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                                                                    EXHIBIT 10.6

                      P.A.M. TRANSPORTATION SERVICES, INC.
                             1995 STOCK OPTION PLAN
                         EFFECTIVE AS OF JUNE 29, 1995


                                  10.  PURPOSE

       The purpose of the P.A.M. Transportation Services, Inc. 1995 Stock
Option Plan (the "Plan") is to encourage and enable eligible directors,
officers and key employees of P.A.M. Transportation Services, Inc. (the
"Company") and its subsidiaries to acquire proprietary interests in the Company
through the ownership of Common Stock of the Company.  The Company believes
that directors, officers and key employees who participate in the Plan will
have a closer identification with the Company by virtue of their ability as
shareholders to participate in the Company's growth and earnings.  The Plan
also is designed to provide motivation for participating directors, officers
and key employees to remain in the employ of and to give greater effort on
behalf of the Company.  It is the intention of the Company that the Plan
provide for the award of "incentive stock options" qualified under Section 422
of the Internal Revenue Code of 1986, as amended (the "Code") and the
regulations promulgated thereunder, as well as the award of non-qualified stock
options.  Accordingly, the provisions of the Plan related to incentive stock
options shall be construed so as to extend and limit participation in a manner
consistent with the requirements of Section 422 of the Code.

                                11.  DEFINITIONS

       The following words or terms shall have the following meanings:

       (a)     "Agreement" shall mean a stock option agreement between the
Company and an Eligible Employee, Eligible Participant or Non-Employee Director
pursuant to the terms of this Plan.

       (b)     "Board of Directors" shall mean the Board of Directors of the
Company or the Executive Committee of such Board.

       (c)     "Committee" shall mean the committee appointed by the Board of
Directors to administer the Plan.

       (d)     "Company" shall mean P.A.M. Transportation Services, Inc., a
Delaware corporation.

       (e)     "Eligible Employee(s)" shall mean key employees regularly
employed by the Company or a Subsidiary (including officers, whether or not
they are directors) as the Board of Directors or the Committee shall select
from time to time.

       (f)     "Eligible Participant(s)" shall mean directors, officers, key
employees of the Company and its Subsidiaries, consultants and other persons
who are not otherwise eligible to receive Qualified Incentive Options pursuant
to Section 8 of the Plan.



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       (g)     "Market Price" shall mean the fair market value of the Company's
Common Stock as determined by the Board of Directors or the Committee, acting
in good faith, under any method consistent with the Code, or Treasury
Regulations thereunder, as the Board of Directors or the Committee shall in its
discretion select and apply at the time of the grant of the option concerned.
Subject to the foregoing, the Board of Directors or the Committee, in fixing
the market price, shall have full authority and discretion and be fully
protected in doing so.

       (h)     "Non-Employee Director(s)" shall mean a director of the Company
who is not a regular salaried employee of the Company or one of its
Subsidiaries.

       (i)     "Optionee" shall mean an Eligible Employee, Eligible Participant
or Non-Employee Director having a right to purchase Common Stock under an
Agreement.

       (j)     "Option(s)" shall mean the right or rights granted to Eligible
Employees, Eligible Participants or Non- Employee Directors to purchase Common
Stock under the Plan.

       (k)     "Plan" shall mean this P.A.M. Transportation Services, Inc. 1995
Stock Option Plan.

       (l)     "Shares," "Stock" or "Common Stock" shall mean shares of the
$.01 par value common stock of the Company.

       (m)     "Subsidiary" shall mean any corporation, if the Company owns or
controls, directly or indirectly, more than a majority of the voting stock of
such corporation.

       (n)     "Ten Percent Owner" shall mean an individual who, at the time an
Option is granted, owns directly or indirectly more than ten percent (10%) of
the total combined voting power of all classes of stock of the Company or a
Subsidiary.

                              12.  EFFECTIVE DATE

       The effective date of the Plan (the "Effective Date") shall be the date
the Plan is adopted by the Board of Directors or the date the Plan is approved
by the shareholders of the Company, whichever is earlier.  The Plan must be
approved by the affirmative vote of not less than a majority of the shares
present and voting at a meeting at which a quorum is present, which shareholder
vote must be taken within twelve (12) months after the date the Plan is adopted
by the Board of Directors.  Such shareholder vote shall not alter the Effective
Date of the Plan.  In the event shareholder approval of the adoption of the
Plan is not obtained within the aforesaid twelve (12) month period, then any
Options granted in the intervening period shall be void.

                         13.  SHARES RESERVED FOR PLAN

       The shares of the Company's Common Stock to be sold to Eligible
Employees, Eligible Participants and Non-Employee Directors under the Plan may
at the election of the Board of Directors be either treasury shares or Shares
originally issued for such purpose.  The maximum number of Shares which shall
be reserved and made available for sale under the Plan shall be 600,000;
provided, however, that such Shares shall be subject to the adjustments
provided in Section 8(h).  Any Shares subject to an Option which for any reason
expires or is terminated unexercised may again be subject to an Option under
the Plan.



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                        14.  ADMINISTRATION OF THE PLAN

       The Plan shall be administered by the Board of Directors of the Company
if each member is a disinterested person (as defined herein), or the Committee.
The Committee shall be comprised of not less than two (2) members appointed by
the Board of Directors of the Company from among its members.  No member of the
Board of Directors shall be appointed or serve as a member of the Committee,
and any such appointment or service immediately and automatically shall
terminate, in the event that such person is not a disinterested person. As used
herein, the term "disinterested person" means a director who is not, during the
one year prior to service as an administrator of the Plan, or during such
service, granted or awarded equity securities pursuant to the Plan or any other
plan of the Company or any of its affiliates (as such term is defined in the
General Rules and Regulations of the Securities Exchange Act of 1934, as
amended (the "Exchange Act")), except for such grants or awards which would not
disqualify the director as a "disinterested person" under Rule 16b-3 under the
Exchange Act.

       Within the limitations described herein, the Board of Directors of the
Company or the Committee shall administer the Plan, select the Eligible
Employees and Eligible Participants  to whom Options will be granted, determine
the number of shares to be optioned to each Eligible Employee and Eligible
Participant and interpret, construe and implement the provisions of the Plan.
The Board of Directors or the Committee shall also determine the price to be
paid for the Shares upon exercise of each Option, the period within which each
Option may be exercised, and the terms and conditions of each Option granted to
the Plan.  The Board of Directors and Committee members shall be reimbursed for
out-of-pocket expenses reasonably incurred in the administration of the Plan.

       If the Plan is administered by the Board of Directors, a majority of the
members of the Board of Directors shall constitute a quorum, and the act of a
majority of the members of the Board of Directors present at any meeting at
which a quorum is present, or acts approved in writing by all members of the
Board of Directors shall be the acts of the Board of Directors.  If the Plan is
administered by the Committee, a majority of the members of the Committee shall
constitute a quorum, and the acts of a majority of the members present at any
meeting at which a quorum is present, or acts approved in writing by all of the
members of the Committee shall be the acts of the Committee.

                                15.  ELIGIBILITY

       Options granted pursuant to Section 8 shall be granted only to Eligible
Employees.  Options granted pursuant to Section 9 may be granted to Eligible
Employees and to Eligible Participants.  Options granted pursuant to Section 10
shall be granted only to Non-Employee Directors.

                           16.  DURATION OF THE PLAN

       The Plan shall remain in effect until all Shares subject to or which may
become subject to the Plan shall have been purchased pursuant to Options
granted under the Plan; provided that Options under the Plan must be granted
within ten (10) years from the Effective Date.  The Plan shall expire on the
tenth anniversary of the Effective Date.


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                        17.  QUALIFIED INCENTIVE OPTIONS

       It is intended that Options granted under this Section 8 shall be
qualified incentive stock options under the provisions of Section 422 of the
Code and the regulations thereunder or corresponding provisions of subsequent
revenue laws and regulations in effect at the time such Options are granted.
Such Options shall be evidenced by stock option agreements in such form and not
inconsistent with this Plan as the Committee or the Board of Directors shall
approve from time to time, which Agreements shall contain in substance the
following terms and conditions:

       (a)     Price.  The purchase price for shares purchased upon exercise
will be equal to 100% of the Market Price on the day the Option is granted, as
determined by the Board of Directors or the Committee; provided that the
purchase price of stock deliverable upon the exercise of a qualified incentive
option granted to a Ten Percent Owner shall be not less than one hundred ten
percent (110%) of the Market Price on the day the Option is granted, as
determined by the Board of Directors or the Committee, but in no case less than
the par value of such stock.

       (b)     Number of Shares.  The Agreement shall specify the number of
Shares which the Optionee may purchase under such Option.

       (c)     Exercise of Options.  The shares subject to the Option may be
purchased in whole or in part by the Optionee in accordance with the terms of
the Agreement, from time to time after shareholder approval of the Plan, but in
no event later than ten (10) years from the date of grant of the Option.
Notwithstanding the foregoing, Shares subject to an Option granted to a Ten
Percent Owner shall be exercisable no later than five (5) years from the date
of grant of the Option.

       (d)     Medium and Time of Payment.  Stock purchased pursuant to an
Agreement shall be paid for in full at the time of purchase.  Payment of the
purchase price shall be in cash or shares of the Common Stock of the Company,
or a combination of cash and shares of the Common Stock of the Company, in the
discretion of, and as authorized by, the Committee.  Upon receipt of payment,
the Company shall, without transfer or issue tax, deliver to the Optionee (or
other person entitled to exercise the Option) a certificate or certificates for
such Shares.

       (e)     Rights as a Shareholder.  An Optionee shall have no rights as a
shareholder with respect to any Shares covered by an Option until the date of
issuance of the stock certificate to the Optionee for such Shares.  Except as
otherwise expressly provided in the Plan, no adjustments shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other
property) or distributions or other rights for which the record date is prior
to the date such stock certificate is issued.

       (f)     Nonassignability of Option.  No Option shall be assignable or
transferable by the Optionee except by will or by the laws of descent and
distribution.  During the lifetime of the Optionee, the Option shall be
exercisable only by him or her.

       (g)     Effect of Termination of Employment or Death.  In the event that
an Optionee during his or her lifetime ceases to be an employee of the Company
or of any subsidiary of the Company for any reason (including retirement) other
than death or permanent and total disability, any Option or unexercised portion
thereof which was otherwise exercisable on the date of termination of
employment shall expire unless exercised within a period of three (3) months
from the date on which the Optionee ceased to be an employee, but in no event
after the term provided in the Optionee's



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Agreement. In the event that an Optionee ceases to be an employee of the Company
or of any subsidiary of the Company for any reason (including retirement) other
than death or permanent and total disability prior to the time that an Option or
portion thereof becomes exercisable, such Option or portion thereof which is not
then exercisable shall terminate and be null and void. Whether authorized leave
of absence for military or government service shall constitute termination of
employment for the purpose of this Plan shall be determined by the Board of
Directors or the Committee, which determination shall be final and conclusive.

       In the event that an Optionee during his or her lifetime ceases to be an
employee of the Company or any subsidiary of the Company by reason of death or
permanent and total disability, any Option or unexercised portion thereof which
was otherwise exercisable on the date such Optionee ceased employment shall
expire unless exercised within a period of one (1) year from the date on which
the Optionee ceased to be an employee, but in no event after the term provided
in the Optionee's Agreement.  In the event that an Optionee during his or her
lifetime ceases to be an employee of the Company or any subsidiary of the
Company by reason of death or permanent and total disability, any Option or
portion thereof which was not exercisable on the date such Optionee ceased
employment shall become immediately exercisable for a period of one (1) year
from the date on which the Optionee ceased to be an employee, but in no event
after the term provided in the Optionee's Agreement.

       "Permanent and total disability" as used in this Plan shall be as
defined in Section 22(e)(3) of the Code.

       In the event of the death of an Optionee, the Option shall be
exercisable by his or her personal representatives, heirs or legatees, as
provided herein.

       (h)     Recapitalization.  In the event that dividends are payable in
Common Stock of the Company or in the event there are splits, subdivisions or
combinations of shares of Common Stock of the Company, the number of Shares
available under the Plan shall be increased or decreased proportionately, as
the case may be, and the number and Option exercise price of Shares deliverable
upon the exercise thereafter of any Option theretofore granted shall be
increased or decreased proportionately, as the case may be, as determined to be
proper and appropriate by the Board of Directors or the Committee.

       (i)     Reorganization.  In case the Company is merged or consolidated
with another corporation and the Company is not the surviving corporation, or
in case the property or stock of the Company is acquired by another
corporation, or in case of a separation, reorganization, recapitalization or
liquidation of the Company, the Board of Directors of the Company, or the Board
of Directors of any corporation assuming the obligations of the Company
hereunder, shall either (i) make appropriate provision for the protection of
any outstanding Options by the substitution on an equitable basis of
appropriate stock of the Company, or of the merged, consolidated or otherwise
reorganized corporation which will be issuable in respect to the shares of
Common Stock of the Company, provided only that the excess of the aggregate
fair market value of the Shares subject to option immediately after such
substitution over the purchase price thereof is not more than the excess of the
aggregate fair market value of the Shares subject to option immediately before
such substitution over the purchase price thereof, or (ii) upon written notice
to the Optionee provide that the Option (including, in the discretion of the
Board of Directors, any portion of such Option which is not then exercisable)
must be exercised within sixty (60) days of the date of such notice or it will
be terminated.  If any adjustment under this Section 8(i) would create a
fractional share of Stock or



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a right to acquire a fractional share, such shall be disregarded and the number
of shares of Stock available under the Plan and the number of Shares covered
under any Options previously granted pursuant to the Plan shall be the next
lower number of shares of Stock, rounding all fractions downward.  An
adjustment made under this Section 8(i) by the Board of Directors shall be
conclusive and binding on all affected persons.

       Except as otherwise expressly provided in this Plan, the Optionee shall
have no rights by reason of any subdivision or consolidation of shares of stock
of any class, or the payment of any stock dividend or any other increase or
decrease in the number of shares of stock of any class, or by reason of any
dissolution, liquidation, merger, or consolidation or spin-off of assets or
stock of another corporation; and any issue by the Company of shares of stock
of any class, or securities convertible into shares of stock of any class,
shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number or prices of shares of Common Stock subject to an
Option.

       The grant of an Option pursuant to the Plan shall not affect in any way
the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure or to merge or
to consolidate or to dissolve, liquidate or sell, or transfer all or any part
of its business or assets.

       (j)     Annual Limitation. The aggregate fair market value (determined
at the time the Option is granted) of the shares with respect to which
incentive stock options are exercisable for the first time by an Optionee
during any calendar year (under all incentive stock option plans of the
Company) shall not exceed $100,000.  Any excess over such amount shall be
deemed to be related to and part of a non-qualified stock option granted
pursuant to Section 9.

       (k)     General Restriction.  Each Option shall be subject to the
requirement that if at any time the Board of Directors shall determine, in its
discretion, that the listing, registration or qualification of the Shares
subject to such Option upon any securities exchange or under any state or
federal law, or the consent or approval of any government regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting
of such Option or the issue or purchase of Shares thereunder, such Option may
not be exercised in whole or in part unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of
any conditions not acceptable to the Board of Directors.  Alternatively, such
Options shall be issued and exercisable only upon such terms and conditions and
with such restrictions as shall be necessary or appropriate to effect exemption
from such listing, registration, or other qualification requirement.

                           18.  NON-QUALIFIED OPTIONS

       The Board of Directors or the Committee may grant to Eligible Employees
or Eligible Participants Options under the Plan which are not qualified
incentive stock options under the provisions of Section 422 of the Code.  Such
non-qualified options shall be evidenced by Agreements in such form and not
inconsistent with this Plan as the Committee shall approve from time to time,
which Agreements shall contain in substance the same terms and conditions as
set forth in Section 8 hereof with respect to qualified incentive options;
provided, however, that the limitations set forth in Sections 8(a) and 8(c)
with respect to Ten Percent Owners shall not be applicable to non-qualified
options granted to any Ten Percent Owner, and the limitation set forth in
Section 8(j) with respect to the annual limitation of incentive stock options
shall not be applicable to non-qualified option grants; provided further, that
non-qualified options may be granted at a purchase price equal to not less than
75% of the Market Price on the day the Option is granted.


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                     19.  OPTIONS TO NON-EMPLOYEE DIRECTORS

       Notwithstanding any provisions of the Plan to the contrary, the
participation and eligibility of a Non-Employee Director in the Plan shall be
limited exclusively to the following:

       (a)     On March 2, 1997 and on March 2 of each year thereafter during
the term of this Plan, each then Non-Employee Director of the Company shall be
granted, without the necessity of action by the Board of Directors or any
committee thereof, an Option to purchase 1,000 shares of Common Stock at an
option exercise or purchase price equal to the Market Price of such Stock on
the date of grant; provided, that in the event that the date of grant falls on
a weekend or holiday, then the option exercise price shall be determined by
reference to the Market Price of the Common Stock on the business day next
preceding the grant date.

       (b)     Options granted under this Section 10 shall be exercisable
commencing on the date of grant or, with respect to any Option granted prior to
stockholder approval of this Plan, upon the date of such stockholder approval,
and thereafter until the earlier to occur of the following: the close of
business on (i) the date which is the fifth anniversary of the date of grant;
(ii) the date which is the 90th day following the date upon which such
Non-Employee Director ceases to be a director of the Company for any reason
other than death or permanent and total disability; or (iii) the date which is
the first anniversary of the date on which such Non-Employee Director ceases to
be a director of the Company as a result of death or permanent and total
disability.

       (c)     In all other respects, Options granted to Non-Employee Directors
hereunder shall contain in substance the same terms and conditions as set forth
in Section 9 hereof with respect to non-qualified options.  No Non-Employee
Director shall be eligible to receive Options hereunder except as provided in
this Section 10.  This Section may not be amended more than once every six
months.

                           20.  AMENDMENT OF THE PLAN

       The Plan may at any time or from time to time be terminated, modified or
amended by the affirmative vote of not less than a majority of the shares
present and voting thereon by the Company's shareholders at a meeting of the
shareholders at which a quorum is present.  The Board of Directors may at any
time and from time to time modify or amend the Plan in any respect, except that
without shareholder approval the Board of Directors may not (1) increase the
maximum number of Shares for which Options may be granted under the Plan (other
than increases due to changes in capitalization as referred to in Section 8(h)
hereof), or (2) reduce the option exercise price or waiting period (except as
otherwise expressly provided in Sections 8(h) and 8(i) hereof), or (3) extend
the maximum period during which Options may be granted or exercised, or (4)
change the class of persons eligible for Options under Section 6 hereof, or (5)
otherwise materially modify (within the meaning of Rule 16b-3 of the Exchange
Act) the requirements as to eligibility for participation in the Plan, or (6)
otherwise materially increase (within the meaning of Rule 16b-3 of the
Securities Exchange Act of 1934, as amended) the benefits accruing to
participants under the Plan.  The termination or any modification or amendment
of the Plan shall not, without the written consent of an Optionee, affect his
or her rights under an Option or right previously granted to him or her.  With
the written consent of the Optionee affected, the Board of Directors or the
Committee may amend outstanding option agreements in a manner not inconsistent
with the Plan.  Without employee consent, the Board of Directors may at any
time and from time to time modify or amend outstanding option agreements in
such respects as it shall deem necessary in order that incentive options
granted



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hereunder shall comply with the appropriate provisions of the Code and
regulations thereunder which are in effect from time to time respecting
"Qualified Incentive Options."  The Company's Board of Directors may also
suspend the granting of Options pursuant to the Plan at any time and may
terminate the Plan at any time; provided, however, no such suspension or
termination shall modify or amend any Option granted before such suspension or
termination unless (1) the affected participant consents in writing to such
modification or amendment or (2) there is a dissolution or liquidation of the
Company.

                              21.  BINDING EFFECT

       All decisions of the Board of Directors or the Committee involving the
implementation, administration or operation of the Plan or any offering under
the Plan shall be binding on the Company and on all persons eligible or who
become eligible to participate in the Plan.

                           22.  APPLICATION OF FUNDS

       The proceeds received by the Company from the sale of Common Stock
pursuant to Options exercised hereunder will be used for general corporate
purposes.





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