Section 6.3).

      6.6.  Acceleration of Payments. Notwithstanding any other provision of the
            Plan, if the Committee determines that all or any portion of a
            Participant's Account is required to be included in the
            Participant's income as a result of a failure to comply with the
            requirements of Code Section 409A and the regulations promulgated
            thereunder, the Company or applicable Affiliate shall immediately
            make distribution from the Plan to the Participant or Beneficiary,
            in one lump sum, of the vested amount (but not exceeding the amount)
            that is so taxable.

      6.7.  Hardship Withdrawals. A Participant who has incurred an
            "unforeseeable emergency" may request, and the Committee may (but
            need not) approve a distribution of part or all of the Participant's
            vested Account balance, in accordance with and subject to the
            limitations set forth in this Section. An "unforeseeable emergency"
            means a severe financial hardship to the Participant resulting from
            an illness or accident of the Participant, the Participant's spouse,
            or the Participant's dependent (as defined in Code Section 152(a)),
            loss of the Participant's property due to casualty, or other similar
            extraordinary and unforeseeable circumstances arising as a result of
            events beyond the control of the Participant. The amount authorized
            by the Committee for distribution with respect to an emergency may
            not exceed the amounts necessary to satisfy the emergency plus
            amounts necessary to pay taxes reasonably anticipated as a result of
            the distribution, after taking into account the extent to which such
            hardship is or may be relieved through reimbursement or compensation
            by insurance or otherwise or by liquidation of the Participant's
            assets, to the extent that liquidation of such assets would not
            itself cause severe financial hardship.

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      6.8.  Distribution of Remaining Account Following Participant's Death. In
            the event of the Participant's death, the Participant's remaining
            undistributed vested interest will be distributed to the
            Participant's Beneficiary in a single sum on the first day of the
            month that is at least 90 days following the Participant's death, or
            as soon thereafter as is administratively practicable.

VII.  GENERAL PROVISIONS

      7.1.  Administration. The Committee or (subject to such rules as the
            Committee may prescribe) the Administrator shall administer and
            interpret the Plan and supervise preparation of Participant
            elections, forms, and any amendments thereto. The Committee or
            (subject to such rules as the Committee may prescribe) the
            Administrator may, in their discretion, delegate any or all of their
            authority and responsibility, and to the extent of any such
            delegation, any references herein to the Committee and/or the
            Administrator shall be deemed references to such delegee; provided
            that any such delegee shall not act in any non-ministerial fashion
            in a matter affecting the delegee's own participation or interest in
            the Plan. Interpretation of the Plan shall be within the sole
            discretion of the Committee or (subject to such rules as the
            Committee may prescribe) the Administrator, and any interpretations,
            actions, decisions or findings of the Committee or Administrator
            shall be final and binding upon each Participant and Beneficiary.
            The Committee or (subject to such rules as the Committee may
            prescribe) the Administrator may adopt and modify rules and
            regulations relating to the Plan as they deem necessary or advisable
            for the administration of the Plan. Notwithstanding anything to the
            contrary, the Administrator shall not act in any non-ministerial
            fashion in any matter that affects one or more of the members of the
            committee that is the Administrator (unless such action affects all
            Participants uniformly) and any such action will be taken or
            decision made by the Committee

      7.2.  Claims Procedures.

            (a)   Initial Claim. If a Participant or Beneficiary (the
                  "claimant") believes that he or she is entitled to a benefit
                  under the Plan that is not provided, the claimant or his or
                  her legal representative shall file a written claim for such
                  benefit with the Administrator; provided that if the claimant
                  is a member of the committee that comprises the Administrator,
                  the claim shall be submitted directly to the Committee and all
                  references in this subsection (a) to the Administrator shall
                  instead refer to the Committee. The Administrator shall review
                  the claim within 90 days following the date of receipt of the
                  claim; provided that the Administrator may determine that an
                  additional 90-day extension is necessary due to circumstances
                  beyond the Administrator's control, in which event the
                  Administrator shall notify the claimant prior to the end of
                  the initial period that an extension is needed, the reason
                  therefor and the date by which the Administrator expects to
                  render a decision. If the claimant's claim is

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                  denied in whole or part, the Administrator shall provide
                  written notice to the claimant of such denial. The written
                  notice shall include the specific reason(s) for the denial;
                  reference to specific Plan provisions upon which the denial is
                  based; a description of any additional material or information
                  necessary for the claimant to perfect the claim and an
                  explanation of why such material or information is necessary;
                  and a description of the Plan's review procedures (as set
                  forth in subsection (b)) and the time limits applicable to
                  such procedures, including a statement of the claimant's right
                  to bring a civil action under section 502(a) of ERISA
                  following an adverse determination upon review.

            (b)   Appeal of Denied Claim. The claimant has the right to appeal
                  the Administrator's decision by filing a written appeal to the
                  Committee within 60 days after claimant's receipt of the
                  decision or deemed denial. The claimant will have the
                  opportunity, upon request and free of charge, to have
                  reasonable access to and copies of all documents, records and
                  other information relevant to the claimant's appeal. The
                  claimant may submit written comments, documents, records and
                  other information relating to his or her claim with the
                  appeal. The Committee will review all comments, documents,
                  records and other information submitted by the claimant
                  relating to the claim, regardless of whether such information
                  was submitted or considered in the initial claim
                  determination. The Committee shall make a determination on the
                  appeal within 60 days after receiving the claimant's written
                  appeal; provided that the Committee may determine that an
                  additional 60-day extension is necessary due to circumstances
                  beyond the Committee's control, in which event the Committee
                  shall notify the claimant prior to the end of the initial
                  period that an extension is needed, the reason therefor and
                  the date by which the Committee expects to render a decision.
                  If the claimant's appeal is denied in whole or part, the
                  Committee shall provide written notice to the claimant of such
                  denial. The written notice shall include the specific
                  reason(s) for the denial; reference to specific Plan
                  provisions upon which the denial is based; a statement that
                  the claimant is entitled to receive, upon request and free of
                  charge, reasonable access to and copies of all documents,
                  records, and other information relevant to the claimant's
                  claim; and a statement of the claimant's right to bring a
                  civil action under section 502(a) of ERISA.

            (c)   Deemed Denial. If the Administrator fails to render a decision
                  on a claimant's initial claim for benefits under the Plan or
                  the Committee fails to render a decision on the claimant's
                  subsequent appeal of the Administrator's decision, such claim
                  or appeal will be deemed to be denied.

      7.3.  Participant Rights Unsecured.

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            (a)   Unsecured Claim. The right of a Participant or a Beneficiary
                  to receive a distribution hereunder shall be an unsecured
                  claim, and neither the Participant nor any Beneficiary shall
                  have any rights in or against any amount credited to his or
                  her Account by an Employer or to any other specific assets of
                  an Employer. The right of a Participant or Beneficiary to the
                  payment of benefits under this Plan shall not be assigned,
                  encumbered, or transferred, except by will or the laws of
                  descent and distribution. The rights of a Participant
                  hereunder are exercisable during the Participant's lifetime
                  only by the Participant or his or her guardian or legal
                  representative.

            (b)   Contractual Obligation. Each Employer shall be responsible for
                  the payment of benefits attributable to Participants in its
                  employ. An Employer may authorize the creation of a trust or
                  other arrangements to assist it in meeting the obligations
                  created under the Plan. However, any liability to any person
                  with respect to the Plan shall be based solely upon any
                  contractual obligations that may be created pursuant to the
                  Plan. No obligation of an Employer shall be deemed to be
                  secured by any pledge of, or other encumbrance on, any
                  property of an Employer. Nothing contained in this Plan and no
                  action taken pursuant to its terms shall create or be
                  construed to create a trust of any kind, or a fiduciary
                  relationship between an Employer and any Participant or
                  Beneficiary, or any other person.

      7.4.  Distributions for Tax Withholding and Payment.

            (a)   FICA Taxes. Notwithstanding the time or schedule of payments
                  otherwise applicable to the Participant, the Administrator may
                  direct that distribution from a Participant's vested Account
                  be made (i) to pay the Federal Insurance Contributions Act
                  ("FICA") tax imposed under Code Sections 3101, 3121(a) and
                  3121(v)(2) with respect to compensation deferred under the
                  Plan, (ii) to pay the income tax at source on wages imposed
                  under Code Section 3401 or the corresponding withholding
                  provisions of applicable state, local, or foreign tax laws as
                  a result of the payment of FICA taxes, and (iii) to pay the
                  additional income tax at source on wages attributable to the
                  "pyramiding" of Code Section 3401 wages and taxes; provided
                  that the total amount distributed under this provision must
                  not exceed the aggregate of the FICA tax and the income tax
                  withholding related to such FICA tax. In addition or
                  alternatively, the Administrator may direct that all FICA
                  taxes due in connection with any allocation hereunder be
                  withheld from other compensation owed to a Participant.

            (b)   Other Withholding Taxes. The amount actually distributed to
                  the Participant or a Beneficiary will be reduced by applicable
                  tax withholding

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                  except to the extent such withholding requirements previously
                  were satisfied in accordance with subsection (a) above.

      7.5.  Amendment or Termination of Plan.

            (a)   Amendment. The Committee may at any time amend the Plan,
                  including but not limited to modifying the terms and
                  conditions applicable to (or otherwise eliminating) receiving
                  allocations and/or interest credits to be made on or after the
                  amendment date; provided, however, that no amendment or
                  termination may reduce or eliminate any Account balance
                  accrued to the date of such amendment or termination (except
                  as such Account balance may be reduced as a result of
                  investment losses allocable to such Account).

            (b)   Termination. There shall be no time limit on the duration of
                  the Plan. The Board may terminate the Plan (or the Plan shall
                  automatically terminate) in accordance with and subject to the
                  following rules:

                              (i) The Board at any time may terminate the Plan
                        and require that all benefits accrued be distributed to
                        Participants and Beneficiaries in a single sum without
                        regard to a Participant's prior election as to the form
                        of benefit payments, if (A) all plans or arrangements of
                        the same type (as defined in regulations issued by the
                        Secretary of the Treasury under Code Section 409A) are
                        terminated with respect to all participants, (B) no
                        payments other than those payable under the pre-existing
                        terms of the Plan are made within 12 months of the date
                        on which the arrangement is terminated, (C) all payments
                        are completed within 24 months of the termination, and
                        (D) the Company or Affiliate does not, for the five
                        years following the date of termination, maintain an
                        arrangement that benefits any Participant and that,
                        under rules prescribed by the Secretary of the Treasury,
                        is required to be aggregated with any of the terminated
                        arrangements.

                              (ii) The Plan will automatically terminate and all
                        benefits accrued will be distributed to Participants and
                        Beneficiaries in a single sum without regard to a
                        Participant's prior election as to the form and timing
                        of benefit payments, with respect to any Participant (or
                        the Beneficiary of a deceased Participant) who is
                        affected by a "change in control event". For purposes of
                        this Paragraph (iii), the term "change in control event"
                        has the meaning specified by the Secretary of the
                        Treasury for purposes of Code Section 409A. Payment
                        shall be made within ten (10) business days of the
                        occurrence of the "change in control event". If payment
                        is delayed beyond such payment deadline for

<PAGE>

                        any reason, the balance to be paid out shall become
                        fixed as of such tenth (10th) day, and shall be the
                        balance of the Participant's Account as of the Valuation
                        Date immediately preceding the change in control event,
                        except that such amount shall be increased in an amount
                        equivalent to interest on such fixed amount, to the date
                        of actual payment, at a rate equal to two times the
                        applicable federal rate, as determined under Code
                        Section 1274 as of the date of payment.

                              (iii) The Plan shall terminate and all benefits
                        accrued will be distributed in a single sum without
                        regard to a Participant's prior election as to the form
                        of benefit payments, if (A) payment is made upon a
                        complete dissolution that is taxed under Code Section
                        331 or upon approval of a bankruptcy court pursuant to
                        Section 503(b)(1)(A) of Title 11 of the United States
                        Code, and (B) the amounts deferred under the Plan are
                        included in the gross income of Participants and
                        Beneficiaries by the latest of (i) the calendar year in
                        which the Plan termination occurs, (ii) the calendar
                        year in which the amounts are no longer subject to a
                        substantial risk of forfeiture, or (iii) the first
                        calendar year in which the payment is administratively
                        practicable.

                        Except as provided in paragraphs (i), (ii) and (iii)
            above or as otherwise permitted in regulations promulgated by the
            Secretary of the Treasury under Code Section 409A, any action that
            purports to terminate the Plan shall instead be construed as an
            amendment to discontinue further benefit accruals, but the Plan will
            continue to operate, in accordance with its terms as from time to
            time amended and in accordance with applicable Participant
            elections, with respect to the Participant's benefit accrued through
            the date of termination, and in no event shall any such action
            purporting to terminate the Plan form the basis for accelerating
            distributions to Participants and Beneficiaries.

      7.6.  Administrative Expenses. Costs of establishing and administering the
            Plan will be paid by the Employers.

      7.7.  Successors and Assigns. This Plan shall be binding upon and inure to
            the benefit of the Employers, their successors and assigns and the
            Participants and their heirs, executors, administrators, and legal
            representatives.

      7.8.  Right of Offset. The Employers shall have the right to offset from
            the benefits payable hereunder any amount that the Participant owes
            to the Company or an Affiliate or other entity in which the Company
            or an Affiliate maintains an ownership interest. The Company may
            effectuate the offset without the consent of the Participant (or, in
            the event of the Participant' death, without the consent of the
            Participant's spouse or Beneficiary).

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      7.9.  Not a Contract of Employment. This Plan may not be construed as
            giving any person the right to be retained as an employee of the
            Company or any Affiliate.

      7.10. Miscellaneous Distribution Rules. The following rules will supersede
            any inconsistent distribution provisions of the Plan. In the
            circumstances described in subsections (a) and (b) below, a payment
            that would otherwise be due and payable under the terms of the Plan
            will be delayed, and payment will be made in accordance with this
            Section.

            (a)   Loan Covenants or Similar Contractual Requirements. If and to
                  the extent that the Company reasonably anticipates that the
                  making of a payment will violate a term of a loan agreement to
                  which the Company or an Affiliate is a party, or other similar
                  contract to which the Company or an Affiliate is a party, and
                  such violation will cause material harm to the Company or an
                  Affiliate, the payment shall be deferred until the earliest
                  date at which the Company or Affiliate reasonably anticipates
                  that the making of the payment will not cause such violation
                  or such violation will not cause material harm to the Company
                  or Affiliate. The foregoing rule shall apply only if the
                  Company or Affiliate entered into the loan agreement
                  (including the loan covenant) or other similar contract for
                  legitimate business reasons and not for the purpose of
                  deferring distribution of amounts subject to Code Section
                  409A.

            (b)   Federal Securities and Other Applicable Law. If and to the
                  extent that the Company reasonably anticipates that the making
                  of a payment will violate Federal securities laws or other
                  applicable law, the payment shall be deferred until the
                  earliest date at which the Company reasonably anticipates that
                  the making of the payment will not cause such violation. For
                  this purpose, the making of a payment is not treated as a
                  violation of applicable law because the payment would cause
                  the inclusion of amounts in gross income of the recipient or
                  result in a penalty or any provision of the Code being or
                  becoming applicable.

      7.11. Nontransferability. Prior to payment thereof, no benefit under the
            Plan shall be assignable or subject to any manner of alienation,
            sale, transfer, claims of creditors, pledge, attachment or
            encumbrances of any kind.

      7.12. Governing Law and Limitations on Actions.

            (a)   Governing Law. This Plan is intended to be a plan of deferred
                  compensation maintained for a select group of management or
                  highly compensated employees as that term is used in ERISA,
                  and shall be interpreted so as to comply with the applicable
                  requirements thereof. In all other respects, the Plan is to be
                  construed and its validity determined according to the laws of
                  the State of Wisconsin (without reference to

<PAGE>

                  conflict of law principles thereof) to the extent such laws
                  are not preempted by federal law.

            (b)   Limitation on Actions. Any action or other legal proceeding
                  with respect to the Plan may be brought only after the claims
                  and appeals procedures of Section 7.2 are exhausted and only
                  within period ending on the earlier of (1) one year after the
                  date claimant receives notice or deemed notice of a denial
                  upon appeal under Section 7.2(b), or (2) the expiration of the
                  applicable statute of limitations period under applicable
                  federal law.

                                 *      *      *

      IN WITNESS WHEREOF, the undersigned has caused this Plan to be executed
this 20th day of October, 2006.

                                        BUCYRUS INTERNATIONAL, INC.

                                        By:/s/ C.R. Mackus
                                           -------------------------------------
                                        Its:CFO and Secretary
                                            ------------------------------------Exhibit 10.7

                           BUCYRUS INTERNATIONAL, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

                            Effective January 1, 2007

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I. DEFINITIONS AND CONSTRUCTION......................................  2
      Section 1.01. Definitions..............................................  2
      Section 1.02. Construction and Applicable Law..........................  5

ARTICLE II. PARTICIPATION....................................................  7
      Section 2.01. Eligibility..............................................  7

ARTICLE III. EMPLOYEE DEFERRED COMPENSATION..................................  8
      Section 3.01. Deferrals of Base Pay....................................  8
      Section 3.02. Deferrals of Annual Bonus Awards.........................  9
      Section 3.03. Matching Contribution Credits...........................  10
      Section 3.04. Other Deferrals and Credits.............................  10
      Section 3.05. Effect of Hardship Distributions........................  11
      Section 3.06. Involuntary Termination of Deferral Elections...........  11

ARTICLE IV. ACCOUNTING AND HYPOTHETICAL INVESTMENT ELECTIONS................  12
      Section 4.01. Investment Options......................................  12
      Section 4.02. Participant Investment Elections........................  12
      Section 4.03. Allocation of Deemed Investment Gain or Loss............  13
      Section 4.04. Accounts are For Record Keeping Purposes Only...........  13

ARTICLE V. DISTRIBUTION OF ACCOUNTS.........................................  14
      Section 5.01. Distribution Election and Procedure.....................  14
      Section 5.02. Hardship Withdrawals....................................  16

ARTICLE VI. GENERAL PROVISIONS..............................................  18
      Section 6.01. Administration..........................................  18
      Section 6.02. Restrictions to Comply with Applicable Law..............  18
      Section 6.03. Claims Procedures.......................................  19
      Section 6.04. Participant Rights Unsecured............................  20
      Section 6.05. Distributions for Tax Withholding and Payment...........  21
      Section 6.06. Amendment or Termination of Plan........................  21
      Section 6.07. Administrative Expenses.................................  24
      Section 6.08. Successors and Assigns..................................  24
      Section 6.09. Right of Offset.........................................  24
      Section 6.10. Not a Contract of Employment............................  24
      Section 6.11. Miscellaneous Distribution Rules........................  24
      Section 6.12. Nontransferability......................................  25
      Section 6.13. Limitation on Actions...................................  26

<PAGE>

                           BUCYRUS INTERNATIONAL, INC.
                           DEFERRED COMPENSATION PLAN

      Bucyrus International, Inc. (the "Company") has established the Bucyrus
International, Inc. Deferred Compensation Plan (the "Plan") with respect to
amounts deferred by eligible participants after December 31, 2006. The Plan is
intended to promote the best interests of the Company and its Affiliates by
attracting and retaining key management employees possessing a strong interest
in the successful operation of the Company and its Affiliates and encouraging
their continued loyalty, service and counsel to the Company and its Affiliates.
The terms and conditions of the Plan are set forth below.

<PAGE>

                     ARTICLE I. DEFINITIONS AND CONSTRUCTION

Section 1.01. Definitions.

      The following terms have the meanings indicated below unless the context
in which the term is used clearly indicates otherwise:

      (a) Account: The record keeping account or accounts maintained to record
the interest of each Participant under the Plan. An Account is established for
record keeping purposes only and not to reflect (or require) the physical
segregation of assets on the Participant's behalf. To the extent relevant with
respect to any Participant, the Participant's overall Account may consist of
such subaccounts or balances as the Administrator may determine to be necessary
or appropriate.

      (b) Administrator: The Bucyrus International, Inc. Benefits Committee or
such other committee as may be appointed by the Committee to administer the
Plan. Administrator action under the Plan is subject to the rules and
restrictions set forth in Section 6.01.

      (c) Affiliate: A corporation, partnership, joint venture, trust,
association or other trade or business that, with the Company, forms part of a
controlled group of corporations, group of trades or businesses under common
control, or affiliated service group within the meaning of Code Section 414(b)
or (c).

      (d) Annual Bonus Award: Any cash incentive awarded to an Eligible Employee
with respect to a calendar year, whether or not such award is actually paid to
the Eligible Employee during such Plan Year.

      (e) Annual Bonus Deferral: See Section 1.01(m)(ii).

                                       2
<PAGE>

      (f) Base Pay: An Eligible Employee's taxable cash base compensation
(reportable on Form W-2) for the Plan Year or scheduled pay period, prior to
reduction for any contributions by the Eligible Employee to this Plan or amounts
deferred by the Eligible Employee under Code Sections 125, 132(f) or 401(k), but
exclusive of all forms of extra compensation such as bonuses, overtime, moving
expenses, pay for unused vacations, excess insurance premiums, safety cash
awards, meal allowances, reimbursed expenses, termination pay, moving pay,
commuting expenses, severance pay, non-elective deferred compensation payments
or accruals, stock options or restricted stock, or the value of any other
employer-provided fringe benefits or coverage, all as determined in accordance
with such uniform rules, regulations or standards as may be prescribed by the
Administrator.

      (g) Base Pay Deferral: See Section 1.01(m)(i).

      (h) Beneficiary: The person or entity designated by a Participant to be
the Participant's beneficiary for purposes of this Plan. If a Beneficiary dies
before receiving all payments due such Beneficiary, any remaining payments will
be made to the designated Beneficiary's estate unless a contingent Beneficiary
was designated by the Participant as to such amounts. If there is a contingent
Beneficiary, payments will be made to the contingent Beneficiary and, if such
contingent Beneficiary dies, any remaining payments will be made to the
contingent Beneficiary's estate. If no Beneficiary has been designated when Plan
benefits become payable upon the death of a Participant, the Participant's
beneficiary under the Salaried Savings Plan shall be the Beneficiary.
Beneficiary designations shall be filed with the Administrator, in writing, in
such form as the Administrator may prescribe for this purpose, and shall become
effective only if received by the Administrator while the Participant is living.

      (i) Board: The Board of Directors of the Company.

      (j) Code: The Internal Revenue Code of 1986, as interpreted by regulations
and rulings issued pursuant thereto, all as amended and in effect from time to
time. Any reference to a specific provision of the Code shall be deemed to
include reference to any successor provision thereto.

                                       3
<PAGE>

      (k) Committee: The Compensation Committee of the Board of Directors of the
Company.

      (l) Company: Bucyrus International, Inc. or any successor thereto.

      (m) Deferral: An amount credited, in accordance with a Participant's
election, to the Participant's Account under the Plan in lieu of the current
payment of an equal amount of cash compensation to the Participant. Deferrals
include the following:

            (i)   Base Pay Deferral: A deferral of a portion of an Eligible
                  Employee's Base Pay in accordance with Section 3.01.

            (ii)  Annual Bonus Deferral: A deferral of a portion of an Eligible
                  Employee's cash bonus award in accordance with Section 3.02.

      (n) Eligible Employee: A common law employee of a Participating Employer
who satisfies the requirements of Section 2.01.

      (o) ERISA: The Employee Retirement Income Security Act of 1974, as
interpreted by regulations and rulings issued pursuant thereto, all as amended
and in effect from time to time. Any reference to a specific provision of ERISA
shall be deemed to include reference to any successor provision thereto.

      (p) Investment Options: The hypothetical investment options established by
the Administrator from time to time (which may, but need not, be based upon one
or more of the investment options available under the Salaried Savings Plan).

      (q) Matching Contribution Credits: The amounts (if any) credited to a
Participant's Account in accordance with Section 3.03.

      (r) Participant: An Eligible Employee (or former Eligible Employee) with
an undistributed Account balance under the Plan.

                                       4
<PAGE>

      (s) Participating Employer: The Company and each Affiliate that, with the
consent of the Company, participates in the Plan for the benefit of one or more
Participants.

      (t) Plan Year: The 12-month period beginning on January 1 of each year and
ending on December 31 of the same year.

      (u) Salaried Savings Plan: The Bucyrus International, Inc. Salaried
Employees' Savings Plan, as amended and in effect from time to time, or any
successor thereto.

      (v) Separation from Service: The date on which a Participant separates
from service with the Company or its Affiliates, within the meaning of Code
Section 409A. A Participant has not incurred a Separation from Service if the
Participant is absent from active employment due to military leave, sick leave
or other bona fide leave of absence if the period of such leave does not exceed
the greater of (1) six (6) months; or (2) the period during which the
Participant's right to reemployment by the Company or an Affiliate is provided
either by statute or by contract.

      (w) Valuation Date: Any date on which a Participant's Account is valued,
which shall be each business day of a Plan Year unless determined otherwise by
the Administrator or the Committee.

Section 1.02. Construction and Applicable Law.

      (a) Wherever any words are used in the masculine, they shall be construed
as though they were used in the feminine in all cases where they would so apply;
and wherever any words are use in the singular or the plural, they shall be
construed as though they were used in the plural or the singular, as the case
may be, in all cases where they would so apply. Titles of articles and sections
are for general information only, and the Plan is not to be construed by
reference to such items.

      (b) This Plan is intended to be a plan of deferred compensation maintained
for a select group of management or highly compensated employees as that term is
used in ERISA, and shall be interpreted so as to comply with the applicable
requirements thereof. In all other respects, the Plan is to be construed and its
validity determined according to the laws of the State of Wisconsin (without
reference to conflict of law principles thereof) to the extent such laws are

                                       5
<PAGE>

not preempted by federal law, and any action for benefits under the Plan or to
enforce the terms of the Plan shall be heard in the State of Wisconsin by the
court with jurisdiction over the claim. In case any provision of the Plan is
held illegal or invalid for any reason, the illegality or invalidity will not
affect the remaining parts of the Plan, but the Plan shall, to the extent
possible, be construed and enforced as if the illegal or invalid provision had
never been inserted.

                                       6
<PAGE>

                            ARTICLE II. PARTICIPATION

Section 2.01. Eligibility.

      An employee shall be an Eligible Employee only if the employee is
classified by a Participating Employer as a U.S. common-law employee and who is
employed in the position of General Manager, Vice President or above.

                                       7
<PAGE>

                   ARTICLE III. EMPLOYEE DEFERRED COMPENSATION

Section 3.01. Deferrals of Base Pay.

      (a) Amount. A Participant may elect, in such form and manner as the
Administrator may prescribe, to defer payment of a portion of the Base Pay that
would otherwise be paid to the Participant. A Participant's election shall
specify either a fixed dollar amount or a percentage (in increments of 5% to a
maximum of 50%, or such other percentage specified by the Administrator) of the
Participant's Base Pay that the Participant wishes to defer. The Administrator
may unilaterally decrease a Participant's elected Base Pay Deferral amount or
percentage, but only if and to the extent that such adjusted amount or
percentage is necessary in order to provide the Participant with non-deferred
compensation that is sufficient to accommodate withholdings required under
applicable law or other authorized withholdings and if such adjustment is
consistent with the requirements of Code Section 409A. The minimum yearly Base
Pay Deferral is $5,000 (or if the Participant has designated a percentage of
Base Pay to be deferred, the percentage that, when applied to the Participant's
Base Pay at the time the Base Pay Deferral election is made, is expected to
result in an yearly Annual Pay Deferral of at least $5,000).

      (b) Timing of Initial Deferral Election. In the case of a Participant who
becomes eligible to participate in the Plan for the first time (and who is not
eligible under any other plan that, for purposes of Code Section 409A, is
aggregated with this Plan) and who makes a Base Pay Deferral election within
thirty (30) days of becoming eligible to participate in the Plan, the
Participant's validly executed Base Pay Deferral election shall become effective
with respect to Base Pay attributable to services to be performed subsequent to
the date on which the Participant's election is filed with the Administrator, or
on such later date as determined by the Administrator for reasons of
administrative convenience. If the Participant does not (or is not eligible to)
submit a Base Pay Deferral election during the initial 30-day election period
described above, the Participant may thereafter elect to defer payment of Base
Pay by submitting a validly executed Base Pay Deferral election to the
Administrator. Such Base Pay Deferral election shall become effective and shall
apply only to Base Pay attributable to services

                                       8
<PAGE>

performed on or after January 1 of the calendar year following the calendar year
during which the election is received and accepted by the Administrator, or as
soon thereafter as practicable.

      (c) Carry-Over of Base Pay Deferral Election from Year to Year. A
Participant's Base Pay Deferral election will not carry over from year to year.
A Participant must make a new election in accordance with subsection (d) with
respect to each calendar year.

      (d) Change In Base Pay Deferral Election. A Participant may continue or
change his or her Base Pay Deferral election only by filing notice of such
change with the Administrator, in such form as the Administrator may prescribe,
by December 31 (or by such earlier date as the Administrator shall require) of
the calendar year preceding the calendar year in which the continuation of or
change in the Participant's Base Pay Deferral is to take effect. Except to the
extent that the Administrator is permitted (and elects) to give earlier effect
to a Participant's change in his or her Base Pay Deferral election in accordance
with regulations promulgated by the Secretary of the Treasury under Code Section
409A, a Participant's Base Pay Deferral election, once effective with respect to
a calendar year, may not be revoked or modified with respect to Base Pay
attributable to services performed in that calendar year.

Section 3.02. Deferrals of Annual Bonus Awards.

      A Participant may irrevocably elect, in such form and manner as the
Administrator may prescribe, to defer payment of a portion of the cash Annual
Bonus Award that may be awarded and that would otherwise be paid to the
Participant with respect to any calendar year. A Participant's election shall
specify either a fixed dollar amount or a percentage (in increments of 5% to a
maximum of 100%, or such other amount or percentage as may be established by the
Administrator, or as may be necessary in order to comply with applicable
withholding obligations, whether attributable to withholdings required under
applicable law or other authorized withholdings) of the Participant's Annual
Bonus Award that the Participant wishes to defer. In the case of any Annual
Bonus Award that does not constitute performance-based compensation for purposes
of Code Section 409A, a validly executed Deferral election shall be effective
only if the Deferral election is received and accepted by the Administrator
prior to the last day of the calendar year preceding the calendar year in which
the Participant performs (or begins to perform) the services on which the Annual
Bonus Award is based, or by such other

                                       9
<PAGE>

time as provided in regulations promulgated by the Secretary of the Treasury and
adopted by the Administrator. In the case of any Annual Bonus Award that
constitutes performance-based compensation for purposes of Code Section 409A, a
validly executed Deferral election shall become effective with respect to the
Annual Bonus Award that may be awarded to the Participant with respect to a
calendar year if the Participant's Deferral election is received and accepted by
the Administrator at least six (6) months prior to the end of the (calendar
year) performance period for the bonus, or by such earlier (but not later) date
as the Administrator may establish. A Participant's election to defer an Annual
Bonus Award shall be effective only for the performance period to which the
election relates, and shall not carry over from year to year.

Section 3.03. Matching Contribution Credits.

      The Administrator will also credit to the Account of each Participant a
Matching Contribution Credit (denominated in cash) on Base Pay Deferrals and/or
Annual Bonus Deferrals made under this Plan during any Plan Year. The Matching
Contribution Credit will be equal to fifty percent (50%) of the total amount
deferred into the Plan for the Plan Year, provided that such Matching
Contribution Credit shall not exceed three percent (3%) of the Participant's
Base Pay and Annual Bonus that is in excess of the dollar limit on compensation
imposed by Code Section 401(a)(17) for such calendar year. The Matching
Contribution Credit will be made as of the last day of the Plan Year, or on such
other periodic basis as is determined by the Administrator. A Participant will
be vested in any Matching Contribution Credits, and any earnings attributed to
them, to the same extent that the Participant would have been vested in such
Matching Contributions Credits, and any earnings thereon, if such Matching
Contribution Credits had been made to the Salaried Savings Plan.

Section 3.04. Other Deferrals and Credits.

      The Administrator or the Committee, in their discretion, may, with respect
to any Participant, determine that the Participant is eligible to make Deferrals
with respect to additional components of the Participant's remuneration or
receive employer contribution credits in addition to the credits described
herein. In no event, however, shall the Administrator or Committee authorize
such additional Deferrals or credits unless the Administrator or the

                                       10
<PAGE>

Committee has first determined that the Deferrals or credits have been elected
or authorized in a manner that will not result in the imposition of tax under
Code Section 409A.

Section 3.05. Effect of Hardship Distributions.

      Notwithstanding the general timing rules under Sections 3.01 and 3.02 that
govern Participant Deferral elections, in the event that a Participant receives
a distribution on account of "hardship" under the Salaried Savings Plan or any
other qualified plan maintained by the Company or an Affiliate that includes a
qualified cash or deferred arrangement under Code Section 401(k) where such plan
requires the Participant to cease qualified and non-qualified deferrals as a
condition of receiving the distribution, then the Participant's Base Pay
Deferral election under this Plan, and any Annual Bonus Deferral election under
this Plan that relates to a bonus to be paid within six (6) months following the
date of such emergency or hardship distribution, shall be terminated (and not
merely suspended). Any Deferral election made after termination of a Deferral
election due to hardship will be considered an "initial deferral election" that
is subject to the rules of Code Section 409A and the regulations promulgated
thereunder with respect to "initial deferral elections."

Section 3.06. Involuntary Termination of Deferral Elections.

      Subject to Code Section 409A, a Participant's Deferral elections will
terminate, or contribution credits to a Participant's Account will cease, if the
Administrator or the Committee determines that the Participant is no longer
eligible to participate in the Plan or that revocation of a Participant's
eligibility is necessary or desirable in order for the Plan to qualify under
ERISA as a plan of deferred compensation for a select group of management or
highly compensated employees.

                                       11
<PAGE>

          ARTICLE IV. ACCOUNTING AND HYPOTHETICAL INVESTMENT ELECTIONS

Section 4.01. Investment Options.

      The Administrator may designate two or more Investment Options; provided
that until such time as the Administrator has designated two or more Investment
Options, a Participant's undistributed Account will be credited with interest
equivalent at a rate that, for any Plan Year, is the same as the interest
crediting rate under the cash balance component of the Bucyrus International,
Inc. Salaried Employees' Retirement Plan . The Administrator's designation of an
Investment Option does not imply any obligation on the part of Participating
Employers to set aside or otherwise invest funds in the designated Investment
Option. An Investment Option serves merely as a device for determining the
amount of deemed investment gain or loss to be credited or charged to a
Participant's Account. Further, the Administrator may at any time modify the
roster of available Investment Options, including the elimination of any
Investment Option that was previously available under the Plan.

Section 4.02. Participant Investment Elections.

      (a) In accordance with uniform rules prescribed by the Administrator,
which shall permit Participants to make investment directions at least annually,
each Participant shall designate, in writing or in such other manner as the
Administrator may prescribe, how his or her Account shall be deemed to be
invested among the Investment Options. If the Participant fails to make a timely
and complete investment designation, he or she shall be deemed to have elected
that 100% of his or her Account (or if applicable, future Deferrals or credits)
be credited to the default Investment Option specified by the Administrator.

      (b) When selecting more than one Investment Option, the Participant shall
designate, in whole multiples of 1% or such other percentage determined by the
Administrator, the percentage of his or her Account (or the percentage of future
Deferrals or credits) to be allocated to each Investment Option.

      (c) A Participant's investment election or deemed investment election
shall become effective on the date established by the Administrator for this
purpose, and shall remain in effect

                                       12
<PAGE>

unless and until modified by a subsequent election that becomes effective in
accordance with the rules of this subsection.

      (d) Other than a reallocation of a Participant's Account pursuant to a
revised investment election submitted by the Participant, the deemed investment
allocation of a Participant will not be adjusted to reflect differences in the
relative investment return realized by the various hypothetical Investment
Options that the Participant has designated, i.e., the Participant's Account
will not be periodically "rebalanced" to return the investment allocation of the
Participant's Account to the investment allocation in effect on the effective
date of the Participant's more recent investment election.

Section 4.03. Allocation of Deemed Investment Gain or Loss.

      As of each Valuation Date, the Account of each Participant will be
credited (or charged) based upon the investment gain (or loss) that the
Participant would have realized with respect to his or her Account since the
immediately preceding Valuation Date had the Account been invested in accordance
with the terms of the Plan and the Participant's actual or deemed investment
election.

Section 4.04. Accounts are For Record Keeping Purposes Only.

      Plan Accounts and the record keeping procedures described herein serve
solely as a device for determining the amount of benefits accumulated by a
Participant under the Plan, and shall not constitute or imply an obligation on
the part of a Participating Employer to fund such benefits. In any event, a
Participating Employer may, in its discretion, set aside assets and/or
contribute to a trust assets equal to part or all of such account balances and
invest such assets in life insurance or any other investment deemed appropriate.
Any such assets held by a Participating Employer or in a trust shall be and
remain the sole property of the Participating Employer or the trust, as
applicable, and a Participant shall have no proprietary rights of any nature
whatsoever with respect to such assets.

                                       13
<PAGE>

                       ARTICLE V. DISTRIBUTION OF ACCOUNTS

Section 5.01. Distribution Election and Procedure.

      (a) Election. An Eligible Employee shall make a distribution election with
respect to his or her vested Account within 30 days following his or her initial
participation date. The election shall be in such form as the Administrator
shall prescribe. The distribution election shall specify whether payment of the
Participant's benefits are to begin upon the Participant's Separation from
Service, or such later age as is specified by the Participant, and shall specify
that distribution of the Participant's Account will be made in accordance with
one of the following options:

            (i)   A single lump sum payment of the vested Account, valued as of
                  the Valuation Date immediately preceding distribution; or

            (ii)  5 or 10 annual installments of the vested Account, as elected
                  in advance by the Participant, with the amount of each
                  installment equal to the balance of the Participant's Account
                  as of the December 31 immediately preceding the distribution
                  date divided by the number of installments remaining to be
                  paid (and with the final distribution being equal to the
                  balance in the Participant's Account as of the Valuation Date
                  immediately preceding the distribution date).

If no election is in effect, the Participant will be deemed to have elected to
receive payment in the form of a single lump sum.

      (b) Modified Distribution Election.

            (i)   Prior to January 1, 2008. Provided that distribution of a
                  Participant's Account has not been commenced and is not
                  scheduled to commence during 2007, a Participant may

                                       14
<PAGE>

                  change his or her distribution election until December 31,
                  2007.

      (c) After December 31, 2007. A Participant may change his or her
distribution election (regarding the time or form of payment or both) only in
accordance with the following rules:

            (i)   the revised distribution election must be made at least twelve
                  (12) months prior to the date on which the payment was
                  scheduled to be paid (or begin to be paid, if installments
                  were elected) and may not be given effect until the end of
                  such twelve (12) month period; and

            (ii)  the date of distribution must be delayed for at least five (5)
                  years from the date on which the payment was scheduled to be
                  paid (or begin to be paid, if installments were elected).

      (d) Distribution Commencement Date.

            (i)   In General. Except as provided in Paragraph (ii) below,
                  distribution of the Participant's vested Account will be made
                  or commence in February of the calendar year following the
                  calendar year in which the Participant's Account becomes
                  payable, or as soon thereafter as is administratively
                  practicable. For any Participant whose vested Account is
                  distributable in annual installments, each annual installment
                  after the initial payment will be paid in February, or as soon
                  thereafter as is administratively practicable.

            (ii)  Distributions Due to Separation from Service. Notwithstanding
                  the foregoing, if the Participant's vested Account is payable
                  by reason of the Participant's

                                       15
<PAGE>

                  Separation from Service (other than Separation from Service
                  occurring by reason of the Participant's death), distribution
                  of the Participant's vested account will be made or begin in
                  the month that follows the six month anniversary of the
                  Participant's Separation from Service, or as soon thereafter
                  as is administratively practicable, if such date is later than
                  the date specified in Paragraph (i).

      (e) Form of Distribution, All payments shall be made in cash.

      (f) Distribution of Small Benefits. Notwithstanding anything to the
contrary herein, including any election made by a Participant as to the form of
distribution, if the balance of a Participant's Account is $10,000 or less as of
the Valuation Date immediately preceding such Participant's Separation from
Service, the balance of such Participant's Account shall be distributed in a
lump sum payment, with payment to be made in accordance with the distribution
timing rules of Section 5.01(c).

      (g) Acceleration of Payments. Notwithstanding any other provision of the
Plan, if the Committee determines that all or any portion of a Participant's
Account is required to be included in the Participant's income as a result of a
failure to comply with the requirements of Code Section 409A and the regulations
promulgated thereunder, the Company or applicable Affiliate shall immediately
make distribution from the Plan to the Participant or Beneficiary, in one lump
sum, of the amount (but not exceeding the amount) that is so taxable.

      (h) Distribution of Remaining Account Following Participant's Death. In
the event of the Participant's death, the Participant's remaining undistributed
interest will be distributed to the Participant's Beneficiary in a single sum on
the first day of the month that is at least 90 days following the Participant's
death, or as soon thereafter as is administratively practicable.

Section 5.02. Hardship Withdrawals.

      A Participant who has incurred an "unforeseeable emergency" may request,
and the Committee may (but need not) approve a distribution of part or all of
the Participant's vested Account balance, in accordance with and subject to the
limitations set forth in this Section. An

                                       16
<PAGE>

"unforeseeable emergency" means a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant's
spouse, or the Participant's dependent (as defined in Code Section 152(a)), loss
of the Participant's property due to casualty, or other similar extraordinary
and unforeseeable circumstances arising as a result of events beyond the control
of the Participant. The amount authorized by the Committee for distribution with
respect to an emergency may not exceed the amounts necessary to satisfy the
emergency plus amounts necessary to pay taxes reasonably anticipated as a result
of the distribution, after taking into account the extent to which such hardship
is or may be relieved through reimbursement or compensation by insurance or
otherwise or by liquidation of the Participant's assets, to the extent that
liquidation of such assets would not itself cause severe financial hardship.

                                       17
<PAGE>

                         ARTICLE VI. GENERAL PROVISIONS

Section 6.01. Administration.

      The Committee or (subject to such rules as the Committee may prescribe)
the Administrator shall administer and interpret the Plan and supervise
preparation of Participant elections, forms, and any amendments thereto. The
Committee or (subject to such rules as the Committee may prescribe) the
Administrator may, in their discretion, delegate any or all of their authority
and responsibility, and to the extent of any such delegation, any references
herein to the Committee and/or the Administrator shall be deemed references to
such delegee; provided that any such delegee shall not act in any
non-ministerial fashion in a matter affecting the delegee's own participation or
interest in the Plan. Interpretation of the Plan shall be within the sole
discretion of the Committee or (subject to such rules as the Committee may
prescribe) the Administrator, and any interpretations, actions, decisions or
findings of the Committee or Administrator shall be final and binding upon each
Participant and Beneficiary. The Committee or (subject to such rules as the
Committee may prescribe) the Administrator may adopt and modify rules and
regulations relating to the Plan as they deems necessary or advisable for the
administration of the Plan. Notwithstanding anything to the contrary, the
Administrator shall not act in any non-ministerial fashion in any matter that
affects one or more of the members of the committee that is the Administrator
(unless such action affects all Participants uniformly) and any such action will
be taken or decision made by the Committee

Section 6.02. Restrictions to Comply with Applicable Law.

      Notwithstanding any other provision of the Plan, the Participating
Employers shall have no obligation to make any payment under the Plan unless
such payment is in accordance with the terms of the Plan and will comply with
all applicable laws and the applicable requirements of any securities exchange
or similar entity. The Committee or the Administrator shall have the right to
restrict any transaction, or impose other rules and requirements, to the extent
it deems necessary or desirable in order to comply with any law or exemption.

                                       18
<PAGE>

Section 6.03. Claims Procedures.

      (a) If a Participant or Beneficiary (the "claimant") believes that he or
she is entitled to a benefit under the Plan that is not provided, the claimant
or his or her legal representative shall file a written claim for such benefit
with the Administrator; provided that if the claimant is a member of the
committee that comprises the Administrator, the claim shall be submitted
directly to the Committee and all references in this subsection (a) to the
Administrator shall instead refer to the Committee. The Administrator shall
review the claim within 90 days following the date of receipt of the claim;
provided that the Administrator may determine that an additional 90-day
extension is necessary due to circumstances beyond the Administrator's control,
in which event the Administrator shall notify the claimant prior to the end of
the initial period that an extension is needed, the reason therefor and the date
by which the Administrator expects to render a decision. If the claimant's claim
is denied in whole or part, the Administrator shall provide written notice to
the claimant of such denial. The written notice shall include the specific
reason(s) for the denial; reference to specific Plan provisions upon which the
denial is based; a description of any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such
material or information is necessary; and a description of the Plan's review
procedures (as set forth in subsection (b)) and the time limits applicable to
such procedures, including a statement of the claimant's right to bring a civil
action under section 502(a) of ERISA following an adverse determination upon
review.

      (b) The claimant has the right to appeal the Administrator's decision by
filing a written appeal to the Committee within 60 days after claimant's receipt
of the decision or deemed denial. The claimant will have the opportunity, upon
request and free of charge, to have reasonable access to and copies of all
documents, records and other information relevant to the claimant's appeal. The
claimant may submit written comments, documents, records and other information
relating to his or her claim with the appeal. The Committee will review all
comments, documents, records and other information submitted by the claimant
relating to the claim, regardless of whether such information was submitted or
considered in the initial claim determination. The Committee shall make a
determination on the appeal within 60 days after receiving the claimant's
written appeal; provided that the Administrator may determine that an additional
60-day extension is necessary due to circumstances beyond the Committee's
control,

                                       19
<PAGE>

in which event the Committee shall notify the claimant prior to the end of the
initial period that an extension is needed, the reason therefor and the date by
which the Committee expects to render a decision. If the claimant's appeal is
denied in whole or part, the Committee shall provide written notice to the
claimant of such denial. The written notice shall include the specific reason(s)
for the denial; reference to specific Plan provisions upon which the denial is
based; a statement that the claimant is entitled to receive, upon request and
free of charge, reasonable access to and copies of all documents, records, and
other information relevant to the claimant's claim; and a statement of the
claimant's right to bring a civil action under section 502(a) of ERISA.

      (c) If the Administrator fails to render a decision on a claimant's
initial claim for benefits under the Plan or the Committee fails to render a
decision on the claimant's subsequent appeal of the Administrator's decision,
such claim or appeal will be deemed to be denied.

Section 6.04. Participant Rights Unsecured.

      (a) Unsecured Claim. The right of a Participant or the Participant's
Beneficiary to receive a distribution hereunder shall be an unsecured claim, and
neither the Participant nor any Beneficiary shall have any rights in or against
any amount credited to his or her Account by a Participating Employer or to any
other specific assets of a Participating Employer. The right of a Participant or
Beneficiary to the payment of benefits under this Plan shall not be assigned,
encumbered, or transferred, except by will or the laws of descent and
distribution. The rights of a Participant hereunder are exercisable during the
Participant's lifetime only by the Participant or his or her guardian or legal
representative.

      (b) Contractual Obligation. Each Participating Employer shall be
responsible for the payment of benefits attributable to Participants in its
employ. A Participating Employer may authorize the creation of a trust or other
arrangements to assist it in meeting the obligations created under the Plan.
However, any liability to any person with respect to the Plan shall be based
solely upon any contractual obligations that may be created pursuant to the
Plan. No obligation of a Participating Employer shall be deemed to be secured by
any pledge of, or other encumbrance on, any property of a Participating
Employer. Nothing contained in this Plan and no action taken pursuant to its
terms shall create or be construed to create a trust of any kind, or a

                                       20
<PAGE>

fiduciary relationship between a Participating Employer and any Participant or
Beneficiary, or any other person.

Section 6.05. Distributions for Tax Withholding and Payment.

      (a) Notwithstanding the time or schedule of payments otherwise applicable
to the Participant, the Administrator may direct that distribution from a
Participant's vested Account be made (i) to pay the Federal Insurance
Contributions Act ("FICA") tax imposed under Code Sections 3101, 3121(a) and
3121(v)(2) with respect to compensation deferred under the Plan, (ii) to pay the
income tax at source on wages imposed under Code Section 3401 or the
corresponding withholding provisions of applicable state, local, or foreign tax
laws as a result of the payment of FICA taxes, and (iii) to pay the additional
income tax at source on wages attributable to the "pyramiding" of Code Section
3401 wages and taxes; provided that the total amount distributed under this
provision must not exceed the aggregate of the FICA tax and the income tax
withholding related to such FICA tax. In addition or in the alternative, the
Administrator may direct that all FICA taxes owed in connection with any
allocation hereunder be withheld from other compensation owed to the
Participant.

      (b) The amount actually distributed to the Participant will be reduced by
applicable tax withholding except to the extent such withholding requirements
previously were satisfied in accordance with subsection (a) above.

Section 6.06. Amendment or Termination of Plan.

      (a) The Committee may at any time amend the Plan, including but not
limited to modifying the terms and conditions applicable to (or otherwise
eliminating) Deferrals, Matching Contribution Credits or other credits to be
made on or after the amendment date; provided, however, that no amendment or
termination may reduce or eliminate any Account balance accrued to the date of
such amendment or termination (except as such Account balance may be reduced as
a result of investment losses allocable to such Account).

      (b) There shall be no time limit on the duration of the Plan. The Board
may terminate the Plan (or the Plan shall automatically terminate) in accordance
with and subject to the following rules:

                                       21
<PAGE>

            (i)   The Board at any time may terminate the Plan and require that
                  all benefits accrued be distributed to Participants and
                  Beneficiaries in a single sum without regard to a
                  Participant's prior election as to the form of benefit
                  payments, if (A) all plans or arrangements of the same type
                  (as defined in regulations issued by the Secretary of the
                  Treasury under Code Section 409A) are terminated with respect
                  to all participants, (B) no payments other than those payable
                  under the pre-existing terms of the Plan are made within 12
                  months of the date on which the arrangement is terminated, (C)
                  all payments are completed within 24 months of the
                  termination, and (D) the Company or Affiliate does not, for
                  the five years following the date of termination, maintain an
                  arrangement that, under rules prescribed by the Secretary of
                  the Treasury, is required to be aggregated with any of the
                  terminated arrangements.

            (ii)  The Plan will automatically terminate and all benefits accrued
                  will be distributed to Participants and Beneficiaries in a
                  single sum without regard to a Participant's prior election as
                  to the form and timing of benefit payments, with respect to
                  any Participant (or the Beneficiary of a deceased Participant)
                  who is affected by a "change in control event". For purposes
                  of this Paragraph (ii), the term "change in control event" has
                  the meaning specified by the Secretary of the Treasury for
                  purposes of Code Section 409A. Payment shall be made within
                  ten (10) business days of the occurrence of the "change in
                  control event". If payment is delayed beyond such payment
                  deadline for any reason, the balance to be paid out shall
                  become fixed as of such tenth (10th) day,

                                       22
<PAGE>

                  and shall be the balance of the Participant's Account as of
                  the last day of the payroll period immediately preceding the
                  change in control event, except that such amount shall be
                  increased in an amount equivalent to interest on such fixed
                  amount, to the date of actual payment, at a rate equal to two
                  times the applicable federal rate, as determined under Code
                  Section 1274 as of the date of payment.

            (iii) The Plan shall terminate and all benefits accrued will be
                  distributed in a single sum without regard to a Participant's
                  prior election as to the form of benefit payments, if (A)
                  payment is made upon a complete dissolution that is taxed
                  under Code Section 331 or upon approval of a bankruptcy court
                  pursuant to Section 503(b)(1)(A) of Title 11 of the United
                  States Code, and (B) the amounts deferred under the Plan are
                  included in the gross income of Participants and Beneficiaries
                  by the latest of (i) the calendar year in which the Plan
                  termination occurs, (ii) the calendar year in which the
                  amounts are no longer subject to a substantial risk of
                  forfeiture, or (iii) the first calendar year in which the
                  payment is administratively practicable.

            (iv)  Except as provided in Paragraphs (i), (ii) and (iii) above or
                  as otherwise permitted in regulations promulgated by the
                  Secretary of the Treasury under Code Section 409A, any action
                  that purports to terminate the Plan shall instead be construed
                  as an amendment to discontinue further benefit accruals, but
                  the Plan will continue to operate, in accordance with its
                  terms as from time to time amended and in accordance with
                  applicable Participant elections,

                                       23
<PAGE>

                  with respect to the Participant's benefit accrued through the
                  date of termination, and in no event shall any such action
                  purporting to terminate the Plan form the basis for
                  accelerating distributions to Participants and Beneficiaries.

Section 6.07. Administrative Expenses.

      Costs of establishing and administering the Plan will be paid by the
Participating Employers.

Section 6.08. Successors and Assigns.

      This Plan shall be binding upon and inure to the benefit of the
Participating Employers, their successors and assigns and the Participants and
their heirs, executors, administrators, and legal representatives.

Section 6.09. Right of Offset.

      The Participating Employers shall have the right to offset from the
benefits payable hereunder any amount that the Participant owes to the Company
or an Affiliate or other entity in which the Company or an Affiliate maintains
an ownership interest. The Company may effectuate the offset without the consent
of the Participant (or, in the event of the Participant's death, without the
consent of the Participant's spouse or Beneficiary).

Section 6.10. Not a Contract of Employment.

      This Plan may not be construed as giving any person the right to be
retained as an employee of the Company or any Affiliate.

Section 6.11. Miscellaneous Distribution Rules.

      The following rules will supersede any inconsistent distribution
provisions of the Plan. In the circumstances described in subsections (a), (b)
and (c) below, a payment that would otherwise be due and payable under the terms
of the Plan with respect to amounts that are subject to Code Section 409A will
be delayed, and payment will be made in accordance with this Section.

                                       24
<PAGE>

      (a) Code Section 162(m). If and to the extent that the Company reasonably
anticipates that its income tax deduction with respect to a payment will be
limited or eliminated by application of Code Section 162(m), the payment shall
be deferred until either (i) the earliest date at which the Company reasonably
anticipates that the Company's deduction for the payment will not be limited or
eliminated by application of Code Section 162(m), or (ii) the calendar year in
which occurs the Participant's Separation from Service.

      (b) Loan Covenants or Similar Contractual Requirements. If and to the
extent that the Company reasonably anticipates that the making of a payment will
violate a term of a loan agreement to which the Company or an Affiliate is a
party, or other similar contract to which the Company or an Affiliate is a
party, and such violation will cause material harm to the Company or an
Affiliate, the payment shall be deferred until the earliest date at which the
Company or Affiliate reasonably anticipates that the making of the payment will
not cause such violation or such violation will not cause material harm to the
Company or Affiliate. The foregoing rule shall apply only if the Company or
Affiliate entered into the loan agreement (including the loan covenant) or other
similar contract for legitimate business reasons and not for the purpose of
deferring distribution of amounts subject to Code Section 409A.

      (c) Federal Securities and Other Applicable Law. If and to the extent that
the Company reasonably anticipates that the making of a payment will violate
Federal securities laws or other applicable law, the payment shall be deferred
until the earliest date at which the Company reasonably anticipates that the
making of the payment will not cause such violation. For this purpose, the
making of a payment is not treated as a violation of applicable law because the
payment would cause the inclusion of amounts in gross income of the recipient or
result in a penalty or any provision of the Code being or becoming applicable.

Section 6.12. Nontransferability.

      Prior to payment thereof, no benefit under the Plan shall be assignable or
subject to any manner of alienation, sale, transfer, claims of creditors,
pledge, attachment or encumbrance of any kind.

                                       25
<PAGE>

Section 6.13. Limitation on Actions.

      Any action or other legal proceeding with respect to the Plan may be
brought only after the claims and appeals procedures of Section 6.03 are
exhausted and only within the period ending on the earlier of (i) one year after
the date the claimant receives notice or deemed notice of a denial upon appear
under Section 6.03(b), or (ii) the expiration of the statute of limitations
period under applicable federal law.

                                            BUCYRUS INTERNATIONAL, INC.

                                            By:/s/ C.R. Mackus
                                               -----------------------------

                                            Title:CFO and Secretary
                                                  --------------------------

                                            Date:10/20/06
                                                 ---------------------------

                                       26

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