GEHL COMPANY

                           2000 EQUITY INCENTIVE PLAN

                      NON-QUALIFIED STOCK OPTION AGREEMENT


          THIS  AGREEMENT,  made  and  entered  into  as of  this  ____  day  of
_______________, ____, by and between GEHL COMPANY, a Wisconsin corporation (the
"Company"), and ______________________________ (the "Optionee").

                              W I T N E S S E T H :

          WHEREAS,  the  Company  has  adopted  the  Gehl  Company  2000  Equity
Incentive  Plan (the  "Plan"),  the terms of which,  to the  extent  not  stated
herein, are specifically incorporated by reference in this Agreement; and

          WHEREAS,  one of the purposes of the Plan is to permit the granting of
options to purchase  shares of the Company's  Common Stock,  $.10 par value (the
"Common Stock"), to certain key employees of the Company and its affiliates; and

          WHEREAS,  the  Optionee is now employed by the Company or an affiliate
of the Company in a key capacity, and the Company desires the Optionee to remain
in such employ,  and to secure or increase his stock ownership in the Company in
order to increase  his  incentive  and  personal  interest in the welfare of the
Company.

          NOW, THEREFORE,  in consideration of the premises and of the covenants
and agreements  herein set forth, the parties hereby mutually covenant and agree
as follows:

          1.  Grant of Option.  Subject to the terms and conditions  of the Plan
and this Agreement,  the Company grants to the Optionee an option (the "Option")
to purchase from the Company all or any part of the aggregate  amount of _______
shares of Common  Stock  (the  "Optioned  Shares").  The Option is  intended  to
constitute a non-qualified stock option and shall not be treated as an incentive
stock option  within the meaning of Section 422 of the Internal  Revenue Code of
1986, as amended.

          2.  Option Price.  The price to be  paid for the Optioned Shares shall
be $______ per share, which has been determined by the Compensation and Benefits
Committee of the Board of Directors of the Company (the  "Committee")  to be not
less than 100% of the fair  market  value of such  stock on the date of grant of
the Option.


<PAGE>


          3.  Exercisability  and  Termination  of  Option.  Except as  provided
herein,  the Option may be  exercised  only while the Optionee is an employee of
either the Company or an  affiliate  of the Company and only if the Optionee has
been continuously so employed since the date of grant of the Option.  Subject to
Paragraph 6, the Option may be  exercised  by the Optionee in whole,  or in part
from time to time, during the period beginning ______________,  ____, and ending
_____________________, ____, but only in accordance with the following schedule:

                                            Cumulative Percentage of Shares
                                        Subject to Option Which May be Purchased
   Elapsed Period of Time               (which number of shares shall be rounded
After Date Option is Granted                down to the nearest whole number)
----------------------------            ----------------------------------------

   Less than One (1) Year                                    0%
   One (1) Year                                         33-1/3%
   Two (2) Years                                        66-2/3%
   Three (3) Years                                         100%

provided,  however,  that  notwithstanding  the foregoing vesting schedule,  the
Option  shall  become  immediately  exercisable  in full  following  a Change of
Control of the Company (as such term is defined in the Plan).

          4.  Manner of  Exercise  and  Payment.  Subject to the  provisions  of
Paragraph 3 hereof,  the Option may be exercised  only by written  notice to the
Company,  served upon the  Secretary  of the Company at its office at West Bend,
Wisconsin,  specifying  the  number of shares in  respect to which the Option is
being  exercised.  Subject to the  provisions of this  Agreement,  the notice of
exercise must be  accompanied  by full payment of the option price of the shares
being  purchased  (i) in cash or by  certified  check  or  bank  draft;  (ii) by
tendering  previously  acquired  shares of Common  Stock  (valued at their "fair
market  value" as  determined  in the manner  provided  below);  or (iii) by any
combination of the means of payment set forth in subparagraphs (i) and (ii). For
purposes of this Paragraph 4, the "fair market value" of a share of Common Stock
shall  be  equal  to the last per  share  sale  price  of such  Common  Stock as
reflected on The Nasdaq Stock Market on the trading day next  preceding the date
of exercise;  provided,  however, that if the principal market for the shares of
Common Stock is then a national  securities  exchange,  the "fair market  value"
shall be the  closing  price  per share for the  Common  Stock on the  principal
securities exchange on which the Common Stock is traded on the trading date next
preceding the date of exercise, or, in either case above, if no trading occurred
on the trading  date next  preceding  the exercise  date,  then the "fair market
value" per share of Common Stock shall be determined  with reference to the next
preceding  date  on  which  the  Common  Stock  was  traded.   For  purposes  of
subparagraphs  (ii) and (iii)



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<PAGE>


above, the term "previously  acquired shares of Common Stock" shall only include
Common Stock owned by the Optionee for at least six months prior to the exercise
of the Option and shall not in any event  include  shares of Common  Stock which
are being  acquired  pursuant to the exercise of the Option.  No shares shall be
issued until full payment therefor has been made.

          5.  Nontransferability  of  the  Option.   The  Option  shall  not  be
assignable,  alienable,  saleable or  transferable by the Optionee other than by
will or the  laws of  descent  and  distribution;  provided,  however,  that the
Optionee  shall be entitled,  in the manner  provided in Paragraph 9 hereof,  to
designate a  beneficiary  to exercise  his rights,  and to receive any shares of
Common  Stock  issuable,  with  respect  to the  Option  upon  the  death of the
Optionee.  The Option may be exercised  during the lifetime of the Optionee only
by the Optionee or, if permitted by applicable  law, the Optionee's  guardian or
legal representative.

          6.  Exercisability After Termination of Employment.

              (a)  Death or Disability;  Retirement.  In the event the  Optionee
dies  while  he is in the  employ  of the  Company  or any  affiliate  or if his
employment is terminated by reason of his  retirement on or after  attaining age
62 or by reason of his  disability,  the Option,  to the extent not  theretofore
exercised,  may be exercised in full as follows: (i) by the legal representative
of the  Optionee  (who for  purposes  of this  Agreement  may be the  Optionee's
beneficiary  as  designated  pursuant to Paragraph 9) at any time within  twelve
months after the date of the Optionee's death while in the employ of the Company
or any  affiliate;  or (ii)  by the  Optionee  or his  legal  representative  or
guardian  at  any  time  within  twelve  months  after  the  termination  of the
Optionee's employment by reason of retirement on or after attaining age 62 or by
reason of his disability,  but in no event under subparagraphs (i) or (ii) later
than ten years after the date of grant of the Option.

              (b)  Voluntary  Termination;  Termination  for Cause. In the event
the Optionee  voluntarily  terminates  his  employment  with the Company and any
affiliates  or if  his  employment  is  terminated  for  Cause  (as  hereinafter
defined), the Option, to the extent not theretofore exercised, shall immediately
terminate upon such  termination of employment.  For purposes of this Agreement,
the term Cause shall mean any termination of the Optionee by action of the Board
of  Directors  of the Company  because of the failure of the Optionee to fulfill
his obligations with the Company or any affiliate  thereof or because of serious
willful  misconduct  by the  Optionee  in  respect of his  obligations  with the
Company  or  any  affiliate   thereof  which  would  cause  a  substantial   and
demonstrable  detriment to the Company,  as, for example,  the commission by the
Optionee of a felony or the  perpetration by the Optionee of a common-law  fraud
against the  Company or any  affiliate  thereof,  or any major  material  action
(i.e.,  not procedural or operational  differences)  taken against the expressed
directive of the Board of Directors of



                                      -3-
<PAGE>


the Company.

              (c)  Other. In the event that the Optionee is discharged or leaves
the employ of the  Company  and its  affiliates  for any reason  (other than the
death or disability of the Optionee,  the retirement of the Optionee on or after
attaining age 62, the Optionee's voluntary  termination of his employment or the
termination  of  the  Optionee  for  Cause),  the  Option,  to  the  extent  not
theretofore  exercised but then permitted  under the  percentage  limitations of
Paragraph  3  hereof,  may  be  exercised  by  the  Optionee  or  by  his  legal
representative  or guardian at any time within  three  months  after the date of
termination  of  employment  upon  the  tender  to the  Company,  in cash or its
equivalent,  of the full  purchase  price,  but in no event later than ten years
after the date of grant of the Option.

          7.  Tax Withholding. The Company may deduct and withhold from any cash
otherwise  payable to the Optionee  (whether  payable as salary,  bonus or other
compensation)  such amount as may be required for the purpose of satisfying  the
Company's obligation to withhold Federal,  state or local taxes. Further, in the
event the amount so withheld is insufficient  for such purpose,  the Company may
require that the  Optionee pay to the Company upon its demand or otherwise  make
arrangements  satisfactory  to the  Company for payment of such amount as may be
requested by the Company in order to satisfy its obligation to withhold any such
taxes.

          The  Optionee   shall  be  permitted  to  satisfy  the  Company's  tax
withholding  requirements by making a written  election (in accordance with such
rules and  regulations  and in such form as the Committee may determine) to have
the Company  withhold shares of Common Stock otherwise  issuable to the Optionee
(the "Withholding Election") or to deliver to the Company shares of Common Stock
(the  "Delivery  Election")  in each case having a fair market value on the date
income is  recognized  (the "Tax Date")  pursuant to the  exercise of the Option
equal to the minimum amount required to be withheld.  If a Delivery  Election is
in effect at the time of the exercise of the Option,  the Optionee shall deliver
the shares of Common Stock subject to such  Delivery  Election on, or as soon as
practicable  after,  the Tax Date.  If the  number  of  shares  of Common  Stock
withheld or delivered to satisfy  withholding tax  requirements  shall include a
fractional share, the number of shares withheld or delivered shall be reduced to
the next lower whole number and the Optionee  shall deliver cash in lieu of such
fractional share, or otherwise make arrangements satisfactory to the Company for
payment of such amount.  A  Withholding  Election or Delivery  Election  must be
received by the Secretary of the Company on or prior to the Tax Date.

          8.  Capital  Adjustments  Affecting  the Common  Stock.  The number of
Optioned Shares subject hereto and the related per share exercise price shall be
subject to adjustment in accordance with Section 4(b) of the Plan.



                                      -4-
<PAGE>


          9.  Designation of  Beneficiary.

              (a)  The person whose name  appears on the  signature  page hereof
after the caption  "Beneficiary" or any successor  designated by the Optionee in
accordance herewith (the person who is the Optionee's beneficiary at the time of
his death is herein  referred  to as the  "Beneficiary")  shall be  entitled  to
exercise  the Option,  to the extent it is  exercisable,  after the death of the
Optionee.  The Optionee  may from time to time revoke or change his  beneficiary
without the consent of any prior  beneficiary by filing a new  designation  with
the  Committee.  The last such  designation  received by the Committee  shall be
controlling;  provided,  however,  that no designation,  or change or revocation
thereof,  shall be  effective  unless  received  by the  Committee  prior to the
Optionee's  death,  and in no event shall any  designation  be effective as of a
date prior to such receipt.

              (b)  If no such  Beneficiary  designation is in effect at the time
of the Optionee's death, or if no designated  Beneficiary  survives the Optionee
or if such designation  conflicts with law, the Optionee's estate acting through
his legal representative shall be entitled to exercise the Option, to the extent
it is exercisable after the death of the Optionee.  If the Committee is in doubt
as to the right of any person to exercise the Option,  the Company may refuse to
recognize such exercise,  without liability for any interest or dividends on the
Optioned Shares,  until the Committee determines the person entitled to exercise
the Option,  or the Company may apply to any court of  appropriate  jurisdiction
and such  application  shall be a complete  discharge  of the  liability  of the
Company therefor.

          10. Transfer  Restriction.  The shares to be acquired upon exercise of
the Option may not be sold or offered for sale except  pursuant to an  effective
registration  statement  under the Securities  Act of 1933, as amended,  or in a
transaction which, in the opinion of counsel for the Company, is exempt from the
registration provisions of said Act.

          11. Status of  Optionee.  The  Optionee  shall not  be deemed  for any
purposes to be a shareholder  of the Company with respect to any of the Optioned
Shares  except to the extent  that the Option  shall  have been  exercised  with
respect thereto,  the shares shall have been fully paid, and a stock certificate
issued therefor.  Neither the Plan nor the Option shall confer upon the Optionee
any right to continue in the employ of the Company,  nor to interfere in any way
with the right of the Company to terminate the employment of the Optionee at any
time.

          12. Powers of the Company Not  Affected.  The existence  of the Option
shall  not  affect  in  any  way  the  right  or  power  of the  Company  or its
shareholders  to make or authorize  any or all  adjustments,  recapitalizations,
reorganizations  or other  changes in the  Company's  capital  structure  or its
business,  or any merger or  consolidation  of the  Company,  or any issuance of
bonds, debentures, preferred or prior preference stock ahead of or affecting the
Common  Stock or the  rights  thereof,  or  dissolution  or  liquidation



                                      -5-
<PAGE>


of the  Company,  or any sale or  transfer  of all or any part of the  Company's
assets or  business  or any other  corporate  act or  proceeding,  whether  of a
similar character or otherwise.

          13. Interpretation by Committee. As a condition of the granting of the
Option,  the  Optionee  agrees,  for  himself and his legal  representatives  or
guardians,  that this  Agreement  shall be interpreted by the Committee and that
any  interpretation  by the  Committee  of the terms of this  Agreement  and any
determination  made by the Committee  pursuant to this Agreement shall be final,
binding and conclusive.

          IN WITNESS  WHEREOF,  the  Company has caused  this  instrument  to be
executed by its duly authorized officers,  and the Optionee has hereunto affixed
his hand as of the day and year first above written.

                                      GEHL COMPANY


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


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



                                                                      , Optionee
                                      --------------------------------


                                      Beneficiary:
                                                  ------------------------------

                                      Address of Beneficiary:
                                                             -------------------

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


                                      Beneficiary's Tax Identification/
                                      Social Security No.:
                                                          ----------------------


scb/options/agree2



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