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NON-QUALIFIED STOCK OPTION

AWARD AGREEMENT

        Effective as of __[Date]__ (“Grant Date”), the Company hereby grants to
_[Employee]_ certain rights to purchase up to: [# of Shares] total Option Shares
for $[Price] per Share until [6th Anniversary of Grant Date]  (“Expiration
Date”) on the Terms of this Agreement, the attached Program, and the 2004 Sypris
Equity Plan (“Plan”) as follows:

Vesting Dates # of Options Vesting Option Prices Expiration Dates   [3rd
Anniversary] [30%] [FMV at grant] [6th Anniversary]   [4th Anniversary] [30%]
[FMV at grant] [6th Anniversary]   [5th Anniversary] [40%] [FMV at grant] [6th
Anniversary]

        Intending to be legally bound by all such Terms, I acknowledge the sole
authority of the Committee to interpret such Terms, the forfeiture of my rights
upon any termination of my employment under such Terms and my continuing status
as an “at will” employee (subject to termination without cause or notice). I
have received and had an opportunity to review, with the benefit of any legal
counsel of my choosing, the Plan, the Terms and this Award Agreement.

SYPRIS SOLUTIONS, INC.   PARTICIPANT    
   
   
   
  By:_____________________________
    Signature:__________________________
    Name:__________________________
    Name:_____________________________
    Title:___________________________
    Title:______________________________
   

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SIX-YEAR STOCK OPTION TERMS OF AWARDS
OF THE 2004 SYPRIS EQUITY PLAN (“PLAN”)

1.     Awards – All “Awards” granted hereunder will be non-qualified Options
subject to, and governed by, the terms of the Plan, these Terms and a valid,
executed Award Agreement.

2.     Options – Initially, each “Option” is the right to purchase one Option
Share at the Option Price, from its Vesting Date until its Expiration Date or
forfeiture (subject to adjustments per the Plan). Options must be exercised with
48 hours advance written notice, unless waived by the Company.

3.     Option Price – “Option Price” means the closing price per Option Share on
the Grant Date. The Option Price is payable to the Company in cash or any other
method of payment authorized by the Committee in its discretion, which may
include Stock (valued as the closing price per Share on the exercise date) or
vested Options (valued as the closing price per Share on the exercise date, less
the Option Price), in each case in accordance with applicable Rules. Similarly,
the Participant must arrange for tax withholding in accordance with applicable
Rules, to the satisfaction of the Committee.

4.     Option Shares – Initially, each “Option Share” is one Share of the Common
Stock (subject to adjustments per the Plan). Option Shares may be certificated
upon request, with any legends required by applicable Rules. Participants may
vote, and receive dividends on, any Shares that they own.

5.     Vesting – Thirty percent of the Award shall vest on each of its third and
fourth anniversaries of the Grant Date, and forty percent of the Award shall
vest on the fifth anniversary of the Grant Date (each anniversary, a “Vesting
Date”), unless forfeited before such Vesting Date.

6.     Expiration Date – Each Option’s “Expiration Date” will be the sixth
anniversary of its Grant Date.

7.     Forfeiture – Each Option will terminate, expire and be forfeited as
provided in Article V of the Plan. (The Committee has sole discretion to
determine whether a demotion is a “termination” of employment.)

8.     Leaves of Absence – The Committee may in its discretion treat all or any
portion of any period during which a Participant is on military or on an
approved leave of absence as a period of employment for purposes of the accrual
of rights hereunder.

9.     No Other Rights – The Awards include no other rights beyond those
expressly provided in the Plan, these Terms or the Award Agreement. Awards are
non-assignable and non-transferable except by will or the laws of descent and
distribution, unless otherwise approved by the Committee.

10.     Definitions – Unless otherwise specified, all capitalized terms herein
shall have the meanings assigned to them in the Plan or in the Award Agreement.