Document:

Credit Documents

Party A – The Royal Bank of Scotland plc

Party B –  The Bank of New York, not individually, but solely as trustee (the “Supplemental Interest Trust Trustee”) on behalf of the Supplemental Interest Trust with respect to the Nationstar Home Equity Loan Asset-Backed Certificates, Series 2007-A

Paragraph 13.  Elections and Variables

(a)

Security Interest for “Obligations”.  The term “Obligations” as used in this Annex includes the following additional obligations:

With respect to Party A:  Not applicable.

With respect to Party B:  Not applicable.

(b)

Credit Support Obligations.

(i)  Delivery Amount, Return Amount and Credit Support Amount.

(A)

“Delivery Amount” has the meaning specified in Paragraph 3(a), except that (I) the words “upon a demand made by the Secured Party on or promptly following a Valuation Date” shall be deleted and replaced by the words “not later than the close of business on each Valuation Date” and (II) the sentence beginning “Unless otherwise specified in Paragraph 13” and ending “(ii) the Value as of that Valuation Date of all Posted Credit Support held by the Secured Party.” shall be deleted and replaced by the following:

“The “Delivery Amount” applicable to the Pledgor for any Valuation Date will equal the greatest of 

(1) 

the amount by which (a) the S&P Collateral Amount for such Valuation Date exceeds (b) the S&P Value as of such Valuation Date of all Posted Credit Support held by the Secured Party, 

(2) 

the amount by which (a) the Moody’s First Trigger Credit Support Amount for such Valuation Date exceeds (b) the Moody’s First Trigger Value as of such Valuation Date of all Posted Credit Support held by the Secured Party, and

(3) 

the amount by which (a) the Moody’s Second Trigger Credit Support Amount for such Valuation Date exceeds (b) the Moody’s Second Trigger Value as of such Valuation Date of all Posted Credit Support held by the Secured Party.”

(B)

“Return Amount” has the meaning specified in Paragraph 3(b), except that the sentence beginning “Unless otherwise specified in Paragraph 13” and ending “(ii) the Credit Support Amount.” shall be deleted and replaced by the following:

“The “Return Amount” applicable to the Secured Party for any Valuation Date will equal the least of 

(1) 

the amount by which (a) the S&P Value as of such Valuation Date of all Posted Credit Support held by the Secured Party exceeds (b) the S&P Collateral Amount for such Valuation Date, 

(2) 

the amount by which (a) the Moody’s First Trigger Value as of such Valuation Date of all Posted Credit Support held by the Secured Party exceeds (b) the Moody’s First Collateral Amount for such Valuation Date, and

(3) 

the amount by which (a) the Moody’s Second Trigger Value as of such Valuation Date of all Posted Credit Support held by the Secured Party exceeds (b) the Moody’s Second Collateral Amount for such Valuation Date.”

(C)

“Credit Support Amount” shall not apply.  For purposes of calculating any Delivery Amount or Return Amount for any Valuation Date, reference shall be made to the S&P Collateral Amount, the Moody’s First Collateral Amount, or the Moody’s Second Collateral Amount, in each case for such Valuation Date, as provided in Paragraphs 13(b)(i)(A) and 13(b)(i)(B), above.

The “S&P Collateral Amount” means, for any Valuation Date, zero, provided that for so long as a First Rating Trigger Event with respect to S&P has occurred and is continuing for at least 30 days or a Second Rating Trigger Event with respect to S&P has occurred and is continuing, the S&P Collateral Amount shall equal the sum of (I) Party B’s Exposure and (II) the sum, for each transaction to which this Annex relates, of the product 

S&P Volatility Buffer*Hedge Notional, where

“Hedge Notional”

means the notional amount of the relevant Transaction for the relevant Calculation Period.

“

S&P Volatility Buffer

”

means, for any Transaction, the related percentage set forth in the following table.  

					
	

The higher of the S&P short-term credit rating of (i) Party A and (ii) the Credit Support Provider of Party A, if applicable

	

Remaining Weighted Average Maturity

up to 3 years

	

Remaining Weighted Average Maturity

up to 5 years

	

Remaining Weighted Average Maturity

up to 10 years

	

Remaining Weighted Average Maturity

up to 30 years

	

At least “A-2”

	

2.75%

	

3.25%

	

4.00%

	

4.75%

	

“A-3”

	

3.25%

	

4.00%

	

5.00%

	

6.25%

	

“BB+” or lower

	

3.50%

	

4.50%

	

6.75%

	

7.50%

The “Moody’s First Collateral Amount” means zero, provided that for so long as (A) a First Rating Trigger Event with respect to Moody’s has occurred and is continuing and either (i) such event existed at the time this Annex was executed or assigned or (ii) at least 30 Local Business Days have elapsed since such event occurred and (B)(i) no Second Rating Trigger Event with respect to Moody’s has occurred and is continuing or (ii) less than 30 Local Business Days have elapsed since the occurrence of a Second Rating Trigger Event with respect to Moody’s, then the Moody’s First Collateral Amount shall equal the sum of (I) Party B’s Exposure and (ii) the sum, over all Transactions, of

Min [15*DV01, 2%*Hedge Notional]; and

The “Moody’s Second Collateral Amount” means zero, provided that, for so long as a Second Rating Trigger Event

with respect to Moody’s

 has occurred and has been continuing for 30 or more Local Business Days, then the Moody’s Second Collateral Amount shall equal 

Max [0, Next Payment, Party B’s Exposure + Additional Amount], where

Next Payment = the sum of the net payments due from Party A to Party B (if any) on the next payment date for all Transactions.

Additional Amount = the sum, over all Transactions of 

(a)

with respect to each Transaction that is a single currency swap with a fixed notional amount for each Calculation Period, Min [50*DV01, 8%* Aggregate Hedge Notional], and

(b)

with respect to each Transaction that is not a single-currency swap with a fixed notional amount for each Calculation Period, Min [65*DV01, 10%* Aggregate Hedge Notional], where

DV01 = Party A’s estimate of the change in the mid-market value of Party B’s Exposure resulting from a one basis point change in the swap curve, and

Aggregate Hedge Notional = the aggregate of the applicable notional amounts of all Transactions for the relevant Calculation Period.

(ii)  Eligible Collateral.  The following items will qualify as “Eligible Collateral” for the party specified (for the avoidance of doubt, all Eligible Collateral to be denominated in USD):

				
	

Collateral Type

	

S&P Valuation 

Percentage

	

Moody’s Valuation Percentage at First Trigger Rating Event

	

Moody’s Valuation Percentage at Second Trigger Rating Event

	(A) Cash, in the form of USD

	100%

	100%

	100%

	(B) Negotiable Debt Obligations (as defined below) issued by the Government of the United States of America having a remaining maturity of not more than one year.

	98.9%

	100%

	100%

	(C) Negotiable Debt Obligations issued by the Government of the United States of America having a remaining maturity of more than one but not more than two years.

	98.0%

	100%

	99%

	(D) Negotiable Debt Obligations issued by the Government of the United States of America having a remaining maturity of more than two but not more than three years.

	97.4%

	100%

	98%

	(E) Negotiable Debt Obligations issued by the Government of the United States of America having a remaining maturity of more than three but not more than five years.

	95.5%

	100%

	97%

	(F) Negotiable Debt Obligations issued by the Government of the United States of America having a remaining maturity of more than five but not more than seven years.

	93.7%

	100%

	96%

	(G) Negotiable Debt Obligations issued by the Government of the United States of America having a remaining maturity of more than seven but not more than ten years.

	92.5%

	100%

	94%

	(H) Negotiable Debt Obligations issued by the Government of the United States of America having a remaining maturity of more than ten but not more than twenty years.

	91.1%

	100%

	90%

	(I) Negotiable Debt Obligations issued by the Government of the United States of America having a remaining maturity of more than twenty years.

	88.6%

	100%

	88%

As used above, the following terms have the indicated meanings:

“Negotiable Debt Obligation” means a debt obligation in a stated principal amount with a non-variable fixed maturity, which cannot be redeemed by its issuer before its maturity nor put to the issuer for redemption before its maturity. It must bear interest on its stated principal amount at a non-variable fixed rate until maturity (or, in the case of an obligation with an original maturity of less than one year, bear no interest at all). 

(iii)  Other Eligible Support.  The following items will qualify as “Other Eligible Support” for the party specified:  Not Applicable.

(iv)  Thresholds.

(A)

“Independent Amount” means with respect to Party A:  Not Applicable.

“Independent Amount” means with respect to Party B:  Not Applicable.

(B)

“Threshold” means with respect to Party A, infinity, provided that for so long as (1) a First Rating Trigger Event with respect to Moody's has occurred and is continuing and either (i) such First Rating Trigger Event existed at the time this Annex was executed or (ii) at least 30 Local Business days have elapsed since such First Rating Trigger Event occurred, or (2) a First Rating Trigger Event with respect to S&P has occurred and is continuing for at least 30 days or a Second Rating Trigger Event with respect to S&P has occurred and is continuing, the Threshold with respect to Party A shall be zero.

“Threshold” means with respect to Party B, infinity.

(C)

“Minimum Transfer Amount” means with respect to Party A: USD 100,000, and with respect to Party B: USD 100,000, provided, that if the aggregate principal balance of Certificates rated by S&P ceases to be more than USD 50,000,000, the “Minimum Transfer Amount” shall be USD 50,000 and provided further that if a Party is a Defaulting Party, or the Affected Party under an Additional Termination Event, the Minimum Transfer Amount for such party shall be zero.

(D)

Rounding.  The Delivery Amount and the Return Amount will be rounded up and down, respectively, to the nearest integral multiple of $10,000.

(c)

(i) External Verification.  Notwithstanding anything to the contrary in the definitions of Valuation Agent or Valuation Date, at any time at which Party A (or, to the extent applicable, its Credit Support Provider) does not have a long-term unsubordinated and unsecured debt rating of at least “BBB+” from S&P, the Valuation Agent shall (A) calculate the Secured Party’s Exposure and the S&P Value (as defined below) of Posted Credit Support on each Valuation Date based on internal marks and (B) verify such calculations with external marks monthly by obtaining on the last Local Business Day of each calendar month two external marks for each Transaction to which this Annex relates and for all Posted Credit Support; such verification of the Secured Party’s Exposure shall be based on the higher of the two external marks.  Each external mark in respect of a Transaction shall be obtained from an independent Reference Market-maker that would be eligible and willing to enter into such Transaction in the absence of the current derivative provider, provided that an external mark may not be obtained from the same Reference Market-maker more than four times in any 12-month period.  The Valuation Agent shall obtain these external marks directly or through an independent third party, in either case at no cost to Party B.  The Valuation Agent shall calculate on each Valuation Date (for purposes of this paragraph, the last Local Business Day in each calendar month referred to above shall be considered a Valuation Date) the Secured Party’s Exposure based on the greater of the Valuation Agent’s internal marks and the external marks received.  If the S&P Value on any such Valuation Date of all Posted Credit Support then held by the Secured Party is less than the S&P Collateral Amount on such Valuation Date (in each case as determined pursuant to this paragraph), Party A shall, within three Local Business Days of such Valuation Date, Transfer to the Secured Party Eligible Credit Support having an S&P Value as of the date of Transfer at least equal to such deficiency.  

(ii) Notice to S&P.  At any time at which Party A (or, to the extent applicable, its Credit Support Provider) does not have a long-term unsubordinated and unsecured debt rating of at least “BBB+” from S&P, the Valuation Agent shall provide to S&P not later than the Notification Time on the Local Business Day following each Valuation Date its calculations of the Secured Party’s Exposure and the S&P Value of any Eligible Credit Support or Posted Credit Support for that Valuation Date.  The Valuation Agent shall also provide to S&P any external marks received pursuant to the preceding paragraph.

(d)

Valuation and Timing.

(i)  “Valuation Agent” means Party A.

(ii)  “Valuation Date” means:  each Local Business Day. 

(iii)  “Valuation Time” means the close of business on the Local Business Day before the Valuation Date or date of calculation, as applicable;  provided, however, that the calculations of Value and Exposure will be made as of approximately the same time on the same date.

(iv)  “Notification Time” means 9:00 a.m., New York time, on a Local Business Day.

(e)

Conditions Precedent and Secured Party's Rights and Remedies. For purposes of Paragraph 8(a), each Termination Event will be a "Specified Condition" for the Pledgor, if the Secured Party has designated an Early Termination Date in connection with the Termination Event.  For all other purposes of this Annex, each Termination Event specified below with respect to a party will be a "Specified Condition" for that party:

			
	Termination Event

	Party A

	Party B

	Illegality

	[N/A]

	[N/A]

	Tax Event

	[N/A]

	[N/A]

	Tax Event Upon Merger

	[N/A]

	[N/A]

	Credit Event Upon Merger

	[N/A]

	[N/A]

	Additional Termination Event(s)

	[X]

	[X]

(f)

Substitution.

(i)  “Substitution Date” has the meaning specified in Paragraph 4(d)(ii).

(ii)  Consent.  The Pledgor shall obtain the Secured Party’s consent for any substitution pursuant to Paragraph 4(d).  Such consent shall not be unreasonably withheld. 

(g)

Dispute Resolution.

(i)  “Resolution Time” means 9:00 a.m., New York time, on the Local Business Day following the date on which the notice of the dispute is given by the Disputing Party to the other party.

(ii)  Value.  For the purposes of Paragraphs 5(i)(c) and 5(ii), the Value of the outstanding Credit Support Amount or of any transfer of Eligible Credit Support or Posted Credit Support other than Cash (the “Non-Cash Credit Support”) will be calculated as follows:  the product of (A) appropriate Valuation Percentage and (B) the sum of (I) the mean of the bid prices quoted on such date by any three principal market makers for such Non-Cash Credit Support chosen by the Disputing Party, or if three such quotations are not available from principal market makers for such date, using two such quotations, or if only one such quotation is obtained using such quotation, or if no quotations are available using the mean of such bid prices as of the day, next preceding such date, on which one or more of such quotations were available, plus (II) the accrued interest on such Non-Cash Credit Support (except to the extent Transferred to a party pursuant to this Agreement or included in the applicable price referred to in subparagraph (A) of this Clause) as of such date.

(iii)  Alternative.  The provisions of Paragraph 5 will apply.

(h)

Holding and Using Posted Collateral.

(i)  Eligibility to Hold Posted Collateral; Custodians.  

Party B or its Custodian will be entitled to hold Posted Collateral pursuant to Paragraph 6(b);  provided that the following conditions applicable to it are satisfied:

(A)

In the event that Party B holds Posted Collateral, Party B is not a Defaulting Party or an Affected Party under an Additional Termination Event.

(B)

Posted Collateral may be held only in the following jurisdiction:  New York

(C)

In the event that the Custodian holds Posted Collateral, the long-term unsubordinated unsecured debt of the Custodian is rated at least A+ and A-1 by Standard & Poors, a division of The McGraw-Hill Companies, Inc. (or any successor thereto) and at least A1 by Moody’s Investors Service, Inc. (or any successor thereto).

Initially, the Custodian for Party B is The Bank of New York Trust Company, National Association.

(ii)  Use of Posted Collateral.  The provisions of Paragraph 6(c) shall not apply.

(i)

Distributions and Interest Amount.

(i)  Interest Rate.  The “Interest Rate” will be the weighted average rate of interest earned by the Secured Party in respect of Posted Collateral in the form of Cash.

(ii)  Transfer of Interest Amount.  The transfer of the Interest Amount will be made on the second Local Business Day of each calendar month in respect of the Interest Amount for the preceding calendar month provided, however, that the obligation of Party B to Transfer any Interest Amount to Party A shall be limited to the extent that Party B has earned and received such funds and such funds are available to Party B.

(iii)  Alternative to Interest Amount.  Not applicable.

(j)

Additional Representation(s).  Not applicable.

(k)

Other Eligible Support and Other Posted Support.

(i)  “Value” with respect to Other Eligible Support and Other Posted Support means:  Not applicable.

(ii)  “Transfer” with respect to Other Eligible Support and Other Posted Support means:  Not applicable.

(l)

Demands and Notices.

All demands, specifications and notices under this Annex will be made pursuant to the Notices Section of this Agreement, unless otherwise specified here:

Party A:

Global Collateral Support Unit

The Royal Bank of Scotland plc, Financial Markets 

280 Bishopsgate

London EC2M 4RB

Facsimile:  44.207 085 4793

Telephone: 44.207 085 5209

With a copy to:

600 Steamboat Road

Greenwich CT 06830

Attn: 

Derivatives Settlements

Telephone:  203-618-2781 (Rob Bache) 

203-618-2440 (Operations main number)

Facsimile: 203-618-2579

Party B:

Please provide if different from address in Schedule

(m)

Address for Transfers.  All transfers hereunder will be made to the account or accounts most recently notified by each party to the other.

(n)

Other Provisions.

(i)  Single Transferor and Single Transferee.  Party A and Party B hereby agree that, notwithstanding anything to the contrary in this Annex, (a) the term “Secured Party” as used in this Annex means only Party B, (b) the term “Pledgor” as used in this Annex means only Party A, (c) only Party A makes the pledge and grant in Paragraph 2, the acknowledgement in the final sentence of Paragraph 8(a) and the representations in Paragraph 9.

(ii)  Events of Default.  Paragraph 7 will not apply to cause any Event of Default to exist with respect to Party B except that Paragraph 7(i) will apply to Party B solely in respect of Party B’s obligations under Paragraph 3(b) of the Credit Support Annex.  Notwithstanding anything to the contrary in Paragraph 7, any failure by Party A to comply with or perform any obligation to be complied with or performed by Party A under the Credit Support Annex shall only be an Event of Default if (A) Second Rating Trigger Event with respect to S&P has occurred and been continuing or (B) a Second Rating Trigger Event with respect to Moody’s has occurred and been continuing for 30 or more Local Business Days and such failure is not remedied on or before the third Local Business Day after notice of such failure is given to Party A.

(iii) Form of Annex.  Party A and Party B hereby agree that the text of Paragraphs 1 through 12, inclusive, of this Annex is intended to be the printed form of ISDA Credit Support Annex (Bilateral Form - ISDA Agreements Subject to New York Law Only version) as published and copyrighted in 1994 by the International Swaps and Derivatives Association, Inc.

(iv) Expenses. Notwithstanding anything to the contrary in Paragraph 10, the Pledgor will be responsible for, and will reimburse the Secured Party for, all transfer and other taxes and other costs involved in any Transfer of Eligible Collateral.

(v)

  Withholding.  Paragraph 6(d)(ii) is hereby amended by inserting immediately after “the Interest Amount” in the fourth line thereof the words “less any applicable withholding taxes.”

(vi)  “Local Business Day” means: any day on which (A) commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in New York and the location of Party A, Party B and any Custodian, and (B) in relation to a Transfer of Eligible Collateral, any day on which the clearance system agreed between the parties for the delivery of Eligible Collateral is open for acceptance and execution of settlement instructions (or in the case of a Transfer of Cash or other Eligible Collateral for which delivery is contemplated by other means a day on which commercial banks are open for business (including dealings in foreign exchange and foreign deposits) in New York and the location of Party A, Party B and any Custodian. 

(vii)  Calculation of Value.  Paragraph 4(c) is hereby amended by deleting the word “Value” and inserting in lieu thereof “S&P Value, Moody’s First Trigger Value, Moody’s Second Trigger Value”.  Paragraph 4(d)(ii) is hereby amended by (A) deleting the words “a Value” and inserting in lieu thereof “an S&P Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value” and (B) deleting the words “the Value” and inserting in lieu thereof “S&P Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value”.  Paragraph 5 (flush language) is hereby amended by deleting the word “Value” and inserting in lieu thereof “S&P Value, Moody’s First Trigger Value, or Moody’s Second Trigger Value”.  Paragraph 5(i) (flush language) is hereby amended by deleting the word “Value” and inserting in lieu thereof “S&P Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value”.  Paragraph 5(i)(C) is hereby amended by deleting the word “the Value, if” and inserting in lieu thereof “any one or more of the S&P Value, Moody’s First Trigger Value, or Moody’s Second Trigger Value, as may be”.  Paragraph 5(ii) is hereby amended by (1) deleting the first instance of the words “the Value” and inserting in lieu thereof “any one or more of the S&P Value, Moody’s First Trigger Value, or Moody’s Second Trigger Value” and (2) deleting the second instance of the words “the Value” and inserting in lieu thereof “such disputed S&P Value, Moody’s First Trigger Value, or Moody’s Second Trigger Value”.  Each of Paragraph 8(b)(iv)(B) and Paragraph 11(a) is hereby amended by deleting the word “Value” and inserting in lieu thereof “least of the S&P Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value”.

(viii)  “Moody’s First Trigger Value” means, on any date and with respect to any Eligible Collateral other than Cash, the bid price obtained by the Valuation Agent multiplied by the Moody’s First Trigger Valuation Percentage for such Eligible Collateral set forth in Paragraph 13(b)(ii).

(x)  “Moody’s Second Trigger Value” means, on any date and with respect to any Eligible Collateral other than Cash, the bid price obtained by the Valuation Agent multiplied by the Moody’s Second Trigger Valuation Percentage for such Eligible Collateral set forth in Paragraph 13(b)(ii).

(xi)  “S&P Value” means, on any date and with respect to any Eligible Collateral other than Cash, the product of (A) the bid price obtained by the Valuation Agent for such Eligible Collateral and (B) the S&P Valuation Percentage for such Eligible Collateral set forth in paragraph 13(b)(ii).

(xii)  Collateral Account.  Party B shall open and maintain a segregated account, which shall be an Eligible Account, and hold, record and identify all Posted Collateral in such segregated account.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

		
	

THE ROYAL BANK OF SCOTLAND PLC

By: Greenwich Capital Markets, Inc., its agent

By_/s/ David E. Wagner_________________

Name: David E. Wagner

Title: Managing Director

	 

THE BANK OF NEW YORK, not individually, but solely as trustee (the “Supplemental Interest Trust Trustee”) on behalf of the Supplemental Interest Trust with respect to the Nationstar Home Equity Loan Asset-Backed Certificates, Series 2007-A

By_/s/ Steve M. Husbands_______________

Name: Steve M. Husbands

Title: Assistant Vice PresidentExhibit 10.1
	 
	
BUCYRUS INTERNATIONAL, INC.

2007 STOCK APPRECIATION RIGHTS AGREEMENT

                This 2007 STOCK APPRECIATION RIGHTS AGREEMENT (the “Agreement”), made as of the Award Date
set forth in the Notice of Award of 2007 Stock Appreciation Rights (the “Notice”), by and
between Bucyrus International, Inc., a Delaware corporation (the “Company”), and the undersigned
individual (“Grantee”), sets forth the terms and conditions of the Stock Appreciation Rights
Award (the “Award”) described in the Notice. You must sign both the Agreement and the Notice
in order for the Award to be effective. Please sign and date the Agreement and the Notice and return
them promptly in the enclosed envelope.

                By accepting this Agreement and any Stock Appreciation Rights issued pursuant to this Award, you acknowledge
that you have read and understand the terms of the Omnibus Incentive Plan 2007 (the “Plan”)
and this Agreement, and that you accept this Agreement subject to all such terms and conditions.

                This Award gives you the right to the appreciation in the value of the underlying shares of the Class
A common stock of the Company (“Company Stock”) from the Award Date to the date of exercise,
with any gain at exercise settled in shares of Company Stock, subject to a service-based vesting
requirement. The number of Stock Appreciation Rights awarded, the Term of the Award, the Grant Price
of each right, and the vesting schedule are stipulated in the Notice. 

Terms and Conditions

                1.            Terms and Provisions of Stock Appreciation Right Award. Pursuant to Section 6 of the Plan, as of the Award Date the Company has awarded to Grantee the Stock
Appreciation Rights (“SARs”) specified in the Notice. Such Award is subject to the following
terms and conditions.

                2.            Award of SARs. The SARs are subject to the following terms, conditions and forfeiture restrictions:

                (a)           Value. Each SAR entitles Grantee, subject to the terms and conditions of this Agreement, to receive shares
of Company Stock having a Fair Market Value equal to the excess of the Fair Market Value of a share
of Company Stock at the date of exercise over the Grant Price specified in the Notice (such amount
at the time of exercise being referred to herein as the “SAR Value”). For purposes hereof,
the date of exercise shall be the date the Company receives Grantee’s notice of exercise in
accordance with Section 2(e). 

                (b)           Vesting. The SARs will vest based upon continued employment of Grantee with the Company and/or its Affiliates
until the date(s) provided in the vesting schedule set forth in the Notice. Upon Grantee’s termination
of employment from the Company and its Affiliates, any unvested SARs shall be immediately forfeited,
except as follows:

	 

	 	                i.              If Grantee’s
termination of employment is due to Disability or death, then the SARs shall become vested in full
as of the date of such termination.

	

 

	 	                ii.             If Grantee’s termination
of employment occurs more than one year after the Award Date due to Retirement (a “Qualifying
Retirement”), then Grantee shall continue to vest in the SARs on the same basis as if he or
she had remained an employee, including the right to fully vest in the SARs in the event of Disability
or death. If, however, Grantee obtains other gainful employment (regardless of whether such employment
is with a competitor of the Company) after his or her Qualifying Retirement, no additional vesting
of the SARs shall occur after the date of such gainful employment. Grantee acknowledges and agrees
that the restriction on vesting set forth in this paragraph does not constitute a limitation or restriction
on Grantee’s right to obtain other employment but is only a restriction on his or her right
to vest in the SARs.

	 
	
                               Notwithstanding the foregoing, if Grantee’s employment is terminated by the Company or an Affiliate
for Cause, Grantee shall immediately forfeit all SARs, including SARs that were vested as of the
date of such termination. In addition, if the Administrator determines after the date of Grantee’s
termination of employment that the Grantee could have been terminated for Cause had all pertinent
facts been known to the Company or an Affiliate at such time, the Administrator may cancel all of
Grantee’s SARs, including vested SARs, on the date of such determination and shall provide a
notice to Grantee of such event. If Grantee provides a notice of exercise for a vested SAR when the
issue of whether Grantee’s employment is being terminated (or could have been terminated) for
Cause is under consideration, the Company may suspend such exercise until the determination is complete,
and if it is determined that Grantee is (or could have been) terminated for Cause, then such notice
of exercise shall be rescinded. 

                (c)           Time of Exercise. Grantee may exercise the SARs, in full or in part, only to the extent vested until the earlier to
occur of (i) the end of the Term as specified in the Notice, or (ii) three (3) months following the
date upon which Grantee ceases to be an employee of the Company and/or any of its Affiliates. For
purposes of clause (ii), if Grantee has a Qualifying Retirement, he or she shall be deemed to cease
to be an employee on the date on which Grantee obtains other gainful employment as specified in Section
2(b)(ii).

                (d)           Procedure for Exercise. In order to exercise the SARs, Grantee shall deliver to the Company a completed notice of exercise
on the form provided by the Company for this purpose. 

                (e)           Payment of SAR Value. Within seven (7) business days following the Company’s receipt of the notice of exercise, the
Company shall deliver to Grantee a number of shares of Company Stock having a Fair Market Value equal
to the SAR Value. Only whole shares shall be delivered. Any fractional share of Company Stock that
would have otherwise been delivered shall be paid in cash, based on the Fair Market Value of a share
on the date of exercise. 

                3.             Tax Consequences. Grantee understands that the award of SARs, the exercise of SARs, and the issuance of Company Stock,
may have tax implications for Grantee. Grantee acknowledges that Grantee has been advised to consult
a tax advisor and that he or she is not relying on the Company for any tax, financial or legal advice.
It is specifically understood by the 

	

2

	
Grantee that no representations are made as to any particular tax treatment with respect to this Award.

                4.             Confidential Information; Noncompetition; Nonsolicitation.

                (a)           Grantee acknowledges that all
product design information, manufacturing processes and methods, information regarding new product
development, information regarding strategic or tactical planning, information regarding pending
or planned competitive bids, and information regarding key employees, and other information, knowledge
or data relating to the Company or any of its Affiliates and their respective businesses that Grantee
obtains during Grantee’s employment by the Company or any of its Affiliates and that is not
public knowledge (other than as a result of the Grantee’s violations of this Section 4(a))
(“Confidential Information”) is highly sensitive and proprietary. Confidential Information
shall not include trade secrets of the Company, and Grantee acknowledges that Grantee has an independent
statutory obligation to protect the Company’s trade secrets which is in no way limited by this
Agreement. Grantee shall not communicate, divulge, disseminate, or use any Confidential Information
at any time during or at any time within one year after termination of Grantee’s employment
with the Company or any of its Affiliates under any circumstances reasonably likely to result in
use of such information to the Company’s competitive disadvantage in any country in the World,
except with the prior written consent of the Company or as otherwise required by law or legal process.
All computer software, telephone lists, customer lists, price lists, contract forms, catalogs, records,
files and know-how acquired while an employee of the Company or any of its Affiliates are acknowledged
to be the property of the Company and shall not be duplicated, removed from the Company’s or
an Affiliate’s possession or premises or made use of other than in pursuit of the Company’s
or an Affiliate’s business or as may otherwise be required by law or any legal process, and,
upon termination of employment for any reason, Grantee shall deliver to the Company, without further
demand, all such items and any copies thereof which are then in his or her possession or under his or her control.

                (b)           For a one year period beginning
on Grantee’s termination of employment, Grantee will not, except upon prior written permission
signed by an authorized officer of the Company, in any capacity in which Confidential Information
or trade secrets of the Company would reasonably be expected to be useful, consult with or advise
or, directly or indirectly, as owner, member, shareholder, partner, officer, contractor, agent, servant
or employee, engage in business with any company in competition with the Company in the business
of manufacturing, selling, servicing or repairing draglines, drills or shovels for the surface mining
industry or parts for such equipment or the business of any affiliate of the Company (whether currently
in existence or acquired by the Company after the date of this Agreement), or with any corporation
or entity controlled by, controlling or under common control with any such company and that is conducting
or planning to conduct any such business in any country in the World. Notwithstanding the foregoing,
Grantee may make and retain investments in not more than three percent (3%) of the equity of any
such company if such equity is listed on a national securities exchange or regularly traded in an
over-the-counter market.

                (c)           For a one year period beginning
on Grantee’s termination of employment, Grantee will not, directly or indirectly, solicit for
employment on behalf of any organization other than the Company or one of its Affiliates any person
then employed by the Company or 

	

3

	
any of its Affiliates or who had been so-employed within the previous six months and whom Grantee supervised
or learned Confidential Information about in the last year of Grantee’s employment with the
Company or any of its Affiliates. 

                (d)           In the event of a breach of Grantee’s
covenants under this Section 4, the Administrator is hereby authorized in his or her sole discretion
to declare a forfeiture of some or all of the SARs previously awarded to Grantee as of such breach
and it is understood and agreed that the Company shall be entitled to injunctive relief as well as
any other legal or equitable remedies. Grantee acknowledges and agrees that the covenants, obligations
and agreements of the Grantee in this Section 4 relate to special, unique and extraordinary matters
and that a violation of any of the terms of such covenants, obligations or agreements will cause
the Company or its Affiliates irreparable injury for which adequate remedies are not available at
law. Therefore, Employee agrees that the Company or any of its Affiliates shall be entitled to an
injunction, restraining order or such other equitable relief (without the requirement to post bond)
as a court of competent jurisdiction may deem necessary or appropriate to restrain Grantee from committing
any violation of such covenants, obligations or agreements. These injunctive remedies are cumulative
and in addition to any other rights and remedies that the Company may have. The Company and Grantee
hereby irrevocably submit to the exclusive jurisdiction of the courts of Wisconsin and the Federal
courts of the United States of America, located in Milwaukee, Wisconsin, in respect of all disputes
involving Confidential Information, trade secrets or the violation of the provisions of this Section 4.

                5.             Approvals. No shares of Company Stock shall be issued under this Agreement unless and until all legal requirements
applicable to the issuance of such shares have been complied with to the satisfaction of the Company.
The Company shall have the right to condition any issuance of shares to the Grantee on the Grantee’s
undertaking in writing to comply with such restrictions on the subsequent disposition of such shares
as the Company shall deem necessary or advisable as a result of any applicable law or regulation.

                6.             Restrictions on Transfer. The SARs awarded to Grantee under this Agreement may not be transferred or otherwise disposed of
by Grantee, including by way of sale, assignment, transfer, pledge, hypothecation or otherwise, except
as permitted by the Administrator, or by will or the laws of descent and distribution. Any purported
sale, assignment, mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust
(voting or other) or other disposition of, or creation of a security interest in or lien on, any
of the SARs by any holder thereof in violation of the provisions of this Agreement shall be invalid.
The foregoing restrictions are in addition to and not in lieu of any other remedies, legal or equitable,
available to enforce said provisions.

                7.             Change in Control. In the event of a Change in Control, if the Grantee is either an employee of the Company or any of
its Affiliates, or is a deemed employee following a Qualifying Termination in accordance with Section
2(b)(ii), immediately prior to the Change in Control, all SARs that have not yet vested shall become
immediately vested and all restrictions and forfeiture conditions applicable to the SARs shall immediately
lapse.

                8.             Taxes. Grantee shall pay to the Company promptly upon request, and in any event at the time Grantee recognizes
taxable income in respect of the exercise of an SAR, an 

	

4

	
amount equal to the federal, state and/or local taxes the Company determines it is required to withhold
under applicable tax laws with respect to the SARs. In the notice of exercise, Grantee shall elect
the method of satisfying his or her withholding obligations pursuant to one or a combination of the
following methods: (a) making a payment to the Company in cash or cash equivalents (including
by electing to have the Company deduct the taxes from accumulated wages otherwise due to Grantee);
or (b) authorizing the Company to withhold a portion of the shares of Company Stock to be issued
hereunder having a Fair Market Value on the date of exercise equal to or less than the minimum amount
required to be withheld. In the absence of an election, the Company shall withhold a portion of the
shares of Company Stock to be issued hereunder having a Fair Market Value on the date of exercise
equal to the minimum amount required to be withheld. Grantee understands that the amount withheld
by the Company may not be sufficient to cover Grantee’s entire tax liability, and Grantee (and
not the Company) shall be responsible for any tax liability that may arise as a result of the transactions
contemplated by this Agreement.

                9.             Incorporation of Plan. This Agreement is made under the provisions of the Omnibus Incentive Plan 2007 (which is incorporated
herein by reference) and shall be interpreted in a manner consistent with the Plan. To the extent
that this Agreement is silent with respect to, or in any way inconsistent with, the terms of the
Plan, the provisions of the Plan shall govern and this Agreement shall be deemed to be modified accordingly.
Any capitalized term not defined herein shall have the meaning set forth in the Plan.

                10.           Notices. Any notices required or permitted hereunder shall be addressed to Secretary of the Company, 1100
Milwaukee Avenue, South Milwaukee, Wisconsin 53172, or to Grantee at the address then on record with
the Company, as the case may be, and deposited, postage prepaid, in the United States mail. Either
party may, by notice to the other given in the manner aforesaid, change his/her or its address for
future notices. 

                11.           Binding Agreement; Successors. This Agreement shall bind and inure to the benefit of the Company, its successors and assigns, and
Grantee and Grantee’s personal representatives and beneficiaries.

                12.           Amendment. This Agreement may be amended or modified by the Company at any time; provided that any amendment
that would adversely affect the rights of Grantee is subject to Grantee’s written consent. Notwithstanding
the foregoing, the Company need not obtain Grantee consent if the Company determines that such amendment
is necessary to comply with applicable law, the listing requirements of any principal securities
exchange or market on which the Company’s Stock is then listed, or to preserve favorable accounting
treatment of the Award for the Company.

                IN WITNESS WHEREOF, the undersigned parties have executed this Agreement to be effective as of the
Award Date set forth in the Notice.

	 	 	 
	GRANTEE	 	 
	 	 	 
	
	 	

	 	 	Date

	

5

	BUCYRUS INTERNATIONAL, INC.     	 	 
	 	 	 
	
	 	

	Craig R. Mackus

Secretary	 	Date

	

6

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