Document:

FINLAY KEY EMPLOYEE SPECIAL SEVERANCE PAY PLAN
     ----------------------------------------------

A. PURPOSE
   --------

     The purpose of the Finlay Key Employee Special Severance Pay Plan (the
     "Plan") is to provide temporary and short-term benefits to certain named
     "Key Employees" as determined by the Compensation Committees of the Boards
     of Directors (the "Committees") of Finlay Enterprises, Inc. and its and
     their subsidiaries, (the "Company") when such employee is involuntarily
     terminated under the conditions described in Section C. below. Severance
     payments under this Plan are not earned benefits, nor do they constitute a
     payment for past services.

B. ELIGIBLE EXECUTIVES
   -------------------

     The benefits under this Plan are limited to those individuals who are
     designated in writing by the Committees in their sole discretion as "Key
     Employees". All other employees are ineligible to participate in the Plan.
     Key Employees designated to receive a benefit under this Plan will not be
     eligible for benefits under the Finlay Fine Jewelry Corporation Executive
     Severance Pay Plan or any other plan providing severance or similar
     payments to Company employees.

C. CONDITIONS FOR PAYMENT
   ----------------------

   1.    Benefits hereunder are payable to those eligible Key Employees who (a)
         remain in the active employ of the Company and perform their jobs in a
         satisfactory manner as determined by the Company until such date as the
         Company shall specify as a condition of receiving payment of severance
         benefits hereunder, and (b) are permanently and involuntarily separated
         from the Company as of such specified date solely as a result of a
         merger of The May Department Stores Company with and into Federated
         Department Stores, Inc. (the "Merger").

   2.    Benefits will not be paid if termination occurs because an otherwise
         eligible Key Employee:

         -    is discharged for any reason except as a result of a layoff or
              reduction in force resulting from the Merger. For purposes of this
              Plan, a layoff or reduction in force is defined as an involuntary,
              permanent termination of employment initiated by the Company
              because of lack of work, lack of funds, sale of assets,
              elimination of a position, or for

                                       1

              any other reason related to the Merger as determined by the
              Company in its sole discretion;

         -    resigns, quits or retires; or

         -    is covered by an employment contract which provides for a
              severance payment.

   Additionally, an otherwise eligible Key Employee will not receive payments
   hereunder if the Company arranges for such individual to receive a comparable
   offer of employment with a subsidiary, whether direct or indirect, of the
   Company. For purposes of this Plan, "Comparable Employment" shall mean a
   position with similar job responsibilities and title, no less than the former
   position's base salary, and a base of operations within a 25 mile radius of
   the former position.

   Any payments under this Plan are conditioned upon the Key Employee's
   execution and return to the Company's authorized representative (without the
   revocation thereof and within the specified time period) of a severance
   agreement and release (the "Release") in such form as the Company shall
   prescribe and such other documents as the Company shall determine necessary
   in its sole discretion.

D. AMOUNT OF SEVERANCE ALLOWANCE
   -----------------------------

         CLASS I
         -------

         Key Employees qualifying as covered in Class I under the Plan shall be
         entitled to severance pay in the amount of one year's base salary at
         his or her then current rate.

         CLASS II

         Key Employees qualified as covered in Class II under the Plan shall be
         entitled to severance pay in the amount of one year's base salary at
         his or her then current rate, plus one year's bonus calculated by
         averaging the annual bonus amounts paid or payable to said individual
         over the three fiscal-year period immediately preceding the termination
         date of his or her employment.

   Benefits paid pursuant to this Plan will be paid in a lump sum less all
   applicable withholding taxes and lawful deductions on a regular pay day of
   the Company as specified in the Release.

   Benefits under this Plan may not be anticipated, assigned or alienated. The
   existence of this Plan shall in no way be construed as a restriction of the
   Company's right to terminate the employment

                                       2

   of any Key Employee at any time, with or without notice, or for any reason or
   no reason.

E. EFFECT OF SEVERANCE ALLOWANCE ON EMPLOYMENT OR COMPANY BENEFITS
   ---------------------------------------------------------------

   The term of a Key Employee's employment or participation in other Company
   benefit plans shall not be extended by reason of the Company's payment of any
   severance allowance hereunder.

F. CLAIMS PROCEDURE
   ----------------

   The Plan Administrator has the authority to review and authorize payment of
   benefits to those Key Employees who qualify under the provisions of the Plan.
   No claim forms need be submitted. Questions regarding payment of benefits
   hereunder are to be directed to the Company's Executive Vice President of
   Administration, Senior Vice President of Human Resources or General Counsel.

   If a Key Employee feels that he or she has not been provided with benefits
   due under the Plan, such Key Employee should file a written claim for
   severance benefits with the Plan Administrator. A decision to grant or deny
   the claim will be made within 90 days following receipt of the claim. If more
   than 90 days is required to render a decision, the Key Employee will be
   notified in writing of the reason(s) for the delay. In no event will a
   decision to grant or deny a claim be made later than 180 days following the
   initial receipt of the claim.

   If the claim is denied in whole or in part, the Key Employee will receive a
   written explanation of the specific reason(s) for the denial, including a
   reference to the Plan provisions upon which the denial is based.

   If the Key Employee wishes to appeal the denial, such Key Employee may write
   to the Plan Administrator within 60 days after receipt of the denial. The
   claim will then be rereviewed and the Key Employee will receive written
   notice of the final decision within 60 days after the request for review. If
   more than 60 days is required to render a decision, the Key Employee will be
   notified in writing of the reason(s) for the delay. In no event will the Key
   Employee receive a written notice of the final decision later than 120 days
   after receipt of the appeal request.

G. AUTHORITY VESTED IN PLAN OFFICIALS
   ----------------------------------

   The Company shall have sole, full and complete authority and discretion to
   interpret, apply and administer the terms of the Plan and to determine all
   issues of benefit eligibility thereunder.

                                       3

   To the extent permitted by law, all determinations made in the exercise of
   this discretion are final and binding on all parties concerned.

H. ADDITIONAL INFORMATION
   ----------------------

         Name of Plan: FINLAY KEY EMPLOYEE
                       SPECIAL SEVERANCE PAY PLAN

         Plan Sponsor: Finlay Enterprises, Inc.

         Employer Identification Number: 13-3492802

         Type of Plan: Employee Welfare Benefit Plan under the
                       Employee Retirement Income Security Act

         Type of Administration: Self-Administered

         Plan Administrator: Finlay Fine Jewelry Corporation, 529 Fifth Avenue,
         New York, New York 10017; telephone (212) 808-2800

         Agent for service of legal process: Finlay Fine Jewelry Corporation,
         529 Fifth Avenue, New York, New York 10017; Attn: General Counsel

         Funding medium: Self-funded; benefits are payable from the general
                         assets of the Key Employee's employer

         Plan Year: February 1 to January 31

         Plan Number: 502

   As a participant in the Plan, you are entitled to certain rights and
   protections under the Employee Retirement Income Security Act of 1974
   ("ERISA"). ERISA provides that all Plan participants shall be entitled to:

     -   Receive Information About Your Plan and Benefits.

     -   Examine, without charge, at the Plan Administrator's office and at
         other locations required under U.S. Department of Labor regulations,
         all documents governing the Plan.

     -   Obtain, upon written request to the Plan Administrator, copies of
         documents governing the operation of the Plan and an updated summary
         plan description. The Plan Administrator may make a reasonable charge
         for copies.

Prudent Actions by Plan Fiduciaries

                                       4

         In addition to creating rights for Plan participants, ERISA imposes
         duties upon the people who are responsible for the operation of the
         Plan. The people who operate the plan, called "fiduciaries" of the
         Plan, have a duty to do so prudently and in the interest of you and
         other Plan participants and beneficiaries. No one, including your
         employer or any other person, may fire you or otherwise discriminate
         against you in any way to prevent you from obtaining a welfare benefit
         or exercising your rights under ERISA.

   Enforce Your Rights

         If your claim for a benefit is denied or ignored, in whole or in part,
         you have a right to know why this was done, to obtain copies of
         documents relating to the decision without charge, and to appeal any
         denial, all within certain time schedules.

         Under ERISA, there are steps you can take to enforce the above rights.
         For instance, if you request a copy of Plan documents from the Plan and
         do not receive them within 30 days, you may file suit in a federal
         court. In such a case, the court may require the Plan Administrator to
         provide the materials and pay you up to $110 a day until you receive
         the materials, unless the materials were not sent because of reasons
         beyond the control of the Administrator. If you have a claim for
         benefits which is denied or ignored, in whole or in part you may file
         suit in a state or federal court. If you are discriminated against for
         asserting your rights, you may seek assistance from the U.S. Department
         of Labor, or you may file suit in a federal court. The court will
         decide who should pay court costs and legal fees. If you are
         successful, the court may order the person you have sued to pay these
         costs and fees. If you lose, the court may order you to pay these costs
         and fees, if for example, it finds your claim is frivolous.

   Assistance with Your Questions

         If you have any questions about your Plan, you should contact the Plan
         Administrator. If you have any questions about this statement or about
         your rights under ERISA, or if you need assistance in obtaining
         documents from the Plan Administrator, you should contact the nearest
         office of the Employee Benefits Security Administration, U.S.
         Department of Labor, listed in your telephone directory or the Division
         of Technical Assistance and Inquiries, Employee Benefits Security
         Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
         Washington, D.C. 20210. You may also obtain certain publications about
         your rights and responsibilities under ERISA by calling the
         publications hotline of the Employee Benefits Security Administration.

                                       5

I. AMENDMENT AND TERMINATION

         The Company reserves the right to amend this Plan, in whole or in part,
         or discontinue or terminate the Plan; provided, however, that any such
         amendment, discontinuance or termination shall not affect any right of
         any Key Employee to claim benefits under the Plan for events occurring
         prior to the date of such amendment, discontinuance or termination. An
         amendment to this Plan and/or resolution of discontinuance or
         termination, may be made by the Administrator, to the extent permitted
         by resolution of the Board of Directors.

         IN WITNESS WHEREOF, the Company has caused its officer, duly authorized
         by its Board of Directors, to execute the Plan effective as of the 16th
         day of June, 2005.

                                           FINLAY ENTERPRISES, INC.

                                           By /s/ Arthur E. Reiner
                                              ------------------------------
                                              Arthur E. Reiner
                                              Chairman and
                                              Chief Executive Officer<PAGE>

                                                                    EXHIBIT 10.2

                           SMITHWAY MOTOR XPRESS CORP.
                             2005 OMNIBUS STOCK PLAN

                        INCENTIVE STOCK OPTION AGREEMENT

================================================================================

Name of Optionee:
--------------------------------------------------------------------------------
No. of Shares Covered:                  Date of Grant:
--------------------------------------------------------------------------------
Exercise Price Per Share:               Expiration Date:
--------------------------------------------------------------------------------
Exercise Schedule (Cumulative):

          Date(s) of                    No. of Shares as to Which
        Exercisability                  Option Becomes Exercisable

================================================================================

      This is an Incentive Stock Option Agreement (the "Agreement") between
Smithway Motor Xpress Corp., a Nevada corporation (the "Company"), and the
optionee identified above (the "Optionee") effective as of the date of grant
specified above.

                                    RECITALS

      WHEREAS, the Company maintains the Smithway Motor Xpress Corp. 2005
Omnibus Stock Plan (the "Plan");

      WHEREAS, pursuant to the Plan, the Board of Directors of the Company (the
"Board") or a committee of two or more directors of the Company (the
"Committee") appointed by the Board administers the Plan and has the authority
to determine the awards to be granted under the Plan (if the Board has not
appointed a committee to administer the Plan, then the Board shall constitute
the Committee); and

      WHEREAS, the Committee has determined that the Optionee is eligible to
receive an award under the Plan in the form of an incentive stock option (the
"Option");

      NOW, THEREFORE, the Company hereby grants this Option to the Optionee
under the terms and conditions as follows.

                             TERMS AND CONDITIONS*

-------------
*     Unless the context indicates otherwise, terms that are not defined in this
Agreement shall have the meaning set forth in the Plan as it currently exists or
as it is amended in the future.

<PAGE>

1.    GRANT. The Optionee is granted this Option to purchase the number of
      Shares specified at the beginning of this Agreement.

2.    EXERCISE PRICE. The price to the Optionee of each Share subject to this
      Option shall be the exercise price specified at the beginning of this
      Agreement (which price shall not be less than the Fair Market Value as of
      the date of grant or, if the Optionee owns or is deemed to own stock
      possessing more than 10% of the combined voting power of all classes of
      stock of the Company, 110% of the Fair Market Value as of the date of
      grant).

3.    INCENTIVE STOCK OPTION. This Option is intended to be an "incentive stock
      option" within the meaning of Section 422 of the Internal Revenue Code of
      1986, as amended (the "Code").

4.    EXERCISE SCHEDULE. This Option shall vest and become exercisable as to the
      number of Shares and on the dates specified in the exercise schedule at
      the beginning of this Agreement. The exercise schedule shall be
      cumulative; thus, to the extent this Option has not already been exercised
      and has not expired, terminated or been cancelled, the Optionee or the
      person otherwise entitled to exercise this Option as provided herein may
      at any time, and from time to time, purchase all or any portion of the
      Shares then purchasable under the exercise schedule.

      This Option may also be exercised in full (notwithstanding the exercise
      schedule) under the circumstances described in Section 8 of this Agreement
      if it has not expired prior thereto.

5.    EXPIRATION. This Option shall expire at 5:00 p.m. Central Time on the
      earliest of:

      (a)   The expiration date specified at the beginning of this Agreement
            (which date shall not be later than ten years after the date of
            grant or, if the Optionee owns or is deemed to own stock possessing
            more than 10% of the combined voting power of all classes of stock
            of the Company, five years after the date of grant);

      (b)   The expiration of the period after the termination of employment of
            the Optionee within which the Option can be exercised (as specified
            in Section 7 of this Agreement), provided that the Committee may
            extend any such period following the termination of employment
            during which the Option can be exercised;

      (c)   Termination of the Optionee's employment for Cause. "Cause" shall be
            deemed to exist upon (i) an act or acts of dishonesty undertaken by
            Optionee and intended to result in substantial gain or personal
            enrichment of Optionee at the expense of the Company; (ii) unlawful
            conduct or gross misconduct that is willful and deliberate on
            Optionee's part and that, in either event, is materially injurious
            to the Company; (iii) the conviction of Optionee of a felony; or
            (iv) material breach by Optionee of any terms and conditions of any
            employment or non-competition/non-solicitation agreement between the
            Optionee and the Company not caused by the Company, which breach has
            not been cured by Optionee within ten days after written notice
            thereof to Optionee from the Company; or

      (d)   The date (if any) fixed for cancellation pursuant to Section 17 of
            the Plan.

      In no event may anyone exercise this Option, in whole or in part, after it
      has expired, notwithstanding any other provision of this Agreement.

6.    PROCEDURE TO EXERCISE OPTION.

      Notice of Exercise. This Option may be exercised by delivering written
      notice of exercise to the Company at the principal executive office of the
      Company, to the attention of the Company's Treasurer, in the form attached
      to this Agreement. The notice shall state the number of Shares to be
      purchased, and shall be signed by the person exercising this Option. If
      the person exercising this
                                      -2-

<PAGE>

      Option is not the Optionee, he/she also must submit appropriate proof of
      his/her right to exercise this Option.

      Tender of Payment. Upon giving notice of any exercise hereunder, the
      Optionee shall provide for payment of the purchase price of the Shares
      being purchased through one or a combination of the following methods:

      (a)   Cash (including check, bank draft or money order);

      (b)   To the extent permitted by law, through a broker-assisted cashless
            exercise in which the Optionee simultaneously exercises the Option
            and sells all or a portion of the Shares thereby acquired pursuant
            to a brokerage or similar relationship and uses the proceeds from
            such sale to pay the purchase price of such Shares;

      (c)   By delivery to the Company of unencumbered Shares having an
            aggregate Fair Market Value on the date of exercise equal to the
            purchase price of such Shares; or

      (d)   By authorizing the Company to retain, from the total number of
            Shares as to which the Option is exercised, that number of Shares
            having a Fair Market Value on the date of exercise equal to the
            purchase price for the total number of Shares as to which the Option
            is exercised.

      Notwithstanding the foregoing, the Optionee shall not be permitted to pay
      any portion of the purchase price with Shares, or by authorizing the
      Company to retain Shares upon exercise of the Option, if the Committee, in
      its sole discretion, determines that payment in such manner is
      undesirable.

      Delivery of Certificates. As soon as practicable after the Company
      receives the notice and purchase price provided for above, it shall
      deliver to the person exercising this Option, in the name of such person,
      a certificate or certificates representing the Shares being purchased. The
      Company shall pay any original issue or transfer taxes with respect to the
      issue or transfer of the Shares and all fees and expenses incurred by it
      in connection therewith. All Shares so issued shall be fully paid and
      nonassessable. Notwithstanding anything to the contrary in this Agreement,
      no certificate for Shares distributable under the Plan shall be issued and
      delivered unless the issuance of such certificate complies with all
      applicable legal requirements including, without limitation, compliance
      with the provisions of applicable state securities laws, the Securities
      Act of 1933, as amended (the "Securities Act") and the Exchange Act.

7.    EMPLOYMENT REQUIREMENT. This Option may be exercised only while the
      Optionee remains employed with the Company or a parent or subsidiary
      thereof, and only if the Optionee has been continuously so employed since
      the date of this Agreement; provided that:

      (a)   This Option may be exercised for three months following the day the
            Optionee's employment by the Company ceases if such cessation of
            employment is for a reason other than death or disability, but only
            to the extent that it was exercisable immediately prior to
            termination of employment, provided that if termination of the
            Optionee's employment shall have been for Cause, the Option shall
            expire, and all rights to purchase Shares hereunder shall terminate,
            immediately upon such termination.

      (b)   This Option may be exercised within one year after the Optionee's
            employment by the Company ceases if such cessation of employment is
            because of death or disability of the Optionee, but only to the
            extent it was exercisable immediately prior to cessation of
            employment.

                                      -3-

<PAGE>

      (c)   If the Optionee's employment terminates after a declaration made
            pursuant to Section 17 of the Plan in connection with Fundamental
            Change , the Option may be exercised at any time permitted by such
            declaration.

      Notwithstanding the above, the Option may not be exercised after it has
      expired.

8.    ACCELERATION OF VESTING.

      In the event of a Fundamental Change the Committee may, but shall not be
      obligated to:

      (a)   if the Fundamental Change is a merger or consolidation or statutory
            share exchange, make appropriate provision for the protection of
            this Option by the substitution for this Option of options or voting
            common stock of the corporation surviving any merger or
            consolidation or, if appropriate, the parent corporation of the
            Company or such surviving corporation; or

      (b)   at least ten days before the occurrence of the Fundamental Change,
            declare, and provide written notice to the Optionee of the
            declaration, that this Option, whether or not then exercisable,
            shall be canceled at the time of, or immediately before the
            occurrence of, the Fundamental Change (unless it shall have been
            exercised prior to the occurrence of the Fundamental Change). In
            connection with any such declaration, the Committee may, but shall
            not be obligated to, cause payment to be made to the Optionee of
            cash equal to, for each Share covered by the canceled Option, the
            amount, if any, by which the Fair Market Value per Share exceeds the
            exercise price per Share covered by this Option. At the time of any
            such declaration, this Option shall immediately become exercisable
            in full and the Optionee shall have the right, during the period
            preceding the time of cancellation of this Option, to exercise this
            Option as to all or any part of the Shares covered by this Option.
            In the event of a declaration pursuant to this subsection, to the
            extent this Option has not been exercised prior to the Fundamental
            Change, the unexercised part of this Option shall be canceled at the
            time of, or immediately before, the Fundamental Change, as provided
            in the declaration. Notwithstanding the foregoing, the holder of
            this Option shall not be entitled to the payment provided for in
            this subsection if this Option shall have expired pursuant to
            Section 5 above or been cancelled. For purposes of this subsection
            only, "Fair Market Value" per Share has the meaning set forth in
            Section 17 of the Plan.

      Discretionary Acceleration. Notwithstanding any other provisions of this
      Agreement to the contrary, the Committee may, in its sole discretion,
      declare at any time that the Option shall be immediately exercisable.

9.    LIMITATION ON TRANSFER. During the lifetime of the Optionee, only the
      Optionee or his/her guardian or legal representative may exercise the
      Option. The Option may not be assigned or transferred by the Optionee
      otherwise than by will or the laws of descent and distribution.

10.   NO SHAREHOLDER RIGHTS BEFORE EXERCISE. No person shall have any of the
      rights of a shareholder of the Company with respect to any Share subject
      to the Option until the Share actually is issued to him/her upon exercise
      of the Option.

11.   LOCK-UP PERIOD.

      (a)   The Optionee agrees that the Optionee will not offer, pledge, sell,
            contract to sell, sell any option, sell any contract to purchase,
            purchase any option, purchase any contract to sell, grant any
            option, right, or warrant to purchase, lend, or otherwise transfer
            or dispose of, directly or indirectly, any Shares (or any other
            Company securities) or enter into any swap, hedging, or other
            arrangement that transfers to another, in whole or in part, any of

                                       -4-

<PAGE>

            the economic consequences of ownership of any Shares (or any other
            Company securities) held by the Optionee (other than those included
            in the registration) for a period specified by the representative of
            the underwriters of Stock (or any other Company securities) not to
            exceed 90 days (180 days in the case of an initial public offering)
            after the effective date of any Company registration statement filed
            under the Securities Act.

      (b)   The Optionee agrees to execute and deliver such other agreements as
            may be reasonably requested by the Company or the underwriter to the
            extent that such agreements are consistent with the foregoing or
            that are necessary to give further effect to the provisions set
            forth in Section 11(a). In addition, if requested by the Company or
            the representative of the underwriters of Stock (or any other
            Company securities), the Optionee will provide, within 10 days of
            such request, such information as may be required by the Company or
            such representative in connection with the completion of any public
            offering of the Company's securities pursuant to a registration
            statement filed under the Securities Act.

      (c)   The obligations described in this Section 11 will not apply to a
            registration relating solely to employee benefit plans on Form S-8
            or similar forms that may be promulgated in the future, or a
            registration relating solely to a Commission Rule 145 transaction on
            Form S-4 or similar forms that may be promulgated in the future. The
            Company may impose stop-transfer instructions with respect to the
            shares of Stock (or any other Company securities) subject to the
            foregoing restriction until the end of such 90-day or 180-day
            period, as applicable.

12.   DISCRETIONARY ADJUSTMENT. In the event of any reorganization, merger,
      consolidation, recapitalization, liquidation, reclassification, stock
      dividend, stock split, combination of shares, rights offering, or
      extraordinary dividend or divestiture (including a spin-off), or any other
      change in the corporate structure or Shares of the Company, the Committee
      (or if the Company does not survive any such transaction, a comparable
      committee of the Board of Directors of the surviving corporation) may,
      without the consent of the Optionee, make such adjustment as it determines
      in its discretion to be appropriate as to the number and kind of
      securities subject to and reserved under the Plan and, in order to prevent
      dilution or enlargement of rights of the Optionee, the number and kind of
      securities issuable upon exercise of the Option and the exercise price
      hereof.

13.   TRANSFER OF SHARES -- TAX EFFECTS. The Optionee hereby acknowledges that
      if any Shares received pursuant to the exercise of any portion of the
      Option are sold within two years from the date of grant or within one year
      from the effective date of exercise of the Option, or if certain other
      requirements of the Code are not satisfied, such Shares will be deemed
      under the Code not to have been acquired by the Optionee pursuant to an
      "incentive stock option" as defined in the Code; and that the Company
      shall not be liable to the Optionee in the event the Option for any reason
      is deemed not to be an "incentive stock option" within the meaning of the
      Code.

14.   INTERPRETATION OF THIS AGREEMENT. All decisions and interpretations made
      by the Committee with regard to any question arising hereunder or under
      the Plan shall be binding and conclusive upon the Company and the
      Optionee. If there is any inconsistency between the provisions of this
      Agreement and the Plan, the provisions of the Plan shall govern.

15.   DISCONTINUANCE OF EMPLOYMENT. This Agreement shall not give the Optionee a
      right to continued employment with the Company or any parent or subsidiary
      of the Company, and the Company or any such parent or subsidiary employing
      the Optionee may terminate his/her employment at any time and otherwise
      deal with the Optionee without regard to the effect it may have upon
      him/her under this Agreement.

                                      -5-

<PAGE>

16.   OPTION SUBJECT TO PLAN, ARTICLES OF INCORPORATION AND BY-LAWS. The
      Optionee acknowledges that the Option and the exercise thereof is subject
      to the Plan, the Articles of Incorporation, as amended from time to time,
      and the By-Laws, as amended from time to time, of the Company, and any
      applicable federal or state laws, rules or regulations.

17.   OBLIGATION TO RESERVE SUFFICIENT SHARES. The Company shall at all times
      during the term of the Option reserve and keep available a sufficient
      number of Shares to satisfy this Agreement.

18.   BINDING EFFECT. This Agreement shall be binding in all respects on the
      heirs, representatives, successors and assigns of the Optionee.

19.   CHOICE OF LAW. This Agreement is entered into under the laws of the State
      of Iowa and shall be construed and interpreted thereunder (without regard
      to its conflict of law principles).

      IN WITNESS WHEREOF, the Optionee and the Company have executed this
Agreement as of the Date of Grant specified above.

                                              OPTIONEE

                                              __________________________________

                                              SMITHWAY MOTOR XPRESS CORP.

                                              By _______________________________
                                               Its _____________________________

                                      -6-

<PAGE>

                            __________________, 20__

Smithway Motor Xpress Corp.
2031 Quail Avenue
Fort Dodge, Iowa 50501

Ladies and Gentlemen:

      I hereby exercise the following option (the "Option") granted to me under
the Smithway Motor Xpress Corp. 2005 Omnibus Stock Plan (the "Plan") with
respect to the number of shares of Common Stock of Smithway Motor Xpress Corp.
(the "Company") indicated below:

                    NAME:                                    ___________________

                    DATE OF GRANT OF OPTION:                 ___________________

                    EXERCISE PRICE PER SHARE:                ___________________

                    NUMBER OF SHARES WITH RESPECT TO WHICH
                    THE OPTION IS HEREBY EXERCISED:          ___________________

                    TOTAL EXERCISE PRICE:                    ___________________

            [ ]   Enclosed with this letter is a check, bank draft or money
                  order in the amount of the Total Exercise Price.

            [ ]   I hereby agree to pay the Total Exercise Price within five
                  business days of the date hereof and, as stated in the
                  attached Broker's Letter, I have delivered irrevocable
                  instructions to _________________________________ to promptly
                  deliver to the Company the amount of sale or loan proceeds
                  from the Shares to be issued pursuant to this exercise
                  necessary to satisfy my obligation hereunder to pay the Total
                  Exercise Price.

            [ ]   Enclosed with this letter is a certificate evidencing
                  unencumbered Shares (duly endorsed in blank) having an
                  aggregate Fair Market Value (as defined in the Plan) equal to
                  or in excess of the Total Exercise Price.

            [ ]   I elect to pay the Total Exercise Price through a reduction in
                  the number of Shares delivered to me upon this exercise of the
                  Option as provided in Section 9 of the Plan.

      If I am enclosing Shares with this letter, I hereby represent and warrant
that I am the owner of such Shares free and clear of all liens, security
interests and other restrictions or encumbrances. I agree that I will pay any
required withholding taxes in connection with this exercise.

<PAGE>

      Please issue a certificate (the "Certificate") for the number of Shares
with respect to which the Option is being exercised in the name of the person
indicated below and deliver the Certificate to the address indicated below:

          NAME IN WHICH TO ISSUE CERTIFICATE:            _______________________

          ADDRESS TO WHICH CERTIFICATE SHOULD BE
          DELIVERED:                                     _______________________

                                                         _______________________

                                                         _______________________

                                                         _____________

          PRINCIPAL MAILING ADDRESS FOR HOLDER OF THE
          CERTIFICATE (IF DIFFERENT FROM ABOVE):

                                                         _______________________

                                                         _______________________

                                                         _______________________

                                                         _____________

                                                    Very truly yours,
                                                    ____________________________
                                                    Signature

                                                    ____________________________
                                                    Name, please print

                                                    ____________________________
                                                    Social Security Number

                                      -2-

<PAGE>

                            __________________, 20__

Smithway Motor Xpress Corp.
2031 Quail Avenue
Fort Dodge, Iowa 50501

Ladies and Gentlemen:

           NAME OF OPTIONEE:                           _________________________

           DATE OF GRANT OF OPTION:                    _________________________

           EXERCISE PRICE PER SHARE:                   _________________________

           NUMBER OF SHARES WITH RESPECT TO WHICH
           THE OPTION IS TO BE EXERCISED:              _________________________

           TOTAL EXERCISE PRICE:                       _________________________

      The above Optionee has requested that we finance the exercise of the above
Option to purchase Shares of Common Stock of Smithway Motor Xpress Corp. (the
"Company") and has given us irrevocable instructions to promptly deliver to the
Company the amount of sale or loan proceeds from the Shares to be issued
pursuant to such exercise to satisfy the Optionee's obligation to pay the Total
Exercise Price.

                                                       Very truly yours,

                                                       _________________________
                                                       Broker Name

                                                       By_______________________

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