UQM TECHNOLOGIES INC
EXHIBIT 10.17
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>7
<FILENAME>exhibit1017.htm
<DESCRIPTION>EXHIBIT 10.17
<TEXT>
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<title>Exhibit 10</title>
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<table CELLSPACING="0" BORDER="0" CELLPADDING="7" WIDTH="668">
  <tr>
    <td VALIGN="TOP" COLSPAN="17"><font SIZE="2"><b><p ALIGN="RIGHT">Exhibit 10.17</b></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="17"></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="17"><font SIZE="2"><b><p ALIGN="CENTER">UQM TECHNOLOGIES, INC.</b></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="17"><font SIZE="2"><b><p ALIGN="CENTER">2002 EQUITY INCENTIVE
    PLAN</b></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="17"></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="17"><font SIZE="2"><u><b><p ALIGN="CENTER">NON_QUALIFIED STOCK
    OPTION AGREEMENT</b></u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="17"></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="95%" VALIGN="TOP" COLSPAN="14"><font SIZE="2"><p ALIGN="JUSTIFY">THIS AGREEMENT
    made as of this 2nd day of March, 2004, between UQM TECHNOLOGIES, INC., a Colorado
    corporation (together with its Affiliated Corporations, except where the context requires
    otherwise, the &quot;Company&quot;), and Donald A. French (the &quot;Option Holder&quot;).</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"><font SIZE="2"><p ALIGN="RIGHT">1.</font></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9"><font SIZE="2"><u><b><p ALIGN="JUSTIFY">Grant of
    Option</b></u>. Pursuant to the UQM Technologies, Inc. 2002 Equity Incentive Plan (the
    &quot;Plan&quot;) and </font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="95%" VALIGN="TOP" COLSPAN="14"><font SIZE="2"><p ALIGN="JUSTIFY">subject to the
    terms and conditions of this Agreement, the Company hereby grants to the Option Holder a
    non-qualified option (the &quot;Option&quot;) to purchase 58,550 shares of the common
    stock of the Company (the &quot;Stock&quot;) at an exercise price per share of $2.41 (the
    &quot;Option Price&quot;). The Option grant shall be effective as of February 27, 2004
    (the &quot;Effective Date&quot;). The Option is intended to qualify as an incentive stock
    option under Section 422 of the Internal Revenue Code of 1986, as amended (the
    &quot;Code&quot;).</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="95%" VALIGN="TOP" COLSPAN="14"></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="3"><font SIZE="2"><p ALIGN="RIGHT">2.</font></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="11"><font SIZE="2"><u><b>Requirements for Exercise;
    Vesting</b></u>.</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="95%" VALIGN="TOP" COLSPAN="14"></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"><font SIZE="2"><p ALIGN="RIGHT">(a)</font></td>
    <td WIDTH="85%" VALIGN="TOP" COLSPAN="6"><font SIZE="2"><u><b>In General</b></u>. Except
    as provided otherwise in this Agreement, the Option shall not become exercisable</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="95%" VALIGN="TOP" COLSPAN="14"><font SIZE="2"><p ALIGN="JUSTIFY">until the
    Option Holder has completed one full year of continuous employment after the Effective
    Date. Upon the completion of one full year of continuous employment after the Effective
    Date, the Option shall become vested and exercisable in increments, if the Option Holder
    is still in the employ of the Company on the dates indicated in the following schedule:</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="95%" VALIGN="TOP" COLSPAN="14"></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="95%" VALIGN="TOP" COLSPAN="14"><font SIZE="2"><p ALIGN="CENTER">Percentage of
    Option </font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="95%" VALIGN="TOP" COLSPAN="14"><font SIZE="2"><p ALIGN="CENTER">That Shall
    Become Vested</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="95%" VALIGN="TOP" COLSPAN="14"><font SIZE="2"><p ALIGN="CENTER">And Exercisable
    on Each Date</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="95%" VALIGN="TOP" COLSPAN="14"></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="25%" VALIGN="TOP" COLSPAN="9"><font SIZE="2">33.3%</font></td>
    <td WIDTH="65%" VALIGN="TOP" COLSPAN="2"><font SIZE="2">on the first anniversary of the
    date of the grant;</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="25%" VALIGN="TOP" COLSPAN="9"><font SIZE="2">An additional 33.3%</font></td>
    <td WIDTH="65%" VALIGN="TOP" COLSPAN="2"><font SIZE="2">on the second anniversary of the
    date of the grant;</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"></td>
    <td WIDTH="2%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="25%" VALIGN="TOP" COLSPAN="9"><font SIZE="2">An additional 33.4%</font></td>
    <td WIDTH="65%" VALIGN="TOP" COLSPAN="2"><font SIZE="2">on the third anniversary of the
    date of the grant.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2"><p ALIGN="JUSTIFY">Except as set
    forth in Section 5 of this Agreement, the Option shall not be exercisable as to any shares
    of Stock as to which the vesting requirements of this Section 2 shall not be satisfied,
    regardless of the circumstances under which the Option Holder&#146;s employment by the
    Company shall be terminated. The number of shares of Stock as to which the Option may be
    exercised shall be cumulative, so that once the Option shall become vested and exercisable
    as to any shares of Stock it shall continue to be vested and exercisable as to such
    shares, until expiration or termination of the Option as provided in Section 6 hereof. If
    at any time the number of shares of Stock that are covered by the vested and exercisable
    portion of the Option includes a fractional share, the number of shares of Stock as to
    which the Option shall be actually vested and exercisable shall be rounded down to the
    next whole share of Stock.</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="17"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"><font SIZE="2"><p ALIGN="RIGHT">(b)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"><font SIZE="2"><u><b>Accelerated Vesting in
    Certain Circumstances</b></u>. The Option Holder shall become 100% vested with </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2"><p ALIGN="JUSTIFY">respect to the
    entire Option, and the entire Option shall become exercisable, upon a reorganization or
    change in control of the Company (as defined in Section 5(b) below).</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="17"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"><font SIZE="2"><p ALIGN="RIGHT">3.</font></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9"><font SIZE="2"><u><b><p ALIGN="JUSTIFY">Method
    for Exercising the Option</b></u>. The Option may be exercised only by delivery of written
    notice of </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2"><p ALIGN="JUSTIFY">exercise,
    together with payment of the Option Price as provided below, in person or through
    certified or registered mail, fax or overnight delivery to the Company at the following
    address: UQM Technologies, Inc., Attention: Corporate Secretary, 7501 Miller Drive, PO Box
    439, Frederick, Colorado 80530, or such other address as shall be furnished in writing to
    the Option Holder by the Company. Such written notice shall specify that the Option is
    being exercised, and the number of shares of Stock with respect to which the Option is
    exercised, the Option Price shall be paid no later than 30 days after the notice of
    exercise is delivered. The Option shall be exercised only when the Option Price is paid in
    full.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2"><p ALIGN="JUSTIFY">The Company
    intends to register the shares of Stock subject to this Option and this Option on a Form
    S-8 Registration Statement (or any successor or replacement Form). Notwithstanding such
    registration, the Company may require the Option Holder, as a condition of exercise of
    this Option, to give written assurance in substance and form satisfactory to the Company
    and its counsel to the effect that the Option Holder is acquiring the Stock for his own
    account for investment and not with any present intention of selling or otherwise
    distributing the same, and to such other effects as the Company deems necessary or
    appropriate in order to comply with federal and state securities laws. Legends evidencing
    such restrictions may be placed on the Stock certificates.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2">The purchase of such Stock shall
    take place at the address of the Company set forth above upon delivery of a notice of
    exercise that specifies the number of shares with respect to which the Option is being
    exercised and payment of the Option Price for the Stock in full, within 30 days of the
    delivery of the notice of exercise, (i) by certified or cashier&#146;s check payable to
    the Company&#146;s order, or (ii) by wire transfer to such account as may be specified by
    the Company for this purpose, or (iii) by delivery to the Company of certificates
    representing the number of shares of Stock then owned by the Option Holder, the Fair
    Market Value of which equals the Option Price of the Stock to be purchased pursuant to the
    Option, properly endorsed for transfer to the Company; provided, however, that no Option
    may be exercised by delivery to the Company of certificates representing Stock, unless
    such Stock has been held by the Option Holder for more than six (6) months, or (iv) by
    delivery to the Company of a properly executed notice of exercise together with
    irrevocable instructions to a broker to deliver to the Company promptly the amount of the
    proceeds of the sale of all or a portion of the Stock or of a loan from the broker to the
    Option Holder required to pay the Option Price; provided, however, that if the Option
    Holder is subject to the Sarbanes-Oxley Act of 2002, the Option Price shall not be paid
    with the proceeds of a loan. For purposes of this Option, the Fair Market Value of any
    shares of Stock delivered in payment of the Option Price upon exercise of the Option shall
    be the Fair Market Value as of the exercise date; the exercise date shall be the day of
    delivery of the certificates for the Stock used as payment of the Option Price.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2">Upon such notice to the Company
    and payment of the Option Price, the exercise of the Option shall be deemed to be
    effective, and a properly executed certificate or certificates representing the Stock so
    purchased shall be issued by the Company and delivered to the Option Holder.</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="17"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"><font SIZE="2"><p ALIGN="RIGHT">4.</font></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9"><font SIZE="2"><u><b>Adjustment of the Option</b></u>.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"><font SIZE="2"><p ALIGN="RIGHT">(a)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"><font SIZE="2"><u><b>Adjustment by Stock Split,
    Stock Dividend, Etc</b></u>. If at any time the Company increases or decreases </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2"><p ALIGN="JUSTIFY">the number of
    its outstanding shares of Stock, or changes in any way the rights and privileges of such
    shares, by means of the payment of a stock dividend or the making of any other
    distribution on such shares payable in Stock, or through a Stock split or subdivision of
    shares, or a consolidation or combination of shares, or through a reclassification or
    recapitalization involving the Stock, the numbers, rights and privileges of the shares of
    Stock included in the Option shall be increased, decreased or changed in like manner as if
    such shares had been issued and outstanding, fully paid and non- assessable at the time of
    such occurrence.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"><font SIZE="2"><p ALIGN="RIGHT">(b)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"><font SIZE="2"><b><u><p ALIGN="JUSTIFY">Other
    Distributions and Changes in the Stock</u>.</b> If the Company shall at any time
    distribute with </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2"><p ALIGN="JUSTIFY">respect to the
    Stock assets or securities of persons other than the Company (excluding cash or
    distributions referred to in subsection (a)) or grant to the holders of its Stock rights
    to subscribe <i>pro rata</i> for additional shares thereof or for any other securities of
    the Company or there shall be any other change (except as described in subsection (a)) in
    the number or kind of outstanding shares of Stock or of any stock or other securities into
    which the Stock shall be changed or for which it shall have been exchanged, and if the
    Committee shall in its discretion determine that the event equitably requires an
    adjustment in the number or kind of shares subject to the Option, an adjustment to the
    Option Price, or the taking of any other action by the Committee, including without
    limitation, the setting aside of any property for delivery to the Option Holder upon the
    exercise of the Option, then such adjustment shall be made, or other actions taken, by the
    Committee and shall be effective for all purposes of this Agreement.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"><font SIZE="2"><p ALIGN="RIGHT">(c)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"><font SIZE="2"><u><b>Apportionment of Option
    Price</b></u>. Upon any occurrence described in the preceding subsections (a) </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2"><p ALIGN="JUSTIFY">and (b), the
    aggregate Option Price for the shares of Stock then subject to the Option shall remain
    unchanged and shall be apportioned ratably over the increased or decreased number or
    changed kinds of securities or other properties subject to the Option. Any fractional
    shares resulting from any of the foregoing adjustments shall be disregarded and eliminated
    from this Option.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"><font SIZE="2"><p ALIGN="RIGHT">5.</font></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9"><font SIZE="2"><b><u>Reorganization and Change in
    Control</u>.</b></font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"><font SIZE="2"><p ALIGN="RIGHT">(a)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"><font SIZE="2"><b><u>Full Vesting; Termination;
    Assumption or Substitution</u>.</b> Upon the occurrence of a Corporate</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2"><p ALIGN="JUSTIFY">Transaction
    (as defined in subsection 5(c)), the Option shall become fully exercisable regardless of
    whether all conditions of exercise relating to length of service have been satisfied. The
    Committee may also provide for the assumption or substitution of the Option by the
    surviving entity as described in subsection 5(b) and make any other provision for the
    Option as the Committee deems appropriate in its sole discretion. The Committee may
    provide that any portion of the Option that outstanding at the time the Corporate
    Transaction is closed shall expire at the time of the closing, as the Committee determines
    in its sole discretion.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5"><font SIZE="2"><p ALIGN="RIGHT">(b)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4"><font SIZE="2"><b><u>Assumption or Substitution</u>.<i>
    </i></b>The Company, or the successor or purchaser, as the case may be, may </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12"><font SIZE="2"><p ALIGN="JUSTIFY">make adequate
    provision for the assumption of the Option or the substitution of a new option for the
    outstanding Option on terms comparable to the Option.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(c)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><b><u>Corporate
    Transaction</u>. </b>A Corporate Transaction shall include the following:</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(i)</font></td>
    <td WIDTH="79%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><i><b>Merger;
    Reorganization:</b></i> the merger or consolidation of the Company with or into another </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">corporation
    or other reorganization (other than a reorganization under the United States Bankruptcy
    Code) of the Company (other than a consolidation, merger, or reorganization in which the
    Company is the continuing corporation and which does not result in any reclassification or
    change of outstanding Shares); or</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(ii)</font></td>
    <td WIDTH="79%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><i><b>Sale:</b></i>
    the sale or conveyance of the property of the Company as an entirety or substantially as </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">(other
    than a sale or conveyance in which the Company continues as a holding company of an entity
    or entities that conduct the business or businesses formerly conducted by the Company) or
    the sale of more than 50% of the outstanding voting stock of the Company; or</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(iii)</font></td>
    <td WIDTH="79%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><i><b>Liquidation:</b></i>
    the dissolution or liquidation of the Company; or</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(iv)</font></td>
    <td WIDTH="79%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><i><b>Change in
    Control:</b></i> a &quot;Change in Control&quot; shall be deemed to have occurred if at
    any time </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">during
    any period of two consecutive years (including any period prior to the Effective Date of
    the Plan), individuals who at the beginning of such period constitute the Board (and any
    new director whose election by the Board or whose nomination for election by the
    Company&#146;s stockholders was approved by a vote of at least two-thirds (2/3) of the
    directors then still in office who either were directors at the beginning of such period
    or whose election or nomination for election was previously so approved) cease for any
    reason to constitute a majority of all directors at any time during such period; or</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(v)</font></td>
    <td WIDTH="79%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><i><b>Other
    Transactions:</b></i> any other transaction that the Board determines by resolution to be
    a </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9" HEIGHT="15"><font SIZE="2">Corporate Transaction.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">Notwithstanding
    anything to the contrary in this Section 5 to the contrary, no Option or other Award will
    become exercisable and/or vested by virtue of the occurrence of a Corporate Transaction if
    the Participant or any group of which such Participant is a member of the person whose
    acquisition constituted the Corporate Transaction.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">6.</font></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9" HEIGHT="15"><font SIZE="2"><u><b>Expiration and
    Termination of the Option</b></u>. The Option shall expire on the tenth (10<sup>th</sup>)
    anniversary of the </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">Effective
    Date, (the period from the Effective Date to the expiration date is the &quot;Option
    Period&quot;) or prior to such time as follows:</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(a)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><b><u>Termination for
    Cause</u>. </b>If the Option Holder&#146;s employment by the Company is terminated for </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2">&quot;cause,&quot; as
    determined by the Company, within the Option Period, the entire Option, whether or not
    vested, shall become void, shall be forfeited and shall terminate immediately upon the
    termination of employment of the Option Holder. For this purpose, &quot;cause&quot; shall
    mean a gross violation, as determined by the Company, of the Company&#146;s established
    policies and procedures.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(b)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b>Termination on
    Account of Disability</b></u>. If the Option Holder becomes Disabled, the Option may be</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">exercised
    by the Option Holder within one year following the Option Holder&#146;s termination of
    services on account of Disability (provided that such exercise must occur within the
    Option Period), but not thereafter. In any such case, the Option may be exercised only as
    to the shares as to which the Option had become exercisable on or before the date of the
    Option Holder&#146;s termination of services.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(c)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b><p
    ALIGN="JUSTIFY">Death</b></u>. If the Option Holder dies during the Option Period while
    still employed by or performing </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">services
    for the Company or within the one year period referred to in (b) above or the three (3)
    month period referred to in (d) below, the Option may be exercised by those entitled to do
    so under the Option Holder&#146;s will or by the laws of descent and distribution within
    one year following the Option Holder&#146;s death (provided that such exercise must occur
    within the Option Period), but not thereafter. In any such case, the Option may be
    exercised only as to the shares as to which the Option had become exercisable on or before
    the date of the Option Holder&#146;s death.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(d)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b>Termination for
    Other Reasons</b></u>. If the services of the Option Holder are terminated (which for this</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">purpose
    means that the Option Holder is no longer employed by the Company or performing services
    for the Company) within the Option Period for any reason other than cause, Disability, or
    death, the Option may be exercised by the Option Holder within three (3) months following
    the date of such termination (provided that such exercise must occur within the Option
    Period), but not thereafter. In any such case, the Option may be exercised only as to the
    shares as to which the Option had become exercisable on or before the date of termination
    of services.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">7.</font></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9" HEIGHT="15"><font SIZE="2"><u><b>Transferability.</b></u></font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(a)</font></td>
    <td WIDTH="85%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><u><b><p
    ALIGN="JUSTIFY">In General: No Lifetime Transfers.</b></u> Except as provided in
    subsection (b) below, the Option may not </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">be
    transferred except by will or pursuant to the laws of descent and distribution, and it
    shall be exercisable during the Option Holder&#146;s life only by him, or in the event of
    Disability or incapacity, by his guardian or legal representative, and after his death,
    only by those entitled to do so under his will or the applicable laws of descent and
    distribution. Except as specifically provided herein, upon any attempt to transfer,
    assign, pledge, hypothecate or otherwise dispose of the Option or any right or privilege
    granted hereunder, or upon the levy of any attachment or similar process upon the rights
    and privileges herein conferred, the Option and the rights and privileges hereunder shall
    become immediately null and void.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(b)</font></td>
    <td WIDTH="85%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><u><b>InterVivos
    Transfer to Certain Family Members.</b></u> The Option Holder may transfer the Option to a
    </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">Member
    of the Option Holder&#146;s immediate family, a trust of which members of the Option
    Holder&#146;s immediate family are the only beneficiaries, or a partnership of which
    members of the Option Holder&#146;s immediate family or trusts for the sole benefit of the
    Option Holder&#146;s immediate family are the only partners (the &quot;InterVivos
    Transferee&quot;). Immediate family means the Option Holder&#146;s spouse, issue (by birth
    or adoption), parents, grandparents, siblings (including half brothers and sisters and
    adopted siblings) and nieces and nephews. No transfer shall be effective unless the Option
    Holder shall have notified the Company of the transfer in writing and has furnished a copy
    of the documents that effect the transfer to the Company. The InterVivos Transferee shall
    be subject to all terms of this Agreement and the Plan, including, but not limited to, the
    vesting schedule, termination provisions, and the manner in which the Option may be
    exercised. The Option Holder and the InterVivos Transferee shall enter into an appropriate
    agreement with the Company providing for, among other things, the satisfaction of required
    tax withholding with respect to the exercise of the transferred Option and the
    satisfaction of any Stock retention requirements applicable to the Option Holder, together
    with such other terms and conditions as may be specified by the Committee. Except to the
    extent provided otherwise in such agreement, the InterVivos Transferee shall have all of
    the rights and obligations of the Option Holder under this Agreement and the Plan;
    provided that the InterVivos Transferee shall not have any Stock withheld to pay
    withholding taxes pursuant to Section 17.2 of the Plan unless the agreement referred to in
    the preceding sentence specifically provides otherwise.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">8.</font></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9" HEIGHT="15"><font SIZE="2"><b><u>Limitation of
    Rights</u>.</b> The Option Holder or his successor shall have no rights as a stockholder
    with respect</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">to
    the shares of Stock covered by this Option until the Option Holder or his successors
    become the holder of record of such shares.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">9.</font></td>
    <td WIDTH="90%" VALIGN="TOP" COLSPAN="9" HEIGHT="15"><font SIZE="2"><b><u><p
    ALIGN="JUSTIFY">Stock Reserve</u>.</b> The Company shall at all times during the term of
    this Agreement reserve and keep </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">available
    such number of shares of Stock as will be sufficient to satisfy the requirements of this
    Agreement, and the Company shall pay all original issue taxes (if any) on the exercise of
    the Option, and all other fees and expenses necessarily incurred by the Company in
    connection therewith.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">10.</font></td>
    <td WIDTH="89%" VALIGN="TOP" COLSPAN="7" HEIGHT="15"><font SIZE="2"><u><b>Withholding</b></u>.
    The issuance of Stock pursuant to the exercise of this Option shall be subject to the</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">requirement
    that the Option Holder shall make appropriate arrangements with the Company to provide for
    the amount of additional income and other tax withholding applicable to the exercise of
    the Option.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">11.</font></td>
    <td WIDTH="89%" VALIGN="TOP" COLSPAN="7" HEIGHT="15"><font SIZE="2"><b><u>Miscellaneous</u>.</b></font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(a)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b>Notices</b></u>.
    Any notice required or permitted to be given under this Agreement shall be in writing and</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">shall
    be given by first class registered or certified mail, postage prepaid, or by personal
    delivery to the appropriate party, addressed:</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(i)</font></td>
    <td WIDTH="79%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2">If to the Company, to
    UQM Technologies, Inc., Attention: Corporate Secretary, 7501 Miller </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="89%" VALIGN="TOP" COLSPAN="7" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">Drive,
    PO Box 439, Frederick, Colorado 80530, or at such other address as may have been furnished
    to the Option Holder in writing by the Company; or</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(ii)</font></td>
    <td WIDTH="79%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2">If to the Option
    Holder, to the Option Holder at UQM Technologies, Inc., 7501 Miller Drive, </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="89%" VALIGN="TOP" COLSPAN="7" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">PO
    Box 439, Frederick, Colorado 80530, or at other address as may have been furnished to the
    Company by the Option Holder.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">Any
    such notice shall be deemed to have been given as of the second day after deposit in the
    United States mails, postage prepaid, properly addressed as set forth above, in the case
    of mailed notice, or as of the date delivered in the case of personal delivery.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(b)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b>Amendment</b></u>.
    Except as provided herein, this Agreement may not be amended or otherwise modified </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">unless
    evidenced in writing and signed by the Company and the Option Holder.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(c)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b>Defined Terms</b></u>.
    Capitalized terms shall have the meaning set forth in the Plan or herein, as the case </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2">may be.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(d)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b>Compliance with
    Securities Laws</b></u>. This Agreement shall be subject to the requirement that if at any</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">time
    counsel to the Company shall determine that the listing, registration or qualification of
    the shares of Stock subject to the Option upon any securities exchange or under any state
    or federal law, or the consent or approval of any governmental or regulatory body, is
    necessary as a condition of, or in connection with, the issuance or purchase of such
    shares thereunder, the Option may not be exercised in whole or in part unless such
    listing, registration, qualification, consent or approval shall have been effected or
    obtained on conditions acceptable to the Committee. Nothing herein shall be deemed to
    require the Company to apply for or obtain such listing, registration or qualification.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(e)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b>Construction;
    Severability</b></u>. The section headings contained herein are for reference purposes
    only</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">and
    shall not in any way affect the meaning or interpretation of this Agreement. The
    invalidity or unenforceability of any provision of this Agreement shall not affect the
    validity or enforceability of any other provision of this Agreement, and each other
    provision of this Agreement shall be severable and enforceable to the extent permitted by
    law.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(f)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b><p
    ALIGN="JUSTIFY">Waiver</b></u>. Any provision contained in this Agreement may be waived,
    either generally or in any </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">particular
    instance, by the Committee appointed under the Plan, but only to the extent permitted
    under the Plan.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(g)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b>Binding Effect</b></u>.
    This Agreement shall be binding upon and inure to the benefit of the Company and </font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">the
    Option Holder and their respective heirs, executors, administrators, legal
    representatives, successors and assigns.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">(h)</font></td>
    <td WIDTH="84%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><u><b><p
    ALIGN="JUSTIFY">Rights to Employment</b></u>. Nothing contained in this Agreement shall be
    construed as giving the Option</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">Holder
    any right to be retained in the employ of the Company and this Agreement is limited solely
    to governing the rights and obligations of the Option Holder with respect to the Stock and
    the Option.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="94%" VALIGN="TOP" COLSPAN="12" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">(i)</font></td>
    <td WIDTH="85%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"><font SIZE="2"><u><b><p
    ALIGN="JUSTIFY">Governing Law</b></u>. This Agreement shall be governed by and construed
    in accordance with the laws of the State of Colorado.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="97%" VALIGN="TOP" COLSPAN="15" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="97%" VALIGN="TOP" COLSPAN="15" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">IN
    WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
    above written.</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="97%" VALIGN="TOP" COLSPAN="15" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="36%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="49%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><b><p ALIGN="JUSTIFY">UQM
    TECHNOLOGIES, INC.</b></font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="85%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="85%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="36%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">By:</font></td>
    <td WIDTH="49%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><u><p ALIGN="JUSTIFY">/s/ William
    G. Rankin</u></font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="36%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="49%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">William G.
    Rankin, President</font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="85%" VALIGN="TOP" COLSPAN="5" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="36%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="49%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><b><p ALIGN="JUSTIFY">OPTION
    HOLDER</b></font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="36%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="49%" VALIGN="TOP" HEIGHT="15"></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="36%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"><font SIZE="2"><p ALIGN="RIGHT">By:</font></td>
    <td WIDTH="49%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><u><p ALIGN="JUSTIFY">/s/ Donald
    A. French</u></font></td>
  </tr>
  <tr>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" HEIGHT="15"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="4" HEIGHT="15"></td>
    <td WIDTH="4%" VALIGN="TOP" COLSPAN="3" HEIGHT="15"></td>
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    <td WIDTH="49%" VALIGN="TOP" HEIGHT="15"><font SIZE="2"><p ALIGN="JUSTIFY">Donald A.
    French</font></td>
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