Document:

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                                                                    Exhibit 10.1

                      FOURTH AMENDMENT TO CREDIT AGREEMENT

         THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as
of July 18, 2003, is made and entered into by and among ANALEX CORPORATION, a
Delaware corporation, successor by merger to Hadron, Inc. (the "Borrower"), and
the subsidiaries of the Borrower identified on the signature pages hereto (the
"Subsidiary Guarantors"), and BANK OF AMERICA, N.A., a national banking
association (the "Lender").

                                   WITNESSETH

         WHEREAS, the Borrower and the Lender entered into that certain Credit
Agreement dated as of November 2, 2001, as modified by that certain First
Amendment to Credit Agreement dated as of August 1, 2002, Second Amendment to
Credit Agreement dated as of December 20, 2002 and Third Amendment to Credit
Agreement dated as of April 30, 2003 (collectively, the "Existing Credit
Agreement").

         WHEREAS, the parties have agreed to amend the Existing Credit Agreement
as set forth herein.

         NOW, THEREFORE, in consideration of the agreements hereinafter set
forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

                                     PART I
                                   DEFINITIONS

         1.  Certain Definitions. Unless otherwise defined herein or the context
otherwise requires, the following terms used in this Amendment, including its
preamble and recitals, have the following meanings:

         "Amended Credit Agreement" means the Existing Credit Agreement as
amended hereby.

         "Amendment No. 4 Effective Date" is defined in Part III.

         2.  Other Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Amendment, including its preamble and
recitals, have the meanings provided in the Amended Credit Agreement.

                                     PART II
                     AMENDMENTS TO EXISTING CREDIT AGREEMENT

         Effective on (and subject to the occurrence of) the Amendment No. 4
Effective Date, the Existing Credit Agreement is hereby amended in accordance
with this Part II. Except as so amended, the Existing Credit Agreement and all
other Loan Documents shall continue in full force and effect.

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         1.  Amendment to Section 1.1. Each of the following definitions
appearing in Section 1.1 of the Existing Credit Agreement is amended in its
entirety to read as follows:

                        "Change of Control" shall mean the occurrence of any of
                    the following events: (i) after the Closing Date, any Person
                    (other than the Purchasers and their Affiliates) or two or
                    more Persons (other than the Purchasers and their
                    Affiliates) acting in concert shall have acquired beneficial
                    ownership, directly or indirectly, of, or shall have
                    acquired by contract or otherwise, or shall have entered
                    into a contract or arrangement that, upon consummation, will
                    result in its or their acquisition of or control over,
                    voting stock of the Borrower (or other securities
                    convertible into such voting stock) representing 50% or more
                    of the combined voting power of all voting stock of the
                    Borrower, or (ii) during any period of up to 24 consecutive
                    months, commencing after the Closing Date, individuals who
                    at the beginning of such 24 month period were directors of
                    the Borrower (together with any new director whose election
                    by the Borrower's board of directors or whose nomination for
                    election by the Borrower's shareholders was approved by a
                    vote of at least a majority of the directors then still in
                    office who either were directors at the beginning of such
                    period or whose election or nomination for election was
                    previously so approved and any new director designated,
                    nominated and elected pursuant to the Stockholders'
                    Agreement (as defined in the Note Purchase Agreement) cease
                    for any reason to constitute a majority of the directors of
                    the Borrower then in office. As used herein, "beneficial
                    ownership" shall have the meaning provided in Rule 13d-3 of
                    the Securities and Exchange Commission under the Securities
                    Exchange Act of 1934.

                        "Fixed Charges" for any period shall mean the sum of (a)
                    Interest Expense for such period, plus (b) preferred stock
                    cash dividends actually paid or required to be paid, plus
                    (c) the aggregate amount of all non-compete payments made by
                    the Borrower for such period, plus (d) without duplication,
                    scheduled payments of principal on Indebtedness and
                    Capitalized Lease Obligations of the Borrower for such
                    period, all as determined on a consolidated basis in
                    accordance with GAAP. For the avoidance of doubt, the
                    Borrower's payment of $280,000 to Jon Stout related to the
                    termination of Mr. Stout's employment agreement shall not
                    constitute a Fixed Charge.

         The following definitions are hereby added to Section 1.1 of the
Existing Credit Agreement:

                        "Note Purchase Agreement" shall mean that certain
                    Subordinated Note and Series A Convertible Preferred Stock
                    Purchase Agreement dated July 18, 2003, by and among the
                    Borrower and the Purchasers.

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                        "Pequot Subordination Agreement" shall mean that certain
                    Intercreditor and Subordination Agreement to be dated the
                    Closing Date (as defined in the Note Purchase Agreement), by
                    and among the Lender, the Purchasers, the Borrower and the
                    Subsidiary Guarantors, in the form of Exhibit A-4 hereto, as
                    amended, modified and supplemented from time to time.

                        "Purchasers" shall mean Pequot Private Equity Fund III,
                    L.P., a Delaware limited partnership, and Pequot Offshore
                    Private Equity Partners III, L.P., a Delaware limited
                    partnership.

         2.  Amendment to Section 5.1(i). Section 5.1(i) of the Existing Credit
Agreement is hereby amended by adding the following new clause (vii):

                        (vii) Any Default (as defined in the Note Purchase
                    Agreement).

         3.  Amendment to Section 5.14. Section 5.14 of the Existing Credit
Agreement is hereby amended in its entirety to read as follows:

             5.14   Government Contracts.

                        At the Lender's request, documentation necessary for
                    compliance with the Assignment of Claims Act will be
                    executed and delivered by the appropriate Credit Parties
                    with respect to any Government Contract which constitutes a
                    Material Contract. In any event, no Government Contract will
                    be assigned pursuant to the Assignment of Claims Act to the
                    Junior Lender (as defined in the Pequot Subordination
                    Agreement) or any other Person; provided, however, that if a
                    Credit Party assigns to the Lender any Government Contract
                    pursuant to the Assignment of Claims Act, the Lender shall,
                    subject to the Pequot Subordination Agreement and to the
                    extent permitted by applicable law, permit the Junior Lender
                    to be a subordinate assignee of such Government Contract or
                    otherwise participate, on terms reasonably acceptable to the
                    Lender, in such assignment to the Lender.

         4.  Amendment to Section 6.1. Section 6.1 of the Existing Credit
Agreement is hereby amended in its entirety to read as follows:

             6.1    Financial Covenants.

                    The Borrower hereby covenants to the Lender as follows,
                    which covenants shall be based upon the consolidated
                    financial statements of the Borrower:

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                    (a)  Total Funded Debt to EBITDA Ratio. The Borrower will
                         maintain at all times during the following periods a
                         Total Funded Debt to EBITDA ratio of not greater than
                         the following:

                    PERIOD                            MAXIMUM TOTAL FUNDED DEBT
                    ------                            -------------------------
                                                           TO EBITDA RATIO
                                                           ---------------

              Amendment No. 4
              Effective Date - 09/30/04                     4.0 to 1.0
              10/01/04 - thereafter                         3.5 to 1.0

                    (b)  Fixed Charge Coverage Ratio. The Borrower will maintain
                         at all times during the following periods, a Fixed
                         Charge Coverage Ratio of not less than the following:

                    PERIOD                             MINIMUM FIXED CHARGE
                    ------                             --------------------
                                                          COVERAGE RATIO
                                                          --------------

              Amendment No. 4
              Effective Date - 12/31/03                    1.05 to 1.0
              01/01/04 - 09/30/04                           1.1 to 1.0
              10/01/04 - thereafter                         1.2 to 1.0

                         The financial covenants referenced in this Section 6.1
                         shall be calculated and tested on a quarterly basis as
                         of the last day of each quarter for the four fiscal
                         quarter period then ended. Unless otherwise defined,
                         all financial terms used in this Section 6.1 shall have
                         the meanings attributed to such terms in accordance
                         with GAAP; provided however, that for the avoidance of
                         doubt, regardless of how the Borrower's series A
                         preferred stock is characterized under GAAP, such
                         series A preferred stock shall not constitute
                         Indebtedness, as used in this Agreement.

         5.   Amendment to Section 6.4. Section 6.4 of the Existing Credit
Agreement is hereby amended in its entirety to read as follows:

         6.4  Liens.

                    The Borrower shall not, and shall not permit any of its
              Subsidiaries to, create, incur, assume or suffer to exist any Lien
              on any of its property, or agree, become or remain liable
              (contingently or otherwise) to do any of the foregoing, except for
              the following ("Permitted Liens"):

              (a)   Liens pursuant to the Security Documents in favor of the
                    Lender to secure the Obligations;

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              (b)   Liens securing the Junior Indebtedness (as defined in the
                    Pequot Subordination Agreement);

              (c)   Liens arising from taxes, assessments, charges or claims
                    described in Section 5.4 that are not yet due or that remain
                    payable without penalty or to the extent permitted to remain
                    unpaid under the proviso to such Section 5.4;

              (d)   Deposits or pledges of cash or securities in the ordinary
                    course of business to secure (i) worker's compensation,
                    unemployment insurance or other social security obligations,
                    (ii) performance of bids, tenders, trade contracts (other
                    than for payment of money) or leases, (iii) stay, surety or
                    appeal bonds, or (iv) other obligations of a like nature
                    incurred in the ordinary course of business;

              (e)   Liens securing Indebtedness permitted by Section 6.5(d),
                    provided, however, that such Liens shall only extend to the
                    property financed by the Indebtedness securing the same;

              (f)   Liens existing on the date hereof and specified on Schedule
                    6.4;

              (g)   Title exceptions or encumbrances granted in the ordinary
                    course of business, affecting real property owned by the
                    Borrower or any of its Subsidiaries, provided that such
                    exceptions do not in the aggregate materially detract from
                    the value of such property or materially interfere with its
                    use in the ordinary conduct of the Borrower's or each
                    Subsidiary's business;

              (h)   Liens with respect to judgments, attachments and the like
                    which do not constitute Events of Default hereunder; and

              (i)   Liens arising from leases or subleases granted to others
                    which do not interfere in any material respects with the
                    business of the Borrower or its Subsidiaries.

                    "Permitted Lien" shall in no event include any Lien imposed
              by, or required to be granted pursuant to, ERISA or any
              Environmental Law. Nothing in this Section 6.4 shall be construed
              to limit any other restriction on Liens imposed by the Security
              Agreement or otherwise in the Loan Documents.

         6.   Amendment to Section 6.5. Section 6.5 of the Existing Credit
Agreement is hereby amended in its entirety to read as follows:

         6.5  Indebtedness and Guaranty Obligations.

                    The Borrower shall not, and shall not permit any of its
              Subsidiaries to, create, incur, assume or suffer to exist any
              Indebtedness or Guaranty Obligations,

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              or agree, become or remain liable (contingently or otherwise) to
              do any of the foregoing, except:

              (a)   Indebtedness and Guaranty Obligations to or in favor of the
                    Lender pursuant to this Agreement and the other Loan
                    Documents;

              (b)   The Junior Indebtedness (as defined in the Pequot
                    Subordination Agreement);

              (c)   Indebtedness of the Borrower or any of its Subsidiaries
                    existing on the date hereof and listed in Schedule 6.5 (and
                    extensions, renewals and refinancings thereof on terms no
                    less favorable in any material respect than those existing
                    before such extension, renewal or refinancing);

              (d)   Purchase money Indebtedness (including Capitalized Leases)
                    hereafter incurred by the Borrower or any of its
                    Subsidiaries to finance the purchase of fixed assets
                    provided that (i) the total of all such Indebtedness for all
                    such Persons taken together shall not exceed an aggregate
                    principal amount of $500,000 during any fiscal year; (ii)
                    such Indebtedness when incurred shall not exceed the
                    purchase price of the assets(s) financed; and (ii) no such
                    Indebtedness shall be refinanced for a principal amount in
                    excess of the principal balance outstanding thereon at the
                    time of such refinancing;

              (e)   Intercompany Debt;

              (f)   Indebtedness that is expressly subordinate to the monetary
                    obligations arising under this Agreement pursuant to a
                    written subordination agreement in form and substance
                    reasonably acceptable to the Lender;

              (g)   Contingent liabilities arising out of endorsements of checks
                    and other negotiable instruments for deposit or collection
                    in the ordinary course of business; and

              (h)   To the extent not mentioned above, accruals and accounts
                    payable in the ordinary course of business not for borrowed
                    money.

         7.   Amendment to Section 6.7. Section 6.7 of the Existing Credit
Agreement is hereby amended in its entirety to read as follows:

              6.7   Dividends and Related Distributions.

                         The Borrower shall not, and shall not permit any of its
                    Subsidiaries to, declare or make any Stock Payment, or
                    agree, become or remain liable (contingently or otherwise)
                    to do any of the foregoing, except

                    (a)  dividends payable to a Credit Party; and

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                    (b)  so long as no Event of Default has occurred and is
                         continuing, or would occur as a result of such
                         dividends, dividends payable to holders of series A
                         preferred stock in accordance with the Certificate of
                         Designations, Powers, Preferences and Rights of the
                         Series A Convertible Preferred Stock to be dated the
                         Closing Date (as defined in the Note Purchase
                         Agreement) ("Series A Certificate"); and

                    (c)  so long as no Event of Default has occurred and is
                         continuing, or would occur as a result of such payment,
                         required redemption payments to holders of series A
                         preferred stock in accordance with the Series A
                         Certificate.

         8.   Amendment to Section 6.14. Exhibit 6.14 to the Existing Credit
Agreement is hereby amended in its entirety to read as follows:

              6.14  Limitations on Other Restrictions on Liens.

                    The Borrower shall not, and shall not permit any of its
              Subsidiaries to, enter into, become or remain subject to any
              agreement or instrument, except for the Loan Documents and the
              Junior Loan Documents (as defined in the Pequot Subordination
              Agreement), that would prohibit the grant of any Lien upon any of
              its properties.

         9.   Amendment to Exhibit J. Exhibit J to the Existing Credit Agreement
is hereby amended in its entirety to read as set forth in Exhibit J attached to
this Amendment.

         10.  Amendment to Section 7.1(f). Section 7.1(f) of the Existing Credit
Agreement is hereby amended in its entirety to read as follows:

              (f)   Any Cross-Default Event shall occur with respect to
                    Cross-Default Obligations. As used herein, "Cross-Default
                    Obligation" shall mean any Indebtedness or Guaranty
                    Obligation of a Credit Party or any agreement or instrument
                    creating, evidencing or securing such Indebtedness or
                    Guaranty Obligation. As used herein, "Cross-Default Event"
                    with respect to a Cross-Default Obligation shall mean the
                    occurrence of any default, event or condition (other than a
                    default, event or condition waived by the obligee of such
                    Cross-Default Obligation) which causes or which would permit
                    any Person or Persons to cause all or any part of such
                    Cross-Default Obligation to become due (by acceleration,
                    mandatory prepayment or repurchase, or otherwise) before its
                    otherwise stated maturity, or failure to pay all or any part
                    of such Cross-Default Obligation at its stated maturity.

                                        7

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                                    PART III
                           CONDITIONS TO EFFECTIVENESS

         1.   Amendment No. 4 Effective Date. This Amendment shall be and become
effective as of the date hereof (the "Amendment No. 4 Effective Date") when all
of the conditions set forth in this Part III shall have been satisfied, and
thereafter this Amendment shall be known, and may be referred to, as "Amendment
No. 4".

         2.   Execution of Counterparts of Amendment. The Lender shall have
received counterparts of this Amendment, which collectively shall have been duly
executed on behalf of the Borrower, the Subsidiary Guarantors and the Lender.

         3.   Fees and Expenses. All out-of-pocket fees and expenses of the
Lender in connection with the Loan Documents, including this Amendment,
including legal and other professional fees and expenses incurred on or prior to
the date of this Amendment, shall have been paid.

         4.   Subordinated Debt Transaction. The Closing (as defined in the Note
Purchase Agreement) shall have occurred, as indicated in a letter delivered to
the Lender by the Borrower, which letter shall confirm the Closing Date (as
defined in the Note Purchase Agreement), and the Pequot Subordination Agreement
shall have been executed and delivered to the Lender.

         5.   Other Items. The Lender shall have received an amendment to the
Security Agreement in form satisfactory to it and such other documents,
agreements or information which may be reasonably requested by the Lender.

                                     PART IV
                                  MISCELLANEOUS

         1.   Representations and Warranties. Borrower hereby represents and
warrants to the Lender that, after giving effect to this Amendment, (a) no
Default exists under the Amended Credit Agreement or any of the other Loan
Documents which has not been waived and (b) except as set forth in the revised
Schedule 3.19 attached hereto, the representations and warranties set forth in
the Existing Credit Agreement (other than the representations and warranties set
forth in Sections 3.6, 3.l6 and 3.18 of the Existing Credit Agreement) are,
subject to the limitations set forth therein, true and correct in all material
respects as of the date hereof (except for those which expressly relate to an
earlier date and except for representations that refer to or are qualified by
Schedules to the Existing Credit Agreement). The Borrower makes no
representation as to the accuracy of the Schedules to the Existing Credit
Agreement as of the date of this Amendment, other than the revised Schedule
3.19.

         2.   Cross-References. References in this Amendment to any Part are,
unless otherwise specified, to such Part of this Amendment.

         3.   Instrument Pursuant to Existing Credit Agreement. This Amendment
is a Loan Document executed pursuant to the Existing Credit Agreement and shall
(unless otherwise

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expressly indicated therein) be construed, administered and applied in
accordance with the terms and provisions of the Existing Credit Agreement.

         4.   References in Other Loan Documents. At such time as this Amendment
shall become effective pursuant to the terms of Part III, all references in the
Loan Documents to the "Agreement" shall be deemed to refer to the Existing
Credit Agreement as amended by this Amendment.

         5.   Counterparts. This Amendment may be executed by the parties hereto
in several counterparts, each of which shall be deemed to be an original and all
of which shall constitute together but one and the same agreement.

         6.   Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE COMMONWEALTH OF VIRGINIA
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

         7.   Successors and Assigns. This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

                  [remainder of page intentionally left blank]

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         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly signed, sealed and delivered by their properly and duly authorized officers
as of the day and year first above-written.

                                     BORROWER:
                                     --------

                                     ANALEX CORPORATION

                                     By:______________________________(SEAL)
                                        Name:_______________________________
                                        Title:______________________________

                                     SUBSIDIARY GUARANTORS:
                                     ---------------------

                                     ADVANCED BIOSYSTEMS, INC.

                                     By:______________________________(SEAL)
                                        Name:_______________________________
                                        Title:______________________________

                                     SYCOM SERVICES, INC.

                                     By:______________________________(SEAL)
                                        Name:_______________________________
                                        Title:______________________________

                                     LENDER:
                                     ------

                                     BANK OF AMERICA, N.A.

                                     By:______________________________(SEAL)
                                        Name:_______________________________
                                        Title:______________________________

                                       10<PAGE>

                                                                    Exhibit 10.3

                               ANALEX CORPORATION
                             2000 STOCK OPTION PLAN

          (formerly known as the "Hadron, Inc. 2000 Stock Option Plan,"
                   as amended and restated as of May 20, 2003)

1.       Purpose. The purpose of this Analex Corporation 2000 Stock Option Plan
         (the "Plan") is to further the interests of Analex Corporation, a
         Delaware corporation (the "Company"), and its shareholders by providing
         incentives in the form of grants of stock options to key employees and
         other persons who contribute materially to the success and
         profitability of the Company.

2.       Definitions. The following definitions shall apply to the Plan:

         (a)      "Board" means the board of directors of the Company.

         (b)      "Change of Control" means:

                  i.       a determination or agreement by the Company to sell
                           substantially all of its assets, merge, dissolve,
                           liquidate or reorganize;

                  ii.      a determination or agreement by the holders of a
                           majority of the Common Stock of the Company to sell a
                           majority of the outstanding Common Stock of the
                           Company to a third party; or

                  iii.     the occurrence of any other change in control event,
                           as defined by the Board.

         (c)      "Code" means the Internal Revenue Code of 1986, as amended.

         (d)      "Committee" means the Compensation Committee of the Board. The
                  Committee shall consist of not less than three (3) members of
                  the Board who (i) are not employees of the Company, (ii) are
                  "disinterested persons," as that term is defined in Rule
                  16b-3(d) under the Securities Exchange Act of 1934, as
                  amended, or any successor statute or regulation regarding the
                  same subject matter, and (iii) are "outside directors," as
                  that term is defined in Regulation Section 1.162-27 and as
                  contemplated by Code Section 162(m) or any successor statute
                  or Regulation regarding the same subject matter. The Board may
                  from time to time remove members from, or add members to, the
                  Committee. Vacancies on the Committee, howsoever caused, shall
                  be filled by the Board

          (e)     "Common Stock" means the Common Stock, par value $0.02, of the
                  Company, or such other class of shares or securities to which
                  the Plan may apply pursuant to Section 8 of the Plan.

         (f)      "Company" means Analex Corporation, a Delaware corporation.

         (g)      "Date of Grant" means the date on which an Option is granted.

<PAGE>

         (h)      "Disability" means total and permanent inability, by reason of
                  illness or accident, to perform the duties of the Recipient's
                  occupation or position with the Company, as determined by the
                  Board based upon medical evidence acceptable to the Board.

         (i)      "Eligible Person" means any person who performs or has in the
                  past performed services for the Company, whether as a
                  director, officer, Employee, consultant or other independent
                  contractor, and any person who performs services relating to
                  the Company as an employee or independent contractor of a
                  corporation or other entity that provides services for the
                  Company.

         (j)      "Employee" means any person employed on an hourly or salaried
                  basis by the Company. In the case of a Recipient who is an
                  Employee of the Company, such person must be employed by the
                  Company at the time the Option is granted.

         (k)      "Fair Market Value" means the fair market value of the Common
                  Stock. If the Common Stock is not publicly traded on the date
                  as of which fair market value is being determined, the Board
                  shall determine the fair market value of the Shares, using
                  such factors as the Board considers relevant, such as the
                  price at which recent sales have been made, the book value of
                  the Common Stock, and the Company's current and projected
                  earnings. If the Common Stock is publicly traded on the date
                  as of which fair market value is being determined, the Fair
                  Market Value is the closing sale price of the Common Stock on
                  the trading day next preceding such date as reported on the
                  registered national exchange providing the primary market in
                  the Common Stock, or if the Common Stock was not traded on
                  such market, the average of the closing bid prices as reported
                  by the Nasdaq Stock Market on that date.

         (l)      "Incentive Stock Option" means a stock option, granted
                  pursuant to this Plan or any other Company plan, that
                  satisfies the requirements of Section 422 of the Code and that
                  entitles the Recipient to purchase stock of the Company.
                  Incentive Stock Options may be granted only to employees of
                  the Company or any Subsidiary that is a subsidiary corporation
                  within the meaning of Section 424(f) of the Code. To the
                  extent that any Option does not qualify as an Incentive Stock
                  Option, it shall be deemed a Non-Qualified Stock Option.

         (m)      Non-Qualified Stock Option means a stock option, granted
                  pursuant to the Plan, that is not an Incentive Stock Option
                  and that entitles the Recipient to purchase stock of the
                  Company.

         (n)      "Option" means an Incentive Stock Option or a Non-Qualified
                  Stock Option.

         (o)      "Option Agreement" means a written agreement, between the
                  Company and a Recipient, that sets out the terms and
                  restrictions of an Option.

         (p)      "Option Shareholder" means a Recipient who has acquired Shares
                  upon exercise of an Option.

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<PAGE>

         (q)      "Option Shares" means Shares that a Recipient receives upon
                  exercise of an Option.

         (r)      "Plan" means this Analex Corporation 2000 Stock Option Plan,
                  as amended from time to time.

         (s)      "Recipient" means an individual who receives an Option.

         (t)      "Share" means a share of the Common Stock, as adjusted in
                  accordance with Section 8 of the Plan.

3.       Administration. The Committee shall administer the Plan. The Committee
         has the exclusive power to select the Recipients of Options pursuant to
         the Plan, to establish the terms of the Options granted to each
         Recipient, to modify or amend any Option, and to make all other
         determinations necessary or advisable. The Committee has the sole
         discretion to determine whether the performance of an Eligible Person
         warrants the grant of an Option, and to determine the size and type of
         the Option. The Committee has full and exclusive power to construe and
         interpret the Plan, to prescribe, amend, and rescind rules and
         regulations relating to the Plan, and to take all actions necessary or
         advisable for the Plan's administration. The Committee, in the exercise
         of its powers, may correct any defect or supply any omission, or
         reconcile any inconsistency in the Plan, or in any Agreement, in the
         manner and to the extent it deems necessary or expedient to make the
         Plan fully effective. In exercising this power, the Committee may
         retain counsel at the expense of the Company. The Committee also has
         the power to determine the duration and purposes of leaves of absence
         which may be granted to a Recipient without constituting a termination
         of the Recipient's employment for purposes of the Plan. Any of the
         Committee's determinations shall be final and binding on all persons. A
         member of the Committee shall not be liable for performing any act or
         making any determination in good faith.

4.       Shares Subject to Plan; Substitution Awards.

         (a)      Subject to the provisions of Section 8 of the Plan and the
                  authority granted to the Committee pursuant to Section 3
                  above, the maximum aggregate number of Shares that may be
                  subject to Options is Six Hundred Thousand (600,000). The
                  Shares may be authorized but unissued Shares, or may be
                  treasury stock of the Company. If an unexercised Option
                  expires or becomes unexercisable, the unpurchased Shares
                  subject to such Option shall be available for other Options.

         (b)      The Committee may grant Options under the Plan in substitution
                  for stock and stock based awards held by employees, directors
                  or other key persons of another corporation in connection with
                  a merger or other consolidation of the employing corporation
                  with and into the Company or a subsidiary of the Company or
                  the acquisition by the Company or a subsidiary of the Company
                  of the property or stock of the employing corporation. The
                  Committee may direct that the substitute awards be granted on
                  such terms and conditions as they deem appropriate under

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<PAGE>

                  the circumstances. Any substitute awards granted under this
                  provision shall not count against the share limitation set
                  forth in Section 4(a) above.

5.       Eligibility; Non-Employee Director Grants.

         (a)      Any Eligible Person that the Committee in its sole discretion
         designates is eligible to receive an Option. However, only an Employee
         may receive an Incentive Stock Option. The Committee's grant of an
         Option to a Recipient in any year does not entitle the Recipient to an
         Option in any other year. Furthermore, the Committee may grant Options
         on different terms to different Recipients and/or to the same Recipient
         if the Recipient is award more than one Option. The Committee may
         consider such factors as it deems pertinent in selecting Recipients and
         in determining the types and sizes of their Options. Recipients may
         include persons who previously received stock, stock options, stock
         appreciation rights, or other benefits under the Plan or another plan
         of the Company, whether or not the previously granted benefits have
         been fully exercised or vested. Nothing in the Plan or any Option, or
         in any agreement entered into pursuant to the Plan shall confer upon
         any Employee, director or outside consultant the right to continue in
         the employ or service of the Company or effect any right which the
         Company may have to terminate the employment or service of such
         Employee, director, or outside consultant regardless of the effect of
         such termination of employment or service on the rights of the
         Employee, director or outside consultant under the Plan or any Option.

         (b)      Each non-employee director elected or appointed to the Board
         shall automatically receive, on the date of his or her first initial
         appointment to the Board, an Option to purchase 5,000 shares of Common
         Stock (the "Initial Option") at a per share exercise price equal to the
         Fair Market Value of the Common Stock on the initial grant date. In
         addition, each non-employee director shall automatically receive on
         each anniversary of his initial election or appointment to the Board
         or, in the case of current directors, each anniversary of the date the
         Plan was adopted by the Board, an option to purchase 5,000 shares of
         the company's Common Stock exercisable at a per share value equal to
         the Fair Market Value for the Common Stock on the applicable additional
         grant date to the extent that options remain available under the Plan.
         Each Option granted under this Section 5(b) shall terminate, to the
         extent not exercised prior thereto, upon the earlier to occur of (i)
         the tenth anniversary of grant and (ii) ninety days after the cessation
         of the Recipient's service as a member of the Board (to the extent
         vested upon the date of such cessation), unless the Committee or the
         Board sets an earlier or later expiration in establishing the terms of
         the Option at grant or a later expiration date subsequent to the Date
         of Grant but prior to the end of the 90-day period following the
         Recipient's cessation as a member of the Board.

6.       Options. The Committee may grant Options to purchase Common Stock to
         Recipients in such amounts as the Committee determines in its sole
         discretion. Except as otherwise limited herein, an Option may be in the
         form of an Incentive Stock Option or a Non-Qualified Stock Option. The
         Committee may grant an Option alone or in addition to another Option.
         Each Option shall satisfy the following requirements:

                                        4

<PAGE>

         (a)      Written Agreement. Each Option granted to a Recipient shall be
                  evidenced by an Option Agreement. The terms of the Option
                  Agreement need not be identical for different Recipients or
                  for the same Recipient if awarded more than one Option. The
                  Option Agreement shall contain such provisions as the
                  Committee deems appropriate and shall include a description of
                  the substance of each of the requirements in this Section 6.

         (b)      Designation of Type of Option. Each Option Agreement shall
                  state on its face whether the Option is intended to be a "tax
                  qualified," incentive stock option under Code Section 422, or
                  a "nonqualified," stock option subject to Code Section 83.

         (c)      Number of Shares. Each Option Agreement shall specify the
                  number of Shares that the Recipient may purchase upon exercise
                  of the Option.

         (d)      Exercise Price.

                  (i)      Incentive Stock Options. Except as provided in
                           subsection 6(m) of the Plan, the exercise price of
                           each Share subject to an Incentive Stock Option shall
                           equal the exercise price designated by the Committee,
                           but shall not be less than the Fair Market Value of
                           the Share on the Date of Grant.

                  (ii)     Non-Qualified Stock Options. In the case of Options
                           intended to be "nonqualified" stock options issued to
                           Employees, the exercise price shall be at least one
                           hundred percent (100%) of the fair market value of a
                           Share of Common Stock on the Grant Date, such that
                           the amount of compensation such Recipient/Employee
                           shall realize on exercise shall be based solely on
                           the increase in the value of the Shares of Common
                           Stock subsequent to the Grant Date, as required by
                           Regulation Section 1.162-27. Notwithstanding the
                           foregoing, such exercise price may be less than one
                           hundred percent (100%) of the fair market value of a
                           Share of Common Stock on the Grant Date if the amount
                           below fair market value is attributable to the
                           attainment of a performance goal that satisfies the
                           requirements of Regulation Section 1.162-27 and Code
                           Section 162(m), or any successor statute or
                           Regulation regarding the same subject matter. The
                           exercise price of "Non-Qualified Stock Options"
                           issued to non-Employees shall equal the exercise
                           price designated by the Committee. Notwithstanding
                           the foregoing, in no event will the exercise price of
                           a Non-Qualified Stock Option be less than the par
                           value of the Common Stock on the Grant Date.

         (e)      Duration of Option.

                  (i)      Incentive Stock Option. Except as otherwise provided
                           in Section 6, an Incentive Stock Option shall expire
                           on the earlier of the tenth anniversary of the Date
                           of Grant or the date set by the Committee on the Date
                           of Grant.

                                        5

<PAGE>

                  (ii)     Non-Qualified Stock Option. Except as otherwise
                           provided in this Section 6, a Non-Qualified Stock
                           Option shall expire on the tenth anniversary of its
                           Date of Grant or, at such earlier or later date set
                           by the Committee on the Date of Grant.

         (f)      Vesting of Option. Each Option Agreement shall specify the
                  vesting schedule applicable to the Option. The Committee, in
                  its sole discretion, may accelerate the vesting of any Option
                  at any time.

         (g)      Death. If a Recipient dies, an Option granted to the Recipient
                  shall expire on the earlier of the one-year anniversary of the
                  date of the Recipient's death or the date specified in Section
                  6(e) of the Plan. During the one-year period following the
                  Recipient's death, the Option may be exercised by the
                  beneficiary or the estate of the Recipient to the extent it
                  could have been exercised at the time the Recipient died,
                  subject to any adjustment under Section 8 of the Plan.

         (h)      Disability. If the Recipient terminates employment with the
                  Company because of his Disability, an Option granted to the
                  Recipient shall expire on the earlier of the one-year
                  anniversary of the Recipient's last day of employment with the
                  Company or the date specified in subsection 6(e) of the Plan.
                  During the one-year period following the Recipient's
                  termination of employment by reason of Disability, the Option
                  may be exercised as to the number of Shares for which it could
                  have been exercised at the time the Recipient became disabled,
                  subject to any adjustments under Section 8 of the Plan.

         (i)      Retirement. If the Recipient terminates employment with the
                  Company by reason of normal retirement under the Company's
                  retirement policies, an Option granted to the Recipient shall
                  expire on the earlier of ninety days after the Recipient's
                  last day of employment or the date specified in subsection
                  6(e) of the Plan. During the ninety day period following the
                  Recipient's normal retirement, the Option may be exercised as
                  to the number of Shares for which the Option would have been
                  exercisable on the retirement date, subject to any adjustment
                  under Section 8 of the Plan.

         (j)      Termination of Service. Subject to Section 6(e) of the Plan,
                  if the Recipient's employment with the Company terminates for
                  any reason other than death, Disability or retirement, an
                  Option granted to the Recipient shall expire at 5:00 p.m. on
                  the last day of the Recipient's employment with the Company,
                  unless the Committee sets a later expiration date on the Date
                  of Grant or a later expiration date subsequent to the Date of
                  Grant but prior to the Recipient's last day of employment. The
                  Committee may not delay the expiration of an Incentive Stock
                  Option more than 90 days after termination of the Recipient's
                  employment. During any delay of the expiration date, the
                  Option shall be exercisable only to the extent it is
                  exercisable on the date the Recipient's employment terminates,
                  subject to any adjustment under Section 8 of the Plan.

                                        6

<PAGE>

         (k)      Cause. Notwithstanding any provisions set forth in the Plan,
                  if the Recipient (i) commits any act of malfeasance or
                  wrongdoing affecting the Company or any parent or subsidiary,
                  (ii) breaches any covenant not to compete or employment
                  agreement with the Company, or (iii) willfully and
                  continuously fails to perform substantially his duties with
                  the Company (other than any failure due to the Recipient's
                  death or Disability), any unexercised portion of the Option
                  shall expire immediately upon the earlier of the occurrence of
                  such event or the last day the Recipient is employed by the
                  Company. No act or failure to act shall be deemed willful
                  unless the Recipient acts or fails to act not in good faith
                  and without reasonable belief that his action or failure is in
                  the best interest of the Company.

         (l)      Conditions Required for Exercise. An Option is exercisable
                  only to the extent it is vested according to the terms of the
                  Option Agreement. Furthermore, an Option is exercisable only
                  if the issuance of Shares upon exercise would comply with
                  applicable securities laws. Each Option Agreement shall
                  specify any additional conditions required for the exercise of
                  the Option, such as the execution of a Stock Restriction
                  Agreement by the Recipient in a form specified by the Company.

         (m)      Ten Percent Shareholders. An Incentive Stock Option granted to
                  an individual who, on the Date of Grant, owns stock possessing
                  more than 10 percent of the total combined voting power of all
                  classes of stock of the Company, shall have an exercise price
                  of 110 percent of Fair Market Value on the Date of Grant and
                  shall be exercisable only during the five-year period
                  immediately following the Date of Grant. For purposes of
                  calculating stock ownership of any person, the attribution
                  rules of Code Section 424(d) shall apply, and any stock that
                  such person may purchase under outstanding options shall not
                  be considered.

         (n)      Maximum Option Grants. The aggregate Fair Market Value,
                  determined on the Date of Grant, of Shares with respect to
                  which any Incentive Stock Options under the Plan and all other
                  plans of the Company become exercisable by any individual for
                  the first time in any calendar year shall not exceed $100,000.
                  To the extent that any Stock Option exceeds this limit, it
                  shall be deemed a Non-Qualified Stock Option.

         (o)      Method of Exercise. An Option shall be deemed exercised when
                  the person entitled to exercise the Option (i) delivers
                  written notice to the Secretary of the Company (or his
                  delegate, in his absence) of the decision to exercise, (ii)
                  concurrently tenders to the Company full payment for the
                  Shares to be purchased pursuant to the exercise, and (iii)
                  complies with any other requirements in the Recipient's Option
                  Agreement and such other reasonable requirements as the
                  Committee establishes pursuant to Section 7 of the Plan.
                  Payment for Shares with respect to which an Option is
                  exercised may be made (i) in cash or (ii) by certified check,
                  in an amount equal to the full exercise price. No person shall
                  have the rights of a shareholder with respect to Shares
                  subject to an Option until a certificate or certificates for
                  the Shares have been delivered to him. A partial

                                        7

<PAGE>

                  exercise of an Option shall not affect the holder's right to
                  exercise the remainder of the Option from time to time in
                  accordance with the Plan.

         (p)      Loan from Company to Exercise Option. The Committee may, in
                  its discretion and subject to the requirements of applicable
                  law, recommend to the Company that it lend the Recipient the
                  funds needed by the Recipient to exercise an Option. The
                  Recipient shall apply to the Company for the loan, completing
                  the forms and providing the information required by the
                  Company. The loan shall be secured by such collateral as the
                  Company may require, subject to its underwriting requirements
                  and the requirements of applicable law. The Recipient shall
                  execute a promissory note and any other documents deemed
                  necessary by the Company.

         (q)      Designation of Beneficiary. Each Recipient may file with the
                  Company a written designation of a beneficiary to receive the
                  Recipient's Options in the event of the Recipient's death
                  prior to full exercise of such Options. If the Recipient does
                  not designate a beneficiary, or if the designated beneficiary
                  does not survive the Recipient, the Recipient's estate shall
                  be his beneficiary. Recipients may, by written notice to the
                  Company, change a beneficiary designation.

         (r)      Nontransferability of Option. An Option granted under the Plan
                  is not transferable except by will or the laws of descent and
                  distribution. During the lifetime of the Recipient, all rights
                  of the Option are exercisable only by the Recipient.

         (s)      Change of Control. If a Change of Control occurs, the
                  Committee in its discretion may, at the time an Option is
                  awarded or at any time thereafter, take one or more of the
                  following actions: (i) provide for the acceleration of any
                  time period relating to the exercise of the Option, (ii)
                  provide for payment to the Recipient of cash or other property
                  with a Fair Market Value equal to the amount that would have
                  been received upon the exercise of the Option had the Option
                  been exercised or paid upon the Change in Control, (iii)
                  adjust the terms of the Option in a manner determined by the
                  Committee to reflect the Change in Control, (iv) cause the
                  Option to be assumed, or new rights substituted therefor, by
                  another entity, (v) make such other provision as the Committee
                  may consider equitable to Recipients and in the best interests
                  of the Company, or (vi) designate a date when each outstanding
                  Option, if not exercised, shall terminate; provided however,
                  that such a date shall not be so designated unless the
                  Committee provides at least 30 days advance written notice of
                  the date of termination to each Recipient. In any such event,
                  all other provisions, terms and conditions of this Plan shall
                  remain in full force and effect and the Committee is expressly
                  authorized to take the action described in the preceding
                  sentence and to amend this Plan or take such other actions as
                  may be necessary, appropriate or incidental to the actions
                  described above.

7.       Taxes; Compliance with Law; Approval of Regulatory Bodies; Legends. The
         Company shall have the right to withhold from payments otherwise due
         and owing to the Recipient or his beneficiary or to require the
         Recipient or his beneficiary to remit to the

                                       8

<PAGE>

         Company in cash upon demand an amount sufficient to satisfy any federal
         (including FICA and FUTA amounts), state, and/or local withholding tax
         requirements at the time the Recipient or his beneficiary recognizes
         income for federal, state, and/or local tax purposes with respect to
         any Option.

         The Board may grant Options and the Company may deliver Shares under
         the Plan only in compliance with all applicable federal and state laws
         and regulations and the rules of all stock exchanges on which the
         Company's stock is listed at any time. An Option is exercisable only if
         either (i) a registration statement pertaining to the Shares to be
         issued upon exercise of the Option has been filed with and declared
         effective by the Securities and Exchange Commission and remains
         effective on the date of exercise, or (ii) an exemption from the
         registration requirements of applicable securities laws is available.
         The Plan does not require the Company, however, to file such a
         registration statement or to assure the availability of such
         exemptions. Any certificate issued to evidence Shares issued under the
         Plan may bear such legends and statements, and shall be subject to such
         transfer restrictions, as the Board deems advisable to assure
         compliance with federal and state laws and regulations and with the
         requirements of this Section 7. No Option may be exercised, and Shares
         may not be issued under the Plan, until the Company has obtained the
         consent or approval of every regulatory body, federal or state, having
         jurisdiction over such matters as the Board deems advisable.

         Each person who acquires the right to exercise an Option or to
         ownership of Shares by bequest or inheritance may be required by the
         Board to furnish reasonable evidence of ownership of the Option as a
         condition to his exercise of the Option or receipt of Shares. In
         addition, the Board may require such consents and releases of taxing
         authorities as the Board deems advisable.

         With respect to persons subject to Section 16 of the 1934 Act,
         transactions under the Plan are intended to comply with all applicable
         conditions of Rule 16b-3 under the 1934 Act, as such Rule may be
         amended from time to time, or its successor under the 1934 Act. To the
         extent any provision of the Plan or action by the Board or the Company
         fails to so comply, it shall be deemed null and void, to the extent
         permitted by law and deemed advisable by the Board.

8.       Adjustments.

         (a) If a stock dividend, stock split, share combination, exchange of
         shares, recapitalization, consolidation, spin-off, reorganization, or
         liquidation of or by the Company shall occur, the Board shall adjust
         the number and class of Shares for which Options are authorized to be
         granted, the number and class of Shares then subject to Options
         previously granted, and the price per Share payable upon exercise of
         each Option to the extent the Board deems appropriate to reflect the
         applicable transaction.

         (b) The Board or the Committee may also adjust the number of shares
         subject to outstanding Awards and the exercise price and the terms of
         outstanding Awards to take into consideration material changes in
         accounting practices or principles, extraordinary dividends,
         acquisitions or dispositions of stock or property or any other event if
         it is

                                        9

<PAGE>

         determined by the Board of the Committee that such adjustment is
         appropriate to avoid distortion in the operation of the Plan, provided
         that no such adjustment shall be made in the case of an Incentive Stock
         Option, without the consent of the Recipient, if it would constitute a
         modification, extension or renewal of the Option within the meaning of
         Section 424(h) of the Code.

9.       Liability of the Company. The Company shall not be liable to any person
         for any tax consequences incurred by a Recipient or other person with
         respect to an Option.

10.      Indemnity of Board or Committee. The Company hereby indemnifies and
         holds harmless the members of the Board or the Committee against all
         liability and expenses (including reasonable attorney, paralegal, and
         professional fees and court costs) arising from any threatened, pending
         or completed action, suit, proceeding (including administrative
         proceedings or investigations) or appeal, incurred by reason of the
         fact that such individual is or was a member of the Board (for the
         purposes of administration of the Plan) or the Committee, provided that
         such individual (i) acted, in good faith and in a manner he or she
         reasonably believed to be in, or not opposed to, the best interests of
         the Company as well as the Employees, directors, outside consultants
         and Recipients, or (ii) with respect to any criminal action or
         proceeding, had no reasonable cause to believe his or her conduct was
         unlawful.

11.      Amendment and Termination of Plan. The Board may alter, amend, suspend
         or terminate the Plan, provided that no such action shall deprive a
         Recipient, without his consent, of any Option granted to the Recipient
         pursuant to the Plan or of any of his/her rights under such Option.
         Except as provided otherwise in this Section 11, the Board shall obtain
         shareholder approval of any amendment of the Plan or any Option to the
         extent the Board determines that it is desirable to obtain approval of
         the Company's shareholders, to retain eligibility for exemption from
         the limitations of Code Section 162(m), to have available the ability
         for Options to qualify under Code Section 422 as Incentive Stock
         Options, to comply with the requirements of any exchange or quotation
         system on which the Common Stock is listed or quoted, or for any other
         purpose the Board deems appropriate.

12.      Trading Policy Restrictions. Option exercises under the Plan shall be
         subject at all times to the Company's insider trading policy related
         restrictions, terms and conditions as may be established by the Board,
         or any committee thereof, from time to time.

13.      Expenses of Plan. The Company shall bear the expenses of administering
         the Plan.

14.      Duration of Plan. Options may be granted only during the 10 years
         immediately following the original effective date of the Plan.

15.      Notices. All notices to the Company shall be in writing and shall be
         delivered to the Secretary of the Company. All notices to a Recipient
         shall be delivered personally or mailed to the Recipient at his address
         appearing in the Company's personnel records. The address of any person
         may be changed at any time by written notice given in accordance with
         this Section 15.

                                       10

<PAGE>

16.      Applicable Law. The validity, interpretation, and enforcement of the
         Plan are governed in all respects by the laws of New York and the
         United States of America.

17.      Effective Date. The effective date of the Plan shall be the earlier of
         (i) the date on which the Board adopts the Plan or (ii) the date on
         which the shareholders approve the Plan.

Date Plan adopted by Board of Directors:                  September 12, 2000
                                                          (subject to
                                                          shareholder approval)

Date Plan adopted by Shareholders:                        December 5, 2000

Date Plan amended and restated by the Board of Directors: May 20, 2003

   /s/ Ronald B. Alexander
------------------------------------
Senior Vice President, Chief Financial Officer and
   Secretary

                                       11

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