PROMISSORY NOTE

$255,000.00                                Madison, South Dakota

Dated:  September 8, 1998

     After date, for value received, the undersigned promises to pay to the
order of

              THE CITY OF MADISON, a political subdivision of the
                            State of South Dakota,

at their address, Madison, South Dakota, the principal sum of

                   TWO HUNDRED FIFTY FIVE THOUSAND DOLLARS 
                            ($255,000.00) Dollars,

together with interest thereon at the rate of three  per cent (3%) per annum,
payable as follows:

     The sum of $1,414.23 per month commencing October 1, 1998, and on the
first day of each and every month thereafter.  Such payment being a blended
payment of principal and interest with interest being at the rate of three per
cent (3%) per annum commencing as of September 1, 1998, with a balloon payment
in the amount of $206,216.01 due on or before September 1, 2003; such payments
being made according to the attached amortization schedule; This Promissory
Note is subject to a change in interest rate as further described in paragraph
4) of the Loan Agreement dated September 8, 1998 which paragraph is
incorporated hereby as if fully set forth herein.

     All payments on account of the indebtedness evidenced by this Note shall
be first applied to interest and the  remainder to principal. In the event
payment is not made by the due date, a late payment fee of ($63.00) Dollars
per day shall be assessed.  

     The undersigned, for itself, its successors and assigns, reserves the
privilege of prepaying without penalty the entire unpaid principal balance,
provided there shall also be paid with such prepayment all accrued interest on
the unpaid principal balance.

     This note is secured, by and entitled to the benefits of a Mortgage of
even date herewith executed by Gehl Company, a Wisconsin corporation, and any
and all instruments and documents supplemental thereto which instruments are
herein referred to as Loan Agreement and Mortgage and any documents referred
to therein which shall collectively be referred to as "Loan Documents". 
Reference is hereby made to said Loan Documents for a description of the
property covered thereby and the nature and extent of the security.

     In the event  of default  by Gehl Company,  on this  Note, Mortgage or  as
described in the Loan Agreement, the principal of this  Note, together with all
accrued  interest  thereon,  may,  at  the  option  of  the  City  of  Madison,
immediately become due and payable on demand.  

     All notices, demands and requests required or desired to be given
hereunder shall be in writing and shall be delivered in person or by United
States registered or certified mail, return receipt requested, postage
prepaid, if given to the undersigned addressed to the undersigned at:

     General Counsel
     Gehl Company
     143 Water Street
     West Bend, Wisconsin 53095-0179

or at such changed address as may from time to time be designated by the party
to be addressed, by written notice to the other in the manner herein provided. 
Notices, demands and requests given by mail in the manner aforesaid shall be
deemed sufficiently served or given for all purposes hereunder on the first to
occur of the receipt of such notice, demand or request, or the fifth day after
the time the same shall be deposited in the mail.

     In the event of default in the payment of the Promissory Note, and if the
same is collected by an attorney at law, the Borrower agrees to pay all costs
of collection, including reasonable attorney's fees.

     The Borrower, maker and endorsers hereby waives presentment for payment,
demand, notice of nonpayment, protest, notice of protest, notice of dishonor,
trial by jury and the right to interpose any defense, set off, counterclaim or
any litigation arising out of this promissory note.

     Gehl Company, for itself their successors, transferees and assigns and
all guarantors, hereby agrees that this Note and any payment coming due
hereunder may be extended from time to time without in any way affecting its
liability hereunder.

     This Note shall be governed by the laws of the State of South Dakota,
which laws shall also cover and control the construction, enforceability,
validity and interpretation of this Note.

                    GEHL COMPANY
 
                    By /s/Kenneth P. Hahn(SEAL)
                    Its Vice President
(CORPORATE SEAL)

ATTEST
 
M. J. Mulcahy(SEAL)
Secretary                         

                    CITY OF MADISON
                    GEHL
                    SEPTEMBER 1, 1998
                    $255,000.00
 
ORIGINAL BALANCE . . . . . . . . . . . $255,000.00
ANNUAL INTEREST RATE . . . . . . . . . 3 %
PAYMENT  . . . . . . . . . . . . . . . $1,414.23
TOTAL NUMBER OF PAYMENTS . . . . . . . 240
PAYMENT FREQUENCY  . . . . . . . . . . MONTHLY
DATE OF LOAN INCEPTION . . . . . . . . 9 / 1 / 98
DATE OF FIRST PAYMENT  . . . . . . . . 10 / 1 / 98
BALLOON PAYMENT  . . . . . . . . . . . REMAINING BALANCE PAY. NO. 60

*** INTEREST CALCULATION BASED ON NO. OF DAYS IN THE PAYMENT PERIOD ***

<TABLE>
PAY-
MENT              TOTAL       APPLIED TO   APPLIED TO    REMAINING 
NO.  DUE DATE    PAYMENT       INTEREST     PRINCIPAL     BALANCE
  <C>         <S>            <S>          <S>           <S>
                                                        $255,000.00
  1  10/ 1/98 $  1,414.23    $   628.77   $    785.45    254,214.55
  2  11/ 1/98    1,414.23        635.54        778.68    253,435.87
  3  12/ 1/98    1,414.23        633.59        780.63    252,655.24
      ANNUAL
      TOTAL   $  4,242.69    $ 1,897.90   $  2,344.76

  4   1/ 1/99 $  1,414.23    $   631.64   $    782.58   $251,872.65
  5   2/ 1/99    1,414.23        629.68        784.54    251,088.12
  6   3/ 1/99    1,414.23        627.72        786.50    250,301.62
  7   4/ 1/99    1,414.23        625.75        788.47    249,513.15
  8   5/ 1/99    1,414.23        623.78        790.44    248,722.71
  9   6/ 1/99    1,414.23        621.81        792.41    247,930.30
 10   7/ 1/99    1,414.23        619.83        794.39    247,135.91
 11   8/ 1/99    1,414.23        617.84        796.38    246,339.53
 12   9/ 1/99    1,414.23        615.85        798.37    245,541.16
 13  10/ 1/99    1,414.23        613.85        800.37    244,740.79
 14  11/ 1/99    1,414.23        611.85        802.37    243,938.42
 15  12/ 1/99    1,414.23        609.85        804.37    243,134.05
      ANNUAL
      TOTAL   $ 16,970.76    $ 7,449.45   $  9,521.19

 16   1/ 1/ 0 $  1,414.23    $   607.84   $    806.38   $242,327.67
 17   2/ 1/ 0    1,414.23        605.82        808.40    241,519.27
 18   3/ 1/ 0    1,414.23        603.80        810.42    240,708.85
 19   4/ 1/ 0    1,414.23        601.77        812.45    239,896.40
 20   5/ 1/ 0    1,414.23        599.74        814.48    239,081.92
 21   6/ 1/ 0    1,414.23        597.70        816.52    238,265.40
 22   7/ 1/ 0    1,414.23        595.66        818.56    237,446.84
 23   8/ 1/ 0    1,414.23        593.62        820.60    236,626.24
 24   9/ 1/ 0    1,414.23        591.57        822.65    235,803.59
 25  10/ 1/ 0    1,414.23        589.51        824.71    234,978.88
 26  11/ 1/ 0    1,414.23        587.45        826.77    234,152.11
 27  12/ 1/ 0    1,414.23        585.38        828.84    233,323.27
      ANNUAL 
      TOTAL   $ 16,970.76    $ 7,159.86   $  9,810.78

 28   1/ 1/ 1 $  1,414.23    $   583.31   $    830.91   $232,492.36
 29   2/ 1/ 1    1,414.23        581.23        832.99    231,659.37
 30   3/ 1/ 1    1,414.23        579.15        835.07    230,824.30
 31   4/ 1/ 1    1,414.23        577.06        837.16    229,987.14
 32   5/ 1/ 1    1,414.23        574.97        839.25    229,147.89
 33   6/ 1/ 1    1,414.23        572.87        841.35    228,306.54
 34   7/ 1/ 1    1,414.23        570.77        843.45    227,463.09
 35   8/ 1/ 1    1,414.23        568.66        845.56    226,617.53
 36   9/ 1/ 1    1,414.23        566.54        847.68    225,769.85
 37  10/ 1/ 1    1,414.23        564.42        849.80    224,920.05
 38  11/ 1/ 1    1,414.23        562.30        851.92    224,068.13
 39  12/ 1/ 1    1,414.23        560.17        854.05    223,214.08
      ANNUAL 
      TOTAL   $ 16,970.76    $ 6,861.45   $ 10,109.19

 40   1/ 1/ 2 $  1,414.23    $   558.04   $    856.18   $222,357.90
 41   2/ 1/ 2    1,414.23        555.89        858.33    221,499.57
 42   3/ 1/ 2    1,414.23        553.75        860.47    220,639.10
 43   4/ 1/ 2    1,414.23        551.60        862.62    219,776.48
 44   5/ 1/ 2    1,414.23        549.44        864.78    218,911.70
 45   6/ 1/ 2    1,414.23        547.28        866.94    218,044.76
 46   7/ 1/ 2    1,414.23        545.11        869.11    217,175.65
 47   8/ 1/ 2    1,414.23        542.94        871.28    216,304.37
 48   9/ 1/ 2    1,414.23        540.76        873.46    215,430.91
 49  10/ 1/ 2    1,414.23        538.58        875.64    214,555.27
 50  11/ 1/ 2    1,414.23        536.39        877.83    213,677.44
 51  12/ 1/ 2    1,414.23        534.19        880.03    212,797.41
      ANNUAL
      TOTAL   $ 16,970.76    $ 6,553.97   $ 10,416.67

 52   1/ 1/ 3 $  1,414.23    $   531.99   $    882.23   $211,915.18
 53   2/ 1/ 3    1,414.23        529.79        884.43    211,030.75
 54   3/ 1/ 3    1,414.23        527.58        886.64    210,144.11
 55   4/ 1/ 3    1,414.23        525.36        888.86    209,255.25
 56   5/ 1/ 3    1,414.23        523.14        891.08    208,364.17
 57   6/ 1/ 3    1,414.23        520.91        893.31    207,470.86
 58   7/ 1/ 3    1,414.23        518.68        895.54    206,575.32
 59   8/ 1/ 3    1,414.23        516.44        897.78    205,677.54
 60   9/ 1/ 3  206,191.74        514.19    205,677.54          0.00
      ANNUAL
      TOTAL   $217,505.58    $ 4,708.08   $212,797.41

      GRAND 
      TOTAL   $289,631.31    $34,630.71   $255,000.00
</TABLE>