Applied Signal Technology, Inc.
Applied Signal Technology, Inc. 2000 Stock Option Plan
1. Establishment, Purpose and Term of Plan.
1.1 Establishment . The Applied Signal Technology, Inc. 2000 Stock Option Plan (the " Plan " ) is hereby established effective
as of May 11, 2000.
1.2 Purpose . The purpose of the Plan is to advance the interests of the Participating Company Group and its shareholders by
providing an incentive to attract, retain and reward persons performing services for the Participating Company Group and by
motivating such persons to contribute to the growth and profitability of the Participating Company Group.
1.3 Term of Plan. The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of the
shares of Stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms of
the Plan and the agreements evidencing Options granted under the Plan have lapsed. However, all Options shall be granted, if
at all, within ten (10) years from the earlier of the date the Plan is adopted by the Board or the date the Plan is duly approved by
the shareholders of the Company.
2. Definitions and Construction.
2.1 Definitions. Whenever used herein, the following terms shall have their respective meanings set forth below:
(a) " Board " means the Board of Directors of the Company. If one or more Committees have been appointed by
the Board to administer the Plan, " Board " also means such Committee(s).
(b) " Code " means the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated
(c) " Committee " means the Compensation Committee or other committee of the Board duly appointed to
administer the Plan and having such powers as shall be specified by the Board. Unless the powers of the
Committee have been specifically limited, the Committee shall have all of the powers of the Board granted herein,
including, without limitation, the power to