Exhibit 10(h)(1)

                          Explanatory Note:  the 1987 Stock Option Program
                          as further proposed to be amended is filed herewith
                          pursuant to Instruction 3 to Item 10 of Schedule 14A
                          and is not part of this proxy statement.


                            PATRICK INDUSTRIES, INC.

                               Amendment No. 2 to
                           1987 Stock Option Program,
                             As Amended and Restated

         Section 3(b) is hereby amended, effective upon shareholder approval at
the annual meeting on May 14, 2004, to change the non-employee director awards
from bi-annual awards of 6,000 shares vesting over a two-year period to annual
awards of 3,000 shares vesting over a one-year period.

         Section 12 (Term of Program and Amendment, Modification or Cancellation
of Benefits) is hereby amended, effective upon shareholder approval at the
annual meeting on May 14, 2004, to extend the expiration date of the Program
from May 17, 2004 to May 17, 2014.

         In all other respects, the Program shall remain in full force and
effect.