Exhibit 10.3

                     1995 STOCK OPTION PLAN

                              OF

              FOUNTAIN POWERBOAT INDUSTRIES, INC.


                     STOCK OPTION AGREEMENT

     This Stock Option Agreement (the "Agreement") is made by and
between Fountain Powerboat Industries, Inc., a Nevada corporation
(the  "Company"),  and Reginald M. Fountain, Jr.  (the  "Employee
Optionee") as of the date set forth on the signature page hereto.

                        R E C I T A L S

     A.   The Board of Directors of the Company (the "Board") has
established  the  1995  Stock Option Plan  of  the  Company  (the
"Plan"),  for the purpose of providing to Employees and Directors
of  the Company an opportunity to acquire shares of the Company's
$.01 par value common stock (the "Shares"); and

     B.    The Board and the Compensation Committee of the  Board
(the "Committee") appointed to administer the Plan has determined
that  it  would  be  to the advantage and best  interest  of  the
Company  and  its  shareholders to grant the non-qualified  stock
option,  or  incentive  stock option  provided  for  herein  (the
"Option") to the Employee Optionee as an inducement to remain  in
the  service  of  the Company and as an incentive  for  increased
efforts  during such service, and has advised the Company thereof
and instructed it to issue the Option.

                       A G R E E M E N T

     NOW,  THEREFORE,  in consideration of the  mutual  covenants
contained  herein  and  other  good  and  valuable  consideration
receipt  of which is hereby acknowledged, the parties  hereto  do
hereby agree as follows:

                           ARTICLE I

                          DEFINITIONS

     Whenever  the  following terms are used in  this  Agreement,
they  shall  have the meaning specified below unless the  context
clearly indicates to the contrary. Capitalized terms used  herein
and not otherwise defined shall have the meaning set forth in the
Plan.  The  masculine  pronoun shall  include  the  feminine  and
neuter,  and  the  singular  the plural,  where  the  context  so
indicates.

Section 1.1 - Code

     "Code"  shall  mean the Internal Revenue Code  of  1986,  as
amended.

Section 1.2 - Company

     "Company" shall mean Fountain Powerboat Industries, Inc.  In
addition,  "Company"  shall  mean any  corporation  assuming,  or
issuing new employee stock options in substitution for the Option
and  Incentive Stock Options, outstanding under the  Plan,  in  a
transaction to which Section 425 (a) of the Code applies.

Section 1.3 - Option


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     "Option"  shall mean the option to purchase $.01  par  value
common stock of the Company granted under this Agreement.

Section 1.4 - Plan

     "Plan" shall mean the 1995 Stock Option Plan of the Company.

Section 1.5 - Secretary

     "Secretary" shall mean the Secretary of the Company.

Section 1.6 - Securities Act

     "Securities Act" shall mean the Securities Act of  1933,  as
amended.

                           ARTICLE II

                        GRANT OF OPTION

Section 2.1 - Grant of Option

     In  consideration  of the Employee Optionee's  agreement  to
render  faithful  and efficient services to the Company  and  for
other  good and valuable consideration, on the date set forth  on
the  Signature  Page  hereof (the "Date of Grant"),  the  Company
irrevocably  grants  to  the  Employee  Optionee  the  option  to
purchase any part or all of an aggregate of the number of  Shares
set  forth  on the Signature Page hereof and upon the  terms  and
conditions set forth in this Agreement.

Section 2.2 - Purchase Price

     The purchase price of the Shares covered by the Option shall
be the amount set forth on the Signature Page hereof and shall be
without commission or other charge (the "Purchase Price").
Section 2.3 - Reservation of Rights

     Nothing in the Plan or in this or any Stock Option Agreement
shall confer upon the Employee Optionee any right to continue  in
the  employ  of  the Company or any subsidiary thereof  or  shall
interfere with or restrict in any way the rights of the  Company,
which  are  hereby expressly reserved, to discharge the  Employee
Optionee  at any time for any reason whatsoever, with or  without
cause.

Section 2.4 - Adjustments in Option

     In  the  event  that the outstanding Shares subject  to  the
Option  are changed into or exchanged for a different  number  or
kind  of shares of the Company or other securities of the Company
by    reason    of   merger,   consolidation,   recapitalization,
reclassification, stock split up, stock dividend, or  combination
of  shares, the Committee shall make an appropriate and equitable
adjustment in the number and kind of shares as to which
the  option,  or  portions  thereof then  unexercised,  shall  be
exercisable,  to  the  end  that after such  event  the  Employee
Optionee's proportionate interest shall be maintained  as  before
the occurrence of such event. Such adjustment in the option shall
be  made  without  change in the total price  applicable  to  the
unexercised portion of the Option (except for any change  in  the
aggregate  price resulting from rounding-off of share  quantities
or prices) and with any necessary corresponding adjustment in the
Purchase  Price. Any such adjustment made by the Committee  shall
be final and binding upon the Employee Optionee, the Company, and
all other interested persons.

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                          ARTICLE III

                    PERIOD OF EXERCISABILITY

Section 3.1 - Commencement of Exercisability

     The option shall become exercisable immediately.

Section 3.2 - Duration of Exercisability

     Each  option which becomes exercisable pursuant  to  Section
3.1  shall remain exercisable until the expiration date set forth
on  the  signature  page of this Agreement or  until  it  becomes
unexercisable under the Plan, whichever is sooner.

Section 3.3 - Option Not Transferable

     Neither  the Option nor any interest or right therein  shall
be  liable  for  the  debts, contracts,  or  engagements  of  the
Employee  Optionee  or  his successors in interest  or  shall  be
subject  to  disposition  by transfer, alienation,  anticipation,
pledge, encumbrance, assignment, or any other means whether  such
disposition be voluntary or involuntary or by operation  of  law,
by  judgment, levy, attachment, garnishment or any other legal or
equitable  proceedings (including bankruptcy), and any  attempted
disposition  thereof shall be null and void  and  of  no  effect;
provided,  however,  that  this Section  3.3  shall  not  prevent
transfers  by  will  or by the applicable  laws  of  descent  and
distribution.

                           ARTICLE IV

                       EXERCISE OF OPTION

Section 4.1 - Person Eligible to Exercise

     During the lifetime of the Employee Optionee, only he or she
may  exercise the Option or any portion thereof. After the  death
of  the  Employee Optionee, any exercisable portion of the Option
may, prior to the time when the option becomes unexercisable,  be
exercised by his or her personal representative or by any  person
empowered  to do so under the Employee Optionee's will  or  under
the then applicable laws of descent and distribution.

Section 4.2 - Partial Exercise

     Any  exercisable portion of the Option or the entire Option,
if  then wholly exercisable, may be exercised in whole or in part
at  any time prior to the time when the Option or portion thereof
becomes  unexercisable  under the Plan; provided,  however,  that
each  partial  exercise shall be for not less  than  one  hundred
(100) Shares (or minimum installment set forth in Section 3.1, if
a smaller number of Shares) and shall be for whole Shares only.

Section 4.3 - Manner of Exercise

     The  Option,  or  any exercisable portion  thereof,  may  be
exercised  solely by delivery to the Secretary or the Secretary's
office  of all of the following prior to the time when the Option
or such portion becomes unexercisable under the Plan:

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     (a)   Notice  in writing signed by the Employee Optionee  or
the  other person then entitled to exercise the Option or portion
thereof,  stating that the Option or portion thereof  is  thereby
exercised,  such  notice  complying  with  all  applicable  rules
established by the Committee; and

     (b)  (i)   Full payment (in cash or by check) for the Shares
          with  respect  to  which  such  Option  or  portion  is
          exercised; or

          (ii)  Shares of any class of the Company's stock  owned
          by  the Employee Optionee duly endorsed for transfer to
          the  Company  with a fair market value on the  date  of
          delivery  equal to the aggregate Option  price  of  the
          Shares with respect to which such Option or portion  is
          thereby exercised; or

          (iii)     Any combination of the consideration provided
          in the foregoing subsections (i) and (ii); and

     (c)  Full payment to the Company of all amounts which, under
federal,  state  or local law, it is required  to  withhold  upon
exercise of the Option; and

     (d)   In  the event the Option or portion thereof  shall  be
exercised pursuant to Section 4.1 by any person or persons  other
than  the  Employee Optionee, appropriate proof of the  right  of
such person or persons to exercise the Option.

Section 4.4 - Conditions to Issuance of Stock Certificates

     The  Shares deliverable upon the exercise of the Option,  or
any  portion  thereof,  may be either previously  authorized  but
unissued  Shares or issued Shares which have then been reacquired
by   the   Company.  Such  Shares  shall  be   fully   paid   and
non-assessable.  The Company shall not be required  to  issue  or
deliver any certificate or certificates for Shares purchased upon
the   exercise  of  the  Option  or  portion  thereof  prior   to
fulfillment of all of the following conditions:

     (a)    The   completion   of  any  registration   or   other
qualification  of such Shares under any state or federal  law  or
under  rulings  or  regulations of the  Securities  and  Exchange
Commission  or of any other governmental regulatory  body,  which
the  Committee shall, in its absolute discretion, deem  necessary
or advisable;

     (b)   The obtaining of any approval or other clearance  from
any  state  or  federal governmental agency which  the  Committee
shall,  in its absolute discretion, determine to be necessary  or
advisable;

     (c)   The payment to the Company of all amounts which, under
federal,  state,  or local law, it is required to  withhold  upon
exercise of the option; and

     (d)   The  lapse of such reasonable period of time following
the exercise of the option as the Committee may from time to time
establish for reasons of administrative convenience.


Section 4.5 - Rights as Stockholder

     The  holder of the Option shall not be, nor have any  rights
or  privileges of, a stockholder of the Company in respect of any
Shares  purchasable upon the exercise of any part of  the  Option
unless and until certificates representing such Shares shall have
been issued by the Company to such holder.

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                           ARTICLE V

                        OTHER PROVISIONS

Section 5.1 - Administration

     The  Committee  shall  have  the  power  to  interpret  this
Agreement.   All  actions  taken  and  all  interpretations   and
determinations made by the Committee in good faith shall be final
and binding upon the Employee Optionee, the Company and all other
interested  persons.  No  member  of  the  Committee   shall   be
personally liable for any action, determination or interpretation
made in good faith with respect to the Plan or the Option. In its
absolute discretion, the Board may at any time and from  time  to
time  exercise  any and all rights and duties  of  the  Committee
under this Agreement.

Section 5.2 - Shares to Be Reserved

     The Company shall at all times during the term of the Option
reserve  and  keep  available such number of Shares  as  will  be
sufficient to satisfy the requirements of this Agreement.

Section 5.3 - Notices

     Any notice to be given under the terms of this Agreement  to
the  Company  shall be addressed to the Company in  care  of  its
Secretary,  and  any notice to be given to the Employee  Optionee
shall be addressed to him or her at the address set forth on  the
Signature Page hereof. By a notice given pursuant to this Section
5.3, either party may hereafter designate a different address for
delivery of notices. Any notice which is required to be given  to
the  Employee  Optionee shall, if the Employee Optionee  is  then
deceased,   be   given   to  the  Employee  Optionee's   personal
representative if such representative has previously informed the
Company  of  his status and address by written notice under  this
Section  5.3. Any notice shall be deemed duly given when enclosed
in  a  properly sealed envelope or wrapper addressed as aforesaid
and  deposited (with postage prepaid) in a post office or  branch
post  office  regularly maintained by the  United  States  Postal
Service.

Section 5.4 - Titles

     Titles are provided herein for convenience only and are  not
to  serve as a basis for interpretation or construction  of  this
Agreement.

Section 5.5 - Construction

     This  Agreement  shall  be  administered,  interpreted,  and
enforced under the laws of the State of Nevada.

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                         SIGNATURE PAGE

                     1995 STOCK OPTION PLAN
                              OF
              FOUNTAIN POWERBOAT INDUSTRIES, INC.

Non-Qualified Option:         Yes

Purchase Price:               $7.00

Number of Shares:             300,000

Date of Grant:                August 4, 1995

Vesting:                      Immediate as to entire option

Expiration Date:              August 4, 2005

     I have read the Stock Option Agreement indicated above which
was  adopted  for  use in connection with the 1995  Stock  Option
Plan.  As  the Employee Optionee, I hereby agree to  all  of  the
terms of the Agreement and the Plan.

                              EMPLOYEE OPTIONEE


                                /s/ R. M. Fountain, Jr.
                                    R. M. Fountain, Jr.


The Company hereby agrees to all of the terms of the Agreement.

                              FOUNTAIN POWERBOAT INDUSTRIES, INC.


                                /s/ R. M. Fountain, Jr.
                                    R. M. Fountain, Jr.
                                    Chairman, President, Chief
                                    Executive Officer,
                                    and Chief Operating Officer

Attest:


  /s/ Carol J. Price
      Carol J. Price
      Assistant Secretary

CORPORATE SEAL

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