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NON-QUALIFIED STOCK OPTION

AWARD AGREEMENT

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

        Intending to be legally bound by all such Terms, I acknowledge the sole
authority of the Committee to interpret such Terms. I have received and had an
opportunity to review, with the benefit of any legal counsel of my choosing: the
Plan, the attached Terms and this Award Agreement.

       SYPRIS SOLUTIONS, INC.

 
 
  By: ________________________________

Name: ______________________________

Title: _______________________________

PARTICIPANT

SIGNATURE: __________________________

NAME: _____________________________

TITLE: ______________________________

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STANDARD TERMS OF AWARDS
GRANTED UNDER THE
2004 SYPRIS EQUITY PLAN (“PLAN”)
PURSUANT TO THE
DIRECTORS COMPENSATION PROGRAM

1.     Awards – The “Awards” granted hereby are non-qualified Options, subject
to the terms of the Plan, these Terms and an Award Agreement duly executed by
the Participant and the Company.

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

3.     Option Price – The “Option Price” is the closing price per Option Share
on the Grant Date and 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.

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 acquired upon exercise of Options.

5.     Vesting – One hundred percent of each Award shall vest immediately on the
Grant Date.

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

7.     No Forfeiture – Each Option will remain exercisable through its
Expiration Date regardless of any termination of services, disability or death.

8.     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.

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