Document:

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                                                                   EXHIBIT 10.32

                           RETENTION BONUS AGREEMENT

1.  PARTIES:  The parties to this Retention Bonus Agreement ("Agreement") are
    Thomas C. Schievelbein ("Executive") and Northrop Grumman Corporation
    ("Parent").

2.  RECITALS:  This Agreement is made with reference to the following facts:

    2.1  Parent, Purchaser Corp. I, and Newport News Shipbuilding, Inc.
         ("Newport News") intend to enter into an Agreement and Plan of Merger
         (the "Merger Agreement"), pursuant to which Parent shall offer to
         acquire shares of Newport News common stock (the "Offer") and, subject
         to the terms and conditions of the Merger Agreement, Newport News will
         be merged into a subsidiary of Parent (the "Merger"). For purposes of
         this Agreement, Parent and its subsidiaries following the Merger shall
         be referred to as "Northrop Grumman."

    2.2  Executive has an Employment Agreement with Newport News (the
         "Employment Agreement") dated June 21, 1998.

    2.3  Executive is a participant in the Newport News Shipbuilding, Inc.
         Change in Control Severance Benefit Plan for Key Executives (the "CIC
         Plan"), which plan will be assumed by Parent effective as of the
         purchase of shares of Newport News common stock in the Offer ("Offer
         Closing").
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    2.4  The Offer Closing will constitute a "Change in Control" (as that term
         is defined in the CIC Plan) of Newport News.  Pursuant to the terms of
         the CIC Plan, if Executive's employment is terminated within three
         years following the Change in Control either (i) by Northrop Grumman
         in a termination that is not a "Discharge for Cause" (as that term is
         defined in the CIC Plan) or (ii) by Executive in a termination that is
         a "Constructive Termination" (as that term is defined in the CIC
         Plan), then Executive is entitled to benefits set forth in the CIC
         Plan, including without limitation certain severance benefits under
         Section 4 of the CIC Plan.

    2.5  Parent has offered to provide certain incentives (as described below)
         for Executive to remain employed by Northrop Grumman for two years
         following the Offer Closing (the "Employment Period"), in exchange for
         Executive's agreement (i) to defer certain of the rights he may have
         under the CIC Plan (as set forth below); (ii) to waive the right to
         receive benefits under the CIC Plan to the extent similar benefits are
         provided to him under this Agreement; and (iii) to terminate the
         Employment Agreement without any liability of Northrop Grumman there-
         under except as set forth in this Agreement.

    2.6  Executive wishes to accept Parent's offer by signing this Agreement.

3.  EMPLOYMENT PERIOD:  Executive hereby agrees to be employed by Northrop
    Grumman, and Northrop Grumman hereby agrees to employ Executive, during the

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    Employment Period as a Corporate Vice President and as an elected officer of
    Northrop Grumman. Executive acknowledges that his employment shall be as an
    at-will employee subject to the terms and conditions of this Agreement.

4.  SALARY AND BONUS:  During the Employment Period, Executive shall be paid an
    annual base salary of not less than $435,000, which shall be subject to
    normal merit reviews each March 1 over the two-year Employment Period. In
    addition, commencing January 1, 2002 Executive will participate in the
    Northrop Grumman Incentive Compensation Plan ("ICP"). Executive's target
    bonus under the ICP shall be 50% of his annual base salary, and he shall be
    guaranteed a minimum ICP Bonus of $400,000 per year during the Employment
    Period (pro-rated for any partial year of service, to include any year in
    which Executive's employment is terminated under circumstances which he is
    entitled to receive payments under Section 8 of this Agreement).

5.  STOCK AND STOCK OPTIONS:  Effective as of the Offer Closing, Executive shall
    be granted non-qualified stock options to purchase 15,000 shares of the
    common stock of Parent, with an exercise price per share equal to the fair
    market value of a share of Parent common stock as of the date of the Offer
    Closing. These options shall vest in equal increments over a four-year
    period. Effective as of the same date, Executive shall be granted 8,000
    Northrop Grumman Restricted Performance Stock Rights ("RPSRs"), which shall
    have a three-year performance period beginning January 1, 2002. During
    calendar years 2002 and 2003, Executive will receive additional grants of
    options and RPSRs consistent with grants given to similarly situated elected
    officers of Parent. All

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    options and RPSRs shall be subject to the terms and conditions of Northrop
    Grumman's 2001 Long Term Incentive Stock Plan ("LTISP"), the Guide to
    Administration for the LTISP, and the grant certificates provided to
    Executive in connection with each grant.

6.  BENEFITS AND PERQUISITES:  Immediately following the Offer Closing,
    Executive shall continue to participate in the same employee benefit and
    executive perquisite programs in which he participates immediately prior to
    the Offer Closing (excluding stock or equity based benefit programs). During
    the Employment Period, at times selected by Northrop Grumman, Executive will
    be transferred from his current benefits and perquisites to the benefit
    plans and executive perquisites applicable to similarly situated elected
    officers of Northrop Grumman, provided, however, that Executive will receive
    a minimum of four weeks vacation per calendar year.

7.  SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN:

    A.  Effective as of the Offer Closing, Executive shall have his Accrued
        Benefit under the Newport News Supplemental Executive Retirement Plan
        ("SERP") calculated by adding three years to both his Years of Service
        and Years of Participation, and five years to his Age at End of Year, as
        defined under the SERP. Further, all SERP payments pursuant to Section
        7.A to Executive may, at his election, be paid in a lump sum within 30
        days (or as soon as administratively practicable if later) following his
        termination from employment with Northrop Grumman for any reason.
        Executive acknowledges and agrees that performance by Northrop

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        Grumman of this Section 7.A fully satisfies any and all benefits to
        which he might otherwise be entitled under any and all change of control
        provisions under the SERP or related agreements, including but not
        limited to Section 4.(I)D. of the CIC Plan.

    B.  During the Employment Period, Executive shall continue to participate in
        the SERP unless and until Northrop Grumman determines to transfer
        Executive to the benefit plans applicable to Northrop Grumman elected
        officers. In that event, Executive's SERP Accrued Benefit (as defined in
        the SERP) shall be frozen as of the date he transfers into the Northrop
        Grumman benefit plans, except only that Executive will continue to
        receive age based credits, and his final SERP benefit at the time of
        termination of employment from Northrop Grumman will be calculated using
        his Final Average Compensation (as defined in the SERP) at the time of
        such termination. In no event shall Executive's SERP benefit at the time
        of his termination from employment with Northrop Grumman be less than
        his SERP benefit as calculated under Section 7.A. as of the Offer
        Closing.

8.  RETENTION INCENTIVES:

    A.  Thirteen months following the Offer Closing, or January 31, 2003,
        whichever occurs earlier, Executive shall receive in cash a retention
        incentive payment of $2,787,500 provided he has remained continuously
        employed by Northrop Grumman through this date. This retention incentive
        payment shall also be paid

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        within 30 days following Executive's separation from employment with
        Northrop Grumman due to any of the following reasons: (i) Executive's
        death; (ii) Executive's Disability (as defined below); (iii) a
        termination of employment by Northrop Grumman which is not a "Discharge
        for Cause" (as that term is defined in the CIC Plan); or (iv) a
        termination of employment by Executive due to a "Modified Constructive
        Termination" (as defined below). Executive acknowledges and agrees that
        payment of this retention incentive fully satisfies any and all claims
        he may have for a benefit under Section 4.(I).A. of the CIC Plan.

    B.  A second retention incentive payment in the amount of $1,087,500 will be
        paid in cash to Executive 30 days following the two-year anniversary of
        the Offer Closing, provided Executive has remained continuously employed
        by Northrop Grumman through this date. This second retention incentive
        payment shall also be paid to Executive within 30 days following his
        separation from employment with Northrop Grumman due to any of the
        following reasons: (i) Executive's death; (ii) Executive's Disability
        (as defined below); (iii) a termination of employment by Northrop
        Grumman which is not a "Discharge for Cause" (as that term is defined in
        the CIC Plan); or (iv) a termination from employment by Executive due to
        a "Modified Constructive Termination" (as defined below).

9.  MODIFIED CONSTRUCTIVE TERMINATION:  For purposes of this Agreement, a
    "Modified Constructive Termination" shall mean a termination of employment
    by

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    Executive during the Employment Period following the occurrence of any of
    the following, without the Executive's consent.

    A.  Northrop Grumman reduces Executive's salary or bonus below the amounts
        set forth in Section 4 of this Agreement.

    B.  Northrop Grumman otherwise fails to comply with a provision of this
        Agreement, after being given notice by Executive of the specific non-
        compliance and a 30-day opportunity to cure.

    C.  A successor to Northrop Grumman fails to assume, in writing, all of
        Northrop Grumman's obligations under the CIC Plan and under this
        Agreement.

    D.  Northrop Grumman requires Executive to relocate by more than 50 miles
        because of a transfer of his place of employment.

10. DISABILITY:  For purposes of this Agreement, "Disability" shall be defined
    as the inability of the Executive to perform his material duties hereunder
    due to the same or related physical or mental injury, infirmity or
    incapacity for 180 days in any 365 day period.

11. WAIVER OF RIGHTS UNDER THE CIC PLAN:  Executive hereby waives all rights to
    severance benefits under the CIC Plan to the extent (but only to the
    extent) of any cash

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    payments and benefit credits provided to him pursuant to this Agreement.
    Executive acknowledges and agrees that, to such extent, he shall have no
    right to receive, and will not receive, severance benefits under the CIC.

    In addition, Executive hereby waives any right to terminate his employment
    during the Employment Period in a "Constructive Termination" (as that term
    is defined in the CIC Plan) or pursuant to Section 4(II) of the CIC Plan.
    Executive therefore acknowledges and agrees that no termination of
    employment by him during the Employment Period will

    constitute a "Constructive Termination" (as that term is defined in the CIC
    Plan) or a termination pursuant to Section  4 (II) of the CIC Plan.
    Notwithstanding the foregoing, Northrop Grumman acknowledges and agrees
    that a termination of employment by Executive during the Employment Period
    which is a Modified Constructive Termination shall be deemed for purposes
    of the CIC Plan to be a termination of employment by Executive due to a
    Constructive Termination, except that the severance benefits which
    Executive would otherwise be entitled to receive under Section 4 of the CIC
    Plan shall be offset by any cash payments or benefit credits provided to
    Executive pursuant to this Agreement, except that there shall be no offset
    as to the benefits set forth in Section 4.(I).C.

12. TERMINATION AFTER THE EMPLOYMENT PERIOD:  Nothing in this
    Agreement shall affect Executive's right to terminate from employment after
    the Employment Period and claim a "Constructive Termination" (as that term
    is defined in the CIC Plan) based on events that occur while this Agreement
    is effective.  However,

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    Executive acknowledges and agrees that in the event of such termination
    following the Employment Period, the only benefits to which he shall be
    entitled under Section 4 of the CIC Plan are (i) the continuation of certain
    benefit plans referred to in Section 4.(I).C. and (ii) the Deferred
    Compensation Plan benefit set forth in Section 4.(I).E to the extent that
    benefit has not previously been paid.

13. TERMINATION OF EMPLOYMENT AGREEMENT:  Executive hereby agrees to terminate
    his Employment Agreement in its entirety effective as of the Offer Closing
    without any liability of Northrop Grumman under the Employment Agreement
    other than accrued but unpaid base salary and incurred but unreimbursed
    business expenses.

14. OTHER RIGHTS UNDER CIC PLAN NOT AFFECTED:  Except as modified by this
    Agreement, Executive shall continue to retain all of his rights under the
    CIC Plan (including, without limitation, the rights set forth in Section 6
    of the CIC Plan relating to the gross-up payment for any "golden parachute"
    excise taxes and related taxes).

15. TAX WITHHOLDING:  Northrop Grumman shall be entitled to withhold from any
    amounts payable pursuant to this Agreement all taxes as shall legally be
    required to be withheld (including without limitation United States federal
    taxes, and any other state, city or local taxes).

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16. ENTIRE AGREEMENT:  This Agreement represents the complete Agreement and
    understanding between Executive and Parent pertaining to the subject
    matters contained herein, and supersedes any prior agreements or
    understanding, written or oral, between the parties with respect to such
    subject matters; provided, however, that Executive shall continue to have
    rights under the CIC Plan as set forth in this Agreement.

17. GOVERNING LAW:  This Agreement shall be construed in accordance with and
    governed by the laws of the Commonwealth of Virginia without regard to
    principles of conflict of law.

18. EFFECTIVE DATE:  This Agreement shall become effective as of the Offer
    Closing and shall be of no effect if the Offer does not close.

                                    THOMAS C. SCHIEVELBEIN

Dated: November 7, 2001             By:    /s/ Thomas C. Schievelbein
      ----------------------           ----------------------------------

Dated: November 7, 2001             NORTHROP GRUMMAN CORPORATION
      ----------------------

                                    By:    /s/ J. Michael Hateley
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                                                                     EXHIBIT 4.1

                              AMENDED AND RESTATED

                          CERTIFICATE OF INCORPORATION

     WIRELESS FACILITIES, INC., a corporation organized and existing under and
by virtue of the General Corporation Law of the State of Delaware (the
"Corporation"), hereby certifies as follows:

     1. The name of the Corporation is Wireless Facilities, Inc.

     2. The original name of this Corporation is Wireless Facilities, Inc. and
the date of filing the original Certificate of Incorporation of this Corporation
with the Secretary of State of the State of Delaware was July 7, 1997.

     3. The Amended and Restated Certificate of Incorporation of this
Corporation, in the form attached hereto as Exhibit A, has been duly adopted by
the Board of Directors and by the stockholders of the corporation in accordance
with Sections 228, 242 and 245 of the General Corporation Law of the State of
Delaware.

     4. The Amended and Restated Certificate of Incorporation so adopted reads
in full as set forth in Exhibit A attached hereto and hereby incorporated by
reference.

     IN WITNESS WHEREOF, Wireless Facilities, Inc. has caused this Amended and
Restated Certificate of Incorporation to be signed by its Chief Executive
Officer and Secretary this 2nd day of November, 1999.

                                           /s/ Massih Tayebi
                                           -----------------------------------
                                           Massih Tayebi, Ph.D.
                                           Chief Executive Officer and Secretary

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                                    Exhibit A

                              AMENDED AND RESTATED
                          CERTIFICATE OF INCORPORATION
                                       OF
                            WIRELESS FACILITIES, INC.

                                       I.

     The name of this corporation is Wireless Facilities, Inc.

                                      II.

     The address of the registered office of the corporation in the State of
Delaware is 9 East Loockerman Street, City of Dover, County of Kent, and the
name of the registered agent of the corporation in the State of Delaware at such
address is National Registered Agents, Inc.

                                      III.

     The purpose of this corporation is to engage in any lawful act or activity
for which a corporation may be organized under the General Corporation Law of
the State of Delaware.

                                      IV.

     A. This corporation is authorized to issue two classes of stock to be
designated, respectively, "Common Stock" and "Preferred Stock." The total number
of shares which the corporation is authorized to issue is two hundred million
(200,000,000) shares. One hundred ninety five million (195,000,000) shares shall
be Common Stock, each having a par value of one tenth of one cent ($0.001). Five
million (5,000,000) shares shall be Preferred Stock, each having a par value of
one tenth of one cent ($0.001).

     B. The Preferred Stock may be issued from time to time in one or more
series. The Board of Directors is hereby authorized, by filing a certificate (a
"Preferred Stock Designation") pursuant to the Delaware General Corporation Law,
to fix or alter from time to time the designation, powers, preferences and
rights of the shares of each such series and the qualifications, limitations or
restrictions of any wholly unissued series of Preferred Stock, and to establish
from time to time the number of shares constituting any such series or any of
them; and to increase or decrease the number of shares of any series subsequent
to the issuance of shares of that series, but not below the number of shares of
such series then outstanding. In case the number of shares of any series shall
be decreased in accordance with the foregoing sentence, the shares constituting
such decrease shall resume the status that they had prior to the adoption of the
resolution originally fixing the number of shares of such series.

                                       1.

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                                       V.

     For the management of the business and for the conduct of the affairs of
the corporation, and in further definition, limitation and regulation of the
powers of the corporation, of its directors and of its stockholders or any class
thereof, as the case may be, it is further provided that:

     A. 1. The management of the business and the conduct of the affairs of the
corporation shall be vested in its Board of Directors. The number of directors
which shall constitute the whole Board of Directors shall be fixed exclusively
by one or more resolutions adopted by the Board of Directors.

        2. Board of Directors

           a. Directors shall be elected at each annual meeting of stockholders
to hold office until the next annual meeting. Each director shall hold office
either until the expiration of the term for which elected or appointed and until
a successor has been elected and qualified, or until such director's death,
resignation or removal. No decrease in the number of directors constituting the
Board of Directors shall shorten the term of any incumbent director.

           b. No person entitled to vote at an election for directors may
cumulate votes to which such person is entitled, unless, at the time of such
election, the corporation (i) is subject to Section 2115(b) of the California
General Corporation Law ("CGCL") and (ii) is not a "listed" corporation or
ceases to be a "listed" corporation under Section 301.5 of the CGCL. During
this  time, every stockholder entitled to vote at an election for directors may
cumulate such stockholder's votes and give one candidate a number of votes equal
to the number of directors to be elected multiplied by the number of votes to
which such stockholder's shares are otherwise entitled, or distribute the
stockholder's votes on the same principle among as many candidates as such
stockholder thinks fit. No stockholder, however, shall be entitled to so
cumulate such stockholder's votes unless (i) the names of such candidate or
candidates have been placed in nomination prior to the voting and (ii) the
stockholder has given notice at the meeting, prior to the voting, of such
stockholder's intention to cumulate such stockholder's votes. If any stockholder
has given proper notice to cumulate votes, all stockholders may cumulate their
votes for any candidates who have been properly placed in nomination. Under
cumulative voting, the candidates receiving the highest number of votes, up to
the number of directors to be elected, are elected.

        3. Removal of Directors

           a. During such time or times that the corporation is subject to
Section 2115(b) of the CGCL, the Board of Directors or any individual director
may be removed from office at any time without cause by the affirmative vote of
the holders of at least a majority of the outstanding shares entitled to vote on
such removal; provided, however, that unless the entire Board is removed, no
individual director may be removed when the votes cast against such director's
removal, or not consenting in writing to such removal, would be sufficient to
elect that director if voted cumulatively at an election which the same total
number of votes were cast (or, if such action is taken by written consent, all
shares entitled to vote were voted) and the entire

                                       2.

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number of directors authorized at the time of such director's most recent
election were then being elected.

           b. At any time or times that the corporation is not subject to
Section 2115(b) of the CGCL and subject to any limitations imposed by law,
Section A(3)(a) above shall not apply and the Board of Directors or any director
may be removed from office at any time with or without cause by the affirmative
vote of the holders of a majority of the voting power of all then-outstanding
shares of voting stock of the corporation, entitled to vote at an election of
directors.

        4. Vacancies

           c. Subject to the rights of the holders of any series of Preferred
Stock, any vacancies on the Board of Directors resulting from death,
resignation, disqualification, removal or other causes and any newly created
directorshipsresulting from any increase in the number of directors, shall,
unless the Board of Directors determines by resolution that any such vacancies
or newly created directorships shall be filled by the stockholders, except as
otherwise provided by law, be filled only by the affirmative vote of a majority
of the directors then in office, even though less than a quorum of the Board of
Directors, and not by the stockholders (except as stockholders may have such
rights as described below). Any director elected in accordance with the
preceding sentence shall hold office for the remainder of the full term of the
director for which the vacancy was created or occurred and until such director's
successor shall have been elected and qualified.

           d. If at the time of filling any vacancy or any newly created
directorship, the directors then in office shall constitute less than a majority
of the whole board (as constituted immediately prior to any such increase), the
Delaware Court of Chancery may, upon application of any stockholder or
stockholders holding at least ten percent (10%) of the total number of the
shares at the time outstanding having the right to vote for such directors,
summarily order an election to be held to fill any such vacancies or newly
created directorships, or to replace the directors chosen by the directors then
in offices as aforesaid, which election shall be governed by Section 211 of the
DGCL.

           e. At any time or times that the Corporation is subject to Section
2115(b) of the CGCL, if, after the filling of any vacancy by the directors then
in office, where the number of such directors voting to fill, such vacancy who
have been elected by stockholders shall constitute less than a majority of the
directors then in office, then

              (i) Any holder or holders of an aggregate of five percent (5%) or
more of the total number of shares at the time outstanding having the right to
vote for those directors may call a special meeting of stockholders; or

              (ii) The Superior Court of the proper county shall, upon
application of such stockholder or stockholders, summarily order a special
meeting of stockholders, to be held to elect the entire board, all in accordance
with Section 305(c) of the CGCL. The term of office of any director shall
terminate upon that election of a successor.

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     B. 1. Subject to paragraph (h) of Section 43 of the Bylaws, the Bylaws may
be altered or amended or new Bylaws adopted by the affirmative vote of at least
sixty-six and two-thirds percent (66-2/3%) of the voting power of all of the
then-outstanding shares of the voting stock of the Corporation entitled to vote.
The Board of Directors shall also have the power to adopt, amend, or repeal
Bylaws.

        2. The directors of the Corporation need not be elected by written
ballot unless the Bylaws so provide.

        3. No action shall be taken by the  stockholders of the Corporation
except at an annual or special  meeting of  stockholders  called in accordance
with the Bylaws. No action shall be taken by the stockholders by written
consent.

        4. Advance notice of stockholder nominations for the election of
directors and of business to be brought by stockholders before any meeting of
the stockholders of the Corporation shall be given in the manner provided in the
Bylaws of the Corporation.

                                       VI.

     A. The liability of the directors for monetary damages shall be eliminated
to the fullest extent under applicable law.

     B. This corporation is authorized to provide indemnification of agents (as
defined in Section 317 of the CGCL) for breach of duty to the corporation and
its shareholders through bylaw provisions or through agreements with the agents,
or through shareholder resolutions, or otherwise, in excess of the
indemnification otherwise permitted by Section 317 of the CGCL, subject, at any
time or times the corporation is subject to Section 2115(b) to the limits on
such excess indemnification set forth in Section 204 of the CGCL.

     C. Any repeal or modification of this Article VI shall be prospective and
shall not affect the rights under this Article VI in effect at the time of the
alleged occurrence of any act or omission to act giving rise to liability or
indemnification.

                                      VII.

     A. The corporation reserves the right to amend, alter, change or repeal any
provision contained in this Certificate of Incorporation, in the manner now or
hereafter prescribed by statute, except as provided in paragraph B of this
Article VII, and all rights conferred upon the stockholders herein are granted
subject to this reservation.

     B. Notwithstanding any other provisions of this Certificate of
Incorporation or any provision of law which might otherwise permit a lesser vote
or no vote, but in addition to any affirmative vote of the holders of any
particular class or series of the voting stock required by law, this Certificate
of Incorporation or any Preferred Stock Designation, the affirmative vote of the
holders of at least sixty-six and two-thirds percent (66-2/3%) of the voting
power of all of the then-outstanding shares of the voting stock, voting together
as a single class, shall be required to alter, amend or repeal Articles V, VI,
and VII.

                                       4.

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