EXHIBIT 10.3  








GEHL COMPANY
2004 EQUITY INCENTIVE
PLAN  



STOCK OPTION AGREEMENT
FOR NON-EMPLOYEE
DIRECTORS  






        THIS
 AGREEMENT,  dated 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 2004 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,
the Plan authorizes the automatic grant of options to purchase shares of the
Company’s Common Stock, $.10 par value (the “Common Stock”), to members of
the Company’s Board of Directors who are not employees of the Company or any
affiliate of the Company (a “Non-Employee Director”); and 



        WHEREAS,
the Optionee is now a Non-Employee Director, and the Company desires him to continue as a
member of the Company’s Board of Directors and to secure or increase his stock
ownership in the Company as an added incentive for him to continue his association with
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 hereby grants to the Optionee an option           (the “Option”)
to purchase from the Company all or any part of the           aggregate amount of 2,000
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, or any successor           provision thereto.  




        2.     Option
Price. The per share exercise price to be paid for           the Optioned
Shares shall be $_____.  

















        3.     Exercisability
and Termination of Option. The Option may be           exercised by the
Optionee only in accordance with the following schedule:  





	Elapsed Period of Time

After Date Option is Granted 
	Cumulative Percentage of Shares Subject

to Option Which May be Purchased 

(which number of shares shall be 

rounded 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 %







Notwithstanding the foregoing
schedule, if the Optionee ceases to be a director of the Company by reason of death,
disability or retirement prior to ______________, ____, or in the event of a Change of
Control of the Company (as defined in the Plan) prior to ______________, ____, the Option
shall become immediately exercisable in full. The Option shall terminate on the earlier
of: (i) _______________, ____; or (ii) twelve months after the Optionee ceases to be a
director of the Company for any reason, including as a result of the Optionee’s
death, disability or retirement. 



        4.     Manner
of Exercise and Payment. Subject to the provisions           of Paragraph 3
hereof and the Plan, the Option may be exercised in full at           any time or in part
from time to time by delivery to the Secretary of the           Company at the Company’s
principal office in West Bend, Wisconsin, of a           written notice of exercise
specifying the number of shares with respect to which           the Option is being
exercised. The notice of exercise must be accompanied by           payment in full of the
exercise price of the shares being purchased: (i) in cash           or its equivalent;
(ii) by tendering previously acquired shares of Common Stock           (valued at their
“market value” as of the date of exercise, as           determined in the
manner provided in Section 6(b)(iv) of the Plan); or (iii) by           any combination
of the means of payment set forth in subparagraphs (i) and (ii).           For purposes
of subparagraphs (ii) and (iii) above, the term “previously           acquired
shares of Common Stock” shall only include shares of Common Stock           owned by
the Optionee at least six months prior to the exercise of the Option           for which
payment is being made 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           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 6 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.  










2 














        6.       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 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 Compensation Committee of           the Board of Directors of the
Company or such other committee of the Board which           shall have been designated
to administer the Plan (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 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.  




        7.     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.  




        8.     Transfer
Restrictions. The shares to be acquired upon           exercise of the
Option may not be sold or otherwise disposed of 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
registration under said Act.  




        9.     Status
of Optionee. The Optionee shall have no rights as a           shareholder
with respect to shares covered by the Option until the date of           issuance of
stock certificates to the Optionee and only after such shares are           fully paid.
The Option shall not confer upon the Optionee the right to continue           as a
director of the Company.  












3  













        10.     Interpretation
by Committee. As a condition of the granting           of the Option, the
Optionee agrees, for himself and his personal           representatives, that this
Agreement shall be interpreted by the Committee and           that, subject to the
express terms of the Plan, 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 Agreement to be executed by its duly
authorized officers, and the Optionee has hereunto affixed his hand as to the day and year
first above written. 



		GEHL COMPANY



		By:   	   

			Name / Title



 
		Attest:   	   

			Name / Title
 






		
		______________________________________, Optionee








		Beneficiary:   	   







		Address of Beneficiary:   	   
		   

		   







		Beneficiary's Tax Identification/   
		Social Security No.:   	 












4