EXHIBIT 4
1999 Stock Option Plan

Adopted by the Board of Directors
March 3, 1999

I.  Purpose

     The 1999 Stock Option Plan (the "Plan") of Electrosource,
Inc. (the "Corporation") is intended to provide an opportunity
for officers, directors (employee and non-employee), employees
and consultants to acquire an equity interest in the development
and financial success of the Corporation's business.  The
purposes of the plan are to create an incentive to serve or
continue in the service of the Corporation, to aid in obtaining
and retaining key personnel of outstanding ability, to attract
and retain directors with a high degree of training, experience
and ability, and to attract and retain consultants with a high
degree of training, experience and ability whose services are
considered specialized and unusually valuable.

II.  Shares Subject to the Plan

     The maximum number of shares of the common stock, $1.00 par
value, of the Corporation (the "Stock) which may be issued
pursuant to Incentive Stock Options and Non-Qualified Stock
Options granted under the Plan (collectively referred to herein
as "Options") shall be a total of 1,000,000 shares of Stock
(subject to adjustment as provided in Section VII), which may be
either authorized and unissued Stock or Stock held in the
treasury of the Corporation, as shall be determined from time to
time by the Committee of the Board of Directors of the
Corporation described below.  If an Option expires or terminates
for any reason without being exercised in full, the unpurchased
shares of Stock subject to such Option shall again be available
for purposes of the Plan.  Until termination of the Plan, the
Corporation shall at all times reserve a sufficient number of
shares to meet the requirements of the Plan.

III.  Effective Date of the Plan

     The Plan shall be deemed to be effective as of the 3rd day
of March 1999, but its adoption shall be subject to approval by
the holders of at least a majority of a quorum of the voting
stock of the Corporation.  In the event that such stockholder
approval is not obtained on or before March 3, 2000, the Plan,
and all options granted hereunder, shall terminate.  The Plan
shall expire on March 3, 2009, unless sooner terminated as
provided in Section XII.

IV.  Administration of the Plan

     This Plan shall be administered by a committee (the
"Committee") appointed by the Board of Directors consisting of
not less than three directors, each of whom must be a "Non-
Employee Director."  A Non-Employee Director shall mean a
director who:  (A) is not currently an officer (as defined in
Rule 16a-l(f) of the Securities and Exchange Commission) of the
Corporation or a parent or subsidiary of the Corporation, or
otherwise currently employed by the Corporation or a parent or
subsidiary of the Corporation; (B) does not receive compensation,
either directly or indirectly, from the Corporation or a parent
or subsidiary of the Corporation, for services rendered as a
consultant or in any capacity other than as a director, except
for an amount that does not exceed the dollar amount for which
disclosure would be required pursuant to Section 404(a) of
Regulation S-K of the Securities and Exchange Commission
("Regulation S-K"); (C) does not possess an interest in any other
transaction for which disclosure would be required pursuant to
Section 404(a) of Regulation S-K; and (D) is not engaged in a
business relationship for which disclosure would be required
pursuant to Section 404(b) of Regulation S-K.

     The Board of Directors may from time to time appoint members
of the Committee in substitution for or in addition to members
previously appointed and may fill vacancies, however caused, in
the Committee.  A majority of the Committee shall constitute a
quorum.  All actions of the Committee shall be taken by a
majority of its members.  Any action may be taken by a written
instrument signed by the members, and action so taken shall be
fully as effective as if it had been taken by the members at a
meeting duly called and held.  The Committee shall select one of
its members as its chairman and shall hold its meetings at such
times and places as it shall deem advisable.

     The Committee shall have full authority in its discretion to
determine the officers, directors, key employees, prospective
employees, and consultants of the Corporation and its
subsidiaries to whom Options (as defined below) shall be granted,
the number of shares of Stock covered thereby and the terms and
provisions thereof, subject to the Plan.  In making such
determinations, the Committee may take into account the nature of
the services rendered and to be rendered by the respective
recipients, their present and potential contributions to the
Corporation and its subsidiaries and any other factors which the
Committee deems relevant.  The Committee shall have full and
conclusive authority to interpret the Plan; to prescribe, amend
and rescind rules and regulations relating to the Plan, to
determine the terms and provisions of the respective Option
agreements; and to make all other determinations necessary or
advisable for the proper administration of the Plan.  The
Committee's determinations under the Plan need not be uniform and
may be made by it selectively among persons who receive, or are
eligible to receive, Options under the Plan (whether or not such
persons are similarly situated).  The Committee's decisions shall
be final and binding on all participants in the Plan.

V.  Eligibility and Limits

     Eligibility.  Options to purchase Stock (hereinafter
referred to "Options"), may be granted to officers, employee
directors, non-employee directors, key employees, and consultants
of the Corporation and its present or future subsidiary
corporations.

     Limits.  The Committee shall have full and complete
authority, in its discretion, but subject to the express
provisions of the Plan, to grant from time to time options under
the Plan which constitute Incentive Stock Options, and to grant
options under the Plan which do not constitute Incentive Stock
Options (such options being hereinafter referred to as "Non-
Qualified Options").  At the time any Option is granted under the
Plan, the Committee shall determine whether the Option is to be
an Incentive Stock Option or a Non-Qualified Stock Option, and
the Option shall be clearly identified as to its status as an
Incentive Stock Option or a Non-Qualified Stock Option.  The
aggregate fair market value (which shall be determined on the
date of the grant) of the Common Stock with respect to which
Incentive Stock Options are exercisable for the first time by an
individual during any calendar year shall not exceed $100,000.

     Directors.  Each member of the Corporation's Board of
Directors that is not also an employee or officer of the
Corporation or an active Director who has received the initial
option to purchase 15,000 shares under this or any prior plan as
of the date of the adoption of the Plan, and  any person who
assumes a position on the Board of Directors of the Corporation
for the first time (whether by appointment by the Board or
election) after such date who is not also an employee or an
officer of the Corporation at the time shall, automatically and
without the exercise of discretion or the requirement of any
further action or authorization on the part of any person,
receive an option to purchase an aggregate of 15,000 shares of
the Common Stock of the Corporation.  In addition, each non-
employee director will be awarded  an annual option to purchase
2,000 shares of the Common Stock of the Corporation; however, in
no event will a director become eligible for the annual grant
prior to two full years of service on the Board of Directors.
The annual option of 2,000 shares may be issued under this Plan
or any prior plan; however, only one such option may be granted
annually.

VI.  Terms and Conditions of Options

     The terms and conditions of each option granted an Optionee
designated by the Committee under the Plan shall be set forth in
an instrument designated "Notice of Grant of Stock Options and
Option Agreement" issued by the Corporation to the Optionee and
containing such provisions as the Board of Directors or Committee
shall deem appropriate.  The 1999 Stock Option Agreements issued
by the Corporation need not be identical but shall comply with
the following terms and conditions, to-wit:

     Option Price.  Subject to Section VIII and other provisions
of this Section VI, the Option price per share of Stock
purchasable under any Option granted under the Plan shall be
fixed by the Committee and set forth in the applicable Option
agreement.  With respect to each grant of an Incentive Stock
Option, the option price per share shall not be less than the par
value or the fair market value of a share of Stock (as determined
in good faith by the Committee) on the date such Option is
granted. The date an Option is granted shall be the date on
which the Committee has approved the terms and conditions of an
Option agreement evidencing the Option and has determined the
recipient of the Option and the number of shares covered by the
Option and has taken all such other action as is necessary to
complete the grant of the Option.  In the event that the Stock is
listed on NASDAQ or an established stock exchange, its fair
market value shall be deemed to be the closing price of the Stock
on such exchange on the date the Option is granted, or if no sale
of Stock shall have been made on such date, its fair market value
shall be deemed to be such price for the next preceding date on
which a sale has occurred.

     Option Term.  The term of each option shall be for such
period as the Committee shall determine, but in no event be
exercisable after the expiration of ten years from the date of
grant of such Option and shall be subject to earlier termination
as herein provided.

     Payment.  Payment for all shares purchased pursuant to
exercise of an Option shall be made by cash, check, that number
of shares of the Corporation's Common Stock having an aggregate
market value (as determined by the closing price per share on the
NASDAQ on the date of exercise) equal to such purchase price, or
any combination of the foregoing.  Subject to the provisions as
set forth below under Special Procedure for Certain Credit
Assisted Transactions, such payment shall be made at the time
that the Option or any part thereof is exercised, and no shares
of Stock shall be issued or delivered until full payment therefor
has been made.

     Conditions to Exercise of Option.  Each Option granted under
the Plan shall be exercisable at such time or times, or upon the
occurrence of such event or events, and in such amounts as the
Committee shall specify in the Option agreement, except that no
Option when initially granted as an Incentive Stock Option shall
provide that it may be exercisable to any extent during the first
six months following the date of grant; provided, however, that
subsequent to the grant of an Option, the Committee at any time
before complete termination of such Option, may accelerate the
time or times at which such Option may be exercised in whole or
in part.

     Nontransferability of Options.  An Option shall not be
transferable or assignable except by will or by the laws of
descent and distribution and shall be exercisable, during the
holder's lifetime, only by the holder.

     Termination of Employment or Death.  Upon any termination of
employment of the holder for any reason other than death or
disability, any Option held at the date of such termination may,
to the extent exercisable, be exercised within three months after
the date of such termination.  Should the Option remain
unexercised at the end of the three-month period, such Option is
forfeited and returned to shares available for further grants.
Upon any termination of employment of the holder by reason of
disability, any Option held at the date of such termination may,
to the extent then exercisable, be exercised within twelve months
after the date of such termination.  If the holder of an Option
dies, any Option held at the date of death may be exercised in
full, whether or not the Options are fully vested at such time,
by the holder's legatee or legatees under the holder's last will,
or by the holder's personal representatives or distributees,
within twelve (12) months after the holder's death.  If the
holder of an Option retires at normal retirement age (age 65 or
older), any Options held at the date of retirement may be
exercised in full, whether or not the Options are fully vested at
such time, within twelve (12) months after the holder's
retirement.  This Section shall not extend the term of the Option
specified in or pursuant to Section entitled Option Term.  For
purposes of this Section, employment of a holder shall not be
deemed terminated so long as the holder is employed by the
Corporation, by a subsidiary of the Corporation or by another
corporation (or a parent or subsidiary corporation of such other
corporation) which has assumed the Option of the holder.  For
purposes of this Section, the extent to which an Option is
exercisable shall be determined as of the date of termination of
employment except where specifically stipulated to the contrary.

     Special Procedure for Certain Credit Assisted Transactions.
To the extent not inconsistent with the provisions of Section 422
of the Code or the provisions of Rule 16b-3 issued by the
Securities and Exchange Commission under the Securities Exchange
Act of 1934, as amended (the "Act"), any Option holder desiring
to obtain credit from a broker, dealer or other "creditor" as
defined in Regulation T issued by the Board of Governors of the
Federal Reserve System to assist in exercising an Option may
deliver to such creditor a written exercise notice executed by
such holder with respect to such Option, together with written
instruction to the Corporation to deliver the Stock issued upon
such exercise of the Option to the creditor for deposit into an
account designated by the Option holder; upon receipt of such
exercise notice and instructions in a form acceptable to the
Corporation, the Corporation shall confirm to the creditor that
it will deliver to the creditor on behalf of the Option holder
the Stock issued upon such exercise of the Option and covered by
such instruction promptly following receipt of the exercise price
from the creditor.  To the extent not inconsistent with the
provisions of Section 422 of the Code or the provisions of Rule
16b-3 issued by the Securities and Exchange Commission under the
Act, upon written request, the Corporation may in its discretion,
but shall not be obligated, to deliver to the creditor on behalf
of the Option holder shares of Stock resulting from such a credit
assisted exercise prior to receipt of the exercise price for such
shares if the creditor has delivered to the Corporation, in
addition to the other documents contemplated by this Section VI,
the creditor's written agreement to pay the Corporation such
exercise price in cash within five days after delivery of such
shares.  The credit assistance contemplated by this Section VI
may include a margin loan by the creditor secured by the stock
purchased upon exercise of an Option or, in the case of an Option
holder who is not subject to Section 16 of the Act, an immediate
sale of some or all of such Stock by the creditor to obtain or
recover the exercise price which the creditor has committed to
pay to the Corporation on behalf of the Option holder.

VII.  Change in Capitalization; Merger; Liquidation

     The number of shares of Stock as to which Options may be
granted, the number of shares covered by each outstanding Option,
and the price per share of each outstanding Option shall be
proportionately adjusted for any increase or decrease in the
number of issued shares of Stock resulting from a subdivision or
combination of shares or the payment of a stock dividend in
shares of Stock to holders of outstanding shares of Stock or any
other increase or decrease in the number of such shares effected
without receipt of consideration by the Corporation.  If the
Corporation shall be the surviving corporation in any merger or
consolidation, recapitalization, reclassification of shares or
similar reorganization, the holder of each outstanding Option
shall be entitled to purchase, at the same times and upon the
same terms and conditions as are then provided in the Option, the
number and class of shares of stock or other securities to which
a holder of the number of shares of Stock subject to the Option
at the time of such transaction would have been entitled to
receive as a result of such transaction.  In the event of any
such changes in capitalization of the Corporation, the Committee
may make such additional adjustments in the number and class of
shares of Stock or other securities with respect to which
outstanding Options are exercisable and with respect to which
future Options may be granted as the Committee in its sole
discretion shall deem equitable or appropriate to prevent
dilution or enlargement of rights.  Any adjustment pursuant to
this Section VII may provide, in the Committee's discretion, for
the elimination of any fractional shares that might otherwise
become subject to any Option without payment therefor.  The
optionee shall have the right, immediately prior to dissolution,
liquidation, merger or consolidation of the Corporation (to the
extent the Corporation is not the surviving entity in such merger
or consolidation), to exercise his/her Options in full without
regard to any installment exercise provisions, to the extent that
it shall not have been exercised.  In the event of a dissolution
or liquidation of the Corporation or a merger or consolidation in
which the Corporation is not the surviving corporation, each
outstanding Option shall terminate upon the effective date
thereof, except to the extent that another corporation assumes
such Option or substitutes another option therefor.  In the event
of a change of the Corporation's shares of Stock with par value
into the same number of shares with a different par value or
without par value, the shares resulting from any such change
shall be deemed to be the Stock within the meaning of the Plan.
Except as expressly provided in this Section, the holder of an
Option shall have no rights by reason of any subdivision or
combination of shares of Stock of any class or the payment of any
stock dividend or any other increase or decrease in the number of
shares of Stock of any class or by reason of any dissolution,
liquidation, merger or consolidation or distribution to the
Corporation's stockholders of assets or stock of another
corporation.  Except as expressly provided herein, any issue by
the Corporation of shares of stock of any class, or securities
convertible into shares of stock of any class, shall not affect,
and no adjustment by reason thereof shall be made with regard to,
the number or price of shares of Stock subject to any Option.
The existence of the Plan and Options granted pursuant to the
Plan shall not affect in any way the right or power of the
Corporation to make or authorize any adjustment,
reclassification, reorganization or other change in its capital
or business structure, any merger or consolidation of the
Corporation, any issue of debt or equity securities having
preferences or priorities as to the Stock or the rights thereof,
the dissolution of the Corporation, any sale or transfer of all
or part of its business or assets, or any other corporate act or
proceeding.

VIII.  Compliance with Code; Compliance with Rule 16b-3

     All Incentive Stock Options granted hereunder are intended
to comply with Section 422 and, to the extent applicable, Section
424 of the Code, and all provisions of this Plan and all
Incentive Stock Options granted hereunder shall be construed in
such manner as to effectuate that intent.  This Plan and all
Options granted hereunder are intended to satisfy the conditions
of Rule 16b-3 issued by the Securities and Exchange Commission
under the Act, as it may be amended from time to time, and all
provisions of this Plan and all Options granted hereunder shall
be construed in such manner as to effectuate that intent.

IX.  Right to Terminate Employment; No Rights as Stockholder

     Nothing in the Plan or in any Option granted under the Plan
shall confer upon any holder thereof the right to continue as an
employee, director or consultant of the Corporation or any of its
subsidiaries or affect the right of the Corporation or any of its
subsidiaries to terminate the holder's association with the
Corporation or any of its subsidiaries at any time.  The holder
of an Option shall, as such, have none of the rights of a
stockholder.

X.  Leaves of Absence

     Except as otherwise provided by law or regulation with
respect to Incentive Stock Options, the Committee may in its
discretion determine whether any leave of absence constitutes a
termination of employment for purposes of the Plan and the
impact, if any, of such leave of absence on Options previously
granted to a holder who takes a leave of absence.

XI.  Restrictions on Delivery and Sale of Shares

     Each Option granted under the Plan is subject to the
condition that if at any time the Committee, in its discretion,
shall determine that the listing, registration or qualification
of the shares covered by such Option upon any securities exchange
or under any state or federal law is necessary or desirable as a
condition of or in connection with the granting of such Option or
the purchase or delivery of shares thereunder, the delivery of
any or all shares pursuant to such Option may be withheld unless
and until such listing, registration or qualification shall have
been effected.  If a registration statement is not in effect
under the Securities Act of 1933 and any applicable state
securities laws with respect to the shares of Stock purchasable
or otherwise deliverable under Options then outstanding, the
Committee may require, as a condition of exercise of any Option,
that the optionee or other recipient of an Option represent, in
writing, that the shares received pursuant to the Option are
being acquired for investment and not with a view to distribution
and agree that the shares will not be disposed of except pursuant
to an effective registration statement, unless the Corporation
shall have received an opinion of counsel that such disposition
is exempt from such requirement under the Securities Act of 1933
and any applicable state securities laws.  The Corporation may
endorse on certificates representing shares delivered pursuant to
an Option such legends referring to the foregoing representations
or restrictions or any other applicable restrictions or resale as
the Corporation, in its discretion, shall deem appropriate.

XII.  Termination and Amendments of the Plan

     The Plan shall terminate March 3, 2009, the date ten years
after adoption of the Plan by the Board of Directors, and no
Options shall be granted under the Plan after that date, but
Options granted before termination of the Plan shall remain
exercisable thereafter until they expire or lapse according to
their terms.  The Plan may be terminated, modified or amended by
the  Board of Directors of the Corporation; provided, however,
that:
          A.   No such termination, modification or amendment
          without the consent of the holder of the Option shall
          adversely affect his rights under such Option; and

          B.   Any modification or amendment which would  (1)
          materially increase the benefits accruing to
          participant, (2) materially increase the number of
          securities which may be issued under the Plan, or (3)
          materially modify the requirements as to eligibility
          for participation in the Plan, within the meaning of
          Rule 16b-3 issued by the Securities and Exchange
          Commission under the Act, shall be effective only if it
          is approved by the stockholders of the Corporation at
          the next annual meeting of stockholders after the date
          of adoption by the Board of Directors of such
          modification or amendment.

XIII.  Effective Date of Plan; Stockholder Approval

     The Plan shall become effective on March 3, 1999, the date
of its adoption by the Board of Directors, subject, however, to
the approval of the Plan by the Corporation's stockholders at
their next annual meeting.  Options granted hereunder prior to
such approval shall be conditional upon such approval.  Unless
such approval is obtained by March 3, 2000, this Plan and any
Options granted hereunder shall become void thereafter.