Exhibit 10.1  














GEHL  





Executive Incentive
Plan  






2004  













Date:  March 19, 2004  




Gehl Company
143
Water Street
West Bend, WI 53095  














Executive Incentive
Plan 



2004 



	
 Objectives  






The Gehl Company Executive Incentive
Plan (the Plan) has been designed to provide an incentive to meet and exceed financial and
operational goals, and to promote a superior level of performance. Within the overall
context of Gehl Company’s pay philosophy and culture, the specific objectives of the
Plan are to: 



	• 	Provide
competitive levels of total cash compensation. 







	• 	Align
pay with organizational and individual performance.






	• 	Focus
executive attention on key business metrics.






	• 	Provide
a significant incentive for achieving and exceeding performance goals. 






	• 	Create
a focus on shareholder value.






	• 	Be
simple, easily understood and administered.






	
 Plan Timing and
Administration  







	• 	The
Plan is effective January 1, 2004, and will remain so until cancelled or amended by the
Board of Directors. 






	• 	Awards
will be paid to eligible participants within 60 days following the receipt of audited
financial results. 






	• 	Gehl
Company management will have primary responsibility for Plan administration and award
calculation. 






	• 	The
Gehl Company Board of Directors will be responsible for overall Plan approval, and upon
recommendation of the Compensation Committee, the approval of annual performance goals,
and approval of award payments based on financial results and calculated payments (as
recommended by management). 






	• 	The
Compensation Committee will annually designate those positions eligible to participate in
the Plan based on the recommendations of management. 






Any decision made or action taken by
Gehl Company Management, the Board of Directors, or the Compensation Committee in
connection with the administration of the Plan shall be at their absolute discretion and
will be conclusive and binding on all parties. No member of the Board of Directors, the
Compensation Committee or employee of Gehl Company will be liable for any action related
to Plan administration whether of omission or commission. 




2 









	
 Plan Design  







Eligibility & Target
Awards 




Eligibility and target award levels
(expressed as a percentage of base salary) will be approved by the Compensation Committee
based on management recommendation and will be limited to positions that have a
significant impact on the success of the organization. 



The eligible participant’s
target award will be the basis upon which the individual’s annual bonus is
calculated. A listing of eligible participants, recommended by the CEO for the Annual
Executive Incentive Plan, will be provided annually for approval by the Board of Directors
upon the recommendation of the Compensation Committee. 



In general, only eligible
participants who are actively employed on the last day of the measurement period (December
31) will be eligible for an award. Specifically: 



	• 	Employees
who terminate during the Plan year for reasons of death, disability (as determined by the
company), retirement or job elimination may receive a pro-rated award share at the normal
award date. 






	• 	Employees
who terminate during the plan year for any other reason (voluntary or involuntary)
forfeit rights to an award for that year. 






	• 	Employees
who enter the Plan during the plan year or are promoted into a higher level during the
Plan year, prior to June 30, will be pro-rated for the full months spent in the position. 






	• 	Award
targets will be based on base salaries as of January 1st of each Plan year and
base salary changes will not affect the award target level. 






Notwithstanding any other provisions
of the Plan, the Compensation Committee may recommend full or partial payment of an award
subject to final Board of Directors approval. 



The following Gehl Company business
units are eligible for participation in this Plan: 



	• 	Gehl
(West Bend, Yankton, Madison) 






	• 	Mustang 






	• 	CEA






	• 	Gehl
Europe 






Participants in this Plan for each
specific Gehl Company unit will have specific metrics to measure and reward for the
corporate, business unit and individual performance as explained hereafter. 




3 









Performance Metrics 




The Plan will measure and reward for
corporate, business unit, and individual performance. Specific
weightings can be found on page 7. Specific performance standards for the year will be
recommended by management and approved by the Board of Directors and the Compensation
Committee. 



Corporate Performance
(For Corporate, West Bend, Yankton, Madison)  



The key performance metrics will be
determined by the Compensation Committee, in consultation with management and the Board
of Directors.  



	• 	For
the 2004 Plan, the measures will be: 






	 	•	Net
Income Before Tax — Less Non-Recurring Items  






	 	•	Return
on Assets  






	• 	Target
performance for each metric will be at 100% of the Annual Business Plan value. 






	 	•	Net
Income Before Tax – Less Non-Recurring Items – 55% weighting  






	 	- 	Target
- 100% 






	 	- 	Threshold
- 80% 






	 	•	Asset
Management -Return on Assets – 25% weighting  






	 	- 	Target
- 100% 






	 	- 	Threshold
- 80% 






Business Unit
Performance  



	• 	Business
unit performance will be measured by Operating Profit for the Business unit. 






	• 	The
performance range mirrors the performance range for corporate performance (i.e., 80% to
150% of target). 






	• 	Asset
management measurements for business unit participants are incorporated within the
individual objectives component of annual incentive plan and must be documented and
measurable. 











4 













Individual Performance  



Each Plan participant will have
between three and five individual goals. These goals will be tied to the
business plan and will be: 



	• 	Specific 






	• 	Measurable 






	• 	Action
Oriented 






	• 	Realistic,
and 






	• 	Time/budget
controlled 






Some of the goals included in the
individual category may be qualitative, however, management will attempt to provide
quantitative, measurable objectives for individual performance. For Business Unit
participants, where applicable, asset management effectiveness must be a component of the
individual objectives. 



If performance-to-goal cannot be
quantified, management and/or the Compensation Committee discretion will be used to
evaluate goal attainment as follows: 



	Performance 
	Did not 
Achieve 
	Partially 
Achieved 
	Fully 
Achieved 
	Clearly 
Exceeded 

	Award as a % of Target	0% to 25%	26% to 90%	91% to 105%	106% to 150%








Discretion within performance zones
will allow for the quality of the results and the impact of external circumstances on
performance. For example, if a manager made great progress on goal attainment under
difficult circumstances, they might receive an award of 85%, even though the goal was not
reached. A similar result reached under favorable circumstances might only result in a 30%
award. 



Individual performance (Key
Responsibility Area’s or KRA’s) will be a component of the Gehl Company
Executive Incentive Plan for all management participants. 









5 














Leverage for Corporate
and Business Unit Goals 




Payouts for the two performance
metrics will be calculated based on the following risk/reward curve: 



	• 	Return
on Assets and Net Income Before Tax - Less Non-Recurring Items: 






	 	•	Threshold:
80% of performance = 50% of target payout.






	 	•	Between
80% and 90%  performance  = each 1  percentage  point  increase in  performance  results
in a 2.50          percentage point increase in payout.  (ex. 88% ROA = 70 % bonus
attainment for that component)






	 	•	Between
 90%  and 95%  performance  = each 1 point  increase  in  performance  results  in a 4
 percentage          increase in payout.  (ex. 95% ROA = 95% bonus attainment for that
component






	 	•	Between
95.1% and Target (100%) performance = each 1 percentage point increase in performance
results in a 1 percentage point increase in payout. 






	 	•	Target:
100% of performance = 100% of payout.






	 	•	Between
100.1% and 105% performance = each 1 percentage point increase in performance results in
a 1 percentage increases in payout. 






	 	•	Between
105.1% and 110% performance = each 1 percentage point increase in performance results in
a 2 percentage increases in payout. 






	 	•	Between
110.1% and 120% performance and above = each 1 percentage point increase in performance
results in a 3 percentage increases in payout. (to a maximum award of 150% of target)








[CHART OMITTED]


 





	• 	Note
for Gehl Europe: No leverage factors will apply. Incentive payout to be based on linear
achievement of plan results for the performance range of 80% to 120% of target. For
example, 90% achievement of target will equal 90% payout of incentive. 










6 













Performance Weights  



The mix of performance goals for the
Plan participants is as follows. The differences in mix reflect differences in corporate
or business unit focus. 





	Performance Parameter
	Gehl
	Mustang
	CEA
	Gehl Europe

	Corporate Net 
Income Before Tax	55	55	55	55
	

	Business Unit 
Operating Profit	--	20	20	20
	

	Assets Management 
Return on Assets	25	--	--	--
	

	Individual Objectives	20	25	25	25
	








	• 	Note
that for Mustang, CEA and Gehl Europe individual objectives must include a significant
focus on asset management (where applicable). 


















7 













	
 Administration  









Amendment, Modification,
Suspension or Termination 




Gehl Company reserves the right, by
and through its Board of Directors, to amend, modify, suspend, reinstate or terminate all
or part of the Plan at any time. The Board of Directors, through the Compensation
Committee, will give prompt written notice to each participant of any amendment,
suspension or termination or any material modification of the Plan. In the event of a
merger or acquisition, the Plan and related financial formulas will be reviewed and, if
necessary, revised to take into account the financial status of any merged institution.
The Board of Directors, upon recommendation of the Committee will have the authority and
discretion to interpret final results, consider extraordinary events, and determine final
award payment as is necessary or fiscally advisable. 



No Employment Contract 




Neither the establishment nor the
maintenance of the Plan shall be construed as conferring any legal rights upon any
participant or any person for a continuation of employment, nor shall it interfere with
the right of an employer to discharge any participant or otherwise deal with him/her
without regard to the existence of the Plan. 
















8 












	
 Terms Used  











Annual Bonus – Sum
of all annual variable cash (includes cash profit-sharing and incentives) payments
eligible for award under the terms and conditions of this plan. 



Asset Management ROA –
Income Before Taxes and Non-recurring items divided by average total assets (using 13
point average). 



Award Target – The
percentage of annual base pay an eligible participant is eligible for achievement. The
annual bonus amount is represented as a percentage of base pay. 



Base Salary – Fixed and
recurring portion of an executive’s compensation as reported on an annual basis. 



Corporate Net Income –
Net Income Before Taxes and Non-recurring items. 



Total Cash Compensation (TCC)
– Base salary plus annual cash bonus for each executive. 

















9