EXHIBIT 10.19
FORM 10-K
YEAR ENDED DECEMBER 31, 1999
AGREEMENT
This Agreement dated February 1, 2000 is between Xxxxx X. Xxxxx
(hereinafter "Xxxxx") and Bucyrus International, Inc. (hereinafter
"Bucyrus").
In consideration of the mutual covenants and agreements set forth herein,
the parties hereto agree as follows:
1. During the term of this Agreement, Xxxxx agrees to perform certain
consulting assignments for Xxxxxxx, only as approved in advance by
Xxxxxx X. Xxxxxx, Chairman of the Board of Bucyrus. Xxxxx shall be
paid $1,500.00 per day and shall be reimbursed his reasonable
expenses for performing said consulting services. Such consulting
fees and expenses shall be paid and reimbursed on a monthly basis
against submitted time and expense statements as approved by Xxxxxx
Xxxxxx.
2. During the term of this Agreement, Xxxxxxx agrees to pay the
following bonuses to Xxxxx:
a. $25,000.00 for each Bucyrus electric mining shovel or dragline
sold into the North American coal industry.
b. $5,000.00 for each Bucyrus rotary blasthole drill sold into
the North American coal industry.
c. $50,000.00 for the first sale of Bucyrus' new large electric
mining shovel (currently commonly called "Big Bite") into the
North American coal industry, but only if Xxxxx'x direct
involvement contributes to the sale of "Big Bite". Such
payment will be instead of, and not in addition to, the
payment provided in Section 2(a) above.
d. $100,000.00 for the second sale of "Big Bite" into the North
American coal industry, but only if Xxxxx'x direct involvement
contributes to the sale. Such payment will be instead of, and
not in addition to, the payment provided in Section 2(a)
above.
e. For any "Big Bite" sales into the North American coal industry
after the second "Big Bite" sale, or for the first two "Big
Bite" sales into the North American coal industry if Xxxxx was
not involved in the sale, Xxxxx will be paid as provided in
Section 2(a) above.
3. During the term of this Agreement, Bucyrus shall also pay Xxxxx a
bonus of 5% of the incremental standard parts margin generated in
each calendar year over and above the standard margin generated on
parts sold to the North American coal industry in the previous
calendar year (the "base year"). For each year this Agreement is in
place, the previous calendar year becomes the base year. For
example, if in the year 2000 the standard margin on parts sold into
the North American coal industry increased by $6,000,000.00 over the
1999 base year, Xxxxx would receive $300,000.00 in bonus payments.
Any partial calendar year calculations shall be prorated
accordingly.
4. The bonus payments provided in Sections 2 and 3 above will be made
to Xxxxx within 30 days after completion of the annual audit of
Bucyrus' financial statements (the "Payment Date"), and will only
apply to sales actually made to customers during the term of this
Agreement as evidenced by a signed agreement with the customer.
Provided, however, if Xxxxxxx has not received total payment from
the customer for the sale of equipment by the Payment Date, Xxxxx
shall only be entitled to payment of a percentage of his bonus equal
to the percentage of the purchase price actually received by
Bucyrus. Xxxxx will be paid the remainder of his bonus after
receipt by Xxxxxxx of the total purchase price.
5. The term of this Agreement shall commence on the date of this
Agreement and shall continue thereafter for eighteen (18) months.
The term of this Agreement may be extended by mutual agreement of
the parties.
6. This Agreement, or any provision hereof, may not be assigned by
Xxxxx without the prior written consent of Bucyrus.
7. Xxxxx'x relationship with Bucyrus in this Agreement is that of an
independent contractor.
8. This Agreement shall be governed by and construed in accordance with
the laws of the State of Wisconsin.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first written above.
BUCYRUS INTERNATIONAL, INC. XXXXX X. XXXXX
By: /s/Xxxxxx X. Xxxxxx /s/Xxxxx X. Xxxxx
Name: Xxxxxx X. Xxxxxx
Title: CHR - BOD Bucyrus International
