Approved: _______________
________________________
Michael J. Mulcahy, Secretary


GEHL COMPANY
1987 STOCK OPTION PLAN
(AS AMENDED)

1.PURPOSE.  The purpose of the Gehl Company 1987 Stock Option Plan (the
"Plan") is to promote the best interests of Gehl Company (the "Company") and
its shareholders by providing key employees of the Company and its
subsidiaries, as defined in Section 3, with an opportunity to acquire a
proprietary interest in the Company and thereby develop a stronger incentive
to put forth maximum effort for the continued success and growth of the
Company.  In addition, the opportunity to acquire a proprietary interest in
the Company will aid in attracting and retaining key personnel of outstanding
ability.  It is intended that all of the options issued pursuant to the Plan
will constitute nonstatutory stock options.

2.ADMINISTRATION.  The Plan shall be administered by the Board of Directors of
the Company (the "Board").  The Board shall appoint a subcommittee of the
Compensation and Benefits Committee to develop recommendations with respect to
Board action hereunder (the "Committee").  The Committee shall consist of not
less than three members of the Compensation and Benefits Committee of the
Board who qualify as  non-employee directors  for the purposes of Rule 16b-3
under the Securities Exchange Act of 1934, as amended (or any successor
provision thereto).

In accordance with the provisions of the Plan (and except as provided below),
the Board shall select the key employees to whom options shall be granted;
shall select the key employees to whom options shall be granted; shall
determine the number of shares to be embraced in each option, the time at
which the option is to be granted, the option period, the option price and the
manner in which options become exercisable; and shall establish such other
provisions of the option agreements as the Board may deem necessary or
desirable.  The Board may adopt such rules and regulations for carrying out
the Plan as it may deem proper and in the best interest of the Company.  The
interpretation of any provision of the Plan by the Board and any determination
on the matters referred to in this Section shall be final.  Notwithstanding
the above, with respect to any options granted to employees who are also
directors of the Company, such grants, including the number of shares subject
to and the terms and conditions of such options, shall be made only in
accordance with the recommendations of the Committee.

3.ELIGIBILITY.  Any key employee ("Employee") of the Company or its present
and future subsidiaries, as defined in Section 425(f) of the Internal Revenue
Code ("Subsidiaries"), including any such Employee who is also an officer or
director of the Company or its Subsidiaries, whose judgment, initiative and
efforts contribute materially to the successful performance of the Company or
its Subsidiaries, shall be eligible to receive options under the Plan.  No
option may be granted under the Plan to any pearson who is then a member of
the Committee.

4.SHARES SUBJECT TO THE PLAN.  The shares to be subject to options under the
Plan shall be shares of the Company's Common Stock, $2.00 par value ("Stock"),  


and may be either authorized and unissued or treasury shares.  The total
amount of Stock for which options may be granted and which may be purchased
pursuant to options under the Plan shall not exceed 106,000 shares, subject to
adjustment as provided in Section 14; provided, however, that in the event an
option granted under the Plan expires or is terminated unexercised as to any
shares of Stock covered thereby, such shares shall thereafter be available for
the granting of additional options under the Plan.

5.OPTION PRICE.  The option price per share of Stock shall be fixed by the
Board, but shall not be less than 100% of the fair market value, as determined
by the Board, of a share of Stock on the date the option is granted.

6.GRANT OF OPTIONS.  Subject to the terms and conditions of the Plan, the
Board may, from time to time prior to the termination of the Plan, grant to
such Employees as the Board may determine options to purchase such number of
shares of Stock and on such terms and conditions as the Board may determine. 
More than one option may be granted to the same Employee.  The day on which
the Board approves the granting of an option shall be considered as the date
on which such option is granted.  Notwithstanding any other provision of the
Plan to the contrary, in the case of any option granted to any Employee who is
also a director of the Company, such grant shall be made and the terms and
conditions of such grant shall be determined only in accordance with the
recommendations of the Committee.

7.OPTION PERIOD.  The Board shall determine the expiration date of each
option, but such expiration date shall be not later than seven years after the
date such option is granted.

8.VESTING OF OPTIONS.  Subject to the provisions of Section 12 hereof, unless
the Board shall otherwise determine on or prior to the date of grant of an
option, such option may be exercised, in whole or in part, from and after the
date it is granted in accordance with the following schedule:

        Elapsed Period of            Cumulative Percentage of
         Time After Date            Shares of Stock Subject to
        Option is Granted          Option Which May be Exercised
           One (1) Year                       33-1/3%
          Two (2) Years                       66-2/3%
         Three (3) Years                         100%

The right to purchase shares of Stock pursuant to the exercise of an option
granted under the Plan shall be cumulative so that when the right to purchase
any shares has accrued in accordance with the foregoing schedule, such shares
or any part thereof, may be purchased at any time thereafter until the
expiration or termination of the option.

9.CHANGE OF CONTROL.  Notwithstanding the provisions of Section 8 hereof, in
the event there is a "Change in Control of the Company" then from and after
the date of such change of control all outstanding options granted under the
Plan shall be immediately exercisable.  For purposes of this Section 9, a
"Change in Control of the Company" occurs when:

(a)securities of the Company representing 25% or more of the combined voting
power of the Company's then outstanding voting securities are acquired
pursuant to a tender offer or an exchange offer; or

(b)the shareholders of the Company approve a merger or consolidation of the
Company with any other corporation as a result of which less than 50% of the
outstanding voting securities of the surviving or resulting entity are owned
by the former shareholders of the Company (other than a shareholder who is an
"affiliate", as defined in Rule 501(b) of Regulation D under the Securities
Act of 1933, of any party to such consolidation or merger); or 

(c)the shareholders of the Company approve the sale of substantially all of
the Company's assets to a corporation which is not a wholly-owned subsidiary
of the Company; or

(d)any person becomes the beneficial owner, directly or indirectly, of
securities of the Company representing 25% or more of the combined voting
power of the Company's then outstanding securities the effect of which (as
determined by the Board) is to take over control of the Company; or

(e)during any period of two consecutive years, individuals who, at the
beginning of such period, constituted the Board of the Company cease, for any
reason, to constitute at least a majority thereof, unless the election or
nomination for election of each new director was approved by the vote of at
least two-thirds of the directors then still in office who were directors at
the beginning of the period.

10.EXERCISE OF OPTIONS.  A person entitled to exercise an option may, subject
to its terms and conditions and the terms and conditions of the Plan, exercise
it in full at any time or in part from time to time by delivery to the Company
at its principal office of a written notice of exercise specifying the number
of shares with respect to which the option is being exercised.  Any notice of
exercise shall be accompanied by full payment of the option price of the
shares being purchased (a) in cash or its equivalent; (b) with the consent of
the Board, by delivering to the Company shares of Stock (valued at their fair
market value at the date of exercise, as determined by the Board consistent
with the method of valuation set forth in Section 5); or (c) with the consent
of the Board, by any combination of (a) or (b).  No shares shall be issued
until full payment therefor has been made, and the granting of an option to an
individual shall give such individual no rights as a shareholder except as to
shares actually issued to him.

11.TRANSFERABILITY OF OPTIONS.  No option shall be assignable or transferable
by the optionee other than by will or the laws of descent and distribution and
may be exercised during the life of the optionee only by the optionee.

12.TERMINATION OF OPTIONS.  Except as hereinafter provided, an option granted
under the Plan may be exercised only while the optionee is an Employee of the
Company or its Subsidiaries and only if he has been continuously so employed
since the date the option was granted.  Subject to the terms of any option
agreement, in the event an optionee ceases to be employed by the Company or a
Subsidiary by reason of death, disability or retirement on or after attaining
age 62, the option, to the extent not theretofore exercised, may be exercised
in full as follows:  (a) by the legal representative of the optionee at any
time within one year after the date of termination of employment due to death;
or (b) by the optionee or his legal representative at any time within one year
after termination of the optionee's employment by reason of retirement on or
after attaining age 62 or disability, but in either case no later than ten
years after the date of grant.  Subject to the terms of any option agreement,
in the event the optionee is discharged or leaves the employ of the Company
and its Subsidiaries for any reason other than death, disability or retirement
on or after attaining age 62 the option, to the extent not theretofore
exercised, shall immediately terminate and shall not be exercisable following
such termination of employment.

13.RESTRICTIONS UPON TRANSFER OF STOCK.

(a)Shares of Stock acquired pursuant to the exercise of an option by an
Employee under the Plan may not be sold, pledged, encumbered or otherwise
disposed of or transferred in any manner, either voluntarily or by operation
of law (all hereinafter collectively referred to as "transfer") except in
accordance with and subject to Section 13(b), 13(c) and 13(d) hereof.

If the Employee is permitted to transfer his stock pursuant to Section 13(b)
hereof, the Employee shall require the transferee, as a condition of the
transfer of the Stock, to agree, in writing, that the Stock transferred shall
be subject to all of the terms and conditions in Section 13(b) and 13(c)
hereof.

(b)If the Employee should decide to transfer any of the Stock acquired
pursuant to the Plan (other than pursuant to a transfer at death permitted
pursuant to subsection 13(d)), such Employee shall first give written notice
to the Company of such intent to transfer the Stock specifying the date of
transfer, the proposed transferee and the consideration to be received upon
such transfer (hereinafter referred to as "Selling Price").  Any such proposed
transfer must be pursuant to a bona fide written offer from the proposed
transferee.

Such written notice by the Selling Employee shall constitute an offer to sell
the Stock to the Company at the Selling Price and upon the same terms as the
proposed transfer.  For a period of fifteen (15) days after the receipt of
such notice, the Company shall have the right to purchase the selling
Employee's stock.

If the Company fails to purchase all or any part of such Stock within fifteen
(15) days after receipt of written notice of the offer of sale from the
Selling Employee, the Selling Employee shall be free to offer, transfer or
otherwise dispose of such Stock not purchased by the Company for a price not
less than that stated in the written notice for a period of thirty (30) days
thereafter without restriction, but after such period expires, the restriction
set forth above shall again apply.

(c)Shares of Stock purchased under the Plan may not be sold or otherwise
disposed of unless registered under the Securities Act of 1933, as amended
(the "1933 Act"), and/or any applicable state securities laws, except in a
transaction which, in the opinion of counsel for the Company, is exempt from
registration under the 1933 Act and any applicable state securities laws.

(d)An Employee shall be permitted to transfer his Stock (i) by bequest or
descent upon the death of the Employee or (ii) by gift to the Employee's
spouse or lineal descendants, provided, however, that the Stock so transferred
shall remain subject to the benefits and restrictions of the Plan, including
the mandatory right of first refusal provisions of subsection 13(b) hereof.

(e)Each certificate representing Stock acquired pursuant to the exercise of an
option or by subsequent transfer under the Plan shall be endorsed on the face
of each such certificate with a legend reading substantially as follows:

"Any sale, assignment, transfer, pledge or any other disposition of the shares
of stock represented by this certificate, whether voluntary, involuntary or by
operation of law, is restricted by, and subject to, the terms and provisions
of a 1987 Stock Option Agreement dated as of ________________, 19 ___.  A copy
of such Agreement and of all amendments or supplements thereto is on file in
the office of the Secretary of the Corporation.  By acceptance of this
certificate, the holder hereof agrees to be bound by the terms of said
Agreement and all amendments or supplements thereto."

(f)  The Board may impose such other restrictions on any shares of Stock
granted pursuant to the Plan as it, in its sole discretion, may deem
advisable.

(g)The restrictions on transfer in this Section 13, other than subsection (c),
shall terminate at such time as the Stock of the Company is offered to the
public pursuant to a registration statement declared effective by the
Securities and Exchange Commission under the 1933 Act.

14.CAPITAL ADJUSTMENTS AFFECTING COMMON STOCK.  In the event of a capital
adjustment resulting from a stock dividend, (other than a stock dividend in
lieu of an ordinary cash dividend), stock split, reorganization,
recapitalization, merger, consolidation, combination or exchange of shares or
the like, the number of shares of Stock subject to the Plan and the number of
shares under option in outstanding option agreements shall be adjusted in a
manner consistent with such capital adjustment; provided, however, that no
such adjustment shall require the Company to sell any fractional shares and
the adjustment shall be limited accordingly.  The price of any shares under
option shall be adjusted so that there will be no change in the aggregate
purchase price payable upon exercise of any such option.  The determination of
the Board as to any adjustment shall be final.

15.CORPORATE MERGERS AND OTHER CONSOLIDATIONS.  The Board may also grant
options having terms and provisions which vary from those specified in the
Plan provided that any options granted pursuant to this Section 15 are granted
in substitution for, or in connection with the assumption of, existing options
granted by another corporation and assumed or otherwise agreed to be provided
for by the Company pursuant to, or by reason of, a transaction involving a
corporate merger, consolidation, acquisition or other reorganization to which
the Company is a party.

16.OPTION AGREEMENTS.  All options granted under the Plan shall be evidenced
by written agreements (which need not be identical) in such form as the Board
shall determine.

17.POWERS OF COMPANY NOT AFFECTED.  The existence of the Plan or any options
granted under the Plan 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 Stock or the rights thereof, or dissolution or liquidation
of the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

18.AMENDMENT, SUSPENSION AND TERMINATION OF PLAN.  The Board shall have the
right to amend, suspend or terminate the Plan at any time, provided, however,
that no such amendment, suspension or termination shall (a) without the
Employee's consent, alter or impair any of the rights or obligations under any
option previously granted to an Employee and (b) no amendment shall be made to
the Plan, unless approved by the shareholders of the Company, which (i)
materially modifies the eligibility requirements as provided in Section 3,
(ii) increases the total number of shares of Stock (except pursuant to a
capital adjustment as provided in Section 14) or (iii) materially increases
the benefits accruing to participants under the Plan.

19.EFFECTIVE DATE AND TERM OF PLAN.  The effective date of the Plan is the
date of its adoption by the Board, April 23, 1987.  The Plan shall terminate
on January 1, 1997, or on such earlier date as may be determined by the Board. 
Termination of the Plan, however, shall not affect the rights of optionees
under options theretofore granted to them, and all unexpired options shall
continue in force and operation after termination of the Plan except as they
may lapse or be terminated by their own terms and conditions.

20.TAX WITHHOLDING.  The Company may deduct and withhold from any cash
otherwise payable to the Employee 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 as a condition precedent to the issuance
or transfer of any shares of Stock upon exercise of any option that the
Employee 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.  If
the amount so requested is not paid, or if such arrangements are not made, the
Company may refuse to issue or transfer shares of Stock upon exercise of the
option.

With the consent of the Board (or, in the case of any option granted to an
Employee who is also a director of the Company, the Committee), an Employee
may be permitted to satisfy the Company's withholding tax requirements by
electing to have the Company withhold shares of Stock otherwise issuable to
the Employee or to deliver to the Company shares of Stock having a fair market
value on the date income is recognized pursuant to the exercise of an option
equal to the amount required to be withheld.  The election shall be made in
writing and shall be made according to such rules and in such form as the
Board (or the Committee) may determine.

21.RIGHTS AS A SHAREHOLDER.  An Employee shall have no rights as a shareholder
with respect to shares covered by an option until the date of issuance of
stock certificates to him and only after such shares are fully paid.  No
adjustment will be made for dividends or other rights for which the record
date is prior to the date such Stock is issued.

22.REQUIREMENTS OF LAW.  The granting of options and the issuance of shares of
Stock upon the exercise of an option shall be subject to all applicable laws,
rules and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.