Document:

<PAGE>
                                                                   EXHIBIT 10.27

                        QUINTON CARDIOLOGY SYSTEMS, INC.
                            STOCK OPTION GRANT NOTICE

      Quinton Cardiology Systems, Inc. (the "Company") hereby grants to
Participant an Option (the "Option") to purchase shares of the Company's Common
Stock. The Option is subject to all the terms and conditions set forth in this
Stock Option Grant Notice (this "Grant Notice") and in the Stock Option
Agreement, which is attached to and incorporated into this Grant Notice in its
entirety. The Option is granted outside the Company's 2002 Stock Incentive Plan
(the "Plan"), and any other stock option or similar plan of the Company, but,
except as expressly provided otherwise in this Grant Notice or in the Stock
Option Agreement, is subject to the terms and conditions of the Plan. A copy of
the Plan can be obtained on the web at www.wealthviews.com/quin or from the Plan
Administrator.

PARTICIPANT:                           Atul Jhalani

GRANT DATE:                            October 22, 2003

VESTING COMMENCEMENT DATE:             October 22, 2003

NUMBER OF SHARES SUBJECT TO OPTION:    75,000

EXERCISE PRICE (PER SHARE):            $8.04

OPTION EXPIRATION DATE:                October 23, 2003 (subject to earlier
                                       termination in accordance with the terms
                                       of the Plan and the Stock Option
                                       Agreement)

TYPE OF OPTION:                        Nonqualified Stock Option

VESTING AND EXERCISABILITY SCHEDULE:   1/4th of the shares subject to the Option
                                       will vest and become exercisable one year
                                       after the Vesting Commencement Date.

                                       1/36th of the remaining shares subject to
                                       the Option will vest and become
                                       exercisable monthly thereafter over the
                                       next three years.

ADDITIONAL TERMS/ACKNOWLEDGEMENT: The undersigned Participant acknowledges
receipt of, and understands and agrees to, this Grant Notice and the Stock
Option Agreement, and acknowledges that the Plan can be obtained on the web at
www.wealthviews.com/quin or from the Plan Administrator. Participant further
acknowledges that as of the Grant Date, this Grant Notice, the Stock Option
Agreement and the Plan set forth the entire understanding between Participant
and the Company regarding the Option and supersede all prior oral and written
agreements on the subject.

Quinton Cardiology Systems, Inc.           PARTICIPANT

                                           _____________________________________
By:________________________________                      Signature
Its:  President and COO

                                           Date:

ATTACHMENTS:                               Address:  ___________________________
1.  Stock Option Agreement                           ___________________________
2.  2002 Stock Incentive Plan              Taxpayer ID: ________________________
<PAGE>
                        QUINTON CARDIOLOGY SYSTEMS, INC.

                             STOCK OPTION AGREEMENT

      Pursuant to your Stock Option Grant Notice (the "Grant Notice") and this
Stock Option Agreement, Quinton Cardiology Systems, Inc. has granted you an
Option outside of its 2002 Stock Incentive Plan (the "Plan"), but, except as
expressly provided otherwise in this Stock Option Agreement, subject to the
terms and conditions of the Plan, to purchase the number of shares of the
Company's Common Stock indicated in your Grant Notice (the "Shares") at the
exercise price indicated in your Grant Notice. Capitalized terms not explicitly
defined in this Stock Option Agreement but defined in the Plan shall have the
same definitions as in the Plan.

      The details of the Option are as follows:

      1.    VESTING AND EXERCISABILITY. Subject to the limitations contained
herein, the Option will vest and become exercisable as provided in your Grant
Notice, provided that vesting will cease upon the termination of your employment
or service relationship with the Company or a Related Company and the unvested
portion of the Option will terminate.

      2.    SECURITIES LAW COMPLIANCE. Notwithstanding any other provision of
this Agreement, you may not exercise the Option unless the Shares issuable upon
exercise are registered under the Securities Act or, if such Shares are not then
so registered, the Company has determined that such exercise and issuance would
be exempt from the registration requirements of the Securities Act. The exercise
of the Option must also comply with other applicable laws and regulations
governing the Option, and you may not exercise the Option if the Company
determines that such exercise would not be in material compliance with such laws
and regulations.

      3.    METHOD OF EXERCISE. You may exercise the Option by giving written
notice to the Company, in form and substance satisfactory to the Company, which
will state your election to exercise the Option and the number of Shares for
which you are exercising the Option. The written notice must be accompanied by
full payment of the exercise price for the number of Shares you are purchasing.
At the discretion of the Plan Administrator, you may make this payment in any
combination of the following: (a) by cash; (b) by check acceptable to the
Company; (c) by using shares of Common Stock you have owned for at least six
months; (d) if the Common Stock is registered under the Exchange Act, by
instructing a broker to deliver to the Company the total payment required; or
(e) by any other method permitted by the Plan Administrator.

      4.    MARKET STANDOFF. By exercising the Option you agree that the Shares
will be subject to the market standoff restrictions on transfer set forth in the
Plan.

      5.    TREATMENT UPON TERMINATION OF EMPLOYMENT OR SERVICE RELATIONSHIP.
The unvested portion of the Option will terminate automatically and without
further notice immediately upon termination of your employment or service
relationship with the Company or a Related Company for any reason ("Termination
of Service"). You may exercise the vested portion of the Option as follows:
<PAGE>
            (a)   General Rule. You must exercise the vested portion of the
Option on or before the earlier of (i) three months after your Termination of
Service and (ii) the Option Expiration Date;

            (b)   Disability. If your employment or service relationship
terminates due to Disability, you must exercise the vested portion of the Option
on or before the earlier of (i) one year after your Termination of Service and
(ii) the Option Expiration Date.

            (c)   Death. If your employment or service relationship terminates
due to your death, the vested portion of the Option must be exercised on or
before the earlier of (i) one year after your Termination of Service and (ii)
the Option Expiration Date. If you die after your Termination of Service but
while the Option is still exercisable, the vested portion of the Option may be
exercised until the earlier of (x) one year after the date of death and (y) the
Option Expiration Date; and

            (d)   Cause. The vested portion of the Option will automatically
expire at the time the Company first notifies you of your Termination of Service
for Cause, unless the Plan Administrator determines otherwise. If your
employment or service relationship is suspended pending an investigation of
whether you will be terminated for Cause, all your rights under the Option
likewise will be suspended during the period of investigation. If any facts that
would constitute termination for Cause are discovered after your Termination of
Service, any Option you then hold may be immediately terminated by the Plan
Administrator.

    IT IS YOUR RESPONSIBILITY TO BE AWARE OF THE DATE THE OPTION TERMINATES.

      6.    LIMITED TRANSFERABILITY. During your lifetime only you can exercise
the Option. The Option is not transferable except by will or by the applicable
laws of descent and distribution, except that Nonqualified Stock Options may be
transferred to the extent permitted by the Plan Administrator. The Plan provides
for exercise of the Option by a beneficiary designated on a Company-approved
form or the personal representative of your estate.

      7.    WITHHOLDING TAXES. As a condition to the exercise of any portion of
an Option, you must make such arrangements as the Company may require for the
satisfaction of any federal, state, local or foreign withholding tax obligations
that may arise in connection with such exercise.

      8.    OPTION NOT AN EMPLOYMENT OR SERVICE CONTRACT. Nothing in the Plan or
any Award granted under the Plan will be deemed to constitute an employment
contract or confer or be deemed to confer any right for you to continue in the
employ of, or to continue any other relationship with, the Company or any
Related Company or limit in any way the right of the Company or any Related
Company to terminate your employment or other relationship at any time, with or
without Cause.

      9.    NO RIGHT TO DAMAGES. You will have no right to bring a claim or to
receive damages if you are required to exercise the vested portion of the Option
within three months (one year in the case of Disability or death) of the
Termination of Service or if any portion of the Option is cancelled or expires
unexercised. The loss of existing or

                                                                               3
<PAGE>
potential profit in Awards will not constitute an element of damages in the
event of your Termination of Service for any reason even if the termination is
in violation of an obligation of the Company or a Related Company to you.

      10.   BINDING EFFECT. This Agreement will inure to the benefit of the
successors and assigns of the Company and be binding upon you and your heirs,
executors, administrators, successors and assigns.

                                                                               4<PAGE>

                                                                EXHIBIT 10.15.1

                                 FIRST AMENDMENT

         THIS FIRST AMENDMENT dated as of August 12, 2003 (this "Amendment") is
to the Credit Agreement (as amended, the "Credit Agreement") dated as of
February 25, 2003 among LITHIA MOTORS, INC. (the "Company"!, various financial
institutions (the "Lenders") and DAIMLERCHRYSLER SERVICES NORTH AMERICA LLC, as
agent for the Lenders (the "Agent"). Unless otherwise defined herein, terms
defined in the Credit Agreement are used herein as defined in the Credit
Agreement.

         WHEREAS, the parties hereto desire to amend the Credit Agreement in
certain respects;

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration (the receipt and sufficiency of which are hereby
acknowledged), the parties hereto agree as follows:

         SECTION 1 AMENDMENTS. Effective on (and subject to the occurrence of)
the Amendment Effective Date (as defined below):

         1.1      Sections 9.6.1 and 9.6.4 of the Credit Agreement shall be
amended by substituting the words "the end of any Computation Period" for the
words "any time" therein.

         SECTION 2 REPRESENTATIONS AND WARRANTIES. The Company represents and
warrants to the Agent and the Lenders that: (a) the representations and
warranties made in Section 8 of the Credit Agreement are true and correct on and
as of the Amendment Effective Date (as defined below) with the same effect as if
made on and as of the Amendment Effective Date (except to the extent relating
solely to an earlier date, in which case they were true and correct as of such
earlier date); (b) no Event of Default or Unmatured Event of Default exists or
will result from the execution of this Amendment; (c) no event or circumstance
has occurred since the Closing Date that has resulted, or would reasonably be
expected to result, in a Material Adverse Effect; (d) the execution and delivery
by the Company of this Amendment and the performance by the Company of its
obligations under the Credit Agreement as amended hereby (as so amended, the
"Amended Credit Agreement") (i) are within the corporate powers of the Company,
(ii) have been duly authorized by all necessary corporate action, (iii) have
received all necessary approval from any governmental authority and (iv) do not
and will not contravene or conflict with any provision of any law, rule or
regulation or any order, decree, judgment or award which is binding on the
Company or any of its Subsidiaries or of any provision of the certificate of
incorporation or bylaws or other organizational documents of the Company or of
any agreement, indenture, instrument or other document which is binding on the
Company or any of its Subsidiaries; and (e) the Amended Credit Agreement is the
legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency or similar laws affecting the enforcement of
creditors' rights generally or by equitable principles relating to
enforceability.

<PAGE>

         SECTION 3 EFFECTIVENESS. The amendments set forth in Section 1 above
shall become effective as of February 25, 2003 (the "Amendment Effective Date")
on such date when the Agent shall have received (a) a counterpart of this
Amendment executed by the Company and the Required Lenders (or, in the case of
any party other than the Company from which the Agent has not received a
counterpart hereof, facsimile confirmation of the execution of a counterpart
hereof by such party) and (b) each of the following documents, each in form and
substance satisfactory to the Agent:

         3.1      Reaffirmation. A counterpart of the Reaffirmation of Loan
Documents, substantially in the form of Exhibit A. executed by each Loan Party
other than the Company. 3.2 Other Documents. Such other documents as the Agent
or any Lender may reasonably request.

         SECTION 4 MISCELLANEOUS.

         4.1      Continuing Effectiveness, etc. As hereby amended, the Credit
Agreement shall remain in full force and effect and is hereby ratified and
confirmed in all respects. As of the Amendment Effective Date, all references in
the Credit Agreement, the Notes, each other Loan Document and any similar
document to the "Credit Agreement" or similar terms shall refer to the Amended
Credit Agreement.

         4.2      Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original but all such counterparts
shall together constitute one and the same Amendment.

         4.3      Expenses. The Company agrees to pay the reasonable costs and
expenses of the Agent (including reasonable fees and disbursements of counsel,
including, without duplication, the allocable costs of internal legal services
and all disbursements of internal legal counsel) in connection with the
preparation, execution and delivery of this Amendment.

         4.4      Governing Law. This Amendment shall be a contract made under
and governed by the laws of the State of Michigan applicable to contracts made
and to be wholly performed within the State of Michigan.

         4.5      Successors and Assigns. This Amendment shall be binding upon
the Company, the Lenders and the Agent and their respective successors and
assigns, and shall inure to the benefit of the Company, the Lenders and the
Agent and the successors and assigns of the Lenders and the Agent.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                        2
<PAGE>

             Delivered as of the day and year first above written.

                                               LITHIA MOTORS, INC.

                                               By: _____________________________
                                               Title: __________________________

                                               DAIMLERCHRYSLER SERVICES NORTH
                                               AMERICA LLC, as Agent, as Issuing
                                               Lender and as a Lender

                                               By: _____________________________
                                               Title: __________________________

                                       3
<PAGE>

                                    EXHIBIT A

                              FORM OF REAFFIRMATION

                                 August 12, 2003

DaimlerChrysler Services North
America LLC, as Agent
and the Lenders party
to the Amended and Restated Credit Agreement
referred to below
27777 Inkster Road
Farmington Hills, Michigan 48334
Attn: Michele Nowak

         RE: REAFFIRMATION OF LOAN DOCUMENTS

Ladies and Gentlemen:

         Please refer to:

         (a)      The Security Agreement dated as of February 25, 2003 (the
"Security Agreement") among Lithia Motors, Inc. (the "Company"), its
subsidiaries and DaimlerChrysler Services North America LLC in its capacity as
Agent (in such capacity, the "Agent");

         (b)      The Guaranty dated as of February 25, 2003 (the "Guaranty")
executed in favor of the Agent and various other parties by all subsidiaries of
the Company; and

         (c)      The Pledge Agreement dated as of February 25, 2003 (the
"Pledge Agreement") executed by the Company and certain of its subsidiaries.

         Each of the undersigned acknowledges that the Company, the Lenders and
the Agent have executed the First Amendment (the "First Amendment") to the
Credit Agreement dated as of February 25, 2003 (as amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"). Capitalized terms
not otherwise defined herein have the meanings given in the Credit Agreement.

         Each of the undersigned hereby confirms that the Security Agreement,
the Guaranty, the Pledge Agreement and each other Loan Document to which such
undersigned is a party remains in full force and effect after giving effect to
the effectiveness of the First Amendment and that, upon such effectiveness, all
references in each Loan Document to the "Credit Agreement" shall be references
to the Credit Agreement, as amended by the First Amendment.

<PAGE>

DaimlerChrysler Services North
America LLC, as Agent
August 12, 2003

         This letter agreement may be signed in counterparts and by the various
parties on separate counterparts. This letter agreement shall be governed by the
laws of the State of Michigan applicable to contracts made and to be performed
entirely within such State.

                                          HUTCHINS EUGENE NISSAN, INC.
                                          HUTCHINS IMPORTED MOTORS, INC.
                                          LGPAC, INC.
                                          LITHIA AUTO SERVICES, INC.
                                          LITHIA BNM, INC.
                                          LITHIA DE, INC.
                                          LITHIA DM, INC.
                                          LITHIA HPI, INC.
                                          LITHIA KLAMATH, INC.
                                          LITHIA LAC, INC.
                                          LITHIA LP OF TEXAS, LLC
                                          LITHIA MEDFORD HON, INC.
                                          LITHIA MOTORS SUPPORT SERVICES, INC.
                                          LITHIA MTLM, INC.
                                          LITHIA OF ROSEBURG, INC.
                                          LITHIA RENTALS, INC.
                                          LITHIA ROSE-FT, INC.
                                          LITHIA SH LLC
                                          SOE, LLC
                                          LITHIA SOC, INC.
                                          SATURN OF SOUTHWEST OREGON, INC.
                                          LITHIA CHRYSLER JEEP OF ANCHORAGE,
                                           INC.
                                          LITHIA IMPORTS OF ANCHORAGE, INC.
                                          LITHIA CIMR, INC.
                                          LITHIA CJDB, INC.
                                          LITHIA DC, INC.
                                          LITHIA FMF, INC.
                                          LITHIA FN, INC.
                                          LITHIA FVHC, INC.
                                          LITHIA JEF, INC.
                                          LITHIA MMF, INC.
                                          LITHIA NF, INC.
                                          LITHIA OF ANCHORAGE, INC.
                                          LITHIA TKV, INC.
                                          LITHIA TR, INC.

                                       2
<PAGE>

                                          LITHIA VWC, INC.
                                          LITHIA VWPC, INC.
                                          LITHIA CENTENNIAL CHRYSLER PLYMOUTH
                                           JEEP, INC.
                                          LITHIA CHERRY CREEK DODGE, INC.
                                          LITHIA COLORADO CHRYSLER PLYMOUTH,
                                           INC.
                                          LITHIA COLORADO JEEP, INC.
                                          LITHIA COLORADO SPRINGS JEEP CHRYSLER
                                           PLYMOUTH, INC.
                                          LITHIA FOOTHILLS CHRYSLER, INC.
                                          LITHIA OF THORNTON, INC.
                                          LITHIA CB, INC.
                                          LITHIA DB, INC.
                                          LITHIA IB, INC.
                                          LITHIA  LMB, INC.
                                          LITHIA FORD OF BOISE, INC.
                                          LITHIA OF CALDWELL, INC.
                                          LITHIA OF POCATELLO, INC.
                                          LITHIA POCA-HON, INC.
                                          LITHIA CD, INC.
                                          LITHIA OF OMAHA, INC.
                                          LITHIA MBO, INC.
                                          LITHIA RENO SUB-HYUN, INC.
                                          LITHIA SALMIR, INC.
                                          LITHIA AUTOMOTIVE, INC.
                                          LITHIA OF SIOUX FALLS, INC.
                                          LITHIA GP OF TEXAS, LLC
                                          LITHIA CJDBS, L.P.
                                          LITHIA CJDO, L.P.
                                          LITHIA CJDSA. L.P.
                                          LITHIA CM, L.P.
                                          LITHIA CO, L.P.
                                          LITHIA CSA, L.P.
                                          LITHIA DMID, L.P.
                                          LITHIA DSA, L.P.
                                          LITHIA HMID, L.P.
                                          LITHIA NSA, L.P.
                                          CAMP AUTOMOTIVE, INC.
                                          LITHIA VS LLC
                                          LITHIA BC, INC.
                                          LITHIA DC OF RENTON, INC.
                                          LITHIA DODGE OF  TRI-CITIES, INC.
                                          LITHIA FTC, INC.
                                          LITHIA 1C, INC.

                                        3
<PAGE>

                                          LITHIA LAC OF WASHINGTON, LLC
                                          LITHIA OF SEATTLE, INC.
                                          TC HON, INC.
                                          LITHIA HYR, INC.
                                          LITHIA CS, INC.
                                          LITHIA OF FAIRFIELD, INC.
                                          LITHIA OF SANTA ROSA, INC.
                                          LITHIA OF VACAVILLE, INC.
                                          LITHIA CCTF, INC.
                                          LITHIA OF TWIN FALLS, INC.
                                          LITHIA LMM, INC.
                                          LITHIA OF MISSOULA, INC.
                                          LITHIA OF OKLAHOMA, INC.
                                          LITHIA OF BILLINGS, INC.
                                          LITHIA OF SPOKANE, INC.

                                          By:___________________________________
                                          Title:________________________________

                                       4
<PAGE>

ACKNOWLEDGED AND AGREED
as of the date first written above

DAIMLERCHRYSLER SERVICES NORTH
AMERICA, LLC, as Agent

By:_________________________________
Title:______________________________

                                       5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}]]