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                                                                    EXHIBIT 10.3

 
                               BELL SPORTS CORP.

                          Class A Common Stock Option
                              
     Stock Option (the "Option") granted by Bell Sports Corp., a Delaware 
corporation (the "Company"), to Mary J. George ("George") dated as of August 
17th, 1998.

1.   Grant of Option.
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     This certificate evidences the grant by the Company on August 17th, 1998 to
George of an option to purchase, in whole or in part, on the terms herein
provided, a total of 16,921 shares of Class A Common Stock, $.01 par value (the
"Class A Common Stock"), of the Company (the "Shares") at $.44 per Share. The
final exercise date of this Option is August 27, 2006. It is intended that the
Option evidenced by this certificate shall be a non-statutory option.

2.   Exercise of Option.
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     Each election to exercise this Option shall be in writing, signed by George
or George's executor or administrator or the person or persons to whom this
Option is transferred by will or the applicable laws of descent and
distribution (the "Legal Representative"), and received by the Company at
its principal office, accompanied by this certificate, and payment in full,
unless exercised under Section 3 below. The purchase price may be paid by
delivery of cash, certified check, bank draft, money order or stock of the
Company, or by delivery of any combination of the foregoing. In the event       
that this Option is exercised by the Legal Representative, the Company
shall be under no obligation to deliver Shares hereunder unless and until
the Company is satisfied as to the authority of the person or persons
exercising this Option.

3.   Net Issue Exercise.
     -------------------

     In lieu of exercising this Option under Section 2 above, George may elect
at any time to receive shares of Class A Common Stock equal to the value of this
Option (or the portion thereof being canceled) by surrender of this Option at
the principal office of the Company together with notice of such election in
which event the Company shall issue to the holder hereof a number of shares of
the Class A common Stock computed using the following formula:

                                  X = Y(A-B)
                                      ------
                                        A
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Where X - The number of shares of Class A Common Stock to be issued to George.

      Y - The number of shares of Class A Common Stock purchasable under this 
          Option.

      A - The fair market value of one share of the Company's Class A Common 
          Stock.

      B - Exercise Price (as adjusted to the date of such calculations.).

     For purposes of this Section 3, the fair market value of the Class A Common
Stock shall mean the average of the closing bid and asked prices of the Class A
Common Stock quoted in the over-the-counter market summary or the closing price
quoted on any exchange on which the Class A common Stock is listed, whichever is
applicable, as published in the Eastern Edition of The Wall Street Journal for 
                                                   -----------------------
the ten trading days prior to the date of determination of fair market value. If
the Class A Common Stock is not traded over-the-counter or on an exchange, the
fair market value shall be determined in good faith by the Board of Directors of
the Company.

4.   Application of Shareholders Agreement and Employment Agreement.
     --------------------------------------------------------------
     
     If at the time this Option is exercised pursuant to Section 2 or Section 3
above, the Company or any successor in interest is a party to a Shareholders
Agreement among the Company, George and the other shareholders dated as of
August 17th, 1998 (the "Shareholders Agreement") or any successor agreement
restricting the transfer of any outstanding shares of its Class A Common Stock,
this Option may be exercised only if the Shares so acquired are made subject to
the transfer restrictions set forth in that Shareholders Agreement or successor
agreement (or if more than one agreement is then in effect, the agreement
specified by the Board of Directors of the Company.) Furthermore, this Option
and the Shares acquired upon exercise are subject to the restrictions of Section
5 of the Amended and Restated Employment Agreement among George, the Company and
Bell Sports, Inc., a California corporation, dated as of February 17, 1998, as
amended, or any comparable provision of any successor agreement among the
parties thereto.

5.   Withholding.
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     No Shares will be transferred pursuant to the exercise of this Option
unless and until the person exercising this Option remits to the Company an
amount sufficient to satisfy any federal, state or local withholding tax
requirements, or make other arrangements satisfactory to the Company with regard
to such taxes.

6.   Nontransferability of Option.
     ----------------------------

     This Option is not transferable by George other than by will or the laws of
descent and distribution, and is exercisable during George's lifetime only by
George.

                                      -2-
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7.   Governing Law. This Option may be amended by the Board of Directors of the 
     -------------
     Company with the consent of George.

8.   Amendment. This Option shall be governed by, and constructed in accordance
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     with, the laws (other than the conflict of laws rules) of the State
     of Delaware.

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     IN WITNESS WHEREOF, the Company has caused this Option to be executed under
its corporate seal by its duly authorized officer. This Option shall take effect
as a sealed instrument.

                                                BELL SPORTS CORP.


                                                By /s/ LINDA K. BOUNDS
                                                   ----------------------------
                                                     Name: Linda K. Bounds
                                                     Title: Chief Financial 
                                                            Officer, Secretary
                                                            and Treasurer
Dated: August 17, 1998
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