Document:

Exhibit 10(f)(6)

 THE COMTECH TELECOMMUNICATIONS CORP.

 2000 STOCK INCENTIVE PLAN

 AMENDED AND RESTATED

 (EFFECTIVE SEPTEMBER 21, 2004)

 TABLE OF CONTENTS

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
    

  	
    

  	
    

  	
   Page

  
	
    

  	
    

  	
    

  	
    

  	
  

  
	
   ARTICLE I PURPOSE

  	
   1

  	
    

  
	
   ARTICLE II
  DEFINITIONS

  	
   1

  	
    

  
	
    

  	
   2.1

  	
    

  	
   “Acquisition Event”

  	
   1

  	
    

  
	
    

  	
   2.2

  	
    

  	
   “Affiliate”

  	
   1

  	
    

  
	
    

  	
   2.3

  	
    

  	
   “Award”

  	
   1

  	
    

  
	
    

  	
   2.4

  	
    

  	
   “Board”

  	
   2

  	
    

  
	
    

  	
   2.5

  	
    

  	
   “Cause”

  	
   2

  	
    

  
	
    

  	
   2.6

  	
    

  	
   “Change in Control”

  	
   2

  	
    

  
	
    

  	
   2.7

  	
    

  	
   “Code”

  	
   2

  	
    

  
	
    

  	
   2.8

  	
    

  	
   “Committee”

  	
   2

  	
    

  
	
    

  	
   2.9

  	
    

  	
   “Common Stock”

  	
   2

  	
    

  
	
    

  	
   2.10

  	
    

  	
   “Company”

  	
   3

  	
    

  
	
    

  	
   2.11

  	
    

  	
   “Consultant”

  	
   3

  	
    

  
	
    

  	
   2.12

  	
    

  	
   “Detrimental Activity”

  	
   3

  	
    

  
	
    

  	
   2.13

  	
    

  	
   “Disparagement”

  	
   3

  	
    

  
	
    

  	
   2.14

  	
    

  	
   “Disability”

  	
   4

  	
    

  
	
    

  	
   2.15

  	
    

  	
   “Effective Date”

  	
   4

  	
    

  
	
    

  	
   2.16

  	
    

  	
   “Eligible Employee”

  	
   4

  	
    

  
	
    

  	
   2.17

  	
    

  	
   “Exchange Act”

  	
   4

  	
    

  
	
    

  	
   2.18

  	
    

  	
   “Family Member”

  	
   4

  	
    

  
	
    

  	
   2.19

  	
    

  	
   “Fair Market Value”

  	
   4

  	
    

  
	
    

  	
   2.20

  	
    

  	
   “Foreign Jurisdiction”

  	
   5

  	
    

  
	
    

  	
   2.21

  	
    

  	
   “Incentive Stock Option”

  	
   5

  	
    

  
	
    

  	
   2.22

  	
    

  	
   “Limited Stock Appreciation
Right”

  	
   5

  	
    

  
	
    

  	
   2.23

  	
    

  	
   “Non-Employee Director”

  	
   5

  	
    

  
	
    

  	
   2.24

  	
    

  	
   “Non-Qualified Stock
Option”

  	
   5

  	
    

  
	
    

  	
   2.25

  	
    

  	
   “Non-Tandem Stock Appreciation
Right”

  	
   5

  	
    

  
	
    

  	
   2.26

  	
    

  	
   “Other Stock-Based Award”

  	
   5

  	
    

  
	
    

  	
   2.27

  	
    

  	
   “Parent”

  	
   5

  	
    

  
	
    

  	
   2.28

  	
    

  	
   “Participant”

  	
   5

  	
    

  
	
    

  	
   2.29

  	
    

  	
   “Performance Criteria”

  	
   5

  	
    

  
	
    

  	
   2.30

  	
    

  	
   “Performance Cycle”

  	
   5

  	
    

  
	
    

  	
   2.31

  	
    

  	
   “Performance Goal”

  	
   5

  	
    

  
	
    

  	
   2.32

  	
    

  	
   “Performance Period”

  	
   6

  	
    

  
	
    

  	
   2.33

  	
    

  	
   “Performance Share”

  	
   6

  	
    

  
	
    

  	
   2.34

  	
    

  	
   “Performance Unit”

  	
   6

  	
    

  
	
    

  	
   2.35

  	
    

  	
   “Plan”

  	
   6

  	
    

  
	
    

  	
   2.36

  	
    

  	
   “Reference Stock Option”

  	
   6

  	
    

  
	
    

  	
   2.37

  	
    

  	
   “Restricted Stock”

  	
   6

  	
    

  
	
    

  	
   2.38

  	
    

  	
   “Restriction Period”

  	
   6

  	
    

  
	
    

  	
   2.39

  	
    

  	
   “Retirement”

  	
   6

  	
    

  
	
    

  	
   2.40

  	
    

  	
   “Rule 16b-3”

  	
   6

  	
    

  

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   2.41

  	
    

  	
   “Section 162(m) of the
Code”

  	
   6

  	
    

  
	
    

  	
   2.42

  	
    

  	
   “Securities Act”

  	
   6

  	
    

  
	
    

  	
   2.43

  	
    

  	
   “Stock Appreciation Right” or
“SAR”

  	
   6

  	
    

  
	
    

  	
   2.44

  	
    

  	
   “Stock Option” or
“Option”

  	
   6

  	
    

  
	
    

  	
   2.45

  	
    

  	
   “Subsidiary”

  	
   6

  	
    

  
	
    

  	
   2.46

  	
    

  	
   “Tandem Stock Appreciation
Right”

  	
   7

  	
    

  
	
    

  	
   2.47

  	
    

  	
   “Ten Percent Stockholder”

  	
   7

  	
    

  
	
    

  	
   2.48

  	
    

  	
   “Termination of
Consultancy”

  	
   7

  	
    

  
	
    

  	
   2.49

  	
    

  	
   “Termination of
Directorship”

  	
   7

  	
    

  
	
    

  	
   2.50

  	
    

  	
   “Termination of
Employment”

  	
   7

  	
    

  
	
    

  	
   2.51

  	
    

  	
   “Transfer”

  	
   7

  	
    

  
	
   ARTICLE III ADMINISTRATION

  	
   7

  	
    

  
	
    

  	
   3.1

  	
    

  	
   The Committee

  	
   7

  	
    

  
	
    

  	
   3.2

  	
    

  	
   Grants of Awards

  	
   8

  	
    

  
	
    

  	
   3.3

  	
    

  	
   Guidelines

  	
   9

  	
    

  
	
    

  	
   3.4

  	
    

  	
   Decisions Final

  	
   9

  	
    

  
	
    

  	
   3.5

  	
    

  	
   Reliance on Counsel

  	
   9

  	
    

  
	
    

  	
   3.6

  	
    

  	
   Procedures

  	
   9

  	
    

  
	
    

  	
   3.7

  	
    

  	
   Designation of
Consultants/Liability

  	
   10

  	
    

  
	
   ARTICLE IV SHARE AND OTHER
LIMITATIONS

  	
   11

  	
    

  
	
    

  	
   4.1

  	
    

  	
   Shares

  	
   11

  	
    

  
	
    

  	
   4.2

  	
    

  	
   Changes

  	
   12

  	
    

  
	
    

  	
   4.3

  	
    

  	
   Minimum Purchase Price

  	
   14

  	
    

  
	
    

  	
   4.4

  	
    

  	
   Assumption of Awards

  	
   14

  	
    

  
	
   ARTICLE V ELIGIBILITY

  	
   14

  	
    

  
	
    

  	
   5.1

  	
    

  	
   General Eligibility

  	
   14

  	
    

  
	
    

  	
   5.2

  	
    

  	
   Incentive Stock Options

  	
   14

  	
    

  
	
    

  	
   5.3

  	
    

  	
   Non-Employee Directors

  	
   14

  	
    

  
	
   ARTICLE VI STOCK OPTIONS

  	
   14

  	
    

  
	
    

  	
   6.1

  	
    

  	
   Stock Options

  	
   14

  	
    

  
	
    

  	
   6.2

  	
    

  	
   Grants

  	
   14

  	
    

  
	
    

  	
   6.3

  	
    

  	
   Terms of Stock Options

  	
   15

  	
    

  
	
   ARTICLE VII STOCK APPRECIATION
RIGHTS

  	
   17

  	
    

  
	
    

  	
   7.1

  	
    

  	
   Tandem Stock Appreciation Rights

  	
   17

  	
    

  
	
    

  	
   7.2

  	
    

  	
   Terms and Conditions of Tandem Stock
  Appreciation Rights

  	
   17

  	
    

  
	
    

  	
   7.3

  	
    

  	
   Non-Tandem Stock Appreciation
Rights

  	
   19

  	
    

  
	
    

  	
   7.4

  	
    

  	
   Terms and Conditions of Non-Tandem Stock
  Appreciation Rights

  	
   19

  	
    

  
	
    

  	
   7.5

  	
    

  	
   Limited Stock Appreciation Rights

  	
   20

  	
    

  
	
   ARTICLE VIII RESTRICTED STOCK

  	
   20

  	
    

  
	
    

  	
   8.1

  	
    

  	
   Awards of Restricted Stock

  	
   20

  	
    

  
	
    

  	
   8.2

  	
    

  	
   Awards and Certificates

  	
   21

  	
    

  
	
    

  	
   8.3

  	
    

  	
   Restrictions and Conditions on Restricted
  Stock Awards

  	
   21

  	
    

  
	
   ARTICLE IX PERFORMANCE SHARES

  	
   23

  	
    

  
	
    

  	
   9.1

  	
    

  	
   Award of Performance Shares

  	
   23

  	
    

  
	
    

  	
   9.2

  	
    

  	
   Terms and Conditions

  	
   23

  	
    

  
	
   ARTICLE X PERFORMANCE UNITS

  	
   24

  	
    

  

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   10.1

  	
    

  	
   Awards of Performance Units

  	
   24

  	
    

  
	
    

  	
   10.2

  	
    

  	
   Terms and Conditions

  	
   25

  	
    

  
	
   ARTICLE XI OTHER STOCK-BASED AWARDS

  	
   27

  	
    

  
	
    

  	
   11.1

  	
    

  	
   Other Awards

  	
   27

  	
    

  
	
    

  	
   11.2

  	
    

  	
   Terms and Conditions

  	
   27

  	
    

  
	
   ARTICLE XII NON-TRANSFERABILITY AND
  TERMINATION OF EMPLOYMENT/CONSULTANCY

  	
   28

  	
    

  
	
    

  	
   12.1

  	
    

  	
   Non-Transferability

  	
   28

  	
    

  
	
    

  	
   12.2

  	
    

  	
   Termination of Employment or Termination of
  Consultancy

  	
   28

  	
    

  
	
   ARTICLE XIII NON-EMPLOYEE DIRECTOR STOCK
  OPTION GRANTS

  	
   30

  	
    

  
	
    

  	
   13.1

  	
    

  	
   Stock Options

  	
   30

  	
    

  
	
    

  	
   13.2

  	
    

  	
   Grants

  	
   30

  	
    

  
	
    

  	
   13.3

  	
    

  	
   Non-Qualified Stock Options

  	
   31

  	
    

  
	
    

  	
   13.4

  	
    

  	
   Terms of Stock Options

  	
   31

  	
    

  
	
    

  	
   13.5

  	
    

  	
   Termination of Directorship

  	
   32

  	
    

  
	
    

  	
   13.6

  	
    

  	
   Acceleration of Exercisability

  	
   32

  	
    

  
	
    

  	
   13.7

  	
    

  	
   Changes

  	
   32

  	
    

  
	
   ARTICLE XIV CHANGE IN CONTROL
PROVISIONS

  	
   33

  	
    

  
	
    

  	
   14.1

  	
    

  	
   Benefits

  	
   33

  	
    

  
	
    

  	
   14.2

  	
    

  	
   Change in Control

  	
   34

  	
    

  
	
   ARTICLE XV TERMINATION OR AMENDMENT OF
PLAN

  	
   35

  	
    

  
	
   ARTICLE XVI UNFUNDED PLAN

  	
   36

  	
    

  
	
    

  	
   16.1

  	
    

  	
   Unfunded Status of Plan

  	
   36

  	
    

  
	
   ARTICLE XVII GENERAL PROVISIONS

  	
   36

  	
    

  
	
    

  	
   17.1

  	
    

  	
   Legend

  	
   36

  	
    

  
	
    

  	
   17.2

  	
    

  	
   Other Plans

  	
   37

  	
    

  
	
    

  	
   17.3

  	
    

  	
   Right to Employment/Consultancy

  	
   37

  	
    

  
	
    

  	
   17.4

  	
    

  	
   Withholding of Taxes

  	
   37

  	
    

  
	
    

  	
   17.5

  	
    

  	
   Listing and Other Conditions

  	
   37

  	
    

  
	
    

  	
   17.6

  	
    

  	
   Governing Law

  	
   38

  	
    

  
	
    

  	
   17.7

  	
    

  	
   Construction

  	
   38

  	
    

  
	
    

  	
   17.8

  	
    

  	
   Other Benefits

  	
   38

  	
    

  
	
    

  	
   17.9

  	
    

  	
   Costs

  	
   38

  	
    

  
	
    

  	
   17.10

  	
    

  	
   No Right to Same Benefits

  	
   38

  	
    

  
	
    

  	
   17.11

  	
    

  	
   Death/Disability

  	
   38

  	
    

  
	
    

  	
   17.12

  	
    

  	
   Section 16(b) of the Exchange Act

  	
   38

  	
    

  
	
    

  	
   17.13

  	
    

  	
   Severability of Provisions

  	
   38

  	
    

  
	
    

  	
   17.14

  	
    

  	
   Headings and Captions

  	
   39

  	
    

  
	
   ARTICLE XVIII EFFECTIVE DATE OF
PLAN

  	
   39

  	
    

  
	
   ARTICLE XIX TERM OF PLAN

  	
   39

  	
    

  

THE COMTECH TELECOMMUNICATIONS CORP.

	
   

  
	
  

  
	
   

  
	
  2000 STOCK INCENTIVE PLAN

  
	
   

  
	
  

  

AMENDED AND RESTATED

(EFFECTIVE SEPTEMBER 21, 2004)

ARTICLE I

PURPOSE

          The
purpose of The Comtech Telecommunications Corp. 2000 Stock Incentive Plan is to
enhance the profitability and value of the Company for the benefit of its
stockholders by enabling the Company: (i) to offer employees of, and
Consultants to, the Company and its Affiliates stock-based incentives and other
equity interests in the Company, thereby creating a means to raise the level of
stock ownership by employees and Consultants in order to attract, retain and
reward such individuals and strengthen the mutuality of interests between such
individuals and the Company’s stockholders; and (ii) to make equity based
awards to Non-Employee Directors, thereby creating a means to attract, retain
and reward such Non-Employee Directors and strengthen the mutuality of
interests between Non-Employee Directors and the Company’s stockholders.

ARTICLE II

DEFINITIONS

	
   

  	
   

  
	
   

  	
  For purposes
  of this Plan, the following terms shall have the following meanings:

  
	
   

  	
   

  
	
   

  	
            2.1     “Acquisition
  Event” has the meaning set forth in Section 4.2(d).

  
	
   

  	
   

  
	
   

  	
            2.2     “Affiliate”
  means each of the following: (i) any Subsidiary; (ii) any Parent;
  (iii) any corporation, trade or business (including, without limitation,
  a partnership or limited liability company) which is directly or indirectly
  controlled 50% or more (whether by ownership of stock, assets or an
  equivalent ownership interest or voting interest) by the Company or one of
  its Affiliates; and (iv) any other entity in which the Company or any of
  its Affiliates has a material equity interest and which is designated as an “Affiliate”
  by resolution of the Committee.

  
	
   

  	
   

  
	
   

  	
            2.3     “Award”
  means any award under this Plan of any: (i) Stock Option;
  (ii) Stock Appreciation Right; (iii) Restricted Stock;
  (iv) Performance Share; 

  

1

	
   

  	
   

  
	
   

  	
  (v) Performance
  Unit; (vi) Other Stock-Based Award; or (vii) other award providing
  benefits similar to (i) through (vi) designed to meet the requirements
  of a Foreign Jurisdiction.

  
	
   

  	
   

  
	
   

  	
            2.4     “Board”
  means the Board of Directors of the Company.

  
	
   

  	
   

  
	
   

  	
            2.5     “Cause”
  means, with respect to a Participant’s Termination of Employment or Termination
  of Consultancy:  (i) in the case
  where there is no employment agreement, consulting agreement, change in
  control agreement or similar agreement in effect between the Company or an
  Affiliate and the Participant at the time of the grant of the Award (or where
  there is such an agreement but it does not define “cause” (or words of like
  import)), termination due to a Participant’s commission of a fraud or a
  felony in connection with his or her duties as an employee of the Company or
  an Affiliate, willful misconduct or any act of disloyalty, dishonesty, fraud,
  breach of trust or confidentiality as to the Company or an Affiliate or any
  other act which is intended to cause or may reasonably be expected to cause
  economic or reputational injury to the Company or an Affiliate; or
  (ii) in the case where there is an employment agreement, consulting
  agreement, change in control agreement or similar agreement in effect between
  the Company or an Affiliate and the Participant at the time of the grant of
  the Award that defines “cause” (or words of like import), as defined under
  such agreement; provided, however, that with regard to any agreement that
  conditions “cause” on occurrence of a change in control, such definition of “cause”
  shall not apply until a change in control actually takes place and then only
  with regard to a termination thereafter.
  With respect to a Participant’s Termination of Directorship, “cause”
  shall mean an act or failure to act that constitutes cause for removal of a
  director under applicable Delaware law.

  
	
   

  	
   

  
	
   

  	
            2.6     “Change
  in Control” has the meaning set forth in Article XIII or Article XIV, as
  applicable.

  
	
   

  	
   

  
	
   

  	
            2.7     “Code”
  means the Internal Revenue Code of 1986, as amended.  Any reference to any section of the Code
  shall also be a reference to any successor provision.

  
	
   

  	
   

  
	
   

  	
            2.8     “Committee”
  means:  (a) with respect to the
  application of this Plan to Eligible Employees and Consultants, a committee
  or subcommittee of the Board appointed from time to time by the Board, which
  committee or subcommittee shall consist of two or more Non-Employee
  Directors, each of whom is intended to be, to the extent required by Rule
  16b-3, a “non-employee director” as defined in Rule 16b-3 and, to the extent
  required by Section 162(m) of the Code and any regulations thereunder, an “outside
  director” as defined under Section 162(m) of the Code; provided, however,
  that if and to the extent that no Committee exists which has the authority to
  administer this Plan, the functions of the Committee shall be exercised by
  the Board and all references herein to the Committee shall  be deemed to be references to the Board;
  and (b) with respect to the application of this Plan to Non-Employee
  Directors, the Board.

  
	
   

  	
   

  
	
   

  	
            2.9     “Common
  Stock” means the common stock, $.10 par value per share, of the Company.

  

2

	
   

  	
   

  
	
   

  	
            2.10     “Company”
  means Comtech Telecommunications Corp., a Delaware corporation, and its
  successors by operation of law. 

  
	
   

  	
   

  
	
   

  	
            2.11     “Consultant”
  means any advisor or consultant to the Company or its Affiliates.

  
	
   

  	
   

  
	
   

  	
            2.12     “Detrimental
  Activity” means  (a) the
  disclosure to anyone outside the Company or its Affiliates, or the use in any
  manner other than in the furtherance of the Company’s or its Affiliate’s
  business, without written authorization from the Company, of any confidential
  information or proprietary information, relating to the business of the
  Company or its Affiliates, acquired by a Participant prior to the Participant’s
  Termination;  (b) activity while
  employed that results, or if known could result, in the Participant’s
  Termination that is classified by the Company as a Termination for
  Cause;  (c) any attempt, directly
  or indirectly, to solicit, induce or hire (or the identification for
  solicitation, inducement or hire) any non-clerical employee of the Company or
  its Affiliates to be employed by, or to perform services for, the Participant
  or any person or entity with which the Participant is associated (including,
  but not limited to, due to the Participant’s employment by, consultancy for,
  equity interest in, or creditor relationship with such person or entity) or
  any person or entity from which the Participant receives direct or indirect
  compensation or fees as a result of such solicitation, inducement or hire (or
  the identification for solicitation, inducement or hire) without, in all
  cases, written authorization from the Company;  (d) any attempt, directly or indirectly, to solicit in a
  competitive manner any current or prospective customer of the Company or its
  Affiliates without, in all cases, written authorization from the
  Company;  (e) the Participant’s
  Disparagement, or inducement of others to do so, of the Company or its
  Affiliates or their past and present officers, directors, employees or products;  (f) without written authorization
  from the Company, the rendering of services for any organization, or
  engaging, directly or indirectly, in any business, which is competitive with
  the Company or its Affiliates, or which organization or business, or the
  rendering of services to such organization or business, is otherwise
  prejudicial to or in conflict with the interests of the Company or its
  Affiliates, or (g) breach of any agreement between the Participant and
  the Company or an Affiliate (including, without limitation, any employment
  agreement or non-competition or non-solicitation agreement).  Unless otherwise determined by the
  Committee at grant, Detrimental Activity shall not be deemed to occur after
  the end of the one-year period following the Participant’s Termination. For
  purposes of subsections (a), (c), (d) and (f) above, the Chief Executive
  Officer and the General Counsel of the Company shall each have authority to
  provide the Participant with written authorization to engage in the
  activities contemplated thereby and no other person shall have authority to
  provide the Participant with such authorization.

  
	
   

  	
   

  
	
   

  	
            2.13     “Disparagement”
  means making comments or statements to the press, the Company’s or its
  Affiliates’ employees, consultants or any individual or entity with whom the
  Company or its Affiliates has a business relationship which would adversely
  affect in any manner:  the conduct of
  the business of the Company or its Affiliates (including, without limitation,
  any products or business plans or prospects), or the business reputation of
  the Company or its Affiliates, or any of their products, or their past or
  present officers, directors or employees.

  

3

	
   

  	
   

  
	
   

  	
            2.14     “Disability”
  means, with respect to an Eligible Employee, Consultant or Non-Employee
  Director, a permanent and total disability, as determined by the Committee in
  its sole discretion, provided that in no event shall any disability that is
  not a permanent and total disability, as defined in Section 22(e)(3) of the Code,
  shall be treated as a Disability.  A
  Disability shall only be deemed to occur at the time of the determination by
  the Committee of the Disability.

  
	
   

  	
   

  
	
   

  	
            2.15     “Effective
  Date” means the effective date of this Plan as defined in Article XVIII.

  
	
   

  	
   

  
	
   

  	
            2.16     “Eligible
  Employee” means each employee of the Company or an Affiliate.

  
	
   

  	
   

  
	
   

  	
            2.17     “Exchange
  Act” means the Securities Exchange Act of 1934, as amended.  Any references to any section of the
  Exchange Act shall also be a reference to any successor provision.

  
	
   

  	
   

  
	
   

  	
            2.18     “Family
  Member” shall mean any child, stepchild, grandchild, parent, stepparent,
  grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
  father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
  including adoptive relationships, any person sharing the employee’s household
  (other than a tenant or employee), a trust in which these persons have more
  than 50% of the beneficial interest, a foundation in which these persons (or
  the employee) control the management of assets, and any other entity in which
  these persons (or the employee) own more than 50% of the voting interests.

  
	
   

  	
   

  
	
   

  	
            2.19     “Fair
  Market Value” means, unless otherwise required by any applicable provision of
  the Code or any regulations issued thereunder, as of any date, the last sales
  price for the Common Stock on the applicable date:  (i) as reported on the principal national securities exchange
  on which it is then traded or the Nasdaq Stock Market, Inc. or (ii) if
  not traded on any such national securities exchange or the Nasdaq Stock
  Market, Inc. as quoted on an automated quotation system sponsored by the
  National Association of Securities Dealers, Inc.  If the Common Stock is not readily tradable on a national
  securities exchange, the Nasdaq Stock Market, Inc. or any automated quotation
  system sponsored by the National Association of Securities Dealers, Inc., its
  Fair Market Value shall be set in good faith by the Committee.  Notwithstanding anything herein to the
  contrary, “Fair Market Value” means the price for Common Stock set by the
  Committee in good faith based on reasonable methods set forth under Section
  422 of the Code and the regulations thereunder including, without limitation,
  a method utilizing the average of prices of the Common Stock reported on the
  principal national securities exchange on which it is then traded during a
  reasonable period designated by the Committee.  For purposes of the grant of any Stock Option, the applicable
  date shall be the date for which the last sales price is available at the
  time of grant.  For purposes of the
  conversion of a Performance Unit to shares of Common Stock for reference
  purposes, the applicable date shall be the date determined by the Committee
  in accordance with Section 10.1.  For
  purposes of the exercise of any Stock Appreciation Right, the applicable date
  shall be the 

  

4

	
   

  	
   

  
	
   

  	
  date a
  notice of exercise is received by the Committee or, if not a day on which the
  applicable market is open, the next day that it is open.

  
	
   

  	
   

  
	
   

  	
            2.20     “Foreign
  Jurisdiction” means any jurisdiction outside of the United States including,
  without limitation, countries, states, provinces and localities.

  
	
   

  	
   

  
	
   

  	
            2.21     “Incentive
  Stock Option” means any Stock Option awarded to an Eligible Employee under
  this Plan intended to be and designated as an “Incentive Stock Option” within
  the meaning of Section 422 of the Code.

  
	
   

  	
   

  
	
   

  	
            2.22     “Limited
  Stock Appreciation Right” means an Award of a limited Tandem Stock
  Appreciation Right or a Non-Tandem Stock Appreciation Right made pursuant to
  Section 7.5 of this Plan.

  
	
   

  	
   

  
	
   

  	
            2.23     “Non-Employee
  Director” means a director of the Company who is not an active employee of
  the Company or an Affiliate and who is not an officer, director or employee
  of the Company or any Affiliate.

  
	
   

  	
   

  
	
   

  	
            2.24     “Non-Qualified
  Stock Option” means any Stock Option awarded under this Plan that is not an
  Incentive Stock Option.

  
	
   

  	
   

  
	
   

  	
            2.25     “Non-Tandem
  Stock Appreciation Right” means a Stock Appreciation Right entitling a
  Participant to receive an amount in cash or Common Stock (as determined by
  the Committee in its sole discretion) equal to the excess of:  (i) the Fair Market Value of a share
  of Common Stock as of the date such right is exercised, over (ii) the
  aggregate exercise price of such right.

  
	
   

  	
   

  
	
   

  	
            2.26     “Other
  Stock-Based Award” means an Award of Common Stock and other Awards made
  pursuant to Article XI that are valued in whole or in part by reference to,
  or are payable in or otherwise based on, Common Stock, including, without
  limitation, an Award valued by reference to performance of an Affiliate.

  
	
   

  	
   

  
	
   

  	
            2.27     “Parent”
  means any parent corporation of the Company within the meaning of Section
  424(e) of the Code.

  
	
   

  	
   

  
	
   

  	
            2.28     “Participant”
  means any Eligible Employee or Consultant to whom an Award has been made
  under this Plan and each Non-Employee Director of the Company; provided,
  however, that a Non-Employee Director shall be a Participant for purposes of
  the Plan solely with respect to awards of Stock Options pursuant to Article
  XIII.  

  
	
   

  	
   

  
	
   

  	
            2.29     “Performance
  Criteria” has the meaning set forth in Exhibit A.

  
	
   

  	
   

  
	
   

  	
            2.30     “Performance
  Cycle” has the meaning set forth in Section 10.1.

  
	
   

  	
   

  
	
   

  	
            2.31     “Performance
  Goal” means the objective performance goals established by the Committee in
  accordance with Section 162(m) of the Code and based on one or more
  Performance Criteria.

  

5

	
   

  	
   

  
	
   

  	
            2.32     “Performance
  Period” has the meaning set forth in Section 9.1.

  
	
   

  	
   

  
	
   

  	
            2.33     “Performance
  Share” means an Award made pursuant to Article IX of this Plan of the right
  to receive Common Stock or, as determined by the Committee in its sole
  discretion, cash of an equivalent value at the end of the Performance Period
  or thereafter.

  
	
   

  	
   

  
	
   

  	
            2.34     “Performance
  Unit” means an Award made pursuant to Article X of this Plan of the right to
  receive a fixed dollar amount, payable in cash or Common Stock (or a
  combination of both) as determined by the Committee in its sole discretion,
  at the end of a specified Performance Cycle or thereafter.

  
	
   

  	
   

  
	
   

  	
            2.35     “Plan”
  means The Comtech Telecommunications Corp. 2000 Stock Incentive Plan. 

  
	
   

  	
   

  
	
   

  	
            2.36     “Reference
  Stock Option” has the meaning set forth in Section 7.1.

  
	
   

  	
   

  
	
   

  	
            2.37     “Restricted
  Stock” means an Award of shares of Common Stock under this Plan that is
  subject to restrictions under Article VIII.

  
	
   

  	
   

  
	
   

  	
            2.38     “Restriction
  Period” has the meaning set forth in Section 8.3(a) with respect to
  Restricted Stock.

  
	
   

  	
   

  
	
   

  	
            2.39     
  “Retirement” means a Termination of Employment or Termination of Consultancy
  without Cause by a Participant at or after age 65 or such earlier date after
  age 50 as may be approved by the Committee with regard to such
  Participant.  With respect to a
  Participant’s Termination of Directorship, Retirement shall mean the failure
  to stand for reelection or the failure to be reelected at or after a
  Participant has attained age 65 or, with the consent of the Board, before age
  65 but after age 50.

  
	
   

  	
   

  
	
   

  	
            2.40     “Rule
  16b-3” means Rule 16b-3 under Section 16(b) of the Exchange Act as then in
  effect or any successor provisions.

  
	
   

  	
   

  
	
   

  	
            2.41     “Section
  162(m) of the Code” means Section 162(m) of the Code and any Treasury
  regulations thereunder.

  
	
   

  	
   

  
	
   

  	
            2.42     
  “Securities Act” means the Securities Act of 1933, as amended.  Any reference to any section of the
  Securities Act shall also be a reference to any successor provision.

  
	
   

  	
   

  
	
   

  	
            2.43     “Stock
  Appreciation Right” or “SAR” means the right pursuant to an Award granted
  under Article VII.

  
	
   

  	
   

  
	
   

  	
            2.44     “Stock
  Option” or “Option” means any option to purchase shares of Common Stock
  granted to Eligible Employees or Consultants under Article VI or to
  Non-Employee Directors under Article XIII.

  
	
   

  	
   

  
	
   

  	
            2.45     “Subsidiary”
  means any subsidiary corporation of the Company within the meaning of Section
  424(f) of the Code.

  

6

	
   

  	
   

  
	
   

  	
            2.46     “Tandem
  Stock Appreciation Right” means a Stock Appreciation Right entitling the
  holder to surrender to the Company all (or a portion) of a Stock Option in
  exchange for an amount in cash or Common Stock (as determined by the
  Committee in its sole discretion) equal to the excess of:  (i) the Fair Market Value, on the
  date such Stock Option (or such portion thereof) is surrendered, of the
  Common Stock covered by such Stock Option (or such portion thereof), over
  (ii) the aggregate exercise price of such Stock Option (or such portion
  thereof).

  
	
   

  	
   

  
	
   

  	
            2.47     “Ten
  Percent Stockholder” means a person owning stock possessing more than 10% of
  the total combined voting power of all classes of stock of the Company, its
  Subsidiaries or its Parent.

  
	
   

  	
   

  
	
   

  	
            2.48     “Termination
  of Consultancy” means, with respect to a Consultant, that the Consultant is
  no longer acting as a consultant to the Company or an Affiliate.  In the event an entity shall cease to be
  an Affiliate, there shall be deemed a Termination of Consultancy of any
  individual who is not otherwise a Consultant to the Company or another
  Affiliate at the time the entity ceases to be an Affiliate.  In the event that a Consultant becomes an
  Eligible Employee upon the termination of his consultancy, the Committee, in
  its sole and absolute discretion, may determine that no Termination of
  Consultancy shall be deemed to occur until such time as such Consultant is no
  longer a Consultant or an Eligible Employee.

  
	
   

  	
   

  
	
   

  	
            2.49     “Termination
  of Directorship” means, with respect to a Non-Employee Director, that the
  Non-Employee Director has ceased to be a director of the Company.

  
	
   

  	
   

  
	
   

  	
            2.50     “Termination
  of Employment” means:  (i) a
  termination of employment (for reasons other than a military or personal
  leave of absence granted by the Company) of a Participant from the Company
  and its Affiliates; or (ii) when an entity which is employing a
  Participant ceases to be an Affiliate, unless the Participant otherwise is,
  or thereupon becomes, employed by the Company or another Affiliate.  In the event that an Eligible Employee
  becomes a Consultant upon the termination of his employment, the Committee,
  in its sole and absolute discretion, may determine that no Termination of
  Employment shall be deemed to occur until such time as such Eligible Employee
  is no longer an Eligible Employee or a Consultant.

  
	
   

  	
   

  
	
   

  	
            2.51     “Transfer”
  means anticipate, alienate, attach, sell, assign, pledge, encumber, charge,
  hypothecate or otherwise transfer and “Transferred” has a correlative
  meaning.

  

ARTICLE III

ADMINISTRATION

	
   

  	
   

  	
   

  
	
   

  	
            3.1     
  The Committee.  The Plan shall be administered and interpreted by
  the Committee.  If for any reason the
  appointed Committee does not meet the requirements of Rule 16b-3 or Section
  162(m) of the Code, such noncompliance with the requirements 

  

7

	
   

  	
   

  	
   

  
	
   

  	
  of Rule
  16b-3 and Section 162(m) of the Code shall not affect the validity of Awards,
  grants, interpretations or other actions of the Committee.

  
	
   

  	
   

  
	
   

  	
            3.2     Grants
  of Awards.  The Committee shall have full authority to grant to
  Eligible Employees and Consultants, pursuant to the terms of this Plan:  (i) Stock Options; (ii) Tandem
  Stock Appreciation Rights and Non-Tandem Stock Appreciation Rights; (iii) Restricted
  Stock; (iv) Performance Shares; (v) Performance Units;
  (vi) Other Stock-Based Awards; and (vii) other awards providing
  benefits similar to (i) through (vi) designed to meet the requirements of
  Foreign Jurisdictions.  All Awards
  shall be granted by, confirmed by, and subject to the terms of, a written
  agreement executed by the Company and the Participant.  In particular, the Committee shall have
  the authority:

  
	
   

  	
   

  
	
   

  	
   

  	
             (a)     to
  select the Eligible Employees and Consultants to whom Awards may from time to
  time be granted hereunder;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (b)     to
  determine whether and to what extent Awards, including any combination of two
  or more Awards, are to be granted hereunder to one or more Eligible Employees
  or Consultants;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (c)     to
  determine, in accordance with the terms of this Plan, the number of shares of
  Common Stock to be covered by each Award granted hereunder;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (d)     to
  determine the terms and conditions, not inconsistent with the terms of this
  Plan, of any Award granted hereunder (including, but not limited to, the
  exercise or purchase price (if any), any restriction or limitation, any
  vesting schedule or acceleration thereof and any forfeiture restrictions or
  waiver thereof, regarding any Award and the shares of Common Stock relating
  thereto, based on such factors, if any, as the Committee shall determine, in
  its sole discretion);

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (e)     to
  determine whether and under what circumstances a Stock Option may be settled
  in cash, Common Stock and/or Restricted Stock under Section 6.3(d) or, with
  respect to Stock Options granted to Non-Employee Directors, Section 13.4(d);

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (f)     to
  determine whether, to what extent and under what circumstances to provide
  loans (which shall bear interest at the rate the Committee shall provide) to
  Eligible Employees and Consultants in order to exercise Stock Options under
  this Plan or to purchase Awards under this Plan (including shares of Common
  Stock);

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (g)     to
  determine whether a Stock Option is an Incentive Stock Option or
  Non-Qualified Stock Option, whether a Stock Appreciation Right is a Tandem
  Stock Appreciation Right or Non-Tandem Stock Appreciation Right or whether an
  Award is intended to satisfy Section 162(m) of the Code;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (h)     to
  determine whether to require an Eligible Employee or Consultant, as a
  condition of the granting of any Award, not to sell or otherwise dispose of
  shares of Common Stock acquired pursuant to the exercise of an 

  

8

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Option or an
  Award for a period of time as determined by the Committee, in its sole
  discretion, following the date of the acquisition of such Option or Award;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (i)     to
  modify, extend or renew an Award, subject to Article XV herein,  provided, however, that if an Award is
  modified, extended or renewed and thereby deemed to be the issuance of a new
  Award under the Code or the applicable accounting rules, the exercise price
  of an Award may continue to be the original exercise price even if less than
  the Fair Market Value of the Common Stock at the time of such modification,
  extension or renewal; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (j)     to
  offer to buy out an Option previously granted, based on such terms and
  conditions as the Committee shall establish and communicate to the
  Participant at the time such offer is made.

  
	
   

  	
   

  	
   

  
	
   

  	
            3.3     Guidelines.
   Subject to Article XV hereof, the Committee shall have the authority to
  adopt, alter and repeal such administrative rules, guidelines and practices
  governing this Plan and perform all acts, including the delegation of its
  administrative responsibilities, as it shall, from time to time, deem
  advisable; to construe and interpret the terms and provisions of this Plan
  and any Award issued under this Plan (and any agreements relating thereto);
  and to otherwise supervise the administration of this Plan.  The Committee may correct any defect,
  supply any omission or reconcile any inconsistency in this Plan or in any
  agreement relating thereto in the manner and to the extent it shall deem
  necessary to effectuate the purpose and intent of this Plan.  The Committee may adopt special guidelines
  and provisions for persons who are residing in, or subject to, the taxes of,
  Foreign Jurisdictions to comply with applicable tax and securities laws and
  may impose any limitations and restrictions that it deems necessary to comply
  with the applicable tax and securities laws of such Foreign Jurisdictions.  To the extent applicable, this Plan is
  intended to comply with Section 162(m) of the Code and the applicable
  requirements of Rule 16b-3 and shall be limited, construed and interpreted in
  a manner so as to comply therewith.

  
	
   

  	
   

  
	
   

  	
            3.4     Decisions
  Final.  Any decision, interpretation or other action made or taken in good
  faith by or at the direction of the Company, the Board or the Committee (or
  any of its members) arising out of or in connection with this Plan shall be
  within the absolute discretion of all and each of them, as the case may be,
  and shall be final, binding and conclusive on the Company and all employees
  and Participants and their respective heirs, executors, administrators,
  successors and assigns.

  
	
   

  	
   

  
	
   

  	
            3.5     Reliance
  on Counsel.  The Company, the Board or the Committee may consult with
  legal counsel, who may be counsel for the Company or other counsel, with
  respect to its obligations or duties hereunder, or with respect to any action
  or proceeding or any question of law, and shall not be liable with respect to
  any action taken or omitted by it in good faith pursuant to the advice of
  such counsel.

  
	
   

  	
   

  
	
   

  	
            3.6     Procedures.
   If the Committee is appointed, the Board shall designate one of the members
  of the Committee as chairman and the Committee shall hold meetings, subject
  to the By-Laws of the Company, at such times and places as it shall deem 

  

9

	
   

  	
   

  	
   

  
	
   

  	
  advisable.  A majority of the Committee members shall
  constitute a quorum.  All
  determinations of the Committee shall be made by a majority of its members.  Any decision or determination reduced to
  writing and signed by all the Committee members in accordance with the
  By-Laws of the Company, shall be fully as effective as if it had been made by
  a vote at a meeting duly called and held.
  The Committee shall keep minutes of its meetings and shall make such
  rules and regulations for the conduct of its business as it shall deem
  advisable.

  
	
   

  	
   

  
	
   

  	
            3.7     Designation
  of Consultants/Liability.

  
	
   

  	
   

  
	
   

  	
   

  	
             (a)     The
  Committee may designate employees of the Company and professional advisors to
  assist the Committee in the administration of this Plan and may grant
  authority to officers to execute agreements or other documents on behalf of
  the Committee.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (b)     The
  Committee may employ such legal counsel, consultants and agents as it may
  deem desirable for the administration of this Plan and may rely upon any opinion
  received from any such counsel or consultant and any computation received
  from any such consultant or agent.
  Expenses incurred by the Committee in the engagement of any such
  counsel, consultant or agent shall be paid by the Company.  The Committee, its members and any
  employee of the Company designated pursuant to paragraph (a) above shall not
  be liable for any action or determination made in good faith with respect to
  this Plan.  To the maximum extent
  permitted by applicable law, no officer of the Company or member or former
  member of the Committee shall be liable for any action or determination made
  in good faith with respect to this Plan or any Award granted under it.  To the maximum extent permitted by applicable
  law or the Certificate of Incorporation or By-Laws of the Company and to the
  extent not covered by insurance, each officer and member or former member of
  the Committee shall be indemnified and held harmless by the Company against
  any cost or expense (including reasonable fees of counsel reasonably
  acceptable to the Company) or liability (including any sum paid in settlement
  of a claim with the approval of the Company), and advanced amounts necessary
  to pay the foregoing at the earliest time and to the fullest extent
  permitted, arising out of any act or omission to act in connection with this
  Plan, except to the extent arising out of such officer’s, member’s or former
  member’s own fraud or bad faith.  Such
  indemnification shall be in addition to any rights of indemnification the
  officers, directors or members or former officers, directors or members may
  have under applicable law or under the Certificate of Incorporation or
  By-Laws of the Company or any Affiliate.
  Notwithstanding anything else herein, this indemnification will not
  apply to the actions or determinations made by an individual with regard to
  Awards granted to him or her under this Plan.

  

10

ARTICLE IV

SHARE AND OTHER LIMITATIONS

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.1     Shares.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (a)     General
Limitation.  The aggregate
  number of shares of Common Stock which may be issued or used for reference
  purposes under this Plan or with respect to which Awards may be granted shall
  not exceed 2,825,000 shares of Common Stock (subject to any increase or
  decrease pursuant to Section 4.2) with respect to all types of Awards, plus
  1,324,402 shares of Common Stock relating to outstanding awards assumed by
  this Plan under Section 4.4 for a total of 4,149,402 shares of Common
  Stock.  The shares of Common Stock
  available under this Plan may be either authorized and unissued Common Stock
  or Common Stock held in or acquired for the treasury of the Company.  If any Stock Option or Stock Appreciation
  Right granted under this Plan expires, terminates or is canceled for any
  reason without having been exercised in full or, with respect to Stock
  Options, the Company repurchases any Stock Option, the number of shares of
  Common Stock underlying such unexercised or repurchased Stock Option or any
  unexercised Stock Appreciation Right shall again be available for the
  purposes of Awards under this Plan.
  If any shares of Restricted Stock, Performance Shares or Performance
  Units awarded under this Plan to a Participant are forfeited or repurchased
  by the Company for any reason, the number of forfeited or repurchased shares
  of Restricted Stock, Performance Shares or Performance Units shall again be
  available for the purposes of Awards under this Plan.  If a Tandem Stock Appreciation Right is
  granted or a Limited Stock Appreciation Right is granted in tandem with a
  Stock Option, such grant shall only apply once against the maximum number of
  shares of Common Stock which may be issued under this Plan. In determining
  the number of shares of Common Stock available for Awards other than Awards
  of Incentive Stock Options, if Common Stock has been exchanged by a
  Participant as full or partial payment of exercise price or withholding
  taxes, or if the number shares of Common Stock otherwise deliverable has been
  reduced for the payment of exercise price or withholding taxes, the number of
  shares of Common Stock exchanged as payment for the payment of exercise price
  or withholding taxes, or reduced, shall again be available for purposes of
  Awards under this Plan. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (b)     Individual
  Participant Limitations.  (i)  The maximum number of shares of Common
  Stock subject to any Award of Stock Options, Stock Appreciation Rights,
  Performance Shares or shares of Restricted Stock for which the grant of such
  Award or the lapse of the relevant Restriction Period is subject to the
  attainment of Performance Goals in accordance with Section 8.3(a)(ii) herein
  which may be granted under this Plan during any fiscal year of the Company to
  each Eligible Employee or Consultant shall be 150,000 shares per type of
  Award (subject to any increase or decrease pursuant to Section 4.2), provided
  that the maximum number of shares of Common Stock for all types of 

  

11

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Awards does
  not exceed 150,000 during any fiscal year of the Company. If a Tandem Stock
  Appreciation Right is granted or a Limited Stock Appreciation Right is
  granted in tandem with a Stock Option, it shall apply against the Eligible
  Employee’s or Consultant’s individual share limitations for both Stock
  Appreciation Rights and Stock Options.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
            (ii)     There
  are no annual individual Eligible Employee or Consultant share limitations on
  Restricted Stock for which the grant of such Award or the lapse of the
  relevant Restriction Period is not subject to attainment of Performance Goals
  in accordance with Section 8.3(a)(ii) hereof.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
            (iii)     The
  maximum value at grant of Performance Units which may be granted under this
  Plan during any fiscal year of the Company to each Eligible Employee or
  Consultant shall be $100,000. Each Performance Unit shall be referenced to
  one share of Common Stock and shall be charged against the available shares
  under this Plan at the time the unit value measurement is converted to a
  referenced number of shares of Common Stock in accordance with Section 10.1.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
            (iv)     
  The individual Participant limitations set forth in this Section 4.1(b) shall
  be cumulative; that is, to the extent that shares of Common Stock for which
  Awards are permitted to be granted to an Eligible Employee or a Consultant
  during a fiscal year are not covered by an Award to such Eligible Employee or
  Consultant in a fiscal year, the number of shares of Common Stock available
  for Awards to such Eligible Employee or Consultant shall automatically
  increase in the subsequent fiscal years during the term of the Plan until
  used.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
            4.2     Changes.

  
	
   

  	
   

  
	
   

  	
   

  	
              (a)     The
  existence of this Plan and the Awards granted hereunder shall not affect in
  any way the right or power of the Board or the stockholders of the Company to
  make or authorize any adjustment, recapitalization, reorganization or other
  change in the Company’s capital structure or its business, any merger or
  consolidation of the Company or any Affiliate, any issue of bonds,
  debentures, preferred or prior preference stock ahead of or affecting Common
  Stock, the dissolution or liquidation of the Company or any Affiliate, any
  sale or transfer of all or part of the assets or business of the Company or
  any Affiliate or any other corporate act or proceeding.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (b)     Subject
  to the provisions of Section 4.2(d), in the event of any such change in the
  capital structure or business of the Company by reason of any stock split,
  reverse stock split, stock dividend, combination or reclassification of
  shares, recapitalization, or other change in the capital structure of the
  Company, merger, consolidation, spin-off, reorganization, partial or complete
  liquidation, issuance of rights or warrants to purchase any Common Stock or
  securities convertible into

  

12

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Common
  Stock, or any other corporate transaction or event having an effect similar
  to any of the foregoing and effected without receipt of consideration by the
  Company, then the aggregate number and kind of shares which thereafter may be
  issued under this Plan, the number and kind of shares or other property
  (including cash) to be issued upon exercise of an outstanding Stock Option or
  other Awards granted under this Plan and the purchase price thereof shall be
  appropriately adjusted consistent with such change in such manner as the
  Committee may deem equitable to prevent substantial dilution or enlargement
  of the rights granted to, or available for, Participants under this Plan, and
  any such adjustment determined by the Committee in good faith shall be final,
  binding and conclusive on the Company and all Participants and employees and
  their respective heirs, executors, administrators, successors and assigns.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (c)     Fractional
  shares of Common Stock resulting from any adjustment in Options or Awards
  pursuant to Section 4.2(a) or (b) shall be aggregated until, and eliminated at,
  the time of exercise by rounding-down for fractions less than one-half and
  rounding-up for fractions equal to or greater than one-half. No cash
  settlements shall be made with respect to fractional shares eliminated by
  rounding. Notice of any adjustment shall be given by the Committee to each
  Participant whose Award has been adjusted and such adjustment (whether or not
  such notice is given) shall be effective and binding for all purposes of this
  Plan.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (d)     In
  the event of a merger or consolidation in which the Company is not the
  surviving entity or in the event of any transaction that results in the
  acquisition of substantially all of the Company’s outstanding Common Stock by
  a single person or entity or by a group of persons and/or entities acting in
  concert, or in the event of the sale or transfer of all or substantially all
  of the Company’s assets (all of the foregoing being referred to as
  “Acquisition Events”), then the Committee may, in its sole discretion,
  terminate all outstanding Stock Options and Stock Appreciation Rights, effective
  as of the date of the Acquisition Event, by delivering notice of termination
  to each Participant at least 30 days prior to the date of consummation of the
  Acquisition Event, in which case during the period from the date on which
  such notice of termination is delivered to the consummation of the
  Acquisition Event, each such Participant shall have the right to exercise in
  full all of his or her Stock Options and Stock Appreciation Rights that are
  then outstanding (without regard to any limitations on exercisability
  otherwise contained in the Stock Option or Award Agreements), but any such
  exercise shall be contingent upon and subject to the occurrence of the
  Acquisition Event, and, provided that, if the Acquisition Event does not take
  place within a specified period after giving such notice for any reason
  whatsoever, the notice and exercise pursuant thereto shall be null and void.

  

                  If
an Acquisition Event occurs but the Committee does not terminate the
outstanding Stock Options and Stock Appreciation Rights pursuant to this
Section 4.2(d), then the provisions of Section 4.2(b) shall apply.

13

	
   

  	
   

  
	
   

  	
            4.3     Minimum
  Purchase Price.  Notwithstanding any provision of this Plan to the
  contrary, if authorized but previously unissued shares of Common Stock are
  issued under this Plan, such shares shall not be issued for a consideration
  which is less than as permitted under applicable law.

  
	
   

  	
   

  
	
   

  	
            4.4     Assumption
  of Awards.  Awards that were granted prior to the Effective Date
  under the (i) Comtech Telecommunications Corp. 1982 Incentive Stock
  Option Plan (the “1982 Plan”), and (ii) Comtech Telecommunications Corp.
  1993 Incentive Stock Option Plan, as amended (the “1993 Plan”), shall be
  transferred and assumed by this Plan as of the Effective Date. Notwithstanding
  the foregoing, such Awards shall continue to be governed by the terms of the
  applicable agreement in effect prior to the Effective Date. 

  

ARTICLE V

ELIGIBILITY

	
   

  	
   

  
	
   

  	
            5.1     General
  Eligibility.  All Eligible Employees and Consultants and prospective
  employees of and Consultants to the Company and its Affiliates are eligible
  to be granted Non-Qualified Stock Options, Stock Appreciation Rights,
  Restricted Stock, Performance Shares, Performance Units, Other Stock-Based
  Awards and awards providing benefits similar to each of the foregoing
  designed to meet the requirements of Foreign Jurisdictions under this Plan.
  Eligibility for the grant of an Award and actual participation in this Plan
  shall be determined by the Committee in its sole discretion. The vesting and
  exercise of Awards granted to a prospective employee or Consultant are
  conditioned upon such individual actually becoming an Eligible Employee or
  Consultant.

  
	
   

  	
   

  
	
   

  	
            5.2     Incentive
  Stock Options.  All Eligible Employees of the Company, its
  Subsidiaries and its Parent (if any) are eligible to be granted Incentive
  Stock Options under this Plan. Eligibility for the grant of an Award and
  actual participation in this Plan shall be determined by the Committee in its
  sole discretion.

  
	
   

  	
   

  
	
   

  	
            5.3     Non-Employee
  Directors.  Non-Employee Directors are only eligible to receive an
  Award of Stock Options in accordance with Article XIII of the Plan. 

  

ARTICLE VI

STOCK OPTIONS

	
   

  	
   

  
	
   

  	
            6.1     Stock
  Options.  Each Stock Option granted hereunder shall be one of two
  types: (i) an Incentive Stock Option intended to satisfy the
  requirements of Section 422 of the Code; or (ii) a Non-Qualified Stock
  Option. 

  
	
   

  	
   

  
	
   

  	
            6.2     
  Grants.  The Committee shall have the authority to grant to any
  Eligible Employee one or more Incentive Stock Options, Non-Qualified Stock
  Options or both types of Stock Options (in each case with or without Stock
  Appreciation Rights). To the extent that any Stock Option does not qualify as
  an Incentive Stock Option (whether 

  

14

	
   

  	
   

  	
   

  
	
   

  	
  because of
  its provisions or the time or manner of its exercise or otherwise), such
  Stock Option or the portion thereof which does not qualify, shall constitute
  a separate Non-Qualified Stock Option. The Committee shall have the authority
  to grant any Consultant one or more Non-Qualified Stock Options (with or
  without Stock Appreciation Rights). Notwithstanding any other provision of
  this Plan to the contrary or any provision in an agreement evidencing the
  grant of a Stock Option to the contrary, any Stock Option granted to an
  Eligible Employee of an Affiliate (other than an Affiliate which is a Parent
  or a Subsidiary) shall be a Non-Qualified Stock Option.

  
	
   

  	
   

  
	
   

  	
            6.3     Terms
  of Stock Options.  Stock Options granted under this Plan shall be
  subject to the following terms and conditions, and shall be in such form and
  contain such additional terms and conditions, not inconsistent with the terms
  of this Plan, as the Committee shall deem desirable:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (a)
       Exercise
  Price.  The exercise price per share of Common Stock
  purchasable under an Incentive Stock Option or a Stock Option intended to be
  “performance-based” for purposes of Section 162(m) of the Code shall be
  determined by the Committee at the time of grant, but shall not be less than
  100% of the Fair Market Value of the share of Common Stock at the time of
  grant; provided, however, that if an Incentive Stock Option is granted to a
  Ten Percent Stockholder, the exercise price shall be no less than 110% of the
  Fair Market Value of the Common Stock. The exercise price per share of Common
  Stock purchasable under a Non-Qualified Stock Option shall be determined by
  the Committee. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (b)     Stock Option
Term.  The term of each
  Stock Option shall be fixed by the Committee; provided, however, that no
  Stock Option shall be exercisable more than 10 years after the date such
  Stock Option is granted; and further provided that the term of an Incentive
  Stock Option granted to a Ten Percent Stockholder shall not exceed 5 years.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (c)     Exercisability.  Stock
Options shall
  be exercisable at such time or times and subject to such terms and conditions
  as shall be determined by the Committee at grant. If the Committee provides,
  in its discretion, that any Stock Option is exercisable subject to certain
  limitations (including, without limitation, that such Stock Option is
  exercisable only in installments or within certain time periods), the
  Committee may waive such limitations on the exercisability at any time at or
  after grant in whole or in part (including, without limitation, waiver of the
  installment exercise provisions or acceleration of the time at which such
  Stock Option may be exercised), based on such factors, if any, as the
  Committee shall determine, in its sole discretion.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (d)     Method of
Exercise.  Subject to
  whatever installment exercise and waiting period provisions apply under
  subsection (c) above, Stock Options may be exercised in whole or in part at
  any time and from time to time during the Stock Option term by giving written
  notice of exercise to the Committee specifying the number of shares to be
  purchased. Such notice shall be

  

15

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  accompanied
  by payment in full of the purchase price as follows: (i) in cash or by
  check, bank draft or money order payable to the order of the Company;
  (ii) if the Common Stock is traded on a national securities exchange,
  the Nasdaq Stock Market, Inc. or quoted on a national quotation system
  sponsored by the National Association of Securities Dealers, through a
  “cashless exercise” procedure whereby the Participant delivers irrevocable
  instructions to a broker satisfactory to the Company to deliver promptly to
  the Company an amount equal to the purchase price; or (iii) on such other
  terms and conditions as may be acceptable to the Committee (including,
  without limitation, the relinquishment of Stock Options or by payment in full
  or in part in the form of Common Stock owned by the Participant for a period
  of at least 6 months or such other period as may be required to avoid an
  accounting charge against the Company’s earnings (and for which the
  Participant has good title free and clear of any liens and encumbrances)
  based on the Fair Market Value of the Common Stock on the payment date as determined
  by the Committee). No shares of Common Stock shall be issued until payment
  therefore, as provided herein, has been made or provided for.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (e)     Incentive Stock
Option Limitations.  To
  the extent that the aggregate Fair Market Value (determined as of the time of
  grant) of the Common Stock with respect to which Incentive Stock Options are
  exercisable for the first time by an Eligible Employee during any calendar
  year under this Plan and/or any other stock option plan of the Company, any
  Subsidiary or any Parent exceeds $100,000, such Options shall be treated as
  Non-Qualified Stock Options. In addition, if an Eligible Employee does not
  remain employed by the Company, any Subsidiary or any Parent at all times
  from the time an Incentive Stock Option is granted until 3 months prior to
  the date of exercise thereof (or such other period as required by applicable
  law), such Stock Option shall be treated as a Non-Qualified Stock Option.
  Should any provision of this Plan not be necessary in order for the Stock
  Options to qualify as Incentive Stock Options, or should any additional
  provisions be required, the Committee may amend this Plan accordingly,
  without the necessity of obtaining the approval of the stockholders of the
  Company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (f)     Form, Modification,
Extension and Renewal of Stock
  Options.  Subject to the terms and conditions and within the
  limitations of this Plan, Stock Options shall be evidenced by such form of
  agreement or grant as is approved by the Committee, and the Committee may (i)
  modify, extend or renew outstanding Stock Options granted under this Plan
  (provided that the rights of a Participant are not reduced without his
  consent), and (ii) accept the surrender of outstanding Stock Options (up
  to the extent not theretofore exercised) and authorize the granting of new
  Stock Options in substitution therefor (to the extent not theretofore
  exercised). 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (g)     Other Terms and
Conditions.  Stock
  Options may contain such other provisions, which shall not be inconsistent
  with any of the terms of this Plan, as the Committee shall deem appropriate
  including, without limitation, permitting “reloads” such that the same number
  of Stock Options are granted as 

  

16

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  the number
  of Stock Options exercised, shares used to pay for the exercise price of
  Stock Options or shares used to pay withholding taxes (“Reloads”). With
  respect to Reloads, the exercise price of the new Stock Option shall be the
  Fair Market Value on the date of the “reload” and the term of the Stock
  Option shall be the same as the remaining term of the Stock Options that are
  exercised, if applicable, or such other exercise price and term as determined
  by the Committee. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (h)     Detrimental
Activity.  Unless otherwise
  determined by the Committee at grant, (i) in the event the Participant
  engages in Detrimental Activity prior to any exercise of the Stock Option,
  all Stock Options (whether vested or unvested) held by the Participant
  shall thereupon terminate and expire, (ii) as a condition of the
  exercise of a Stock Option, the Participant shall be required to certify (or
  shall be deemed to have certified) at the time of exercise in a manner
  acceptable to the Company that the Participant is in compliance with the
  terms and conditions of the Plan and that the Participant has not engaged in,
  and does not intend to engage in, any Detrimental Activity, and (iii) in
  the event the Participant engages in Detrimental Activity during the one year
  period following the later of (x) Participant’s Termination of
  Employment or (y) the date the Stock Option is exercised, that any Stock
  Options shall be immediately forfeited (whether or not then vested) and the
  Company shall be entitled to recover from the Participant at any time within
  one year after the later of (x) or (y), and the Participant shall pay over to
  the Company, an amount equal to any gain realized as a result of the exercise
  of any Stock Options (whether at the time of exercise or thereafter).

  

ARTICLE VII

STOCK APPRECIATION RIGHTS

	
   

  	
   

  	
   

  
	
   

  	
            7.1     
  Tandem Stock Appreciation Rights.  Stock Appreciation Rights may be
  granted in conjunction with all or part of any Stock Option (a “Reference
  Stock Option”) granted under this Plan (“Tandem Stock Appreciation Rights”).
  In the case of a Non-Qualified Stock Option, such rights may be granted
  either at or after the time of the grant of such Reference Stock Option. In
  the case of an Incentive Stock Option, such rights may be granted only at the
  time of the grant of such Reference Stock Option. Consultants shall not be
  eligible for a grant of Tandem Stock Appreciation Rights granted in
  conjunction with all or part of an Incentive Stock Option.

  
	
   

  	
   

  
	
   

  	
            7.2     
  Terms and Conditions of Tandem Stock Appreciation Rights.  Tandem Stock
  Appreciation Rights shall be subject to such terms and conditions, not
  inconsistent with the provisions of this Plan, as shall be determined from
  time to time by the Committee, including Article XII and the following:

  
	
   

  	
   

  
	
   

  	
   

  	
            (a)     
  Term.  A Tandem Stock
  Appreciation Right or applicable portion thereof granted with respect to a
  Reference Stock Option shall terminate and no longer be exercisable upon the
  termination or exercise of the Reference Stock 

  

17

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Option,
  except that, unless otherwise determined by the Committee, in its sole
  discretion, at the time of grant, a Tandem Stock Appreciation Right granted
  with respect to less than the full number of shares covered by the Reference
  Stock Option shall not be reduced until and then only to the extent the
  exercise or termination of the Reference Stock Option causes the number of
  shares covered by the Tandem Stock Appreciation Right to exceed the number of
  shares remaining available and unexercised under the Reference Stock Option.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (b)     Exercisability.
  Tandem Stock
  Appreciation Rights shall be exercisable only at such time or times and to
  the extent that the Reference Stock Options to which they relate shall be
  exercisable in accordance with the provisions of Article VI and this Article
  VII.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (c)     Method of Exercise.
  A Tandem Stock
  Appreciation Right may be exercised by a Participant by surrendering the
  applicable portion of the Reference Stock Option. Upon such exercise and
  surrender, the Participant shall be entitled to receive an amount determined
  in the manner prescribed in this Section 7.2. Stock Options which have been
  so surrendered, in whole or in part, shall no longer be exercisable to the
  extent the related Tandem Stock Appreciation Rights have been exercised.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (d)     Payment.
 Upon the exercise of a Tandem
  Stock Appreciation Right, a Participant shall be entitled to receive up to,
  but no more than, an amount in cash and/or Common Stock (as chosen by the
  Committee in its sole discretion at grant, or thereafter if no rights of a
  Participant are reduced) equal in value to the excess of the Fair Market
  Value of one share of Common Stock over the option price per share specified
  in the Reference Stock Option, multiplied by the number of shares in respect
  of which the Tandem Stock Appreciation Right shall have been exercised.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (e)     Deemed
Exercise of
  Reference Stock Option.  Upon the exercise of a Tandem Stock
  Appreciation Right, the Reference Stock Option or part thereof to which such
  Stock Appreciation Right is related shall be deemed to have been exercised
  for the purpose of the limitation set forth in Article IV of this Plan on the
  number of shares of Common Stock to be issued under this Plan. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (f)     Detrimental
Activity.  Unless otherwise determined by the Committee at grant, (i) in the event
  the Participant engages in Detrimental Activity prior to any exercise of
  Tandem Stock Appreciation Rights, all Tandem Stock Appreciation Rights
  (whether vested or unvested) held by the Participant shall thereupon
  terminate and expire, (ii) as a condition of the exercise of a Tandem
  Stock Appreciation Right, the Participant shall be required to certify (or
  shall be deemed to have certified) at the time of exercise in a manner
  acceptable to the Company that the Participant is in compliance with the
  terms and conditions of the Plan and that the Participant has not engaged in,
  and does not intend to engage in, any Detrimental Activity, and (iii) in
  the event the Participant engages in Detrimental Activity during the one year
  period following the later of 

  

18

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (x) Participant’s
  Termination of Employment or (y) the date the Tandem Stock Appreciation
  Right is exercised, that any Tandem Stock Appreciation Rights shall be
  immediately forfeited (whether or not then vested) and the Company shall be
  entitled to recover from the Participant at any time within one year after
  the later of (x) or (y), and the Participant shall pay over to the Company,
  an amount equal to any gain realized as a result of the exercise (whether at
  the time of exercise or thereafter).

  

	
   

  	
   

  
	
   

  	
            7.3     
  Non-Tandem Stock Appreciation Rights.  Non-Tandem Stock Appreciation
  Rights may also be granted without reference to any Stock Option granted
  under this Plan.

  
	
   

  	
   

  
	
   

  	
            7.4     
  Terms and Conditions of Non-Tandem Stock Appreciation Rights.  Non-Tandem Stock Appreciation Rights shall be subject to such terms and
  conditions, not inconsistent with the provisions of this Plan, as shall be
  determined from time to time by the Committee, including Article XII and the
  following:

  

	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (a)     Term.  The term
of each Non-Tandem Stock
  Appreciation Right shall be fixed by the Committee, but shall not be greater
  than ten (10) years after the date the right is granted.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (b)     Exercisability.  Non-Tandem Stock
  Appreciation Rights shall be exercisable at such time or times and subject to
  such terms and conditions as shall be determined by the Committee at grant.
  If the Committee provides, in its discretion, that any such right is
  exercisable subject to certain limitations (including, without limitation,
  that it is exercisable only in installments or within certain time periods),
  the Committee may waive such limitation on the exercisability at any time at
  or after grant in whole or in part (including, without limitation, waiver of
  the installment exercise provisions or acceleration of the time at which
  rights may be exercised), based on such factors, if any, as the Committee
  shall determine, in its sole discretion.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (c)     Method of
Exercise.  Subject to whatever
  installment exercise and waiting period provisions apply under subsection (b)
  above, Non-Tandem Stock Appreciation Rights may be exercised in whole or in
  part at any time and from time to time during the option term, by giving
  written notice of exercise to the Company specifying the number of Non-Tandem
  Stock Appreciation Rights to be exercised.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (d)     Payment.  Upon
the exercise of a
  Non-Tandem Stock Appreciation Right a Participant shall be entitled to
  receive, for each right exercised, up to, but no more than, an amount in cash
  and/or Common Stock (as chosen by the Committee in its sole discretion at
  grant, or thereafter if no rights of a Participant are reduced) equal in
  value to the excess of the Fair Market Value of one share of Common Stock on
  the date the right is exercised over the Fair Market Value of one share of
  Common Stock on the date the right was awarded to the Participant. 

  

19

	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (e)     Detrimental
Activity.  Unless otherwise
  determined by the Committee at grant, (i) in the event the Participant
  engages in Detrimental Activity prior to any exercise of Non-Tandem Stock
  Appreciation Rights, all Non-Tandem Stock Appreciation Rights (whether vested
  or unvested) held by the Participant shall thereupon terminate and expire,
  (ii) as a condition of the exercise of a Tandem Stock Appreciation
  Right, the Participant shall be required to certify (or shall be deemed to
  have certified) at the time of exercise in a manner acceptable to the Company
  that the Participant is in compliance with the terms and conditions of the
  Plan and that the Participant has not engaged in, and does not intend to engage
  in, any Detrimental Activity, and (iii) in the event the Participant
  engages in Detrimental Activity during the one year period following the
  later of (x) Participant’s Termination of Employment or (y) the
  date the Non-Tandem Stock Appreciation Right is exercised, that any
  Non-Tandem Stock Appreciation Rights shall be immediately forfeited (whether
  or not then vested) and the Company shall be entitled to recover from the
  Participant at any time within one year after the later of (x) or (y), and
  the Participant shall pay over to the Company, an amount equal to any gain
  realized as a result of the exercise (whether at the time of exercise or
  thereafter).

  
	
   

  	
   

  	
   

  
	
   

  	
            7.5     Limited
  Stock Appreciation Rights.  The Committee may, in its sole discretion, grant
  a Tandem Stock Appreciation Right or a Non-Tandem Stock Appreciation Right as
  a Limited Stock Appreciation Right. Limited Stock Appreciation Rights may be
  exercised only upon the occurrence of a Change in Control or such other event
  as the Committee may, in its sole discretion, designate at the time of grant
  or thereafter. Upon the exercise of limited Stock Appreciation Rights, except
  as otherwise provided in an Award agreement, the Participant shall receive in
  cash or Common Stock, as determined by the Committee, an amount equal to the
  amount (i) set forth in Section 7.2(d) with respect to Tandem Stock
  Appreciation Rights, or (ii) set forth in Section 7.4(d) with respect to
  Non-Tandem Stock Appreciation Rights, as applicable.

  

ARTICLE VIII

RESTRICTED STOCK

	
   

  	
   

  
	
   

  	
            8.1     Awards
  of Restricted Stock.  Shares of Restricted Stock may be issued to
  Eligible Employees or Consultants either alone or in addition to other Awards
  granted under this Plan. The Committee shall determine the eligible persons
  to whom, and the time or times at which, grants of Restricted Stock will be
  made, the number of shares to be awarded, the price (if any) to be paid by
  the recipient (subject to Section 8.2), the time or times within which such
  Awards may be subject to forfeiture, the vesting schedule and rights to
  acceleration thereof, and all other terms and conditions of the Awards. The
  Committee may condition the grant or vesting of Restricted Stock upon the
  attainment of specified performance goals, including established Performance
  Goals in accordance with Section 162(m) of the Code, or such other factors as
  the Committee may determine, in its sole discretion.

  

20

	
   

  	
   

  	
   

  
	
   

  	
            8.2     
  Awards and Certificates.  An Eligible Employee or Consultant selected to
  receive Restricted Stock shall not have any rights with respect to such
  Award, unless and until such Participant has delivered to the Company a fully
  executed copy of the applicable Award agreement relating thereto and has
  otherwise complied with the applicable terms and conditions of such Award.
  Further, such Award shall be subject to the following conditions:

  
	
   

  	
   

  	
  
          (a)     Purchase Price.
 The purchase price of
  Restricted Stock shall be fixed by the Committee. Subject to Section 4.3, the
  purchase price for shares of Restricted Stock may be zero to the extent
  permitted by applicable law, and, to the extent not so permitted, such
  purchase price may not be less than par value.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (b)     Acceptance.
 Awards of Restricted Stock
  must be accepted within a period of 90 days (or such shorter period as the
  Committee may specify at grant) after the Award date by executing a
  Restricted Stock Award agreement and by paying whatever price (if any) the
  Committee has designated thereunder.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (c)     Legend.  Each
Participant receiving
  shares of Restricted Stock shall be issued a stock certificate in respect of
  such shares of Restricted Stock, unless the Committee elects to use another
  system, such as book entries by the transfer agent, as evidencing ownership
  of shares of Restricted Stock. Such certificate shall be registered in the
  name of such Participant, and shall bear an appropriate legend referring to
  the terms, conditions, and restrictions applicable to such Award,
  substantially in the following form:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            “The
  anticipation, alienation, attachment, sale, transfer, assignment, pledge,
  encumbrance or charge of the shares of stock represented hereby are subject
  to the terms and conditions (including forfeiture) of The Comtech
  Telecommunications Corp. 2000 Stock Incentive Plan (the “Plan”) and an
  Agreement entered into between the registered owner and the Company dated
  _______. Copies of such Plan and Agreement are on file at the principal
  office of the Company.”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (d)     Custody.  The
Committee may require that
  any stock certificates evidencing such shares be held in custody by the
  Company until the restrictions thereon shall have lapsed and that, as a
  condition to the grant of such Award of Restricted Stock, the Participant
  shall have delivered a duly signed stock power, endorsed in blank, relating
  to the Common Stock covered by such Award.

  
	
   

  	
   

  	
   

  
	
   

  	
            8.3     Restrictions
  and Conditions on Restricted Stock Awards.  Shares of Restricted Stock
  awarded pursuant to this Plan shall be subject to Article XII and the
  following restrictions and conditions:

  
	
   

  	
   

  
	
   

  	
   

  	
            (a)     Restriction Period;
Vesting and Acceleration of
  Vesting.  (i) The Participant shall not be permitted to Transfer
  shares of Restricted Stock awarded under this Plan during the period or
  periods set by the Committee (the “Restriction Period”) commencing on the
  date of such Award, as set forth in the 

  

21

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Restricted
  Stock Award agreement and such agreement shall set forth a vesting schedule
  and any events which would accelerate vesting of the shares of Restricted
  Stock. Within these limits, based on service, attainment of Performance Goals
  pursuant to Section 8.3(a)(ii) below and/or such other factors or criteria as
  the Committee may determine in its sole discretion, the Committee may provide
  for the lapse of such restrictions in installments in whole or in part, or
  may accelerate the vesting of all or any part of any Restricted Stock Award
  and/or waive the deferral limitations for all or any part of any Restricted
  Stock Award.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                      (ii)     Objective
Performance Goals, Formulae or Standards.  If the grant of shares of Restricted Stock or the lapse of restrictions is
  based on the attainment of Performance Goals, the Committee shall establish
  the Performance Goals and the applicable vesting percentage of the Restricted
  Stock Award applicable to each Participant or class of Participants in
  writing prior to the beginning of the applicable fiscal year or at such later
  date as otherwise determined by the Committee and while the outcome of the
  Performance Goals are substantially uncertain. Such Performance Goals may
  incorporate provisions for disregarding (or adjusting for) changes in
  accounting methods, corporate transactions (including, without limitation,
  dispositions and acquisitions) and other similar type events or
  circumstances. With regard to a Restricted Stock Award that is intended to
  comply with Section 162(m) of the Code, to the extent any such provision
  would create impermissible discretion under Section 162(m) of the Code or
  otherwise violate Section 162(m) of the Code, such provision shall be of no
  force or effect. The applicable Performance Goals shall be based on one or
  more of the Performance Criteria set forth in Exhibit A hereto. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (b)     Rights as
Stockholder.  Except as
  provided in this subsection (b) and subsection (a) above and as otherwise
  determined by the Committee, the Participant shall have, with respect to the
  shares of Restricted Stock, all of the rights of a holder of shares of Common
  Stock of the Company including, without limitation, the right to receive any
  dividends, the right to vote such shares and, subject to and conditioned upon
  the full vesting of shares of Restricted Stock, the right to tender such shares.
  The Committee may, in its sole discretion, determine at the time of grant
  that the payment of dividends shall be deferred until, and conditioned upon,
  the expiration of the applicable Restriction Period.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (c)     Lapse of
Restrictions.  If and when the
  Restriction Period expires without a prior forfeiture of the Restricted Stock
  subject to such Restriction Period, the certificates for such shares shall be
  delivered to the Participant. All legends shall be removed from said
  certificates at the time of delivery to the Participant except as otherwise
  required by applicable law. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
             (d)     Detrimental
Activity.  Unless otherwise
  determined by the Committee at grant, each Award of Restricted Stock shall
  provide that in the event the Participant engages in Detrimental Activity
  prior to, or during the one year period following the later of Termination of
  Employment or any vesting of 

  

22

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Restricted
  Stock, the Committee may direct (at any time within one year thereafter) that
  all unvested Restricted Stock shall be immediately forfeited to the Company
  and that the Participant shall pay over to the Company an amount equal to the
  gain realized at the time of vesting of any Restricted Stock.

  

ARTICLE IX

PERFORMANCE SHARES

	
   

  	
   

  	
   

  
	
   

  	
            9.1     Award
  of Performance Shares.  Performance Shares may be awarded either alone or
  in addition to other Awards granted under this Plan. The Committee shall, in
  its sole discretion, determine the Eligible Employees and Consultants to whom
  and the time or times at which such Performance Shares shall be awarded, the
  duration of the period (the “Performance Period”) during which, and the
  conditions under which, a Participant’s right to Performance Shares will be
  vested and the other terms and conditions of the Award in addition to those
  set forth in Section 9.2.

  
	
   

  	
   

  
	
   

  	
            Each
  Performance Share awarded shall be referenced to one share of Common Stock.
  Except as otherwise provided herein, the Committee shall condition the right
  to payment of any Performance Share Award upon the attainment of objective
  Performance Goals established pursuant to Section 9.2(c) below and such other
  non-performance based factors or criteria as the Committee may determine in
  its sole discretion.

  
	
   

  	
   

  
	
   

  	
            9.2     
  Terms and Conditions.  A Participant selected to receive Performance
  Shares shall not have any rights with respect to such Awards, unless and
  until such Participant has delivered a fully executed copy of a Performance
  Share Award agreement evidencing the Award to the Company and has otherwise
  complied with the following terms and conditions:

  
	
   

  	
   

  
	
   

  	
   

  	
            (a)     Earning of
Performance Share Award.  At
  the expiration of the applicable Performance Period, the Committee shall
  determine the extent to which the Performance Goals established pursuant to
  Section 9.2(c) are achieved and the percentage of each Performance Share
  Award that has been earned.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (b)     
  Payment.  Following the
  Committee’s determination in accordance with subsection (a) above, shares of
  Common Stock or, as determined by the Committee in its sole discretion, the
  cash equivalent of such shares shall be delivered to the Participant, in an
  amount equal to such Participant’s earned Performance Share Award.
  Notwithstanding the foregoing, except as may be set forth in the agreement
  covering the Award, the Committee may, in its sole discretion and in
  accordance with Section 162(m) of the Code, award an amount less than the
  earned Performance Share Award and/or subject the payment of all or part of
  any Performance Share Award to additional vesting and forfeiture conditions
  as it deems appropriate.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (c)     
  Objective Performance Goals, Formulae or
  Standards.  The Committee shall establish the objective Performance
  Goals for the earning of 

  

23

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Performance
  Shares based on a Performance Period applicable to each Participant or class
  of Participants in writing prior to the beginning of the applicable
  Performance Period or at such later date as permitted under Section 162(m) of
  the Code and while the outcome of the Performance Goals are substantially
  uncertain. Such Performance Goals may incorporate, if and only to the extent
  permitted under Section 162(m) of the Code, provisions for disregarding (or
  adjusting for) changes in accounting methods, corporate transactions
  (including, without limitation, dispositions and acquisitions) and other
  similar type events or circumstances. To the extent any such provision would
  create impermissible discretion under Section 162(m) of the Code or otherwise
  violate Section 162(m) of the Code, such provision shall be of no force or
  effect. The applicable Performance Goals shall be based on one or more of the
  Performance Criteria set forth in Exhibit A hereto.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (d)       Dividends
and Other Distributions.  At the time of any Award of Performance Shares, the Committee may, in its
  sole discretion, award an Eligible Employee or Consultant the right to
  receive the cash value of any dividends and other distributions that would have
  been received as though the Eligible Employee or Consultant had held each
  share of Common Stock referenced by the earned Performance Share Award from
  the last day of the first year of the Performance Period until the actual
  distribution to such Participant of the related share of Common Stock or cash
  value thereof. Such amounts, if awarded, shall be paid to the Participant as
  and when the shares of Common Stock or cash value thereof are distributed to
  such Participant and, at the discretion of the Committee, may be paid with
  interest from the first day of the second year of the Performance Period
  until such amounts and any earnings thereon are distributed. The applicable
  rate of interest shall be determined by the Committee in its sole discretion;
  provided, however, that for each fiscal year or part thereof, the applicable
  interest rate shall not be greater than a rate equal to the four-year U.S.
  Government Treasury rate on the first day of each applicable fiscal year. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (e)     
  Detrimental Activity.  Unless
  otherwise determined by the Committee at grant, each Award of Performance
  Shares shall provide that in the event the Participant engages in Detrimental
  Activity prior to, or during the one year period following the later of
  Termination of Employment or any vesting of Performance Shares, the Committee
  may direct (at any time within one year thereafter) that all unvested
  Performance Shares shall be immediately forfeited to the Company and that the
  Participant shall pay over to the Company an amount equal to the gain
  realized at the time of vesting of any Performance Shares.

  

ARTICLE X

PERFORMANCE UNITS

	
   

  	
   

  	
   

  
	
   

  	
            10.1     
  Awards of Performance Units.  Performance Units may be awarded either
  alone or in addition to other Awards granted under this Plan. The Committee
  shall, in its 

  

24

	
   

  	
   

  	
   

  
	
   

  	
  sole
  discretion, determine the Eligible Employees to whom and the time or times at
  which such Performance Units shall be awarded, the duration of the period
  (the “Performance Cycle”) during which, and the conditions under which, a
  Participant’s right to Performance Units will be vested and the other terms
  and conditions of the Award in addition to those set forth in Section 10.2.

  
	
   

  	
   

  
	
   

  	
            Performance
  Units shall be awarded in a dollar amount determined by the Committee and
  shall be converted for purposes of calculating growth in value to a
  referenced number of shares of Common Stock based on the Fair Market Value of
  shares of Common Stock at the close of trading on the first business day
  following the announcement of the annual financial results of the Company for
  the fiscal year of the Company immediately preceding the fiscal year of the
  commencement of the relevant Performance Cycle, provided that the Committee
  may provide that the minimum price for such conversion shall be the Fair
  Market Value on the date of grant.

  
	
   

  	
   

  
	
   

  	
            Each
  Performance Unit shall be referenced to one share of Common Stock. Except as
  otherwise provided herein, the Committee shall condition the right to payment
  of any Performance Unit Award upon the attainment of objective Performance
  Goals established pursuant to Section 10.2(a) and such other non-performance
  based factors or criteria as the Committee may determine in its sole
  discretion. The cash value of any fractional Performance Unit Award
  subsequent to conversion to shares of Common Stock shall be treated as a
  dividend or other distribution under Section 10.2(e) to the extent any
  portion of the Performance Unit Award is earned.

  
	
   

  	
   

  
	
   

  	
            10.2     
  Terms and Conditions.  The Performance Units awarded pursuant to this
  Article 10 shall be subject to the following terms and conditions:

  
	
   

  	
   

  
	
   

  	
   

  	
                 (a)     Performance
Goals.  The Committee shall
  establish the objective Performance Goals for the earnings of Performance
  Units based on a Performance Cycle applicable to each Participant or class of
  Participants in writing prior to the beginning of the applicable Performance
  Cycle or at such later date as permitted under Section 162(m) of the Code and
  while the outcome of the Performance Goals are substantially uncertain. Such
  Performance Goals may incorporate, if and only to the extent permitted under
  Section 162(m) of the Code, provisions for disregarding (or adjusting for)
  changes in accounting methods, corporate transactions (including, without
  limitation, dispositions and acquisitions) and other similar type events or
  circumstances. To the extent any such provision would create impermissible
  discretion under Section 162(m) of the Code or otherwise violate Section 162(m)
  of the Code, such provision shall be of no force or effect. The applicable
  Performance Goals shall be based on one or more of the Performance Criteria
  set forth in Exhibit A hereto.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                 (b)     Vesting.  At the
expiration of the
  Performance Cycle, the Committee shall determine and certify in writing the
  extent to which the Performance Goals have been achieved, and the percentage
  of the Performance Units of each Participant that have vested.

  

25

	
   

  	
   

  	
   

  
	
   

  	
   

  	
                 (c)     Payment.
  Subject to the applicable
  provisions of the Award agreement and this Plan, at the expiration of the
  Performance Cycle, cash and/or shares of Common Stock (as the Committee may
  determine in its sole discretion at grant, or thereafter if no rights of a
  Participant are reduced) shall be delivered to the Participant in payment of
  the vested Performance Units covered by the Performance Unit Award.
  Notwithstanding the foregoing, except as may be set forth in the agreement
  covering the Award, the Committee may, in its sole discretion, and to the
  extent applicable and permitted under Section 162(m) of the Code, award an
  amount less than the earned Performance Unit Award and/or subject the payment
  of all or part of any Performance Unit Award to additional vesting and forfeiture
  conditions as it deems appropriate.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                 (d)     Accelerated
Vesting.  Based on service,
  performance and/or such other factors or criteria, if any, as the Committee
  may determine, the Committee may, at or after grant, accelerate the vesting
  of all or any part of any Performance Unit Award and/or waive the deferral
  limitations for all or any part of such Award.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                 (e)     Dividends and Other
Distributions.  At
  the time of any Award of Performance Units, the Committee may, in its sole
  discretion, award an Eligible Employee or Consultant the right to receive the
  cash value of any dividends and other distributions that would have been
  received as though the Eligible Employee or Consultant had held each share of
  Common Stock referenced by the earned Performance Unit Award from the last
  day of the first year of the Performance Cycle until the actual distribution
  to such Participant of the related share of Common Stock or cash value
  thereof. Such amounts, if awarded, shall be paid to the Participant as and
  when the shares of Common Stock or cash value thereof are distributed to such
  Participant and, at the discretion of the Committee, may be paid with
  interest from the first day of the second year of the Performance Cycle until
  such amounts and any earnings thereon are distributed. The applicable rate of
  interest shall be determined by the Committee in its sole discretion;
  provided, however, that for each fiscal year or part thereof, the applicable
  interest rate shall not be greater than a rate equal to the four-year U.S.
  Government Treasury rate on the first day of each applicable fiscal year. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                 (f)     Detrimental
Activity.  Unless otherwise
  determined by the Committee at grant, each Award of Performance Units shall
  provide that in the event the Participant engages in Detrimental Activity
  prior to, or during the one year period following the later of Termination of
  Employment or any vesting of Performance Units, the Committee may direct (at
  any time within one year thereafter) that all unvested Performance Units
  shall be immediately forfeited to the Company and that the Participant shall
  pay over to the Company an amount equal to the gain realized at the time of
  vesting of any Performance Units which had vested in the period referred to
  above.

  

26

ARTICLE XI

OTHER STOCK-BASED AWARDS

	
   

  	
   

  
	
   

  	
            11.1     Other
  Awards.  Other Stock-Based Awards may be granted either alone or in
  addition to or in tandem with Stock Options, Stock Appreciation Rights,
  Restricted Stock, Performance Shares or Performance Units.

  
	
   

  	
   

  
	
   

  	
            Subject
  to the provisions of this Plan, the Committee shall have authority to
  determine the persons to whom and the time or times at which such Awards
  shall be made, the number of shares of Common Stock to be awarded pursuant to
  such Awards, and all other conditions of the Awards.  The Committee may also provide for the
  grant of Common Stock under such Awards upon the completion of a specified
  performance period.

  
	
   

  	
   

  
	
   

  	
            11.2     Terms
  and Conditions.  Other Stock-Based
  Awards made pursuant to this Article XI shall be subject to the following
  terms and conditions:

  

	
   

  	
   

  	
   

  
	
   

  	
   

  	
               (a)     Non-Transferability.
 Subject to the applicable provisions of
  the Award agreement and this Plan, shares of Common Stock subject to Awards
  made under this Article XI may not be Transferred prior to the date on which
  the shares are issued, or, if later, the date on which any applicable
  restriction, performance or deferral period lapses.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
               (b)        Dividends.
 Unless otherwise determined by the
  Committee at the time of Award, subject to the provisions of the Award
  agreement and this Plan, the recipient of an Award under this Article XI
  shall be entitled to receive, currently or on a deferred basis, dividends or
  dividend equivalents with respect to the number of shares of Common Stock
  covered by the Award, as determined at the time of the Award by the
  Committee, in its sole discretion.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
               (c)     Vesting.
 Any Award under this Article XI and any Common Stock covered by any such
  Award shall vest or be forfeited to the extent so provided in the Award
  agreement, as determined by the Committee, in its sole discretion.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
               (d)     Waiver of
Limitation.  The Committee may, in its sole discretion,
  waive in whole or in part any or all of the limitations imposed hereunder (if
  any) with respect to any or all of an Award under this Article XI.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
               (e)     Price.
   Common Stock or Other Stock-Based Awards issued on a bonus basis under
  this Article XI may be issued for no cash consideration; Common Stock or
  Other Stock-Based Awards purchased pursuant to a purchase right awarded under
  this Article XI shall be priced as determined by the Committee.  Subject to Section 4.3, the purchase price
  of shares of Common Stock or Other Stock-Based Awards may be zero to the
  extent permitted by applicable law, and, to the extent not so permitted, such
  purchase price may not be less than par value.  The purchase of shares of Common Stock or Other Stock-

  

27

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Based Awards
  may be made on either an after-tax or pre-tax basis, as determined by the
  Committee; provided, however, that if the purchase is made on a pre-tax
  basis, such purchase shall be made pursuant to a deferred compensation
  program established by the Committee, which will be deemed a part of this
  Plan.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            (f)     Detrimental
Activity.  Other Stock-Based Awards under this
  Article XI and any Common Stock covered by any such Award shall be forfeited
  in the event the Participant engages in Detrimental Activity under such
  conditions set forth by the Committee in the Award agreement.

  

ARTICLE XII

NON-TRANSFERABILITY AND TERMINATION 

OF EMPLOYMENT/CONSULTANCY

	
   

  	
   

  
	
   

  	
            12.1     Non-Transferability.  No Stock Option, Stock Appreciation Right,
  Performance Unit, Performance Share or Other Stock-Based Award shall be
  Transferable by the Participant otherwise than by will or by the laws of
  descent and distribution.  All Stock
  Options and all Stock Appreciation Rights shall be exercisable, during the
  Participant’s lifetime, only by the Participant.  Tandem Stock Appreciation Rights shall be Transferable, to the
  extent permitted above, only with the underlying Stock Option.  Shares of Restricted Stock under Article
  VIII may not be Transferred prior to the date on which shares are issued, or,
  if later, the date on which any applicable restriction, performance or
  deferral period lapses.  No Award
  shall, except as otherwise specifically provided by law or herein, be
  Transferable in any manner, and any attempt to Transfer any such Award shall
  be void, and no such Award shall in any manner be liable for or subject to
  the debts, contracts, liabilities, engagements or torts of any person who
  shall be entitled to such Award, nor shall it be subject to attachment or
  legal process for or against such person. 
  Notwithstanding the foregoing, the Committee may determine at the time
  of grant or thereafter, that a Non-Qualified Stock Option that is otherwise
  not transferable pursuant to this Section 12.1 is transferable to a Family Member
  in whole or in part and in such circumstances, and under such conditions, as
  specified by the Committee.  A
  Non-Qualified Stock Option that is transferred to a Family Member pursuant to
  the preceding sentence may not be subsequently transferred otherwise than by
  will or by the laws of descent and distribution. 

  
	
   

  	
   

  
	
   

  	
            12.2     Termination
  of Employment or Termination of Consultancy.  The following rules apply with regard to the Termination of
  Employment or Termination of Consultancy of a Participant:

  

	
   

  	
   

  	
   

  
	
   

  	
   

  	
                (a)     Rules Applicable to
Stock Options and Stock
  Appreciation Rights.  Unless otherwise determined by the Committee at grant or, if no rights
  of the Participant are reduced, thereafter:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                          (i)     Termination
by Reason of Death, Disability or
  Retirement.  If a
  Participant’s Termination of Employment or Termination of Consultancy is by 

  

28

	
   

  	
   

  
	
   

  	
  reason of
  death, Disability or Retirement, all Stock Options and Stock Appreciation
  Rights held by such Participant may be exercised, to the extent exercisable
  at the Participant’s Termination of Employment or Termination of Consultancy,
  by the Participant (or, in the case of death, by the legal representative of
  the Participant’s estate) at any time within a period of one year from the
  date of such Termination of Employment or Termination of Consultancy, but in
  no event beyond the expiration of the stated terms of such Stock Options and
  Stock Appreciation Rights; provided, however, that, in the case of
  Retirement, if the Participant dies within such exercise period, all
  unexercised Stock Options and Non-Tandem Stock Appreciation Rights held by
  such Participant shall thereafter be exercisable, to the extent to which they
  were exercisable at the time of death, for a period of one year from the date
  of such death, but in no event beyond the expiration of the stated term of
  such Stock Options and Non-Tandem Stock Appreciation Rights.

  
	
   

  	
   

  
	
   

  	
                      (ii)     Involuntary
Termination Without Cause.  If a Participant’s Termination of
  Employment or Termination of Consultancy is by involuntary termination
  without Cause, all Stock Options and Stock Appreciation Rights held by such
  Participant may be exercised, to the extent exercisable at Termination of
  Employment or Termination of Consultancy, by the Participant at any time
  within a period of 90 days from the date of such Termination of Employment or
  Termination of Consultancy, but in no event beyond the expiration of the
  stated term of such Stock Options and Stock Appreciation Rights.

  
	
   

  	
   

  
	
   

  	
                      (iii)     Voluntary
Termination.  If a Participant’s Termination of
  Employment or Termination of Consultancy is voluntary (other than a voluntary
  termination described in Section 12.2(a)(iv)(B) below), all Stock Options and
  Stock Appreciation Rights held by such Participant may be exercised, to the
  extent exercisable at Termination of Employment or Termination of
  Consultancy, by the Participant at any time within a period of 30 days from
  the date of such Termination of Employment or Termination of Consultancy, but
  in no event beyond the expiration of the stated terms of such Stock Options
  and Stock Appreciation Rights. 
  Notwithstanding the foregoing, effective for Stock Options and Stock
  Appreciation Rights granted on or after October 19, 2000, if a Participant’s
  Termination of Employment or Termination of Consultancy is voluntary, all
  Stock Options and Stock Appreciation Rights held by such Participant shall
  thereupon terminate and expire as of the date of such Termination of Employment
  or Termination of Consultancy.

  
	
   

  	
   

  
	
   

  	
                      (iv)     Termination for
Cause.  If a Participant’s Termination of
  Employment or Termination of Consultancy (A) is for Cause or (B) is
  a voluntary termination (as provided in subsection (iii) above) within 90 days
  after an event which would be grounds for a Termination of Employment or
  Termination of Consultancy for Cause, all Stock Options and Stock
  Appreciation Rights held by such Participant shall thereupon terminate and
  expire as of the date of such Termination of Employment or Termination of
  Consultancy.

  

29

	
   

  	
   

  
	
   

  	
            (b)     Rules Applicable
to  Restricted Stock.  Subject to the applicable provisions of the Restricted Stock Award
  agreement and this Plan, upon a Participant’s Termination of Employment or
  Termination of Consultancy for any reason during the relevant Restriction
  Period, all Restricted Stock still subject to restriction will vest or be
  forfeited in accordance with the terms and conditions established by the
  Committee at grant or thereafter.

  
	
   

  	
   

  
	
   

  	
            (c)     Rules Applicable
to Performance Shares and
  Performance Units.  Subject
  to the applicable provisions of the Award agreement and this Plan, upon a
  Participant’s Termination of Employment or Termination of Consultancy for any
  reason during the Performance Period, the Performance Cycle or other period
  or restriction as may be applicable for a given Award, the Performance Shares
  or Performance Units in question will vest (to the extent applicable and to
  the extent permissible under Section 162(m) of the Code) or be forfeited in
  accordance with the terms and conditions established by the Committee at
  grant or thereafter.

  
	
   

  	
   

  
	
   

  	
            (d)     Rules Applicable to
Other Stock-Based Awards.  Subject to the applicable provisions of
  the Award agreement and this Plan, upon a Participant’s Termination of
  Employment or Termination of Consultancy for any reason during any period or
  restriction as may be applicable for a given Award, the Other Stock-Based
  Awards in question will vest or be forfeited in accordance with the terms and
  conditions established by the Committee at grant or thereafter.

  

ARTICLE XIII

NON-EMPLOYEE DIRECTOR STOCK OPTION GRANTS

	
   

  	
   

  
	
   

  	
            13.1     Stock
  Options.  The terms of this
  Article XIII shall apply only to Stock Options granted to Non-Employee
  Directors.

  
	
   

  	
   

  
	
   

  	
            13.2     Grants.  Without further action by the Board or the
  stockholders of the Company, each Non-Employee Director shall, subject to the
  terms of the Plan, be granted:

  

	
   

  	
   

  
	
   

  	
              (a)     Stock
  Options to purchase 4,500 shares of Common Stock as of the date the
  Non-Employee Director begins service as a Non-Employee Director on the Board,
  provided that the Non-Employee Director began service on or after the
  Effective Date; and

  
	
   

  	
   

  
	
   

  	
              (b)     In
  addition to Stock Options granted pursuant to (a) above, Stock Options:  (i) to purchase 12,500 shares of
  Common Stock as of the August 1 of each year, commencing August 1, 2005,
  provided he or she has not, as of such day, experienced a Termination of Directorship
  and provided further that he or she has been a Non-Employee Director for at
  least six months as of such August 1 date; and (ii) to purchase 3,000
  shares of Common Stock as of November 6, 2000, 2,250 shares of Common Stock
  as of November 1, 2001, 2,500 shares of 

  

30

	
   

  	
   

  
	
   

  	
  Common Stock
  as of November 3, 2003 and 2,500 shares of Common Stock as of August 2, 2004.

  

	
   

  	
   

  
	
   

  	
            13.3     Non-Qualified
  Stock Options.  Stock Options
  granted under this Article XIII shall be Non-Qualified Stock Options.

  
	
   

  	
   

  
	
   

  	
            13.4     
  Terms of Stock Options.  Stock
  Options granted under this Article XIII shall be subject to the following
  terms and conditions, and shall be in such form and contain such additional
  terms and conditions, not inconsistent with the terms of this Plan, as the
  Board shall deem desirable:

  

	
   

  	
   

  
	
   

  	
                (a)     Stock
Option Price.  The Stock Option price per share of Common
  Stock purchasable under a Stock Option shall equal 100% of the Fair Market
  Value of the share of Common Stock at the time of grant.

  
	
   

  	
   

  
	
   

  	
                (b)     Stock
Option Term.  The term of each Stock Option shall be ten
  (10) years.

  
	
   

  	
   

  
	
   

  	
                (c)     Exercisability.  Stock Options granted to Non-Employee
  Directors pursuant to Section 13.2 shall vest and become exercisable on the
  first anniversary of date of grant, provided that the Stock Option may become
  vested only during the continuance of his or her service as a director of the
  Company.

  
	
   

  	
   

  
	
   

  	
                (d)     Method
of Exercise.  Subject to whatever waiting period
  provisions apply under subsection (c) above, Stock Options may be exercised
  in whole or in part at any time and from time to time during the Stock Option
  term, by giving written notice of exercise to the Company specifying the
  number of shares to be purchased. 
  Such notice shall be accompanied by payment in full of the purchase
  price as follows:  (i) in cash or
  by check, bank draft or money order payable to the Company; (ii) if the
  Common Stock is traded on a national securities exchange, through a “cashless
  exercise” procedure whereby the Participant delivers irrevocable instructions
  to a broker satisfactory to the Company to deliver promptly to the Company an
  amount equal to the purchase price; or (iii) such other arrangement for
  the satisfaction of the purchase price, as the Board may accept.  If and to the extent determined by the
  Board in its sole discretion at or after grant, payment in full or in part
  may also be made in the form of Common Stock owned by the Participant for at
  least 6 months (or such other period as may be required to avoid an
  accounting charge against the Company’s earnings) (and for which the
  Participant has good title free and clear of any liens and encumbrances)
  based on the Fair Market Value of the Common Stock on the payment date.  No shares of Common Stock shall be issued
  until payment, as provided herein, therefor has been made or provided for.

  
	
   

  	
   

  
	
   

  	
                (e)     Form,
Modification, Extension and Renewal of Stock
  Options.  Subject to the
  terms and conditions and within the limitations of the Plan, a Stock Option
  shall be evidenced by such form of agreement or grant as is approved by the
  Board, and the Board may modify, extend or renew outstanding Stock Options 

  

31

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  granted
  under the Plan (provided that the rights of a Participant are not reduced
  without his consent).

  
	
   

  	
   

  	
   

  
	
   

  	
             13.5     Termination
  of Directorship.  The following rules apply with regard to Stock Options
  upon the Termination of Directorship:

  
	
   

  	
   

  
	
   

  	
   

  	
                 (a)     Termination
of Directorship by Reason of Death,
  Disability or Otherwise Ceasing to be a Director.  Except as
  otherwise provided herein, upon the Termination of Directorship by reason of
  death, disability, resignation, failure to stand for reelection or failure to
  be reelected or otherwise, all outstanding Stock Options exercisable and not
  exercised shall remain exercisable to the extent exercisable on such date of
  Termination of Directorship by the Participant or, in the case of death, by
  the Participant’s estate or by the person given authority to exercise such
  Stock Options by his or her will or by operation of law, at any time prior to
  the expiration of the stated term of such Stock Option.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                 (b)     Cancellation
of Options.  Except as
  provided in Section 13.6, no Stock Options that were not exercisable as of
  the date of Termination of Directorship shall thereafter become exercisable
  upon a Termination of Directorship for any reason or no reason whatsoever,
  and such Stock Options shall terminate and become null and void upon a
  Termination of Directorship. If a Non-Employee Director’s Termination of
  Directorship is for Cause, all Stock Options held by the Non-Employee
  Director shall thereupon terminate and expire as of the date of termination.

  
	
   

  	
   

  	
   

  
	
   

  	
             13.6     Acceleration
  of Exercisability.  All Stock Options granted to a Non-Employee Director
  and not previously exercisable shall become fully exercisable upon such
  Director’s death, and all Stock Options granted to Non-Employee Directors and
  not previously exercisable shall become fully exercisable immediately upon a
  Change in Control (as defined in Section 14.2).

  
	
   

  	
   

  
	
   

  	
            13.7     Changes.

  
	
   

  	
   

  
	
   

  	
   

  	
                (a)     The
  Awards to a Non-Employee Director shall be subject to Sections 4.2(a), (b)
  and (c) of the Plan and this Section 13.7, but shall not be subject to
  Section 4.2(d).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                (b)     If
  the Company shall not be the surviving corporation in any merger or
  consolidation, or if the Company is to be dissolved or liquidated, then,
  unless the surviving corporation assumes the Stock Options or substitutes new
  Stock Options which are determined by the Board in its sole discretion to be
  substantially similar in nature and equivalent in terms and value for Stock
  Options then outstanding, upon the effective date of such merger,
  consolidation, liquidation or dissolution, any unexercised Stock Options
  shall expire without additional compensation to the holder thereof; provided,
  that, the Board shall deliver notice to each Non-Employee Director at least
  30 days prior to the date of consummation of such merger, consolidation,
  dissolution or liquidation which 

  

32

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
    would result
  in the expiration of the Stock Options and during the period from the date on
  which such notice of termination is delivered to the consummation of the
  merger, consolidation, dissolution or liquidation, such Participant shall
  have the right to exercise in full, effective as of such consummation, all
  Stock Options that are then outstanding (without regard to limitations on
  exercise otherwise contained in the Stock Options) but contingent on
  occurrence of the merger, consolidation, dissolution or liquidation, and,
  provided that, if the contemplated transaction does not take place within a
  90 day period after giving such notice for any reason whatsoever, the notice,
  accelerated vesting and exercise shall be null and void and, if and when
  appropriate, new notice shall be given as aforesaid.

  

ARTICLE XIV

CHANGE IN CONTROL PROVISIONS

	
   

  	
   

  	
   

  
	
   

  	
              14.1     Benefits.
   In the event of a Change in Control of the Company, except as otherwise
  provided by the Committee upon the grant of an Award, the Participant shall
  be entitled to the following benefits:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                 (a)     
  Except to the extent provided in the applicable Award agreement, the
  Participant’s employment agreement with the Company or an Affiliate, as
  approved by the Committee, or other written agreement approved by the
  Committee (as such agreement may be amended from time to time),
  (i) Awards granted and not previously exercisable shall become
  exercisable upon a Change in Control, (ii) restrictions to which any
  shares of Restricted Stock granted prior to the Change in Control are subject
  shall lapse upon a Change in Control, and (iii) the conditions required
  for vesting of any unvested Performance Units and/or Performance Shares shall
  be deemed to be satisfied upon a Change in Control.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                 (b)     The
  Committee, in its sole discretion, may provide for the purchase of any Stock
  Option by the Company or an Affiliate for an amount of cash equal to the
  excess of the Change in Control Price (as defined below) of the shares of
  Common Stock covered by such Stock Options, over the aggregate exercise price
  of such Stock Options. For purposes of this Section 14.1, Change in Control
  Price shall mean the higher of (i) the highest price per share of Common
  Stock paid in any transaction related to a Change in Control of the Company,
  or (ii) the highest Fair Market Value per share of Common Stock at any
  time during the sixty (60) day period preceding a Change in Control.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                 (c)     Notwithstanding
  anything to the contrary herein, unless the Committee provides otherwise at
  the time a Stock Option is granted hereunder or thereafter, no acceleration
  of exercisability shall occur with respect to such Stock Options if the
  Committee reasonably determines in good faith, prior to the occurrence of the
  Change in Control, that the Stock Options shall be honored or assumed, or new
  rights substituted therefore (each such honored, assumed or substituted stock
  option hereinafter called an “Alternative Option”), by a 

  

33

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Participant’s
  employer (or the parent or a subsidiary of such employer) immediately
  following the Change in Control, provided that any such Alternative Option
  must meet the following criteria:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
              (i)     the
  Alternative Option must be based on stock which is traded on an established
  securities market, or which will be so traded within 30 days of the Change in
  Control;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
              (ii)     the
  Alternative Option must provide such Participant with rights and entitlements
  substantially equivalent to or better than the rights, terms and conditions
  applicable under such Stock Option, including, but not limited to, an
  identical or better exercise schedule; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
              (iii)     the
  Alternative Option must have economic value substantially equivalent to the
  value of such Stock Option (determined at the time of the Change in Control).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
              For
  purposes of Incentive Stock Options, any assumed or substituted Stock Option
  shall comply with the requirements of Treasury Regulation § 1.425-1 (and
  any amendments thereto).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
              (d)     Notwithstanding
  anything else herein, the Committee may, in its sole discretion, provide for
  accelerated vesting of an Award or accelerated lapsing of restrictions on
  shares of Restricted Stock at any time.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
              14.2     Change
  in Control.  A “Change in Control” shall be deemed to have occurred:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
               

  	
              (a)     upon
  any “person” as such term is used in Sections 13(d) and 14(d) of the Exchange
  Act (other than the Company, any trustee or other fiduciary holding
  securities under any employee benefit plan of the Company, or any company
  owned, directly or indirectly, by the stockholders of the Company in
  substantially the same proportions as their ownership of Common Stock of the
  Company), becoming the owner (as defined in Rule 13d-3 under the Exchange
  Act), directly or indirectly, of securities of the Company representing 30%
  or more of the combined voting power of the Company’s then outstanding
  securities;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
              (b)     during
  any period of two (2) consecutive years, individuals who at the beginning of
  such period constitute the Board of Directors, and any new director (other
  than a director designated by a person who has entered into an agreement with
  the Company to effect a transaction described in paragraph (a), (c), or (d)
  of this section) or a director whose initial assumption of office occurs as a
  result of either an actual or threatened election contest (as such term is
  used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or
  other actual or threatened solicitation of proxies or consents by or on
  behalf of a person other than the Board of Directors of the Company whose
  election by the Board of Directors or nomination for election by the
  Company’s stockholders was approved by a vote of at least two-thirds of the
  directors then still in office who either were 

  

34

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
    directors at
  the beginning of the two-year period or whose election or nomination for
  election was previously so approved, cease for any reason to constitute at
  least a majority of the Board of Directors;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
              (c)     upon
  a merger or consolidation of the Company with any other corporation, other
  than a merger or consolidation which would result in the voting securities of
  the Company outstanding immediately prior thereto continuing to represent
  (either by remaining outstanding or by being converted into voting securities
  of the surviving entity) more than 50% of the combined voting power of the
  voting securities of the Company or such surviving entity outstanding
  immediately after such merger or consolidation; provided, however, that a
  merger or consolidation effected to implement a recapitalization of the
  Company (or similar transaction) in which no person (other than those covered
  by the exceptions in (a) above) acquires more than 50% of the combined voting
  power of the Company’s then outstanding securities shall not constitute a
  Change in Control of the Company; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
              (d)     upon
  approval by the stockholders of the Company of a plan of complete liquidation
  of the Company or an agreement for the sale or disposition by the Company of
  all or substantially all of the Company’s assets other than the sale or
  disposition of all or substantially all of the assets of the Company to a
  person or persons who beneficially own, directly or indirectly, at least 50%
  or more of the combined voting power of the outstanding voting securities of
  the Company at the time of the sale.

  

ARTICLE XV

TERMINATION OR AMENDMENT OF PLAN

            Notwithstanding
any other provision of this Plan, the Board or the Committee may at any time,
and from time to time, amend, in whole or in part, any or all of the provisions
of this Plan (including any amendment deemed necessary to ensure that the
Company may comply with any regulatory requirement referred to in Article
XVII), or suspend or terminate it entirely, retroactively or otherwise;
provided, however, that, unless otherwise required by law or specifically
provided herein, the rights of a Participant with respect to Awards granted
prior to such amendment, suspension or termination, may not be impaired without
the consent of such Participant and, provided further, without the approval of
the shareholders of the Company in accordance with the laws of the State of
Delaware, to the extent required by the applicable provisions of Rule 16b-3 or
Section 162(m) of the Code, or, to the extent applicable to Incentive Stock Options,
Section 422 of the Code, no amendment may be made which would (i) increase
the aggregate number of shares of Common Stock that may be issued under this
Plan; (ii) increase the maximum individual Participant limitations for a
fiscal year under Section 4.1(b); (iii) change the classification of
employees or Consultants eligible to receive Awards under this Plan;
(iv) decrease the minimum option price of any Stock Option or Stock
Appreciation Right; (v) extend the maximum option period under Section
6.3; (vi) materially alter the Performance Criteria for the Award of
Restricted Stock, Performance Units or 

35

  Performance
Shares as set forth in Exhibit A; or (vii) require stockholder approval in
order for this Plan to continue to comply with the applicable provisions of
Section 162(m) of the Code or, to the extent applicable to Incentive Stock
Options, Section 422 of the Code. In no event may this Plan be amended without
the approval of the stockholders of the Company in accordance with the
applicable laws of the State of Delaware to increase the aggregate number of
shares of Common Stock that may be issued under this Plan, decrease the minimum
exercise price of any Stock Option or Stock Appreciation Right, or to make any
other amendment that would require stockholder approval under the rules of any
exchange or system on which the Company’s securities are listed or traded at
the request of the Company.

            The
Committee may amend the terms of any Award theretofore granted, prospectively
or retroactively, but, subject to Article IV above or as otherwise specifically
provided herein, no such amendment or other action by the Committee shall
impair the rights of any holder without the holder’s consent.

ARTICLE XVI

UNFUNDED PLAN

	
   

  	
   

  
	
   

  	
              16.1     Unfunded
  Status of Plan.  This Plan is intended to constitute an “unfunded” plan for
  incentive and deferred compensation. With respect to any payments as to which
  a Participant has a fixed and vested interest but which are not yet made to a
  Participant by the Company, nothing contained herein shall give any such
  Participant any rights that are greater than those of a general creditor of
  the Company.

  

ARTICLE XVII

GENERAL PROVISIONS

	
   

  	
   

  	
   

  	
   

  
	
   

  	
              17.1     Legend. 
  The Committee may require each person receiving shares pursuant to an Award
  under this Plan to represent to and agree with the Company in writing that
  the Participant is acquiring the shares without a view to distribution
  thereof. In addition to any legend required by this Plan, the certificates
  for such shares may include any legend which the Committee deems appropriate
  to reflect any restrictions on Transfer.

  
	
   

  	
   

  
	
   

  	
              All
  certificates for shares of Common Stock delivered under this Plan shall be
  subject to such stock transfer orders and other restrictions as the Committee
  may deem advisable under the rules, regulations and other requirements of the
  Securities and Exchange Commission, any stock exchange upon which the Stock
  is then listed or any national securities association system upon whose
  system the Stock is then quoted, any applicable Federal or state securities
  law, and any applicable corporate law, and the Committee may cause a legend
  or legends to be put on any such certificates to make appropriate reference
  to such restrictions.

  

36

	
   

  	
   

  	
   

  
	
   

  	
              17.2     Other
  Plans.  Nothing contained in this Plan shall prevent the Board from
  adopting other or additional compensation arrangements, subject to
  stockholder approval if such approval is required; and such arrangements may
  be either generally applicable or applicable only in specific cases.

  
	
   

  	
   

  
	
   

  	
              17.3     Right
  to Employment/Consultancy.  Neither this Plan nor the grant of any Award
  hereunder shall give any Participant or other employee or Consultant any
  right with respect to continuance of employment or Consultancy by the Company
  or any Affiliate, nor shall they be a limitation in any way on the right of
  the Company or any Affiliate by which an employee is employed or a Consultant
  is retained to terminate his employment or Consultancy at any time.

  
	
   

  	
   

  
	
   

  	
              17.4     Withholding
  of Taxes.  The Company shall have the right to deduct from any payment to
  be made to a Participant, or to otherwise require, prior to the issuance or
  delivery of any shares of Common Stock or the payment of any cash hereunder,
  payment by the Participant of, any Federal, state or local taxes required by
  law to be withheld. Upon the vesting of Restricted Stock, or upon making an
  election under Code Section 83(b), a Participant shall pay all required
  withholding to the Company.

  
	
   

  	
   

  
	
   

  	
              Any
  such withholding obligation with regard to any Participant may be satisfied,
  subject to the consent of the Committee, by reducing the number of shares of
  Common Stock otherwise deliverable or by delivering shares of Common Stock
  already owned. Any fraction of a share of Common Stock required to satisfy
  such tax obligations shall be disregarded and the amount due shall be paid
  instead in cash by the Participant.

  
	
   

  	
   

  
	
   

  	
              17.5     Listing
  and Other Conditions.

  
	
   

  	
   

  
	
   

  	
   

  	
                (a)     As
  long as the Common Stock is listed on a national securities exchange or
  system sponsored by a national securities association, the issue of any
  shares of Common Stock pursuant to an Award shall be conditioned upon such
  shares being listed on such exchange or system. The Company shall have no
  obligation to issue such shares unless and until such shares are so listed,
  and the right to exercise any Stock Option with respect to such shares shall
  be suspended until such listing has been effected.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                (b)     If
  at any time counsel to the Company shall be of the opinion that any sale or
  delivery of shares of Common Stock pursuant to an Award is or may in the
  circumstances be unlawful or result in the imposition of excise taxes on the
  Company under the statutes, rules or regulations of any applicable
  jurisdiction, the Company shall have no obligation to make such sale or
  delivery, or to make any application or to effect or to maintain any
  qualification or registration under the Securities Act or otherwise with
  respect to shares of Common Stock or Awards, and the right to exercise any
  Stock Option shall be suspended until, in the opinion of said counsel, such
  sale or delivery shall be lawful or will not result in the imposition of
  excise taxes on the Company.

  

37

	
   

  	
   

  	
   

  
	
   

  	
   

  	
                (c)     Upon
  termination of any period of suspension under this Section 17.5, any Award
  affected by such suspension which shall not then have expired or terminated
  shall be reinstated as to all shares available before such suspension and as
  to shares which would otherwise have become available during the period of
  such suspension, but no such suspension shall extend the term of any Stock
  Option.

  
	
   

  	
   

  	
   

  
	
   

  	
              17.6     Governing
  Law.  This Plan shall be governed and construed in accordance with the
  laws of the State of Delaware (regardless of the law that might otherwise
  govern under applicable Delaware principles of conflict of laws).

  
	
   

  	
   

  
	
   

  	
              17.7     Construction.  Wherever any words are
  used in this Plan in the masculine gender they shall be construed as though
  they were also used in the feminine gender in all cases where they would so
  apply, and wherever any words are used herein in the singular form they shall
  be construed as though they were also used in the plural form in all cases
  where they would so apply.

  
	
   

  	
   

  
	
   

  	
              17.8     Other Benefits.  No Award payment under
  this Plan shall be deemed compensation for purposes of computing benefits
  under any retirement plan of the Company or its subsidiaries nor affect any
  benefits under any other benefit plan now or subsequently in effect under
  which the availability or amount of benefits is related to the level of
  compensation.

  
	
   

  	
   

  
	
   

  	
              17.9     Costs.
   The Company shall bear all expenses included in administering this Plan,
  including expenses of issuing Common Stock pursuant to any Awards hereunder.

  
	
   

  	
   

  
	
   

  	
              17.10     No
  Right to Same Benefits.  The provisions of Awards need not be the same
  with respect to each Participant, and such Awards to individual Participants
  need not be the same in subsequent years.

  
	
   

  	
   

  
	
   

  	
              17.11     Death/Disability.  The Committee may in its discretion require the transferee of a Participant
  to supply it with written notice of the Participant’s death or Disability and
  to supply it with a copy of the will (in the case of the Participant’s death)
  or such other evidence as the Committee deems necessary to establish the
  validity of the transfer of an Award. The Committee may also require that the
  agreement of the transferee to be bound by all of the terms and conditions of
  this Plan.

  
	
   

  	
   

  
	
   

  	
              17.12     Section
  16(b) of the Exchange Act.  All elections and transactions under this Plan
  by persons subject to Section 16 of the Exchange Act involving shares of
  Common Stock are intended to comply with any applicable exemptive condition
  under Rule 16b-3. The Committee may establish and adopt written
  administrative guidelines, designed to facilitate compliance with Section
  16(b) of the Exchange Act, as it may deem necessary or proper for the
  administration and operation of this Plan and the transaction of business
  thereunder.

  
	
   

  	
   

  
	
   

  	
              17.13     Severability
  of Provisions.  If any provision of this Plan shall be held invalid or
  unenforceable, such invalidity or unenforceability shall not affect any other
  

  

38

	
   

  	
   

  
	
   

  	
    provisions
  hereof, and this Plan shall be construed and enforced as if such provisions
  had not been included.

  
	
   

  	
   

  
	
   

  	
              17.14     Headings
  and Captions.  The headings and captions herein are provided for reference
  and convenience only, shall not be considered part of this Plan, and shall
  not be employed in the construction of this Plan.

  

ARTICLE XVIII

EFFECTIVE DATE OF PLAN

            The
Plan shall become effective upon adoption by the Board (i.e., October 19,
1999), subject to the approval of this Plan by the stockholders of the Company
in accordance with the requirements of the laws of the State of Delaware or
such later date as provided in the adopting resolution. 

ARTICLE XIX

TERM OF PLAN

            No
Award shall be granted pursuant to this Plan on or after the tenth anniversary
of the earlier of the date this Plan is adopted or the date of stockholder
approval, but Awards granted prior to such tenth anniversary may extend beyond
that date.

39

EXHIBIT A

PERFORMANCE CRITERIA

            Performance
Goals established for purposes of conditioning the grant of an Award of
Restricted Stock based on performance or the vesting of performance-based
Awards of Restricted Stock, Performance Units and/or Performance Shares shall be
based on one or more of the following performance criteria (“Performance
Criteria”): (i) the attainment of certain target levels of, or a specified
percentage increase in, revenues, income before income taxes and extraordinary
items, net income, earnings before income tax, earnings before interest, taxes,
depreciation and amortization or a combination of any or all of the foregoing;
(ii) the attainment of certain target levels of, or a percentage increase
in, after-tax or pre-tax profits including, without limitation, that
attributable to continuing and/or other operations; (iii) the attainment
of certain target levels of, or a specified increase in, operational cash flow;
(iv) the achievement of a certain level of, reduction of, or other specified
objectives with regard to limiting the level of increase in, all or a portion
of, the Company’s bank debt or other long-term or short-term public or private
debt or other similar financial obligations of the Company, which may be
calculated net of such cash balances and/or other offsets and adjustments as
may be established by the Committee; (v) the attainment of a specified
percentage increase in earnings per share or earnings per share from continuing
operations; (vi) the attainment of certain target levels of, or a
specified increase in return on capital employed or return on invested capital;
(vii) the attainment of certain target levels of, or a percentage increase
in, after-tax or pre-tax return on stockholders’ equity; (viii) the
attainment of certain target levels of, or a specified increase in, economic
value added targets based on a cash flow return on investment formula;
(ix) the attainment of certain target levels in the fair market value of
the shares of the Company’s common stock; and (x) the growth in the value
of an investment in the Company’s common stock assuming the reinvestment of
dividends. For purposes of item (i) above, “extraordinary items” shall mean all
items of gain, loss or expense for the fiscal year determined to be
extraordinary or unusual in nature or infrequent in occurrence or related to a
corporate transaction (including, without limitation, a disposition or
acquisition) or related to a change in accounting principle, all as determined
in accordance with standards established by Opinion No. 30 of the Accounting
Principles Board.

            In
addition, such Performance Criteria may be based upon the attainment of
specified levels of Company (or subsidiary, division or other operational unit
of the Company) performance under one or more of the measures described above
relative to the performance of other corporations. To the extent permitted
under Code Section 162(m), but only to the extent permitted under Code Section
162(m) (including, without limitation, compliance with any requirements for stockholder
approval), the Committee may: (i) designate additional business criteria
on which the Performance Criteria may be based or (ii) adjust, modify or
amend the aforementioned business criteria.Exhibit 10(f)(7)

NQ_________

STOCK OPTION AGREEMENT

PURSUANT TO 

THE COMTECH TELECOMMUNICATIONS CORP.

2000 STOCK INCENTIVE PLAN

          AGREEMENT,
dated as of ___________, 2005, (the “Grant Date”) by and between Comtech
Telecommunications Corp. (the “Company”) and _________________ (the
“Participant”).

Preliminary Statement

          The
committee appointed by the Board of Directors of the Company (the “Committee”),
to administer The Comtech Telecommunications Corp. 2000 Stock Incentive Plan
(the “Plan”), has authorized this grant of a non-qualified stock option (the
“Option”) to purchase the number of shares of the Company’s common stock, par
value $.10 per share (the “Common Stock”) set forth below to the Participant,
as an Eligible Employee of the Company or an Affiliate of the Company
(collectively, the Company and all such Affiliates of the Company shall be
referred to as the “Employer”). Unless otherwise indicated, any capitalized
term used but not defined herein shall have the meaning ascribed to such term
in the Plan. A copy of the Plan has been delivered to the Participant. By
signing and returning this Agreement, the Participant acknowledges having
received and read a copy of the Plan and agrees to comply with it, this
Agreement and all applicable laws and regulations.

          Accordingly,
the parties hereto agree as follows:

          1.     Tax
Matters. The Option granted hereby is a non-qualified stock
option. No part of the Option is intended to qualify as an “incentive stock
option” under Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”). 

          2.     Grant of
Option. Subject in all respects to the Plan and the terms and
conditions set forth herein and therein, the Participant is hereby granted an
Option to purchase from the Company up to ________ shares of Common Stock, at a
price per share of $_______ (the “Option Price”).1

          3.     Exercise. The Option
shall become exercisable
in installments over a three (3) year period, commencing on the Grant Date, at
the rate of 25% effective on the first and second anniversaries of the Grant
Date and 50% on the third anniversary of the Grant Date (each, a “Vesting
Date”), which shall be cumulative; provided that the Participant has not
incurred a Termination of Employment with the Employer prior to the applicable
Vesting Date. To the extent that the Option has become vested and exercisable
with respect to a percentage of shares of Common Stock granted as provided
above, the Option may thereafter be exercised by the Participant, in whole or
in part, at any time or from time to time prior to the expiration of the Option
as provided herein and in accordance with Section 6.3(d) of the Plan, to the
extent permitted by law, including, without limitation, the filing of such 

	
   

  
	
  

  
	
  1 Must
  be at least 100% of Fair Market Value.

  

1

written form
of exercise notice, if any, as may be required by the Committee and payment in
full of the Option Price multiplied by the number of shares of Common Stock so
exercised. Upon expiration of the Option, the Option shall be canceled and no
longer exercisable. 

          There
shall be no proportionate or partial vesting in the periods prior to each
Vesting Date and all vesting shall occur only on the appropriate Vesting Date.

          (a)
     Notwithstanding any other provision to the
contrary, to the extent this Option is not vested upon the Participant’s
Termination of Employment, the Option shall, upon such Termination of
Employment, be non-exercisable and shall be canceled. 

          (b)
     The provisions in the Plan regarding Detrimental
Activity shall apply to this Option. In the event that the Participant engages
in Detrimental Activity prior to the exercise of the Option, the Option
(whether vested or unvested) shall terminate and expire as of the date the
Participant engaged in such Detrimental Activity. The Participant is deemed to
have certified at the time of exercise that the Participant is in compliance
with the terms and conditions of the Plan and that the Participant has not engaged
in, and does not intend to engage in, any Detrimental Activity. In the event
the Participant engages in Detrimental Activity, the Company shall be entitled
to those rights specified in the Plan.

          4.
     Option Term. Unless terminated earlier
as provided below or otherwise pursuant to the Plan, the Option shall expire
five (5) years after the Grant Date.

          5.
     Termination. Subject to Section 4 above and the terms of the Plan, the Option,
to the extent vested at the time of a Participant’s Termination of Employment,
shall remain exercisable as follows:

          (a)
     In the event of the Participant’s Termination of
Employment by reason of death, Disability or Retirement, the Option shall
remain exercisable until the earlier of (i) one (1) year from the date of such
Termination of Employment or (ii) the expiration of the stated term of the
Option pursuant to Section 4 hereof; provided, however, that in the case of
Retirement, if the Participant dies within such one (1) year exercise period,
any unexercised Option held by such Participant shall thereafter be
exercisable, to the extent to which it was exercisable at the time of death,
for a period of one (1) year from the date of death, but in no event beyond the
expiration of the stated term of the Option pursuant to Section 4 hereof. 

          (b)
     In the event of the Participant’s involuntary
Termination of Employment without Cause, the Option shall remain exercisable to
the extent to which it was exercisable at the time of such Termination of
Employment, until the earlier of (i) ninety (90) days from the date of such
Termination of Employment or (ii) the expiration of the stated term of the
Option pursuant to Section 4 hereof.

          (c)
     In the event of the Participant’s voluntary
Termination of Employment, the Participant’s entire Option (whether or not
vested) shall be forfeited and canceled in its entirety upon such Termination
of Employment.

          (d)
     In the event of the Participant’s Termination of
Employment for Cause or by reason of the Participant’s voluntary termination
within ninety (90) days after an event that would be grounds for a Termination
of Employment for Cause, the Participant’s entire Option (whether or not
vested) shall be forfeited and canceled in its entirety upon such Termination
of Employment.

          6.
     Restriction on Transfer of Option. The
Option granted hereby shall not be transferable other than by will or by the
laws of descent and distribution and during the lifetime of the Participant,
may be exercised only by the Participant or the Participant’s guardian or legal
representative. 

2

In addition,
the Option shall not be assigned, negotiated, pledged or hypothecated in any
way (whether by operation of law or otherwise), and the Option shall not be
subject to execution, attachment or similar process. Upon any attempt to
transfer, assign, negotiate, pledge or hypothecate the Option or in the event
of any levy upon the Option by reason of any execution, attachment or similar process
contrary to the provisions hereof, the Option shall immediately become null and
void. Notwithstanding the foregoing provisions, the Committee, in its
discretion, may make the Option transferable subject to, and in accordance
with, the terms and conditions of the Plan.

          7.
     Rights as a Stockholder. The
Participant shall have no rights as a stockholder with respect to any shares
covered by the Option unless and until the Participant has become the holder of
record of the shares.

          8.
     Provisions of Plan Control. This
Agreement is subject to all the terms, conditions and provisions of the Plan,
including, without limitation, the amendment provisions thereof, and to such
rules, regulations and interpretations relating to the Plan as may be adopted
by the Committee and as may be in effect from time to time. The Plan is
incorporated herein by reference. If and to the extent that this Agreement
conflicts or is inconsistent with the terms, conditions and provisions of the
Plan, the Plan shall control, and this Agreement shall be deemed to be modified
accordingly.

          9.
     Notices. Any notice or communication
given hereunder shall be in writing and shall be deemed to have been duly given
when delivered in person, or by United States mail, to the appropriate party at
the address set forth below (or such other address as the party shall from time
to time specify):

	
   

  	
   

  	
   

  	
   

  
	
  If to the
  Company, to:

  	
  If to the
  Participant, to:

  
	
   

  	
   

  
	
   

  	
  Comtech
  Telecommunications Corp.

  	
   

  	
  The address
  indicated after the

  
	
   

  	
  105 Baylis
  Road

  	
   

  	
  Participant’s
  signature at the end

  
	
   

  	
   Melville, NY 11747

  	
   

  	
  of this
  Agreement.

  
	
   

  	
  Attention:
  Secretary

  	
   

  	
   

  

          10.
     No Obligation to Continue Employment.
 This Agreement is not an agreement of employment. This Agreement does not
guarantee that the Employer will employ the Participant for any specific time
period, nor does it modify in any respect the Employer’s right to terminate or
modify the Participant’s employment or compensation.

          IN
WITNESS WHEREOF, the parties have executed this Agreement on the date and year
first above written.

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  COMTECH
  TELECOMMUNICATIONS CORP.

  
	

  	
   

  	
   

  
	
  [Participant’s
  Signature]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social
  Security No.

  	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
 

  
	
  Home
  Address:

 

  	
   

  	
   

  	
  Authorized
  Officer

  
	
  Street

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  
	
  City          State          Zip
  Code

  	
   

  	
   

  

3

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