Document:

<PAGE>   1
                                                                     Exhibit 4.4

                              CONDOR SYSTEMS, INC.

                       WARRANT FOR THE PURCHASE OF CLASS C
                      COMMON STOCK OF CONDOR SYSTEMS, INC.

NO. ____                                                     WARRANT TO PURCHASE
                                         SHARES EQUAL TO HOLDER'S WARRANT AMOUNT
                                      (AS DEFINED IN THE SUBSCRIPTION AGREEMENT)

        THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
        AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD
        EXCEPT IN COMPLIANCE THEREWITH. THIS SECURITY IS SUBJECT TO ADDITIONAL
        RESTRICTIONS ON TRANSFER AS SET FORTH IN THE INVESTORS' AGREEMENT (AS
        HEREIN DEFINED), COPIES OF WHICH MAY BE OBTAINED UPON REQUEST FROM THE
        COMPANY OR ANY SUCCESSOR THERETO.

        THE WARRANTS EVIDENCED BY THIS CERTIFICATE WERE INITIALLY ISSUED AS PART
        OF AN ISSUANCE OF UNITS (CONSISTING OF SHARES OF SENIOR PREFERRED STOCK
        (THE "PREFERRED STOCK") AND WARRANTS). PRIOR TO 90 DAYS AFTER THE
        CLOSING (AS DEFINED IN THE SUBSCRIPTION AGREEMENT), THE WARRANTS
        EVIDENCED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED OR EXCHANGED
        SEPARATELY FROM, BUT MAY BE TRANSFERRED OR EXCHANGED ONLY TOGETHER WITH,
        THE PREFERRED STOCK.

        FOR VALUE RECEIVED, CONDOR SYSTEMS, INC., a California corporation (the
"COMPANY"), hereby certifies that ______________________, its successor or
permitted assigns (the "HOLDER"), is entitled, subject to the provisions of this
Warrant, to purchase from the Company a number of fully paid and non-assessable
shares of Class C Common Stock of the Company, par value

<PAGE>   2

$0.001 per share (the "WARRANT SHARES") equal to the Holder's Warrant Amount (as
defined in the Subscription Agreement), at a purchase price per share equal to
the Exercise Price (as hereinafter defined). The number of Warrant Shares to be
received upon the exercise of this Warrant and the price to be paid for a
Warrant Share are subject to adjustment from time to time as hereinafter set
forth.

        This Warrant is one of one or more warrants (each individually, a
"WARRANT" and, collectively, the "WARRANTS") of the same form and having the
same terms as this Warrant, entitling the holders thereof to purchase initially
up to an aggregate of 3,100,000 shares of Class C Common Stock. The Warrants
have been issued pursuant to the Subscription Agreement providing for the
purchase and issuance of the Securities (as defined therein). The Holder is
entitled to certain benefits and is subject to certain obligations as set forth
in the Investors Agreement (as defined below). The Company shall keep a copy of
the Subscription Agreement and the Investors Agreement, and any amendments
thereto, at its principal executive office and shall furnish, without charge,
copies thereof to the Holder upon request.

        (a)   DEFINITIONS.

                (1) The following terms, as used herein, have the following
        meanings:

        "AFFILIATE" shall have the meaning given to such term in Rule 12b-2
promulgated under the Securities and Exchange Act of 1934, as amended.

        "BUSINESS DAY" means any day except a Saturday, Sunday or other day on
which commercial banks in the City of New York are authorized by law to close.

        "CLASS C COMMON STOCK" means the Class C Common Stock of the Company,
par value $0.001 per share, or any other security for which this Warrant may be
exercised pursuant to the terms hereof.

        "DULY ENDORSED" means duly endorsed in blank by the Person or Persons in
whose name a stock certificate is registered or accompanied by a duly executed
stock assignment separate from the certificate, in each case, with the
signature(s) thereon guaranteed by a commercial bank or trust company or a
member of a national securities exchange or of the National Association of
Securities Dealers, Inc.

        "EXERCISE PRICE" means $0.01 per Warrant Share, as such Exercise Price
is adjusted from time to time as provided herein.

                                       2
<PAGE>   3
 "EXPIRATION DATE" means April 30, 2010 at 5:00 p.m. Pacific Standard time.

        "FAIR MARKET VALUE" means, with respect to one share of Class C Common
Stock, on any date, the Current Market Price per share of Class C Common Stock
as defined in paragraph (h)(6) hereof.

        "INVESTORS AGREEMENT" means the Investors' Agreement dated as of April
15, 1999 among the Company and the Shareholders (as defined therein).

        "PERSON" means an individual, partnership, corporation, limited
liability company, trust, joint stock company, association, joint venture, or
any other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.

        "SECURITIES" means the Senior Preferred Stock and the Warrants purchased
pursuant to the Subscription Agreement.

        "SUBSCRIPTION AGREEMENT" means the Subscription Agreement dated as of
April 30, 2000 among the Company and the purchasers of Securities (as defined
therein) listed on the signature pages thereto.

       (b)   EXERCISE OF WARRANT.

                (1) The Holder is entitled to exercise this Warrant in whole or
        in part at any time, or from time to time, until the Expiration Date or,
        if such day is not a Business Day, then on the next succeeding day that
        shall be a Business Day. To exercise this Warrant, the Holder shall
        execute and deliver to the Company a Warrant Subscription Form forming a
        part hereof duly executed by the Holder and payment of the applicable
        Exercise Price for each Warrant Share subject to such exercise. Upon
        such delivery and payment, the Holder shall be deemed to be the holder
        of record of the Warrant Shares subject to such exercise,
        notwithstanding that the stock transfer books of the Company shall then
        be closed or that certificates representing such Warrant Shares shall
        not then be actually delivered to the Holder. Notwithstanding anything
        herein to the contrary, in lieu of payment in cash of the applicable
        Exercise Price, the Holder may elect (i) to receive upon exercise of
        this Warrant, the number of Warrant Shares otherwise to be acquired
        reduced by a number of shares of Class C Common Stock having the
        aggregate Fair Market Value equal to the aggregate Exercise Price for
        the Warrant Shares otherwise to be acquired, (ii) to deliver as payment,
        in whole or in part of the aggregate Exercise

                                       3
<PAGE>   4

        Price, shares of Class C Common Stock having the aggregate Fair Market
        Value equal to the aggregate Exercise Price for the Warrant Shares in
        respect of which the Exercise Price is not being paid in cash or (iii)
        to deliver as payment, in whole or in part of the aggregate Exercise
        Price, such number of Warrants which, if exercised, would result in a
        number of shares of Class C Common Stock having an aggregate Fair Market
        Value equal to (x) the aggregate Exercise Price for the Warrant Shares
        in respect of which the Exercise Price is not being paid in cash plus
        (y) the Exercise Price of the Warrants so delivered.

                (2) The Exercise Price may be paid in cash or by certified or
        official bank check or bank cashier's check payable to the order of the
        Company or by any combination of such cash or check. The Company shall
        pay any and all documentary, stamp or similar issue or transfer taxes
        payable in respect of the issue or delivery of the Warrant Shares.

                (3) If the Holder exercises this Warrant in part, this Warrant
        Certificate shall be surrendered by the Holder to the Company and  a new
        Warrant Certificate of the same tenor and for the unexercised number of
        Warrant Shares shall be executed by the Company. The Company shall
        register the new Warrant Certificate in the name of the Holder or in
        such name or names of its transferee pursuant to paragraph (f) hereof as
        may be directed in writing by the Holder and deliver the new Warrant
        Certificate to the Person or Persons entitled to receive the same.

                (4) Upon surrender of this Warrant Certificate in conformity
        with the foregoing provisions, the Company shall transfer to the Holder
        of this Warrant Certificate (or its transferee) appropriate evidence of
        ownership of shares of Class C Common Stock or other securities or
        property (including any money) to which the Holder is entitled,
        registered or otherwise placed in, or payable to the order of, the name
        or names of the Holder or such transferee as may be directed in writing
        by the Holder.

       (c) RESTRICTIVE LEGENDS. Certificates representing shares of Class C
Common Stock issued pursuant to this Warrant shall bear legends substantially in
the form of the legends set forth on the first page of this Warrant Certificate
to the extent that and for so long as such legends are required pursuant to the
Investors' Agreement, the Subscription Agreement or applicable securities laws.

                                       4
<PAGE>   5

       (d) RESERVATION OF SHARES. The Company hereby agrees that at all times
there shall be reserved for issuance and delivery upon exercise of this Warrant
such number of its authorized but unissued shares of Class C Common Stock or
other securities of the Company from time to time issuable upon exercise of this
Warrant as will be sufficient to permit the exercise in full of this Warrant.
All such shares shall be duly authorized and, when issued upon such exercise,
shall be validly issued, fully paid and non-assessable, free and clear of all
liens, security interests, charges and other encumbrances or restrictions on
sale and free and clear of all preemptive rights, except to the extent set forth
in the Investors' Agreement.

       (e) FRACTIONAL SHARES. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant and in lieu
of delivery of any such fractional share upon any exercise hereof, the Company
shall pay to the Holder an amount in cash equal to such fraction multiplied by
the Current Market Price per share of Class C Common Stock (as defined in
paragraph (h)(6)) at the date of such exercise.

        The Company further agrees that it will not change the par value of the
Class C Common Stock from $0.001 per share to any higher par value which exceeds
the Exercise Price then in effect, and will reduce the par value of the Class C
Common Stock upon any event described in paragraph (h) that would, but for this
provision, reduce the Exercise Price below the par value of the Common Stock.

       (f)   EXCHANGE, TRANSFER OR ASSIGNMENT OF WARRANT.

                (1) This Warrant and the Warrant Shares are subject to the
        provisions of (i) the Investors' Agreement, including the applicable
        restrictions on transfer, and (ii) the provisions of the Subscription
        Agreement which specifies in Section 1.04 that this Warrant will after a
        specified period, become detachable from and transferable separately
        from the shares of Senior Preferred Stock. Each holder of this Warrant
        Certificate by holding the same, consents and agrees that the registered
        holder hereof may be treated by the Company and all other persons
        dealing with this Warrant Certificate as the absolute owner hereof for
        any purpose and as the person entitled to exercise the rights
        represented hereby.

                (2) Subject to compliance with the transfer restrictions set
        forth in the Investors' Agreement and with applicable securities laws,
        upon

                                       5
<PAGE>   6

        surrender of this Warrant to the Company, together with the attached
        Warrant Assignment Form duly executed, the Company shall, without
        charge, execute and deliver a new Warrant in the name of the assignee or
        assignees named in such instrument of assignment and, if the Holder's
        entire interest is not being assigned, in the name of the Holder and
        this Warrant shall promptly be canceled.

       (g) LOSS OR DESTRUCTION OF WARRANT. Upon receipt by the Company of
evidence satisfactory to it (in the exercise of its reasonable discretion) of
the loss, theft, destruction or mutilation of this Warrant Certificate, and (in
the case of loss, theft or destruction) of reasonably satisfactory
indemnification, and upon surrender and cancellation of this Warrant
Certificate, if mutilated, the Company shall execute and deliver a new Warrant
Certificate of like tenor and date.

       (h) ANTI-DILUTION PROVISIONS. The Exercise Price of this Warrant and the
number of Class C Common Stock for which this Warrant may be exercised shall be
subject to adjustment from time to time upon the occurrence of certain events as
provided in this paragraph (h).

                (1) In case the Company shall at any time after the date hereof
        (i) declare a dividend or make a distribution on Class C Common Stock
        payable in shares of Class C Common Stock, (ii) subdivide or split the
        outstanding shares of Class C Common Stock, (iii) combine or reclassify
        the outstanding shares of Class C Common Stock into a smaller number of
        shares, or (iv) issue any shares of its capital stock in a
        reclassification of shares of Class C Common Stock (including any such
        reclassification in connection with a consolidation or merger in which
        the Company is a party), the Exercise Price in effect at the time of the
        record date for such dividend or distribution or of the effective date
        of such subdivision, split, combination or reclassification shall be
        proportionately adjusted so that, giving effect to paragraph (h)(9), the
        exercise of this Warrant after such time shall entitle the holder to
        receive the aggregate number of shares of Class C Common Stock (or other
        securities into which such shares of Class C Common Stock have been
        reclassified pursuant to clause (iii) or (iv) above) which, if this
        Warrant had been exercised immediately prior to such time, such holder
        would have owned upon such exercise and been entitled to receive by
        virtue of such dividend, distribution, subdivision, split, combination
        or reclassification. Such adjustment shall be made successively whenever
        any event listed above shall occur.

                                       6
<PAGE>   7
                (2) In case the Company shall issue or sell any shares of Class
        C Common Stock (other than shares of Class C Common Stock issued (I)
        upon exercise of the Warrants, (II) pursuant to any stock option,
        co-investment or other stock related employee compensation plan of the
        Company approved by the Company's Board of Directors, (III) upon
        exercise or conversion of any security the issuance of which caused an
        adjustment under paragraphs (h)(3) or (h)(4) hereof or (IV) in any bona
        fide registered public offering), the Exercise Price to be in effect
        after such issuance or sale shall be determined by multiplying the
        Exercise Price in effect immediately prior to such issuance or sale by a
        fraction, the numerator of which shall be the sum of (x) the number of
        shares of Class C Common Stock outstanding immediately prior to the time
        of such issuance or sale multiplied by the Current Market Price per
        share of Class C Common Stock immediately prior to such issuance or sale
        and (y) the aggregate consideration, if any, to be received by the
        Company upon such issuance or sale, and the denominator of which shall
        be the product of the aggregate number of shares of Class C Common Stock
        outstanding immediately after such issuance or sale and the Current
        Market Price Per share of Class C Common Stock immediately prior to such
        issuance or sale but in no event will such fraction exceed 1. In case
        any portion of the consideration to be received by the Company shall be
        in a form other than cash, the fair market value of such noncash
        consideration shall be utilized in the foregoing computation. Such fair
        market value shall be determined by the Board of Directors of the
        Company.

                (3) In case the Company shall fix a record date for the issuance
        of rights, options or warrants to the holders of its Class C Common
        Stock or other securities entitling such holders to subscribe for or
        purchase for a period expiring within 60 days of such record date shares
        of Class C Common Stock (or securities convertible into Class C Common
        Stock) at a price per share of Class C Common Stock (or having a
        conversion price per share of Class C Common Stock, if a security
        convertible into Class C Common Stock) less than the Current Market
        Price per share of Class C Common Stock on such record date, the maximum
        number of shares of Class C Common Stock issuable upon exercise of such
        rights, options or warrants (or conversion of such convertible
        securities) shall be deemed to have been issued and outstanding as of
        such record date and the Exercise Price shall be adjusted pursuant to
        paragraph (h)(2) hereof, as though such maximum number of shares of
        Class C Common Stock had been so issued for the aggregate consideration
        payable by the holders of such rights, options, warrants or convertible
        securities prior to their receipt of such

                                       7
<PAGE>   8

        shares of Class C Common Stock. In case any portion of such
        consideration shall be in a form other than cash, the fair market value
        of such noncash consideration shall be determined as set forth in
        paragraph (h)(2) hereof. Such adjustment shall be made successively
        whenever such record date is fixed; and in the event that such rights,
        options or warrants are not so issued or expire unexercised, or in the
        event of a change in the number of shares of Class C Common Stock to
        which the holders of such rights, options or warrants are entitled
        (other than pursuant to adjustment provisions therein which are no more
        favorable in their entirety than those contained in this paragraph (h)),
        the Exercise Price shall again be adjusted to be the Exercise Price
        which would then be in effect if such record date had not been fixed, in
        the former event, or the Exercise Price which would then be in effect if
        such holder had initially been entitled to such changed number of shares
        of Class C Common Stock, in the latter event.

                (4) In case the Company shall sell or issue rights, options
        (other than options issued pursuant to a plan described in clause II of
        paragraph (h)(2)) or warrants entitling the holders thereof to subscribe
        for or purchase shares of Class C Common Stock (or securities
        convertible into shares of Class C Common Stock) or shall issue
        convertible securities and the price per share of Class C Common Stock
        of such rights, options, warrants or convertible securities (including,
        in the case of rights, options, warrants or convertible securities, the
        price at which they may be exercised or converted) is less than the
        Current Market Price per share of Class C Common Stock, the maximum
        number of shares of Class C Common Stock issuable upon exercise of such
        rights, options or warrants or upon conversion of such convertible
        securities shall be deemed to have been issued and outstanding as of the
        date of such sale or issuance, and the Exercise Price shall be adjusted
        pursuant to paragraph (h)(2) hereof as though such maximum number of
        shares of Class C Common Stock had been so issued for an aggregate
        consideration equal to the aggregate consideration paid for such rights,
        options, warrants or convertible securities and the aggregate
        consideration payable by the holders of such rights, options, warrants
        or convertible securities prior to their receipt of such shares of Class
        C Common Stock. In case any portion of such consideration shall be in a
        form other than cash, the fair market value of such noncash
        consideration shall be determined as set forth in paragraph (h)(2)
        hereof. Such adjustment shall be made successively whenever such rights,
        options, warrants or convertible securities are issued; and in the event
        that such rights, options or warrants expire unexercised, or in the
        event of a change in the number of shares of Class C Common Stock to
        which the holders of such rights, options, warrants or convertible

                                       8
<PAGE>   9

        securities are entitled (other than pursuant to adjustment provisions
        therein which are no more favorable in their entirety than those
        contained in this paragraph (h)), the Exercise Price shall again be
        adjusted to be the Exercise Price which would then be in effect if such
        rights, options, warrants or convertible securities had not been issued,
        in the former event, or the Exercise Price which would then be in effect
        if such holders had initially been entitled to such changed number of
        shares of Class C Common Stock, in the latter event. No adjustment of
        the Exercise Price shall be made pursuant to this paragraph (h)(4) to
        the extent that the Exercise Price shall have been adjusted pursuant to
        paragraph (h)(3) upon the setting of any record date relating to such
        rights, options, warrants or convertible securities and such adjustment
        fully reflects the number of shares of Class C Common Stock to which the
        holders of such rights, options, warrants or convertible securities are
        entitled and the price payable therefor.

                (5) In case the Company shall fix a record date for the making
        of a distribution to holders of shares of Class C Common Stock
        (including any such distribution made in connection with a consolidation
        or merger in which the Company is a party) of evidences of indebtedness,
        cash, assets or other property (other than dividends payable in shares
        of Class C Common Stock or rights, options or warrants referred to in,
        and for which an adjustment is made pursuant to, paragraphs (h)(3) or
        (h)(4) hereof), the Exercise Price to be in effect after such record
        date shall be determined by multiplying the Exercise Price in effect
        immediately prior to such record date by a fraction, the numerator of
        which shall be the Current Market Price per share of Class C Common
        Stock on such record date, less the fair market value (determined as set
        forth in paragraph (h)(2) hereof) of the portion of the assets, cash,
        other property or evidence of indebtedness so to be distributed which is
        applicable to one share of Class C Common Stock, and the denominator of
        which shall be such Current Market Price per share of Class C Common
        Stock. Such adjustments shall be made successively whenever such a
        record date is fixed; and in the event that such distribution is not so
        made, the Exercise Price shall again be adjusted to be the Exercise
        Price which would then be in effect if such record date had not been
        fixed.

                (6) For the purpose of any computation under paragraph (e) or
        paragraph (h)(2), (3), (4) or (5) hereof, on any determination date, the
        Current Market Price per share of Class C Common Stock shall be deemed
        to be the average (weighted by daily trading volume) of the Daily Prices
        (as defined below) per share of Class C Common Stock for the 20

                                       9
<PAGE>   10

        consecutive trading days ending three days prior to such date. "DAILY
        PRICE" means (1) if the shares of Class C Common Stock then are listed
        and traded on the New York Stock Exchange, Inc. ("NYSE"), the closing
        price on such day as reported on the NYSE Composite Transactions Tape;
        (2) if the shares of Class C Common Stock then are not listed and traded
        on the NYSE, the closing price on such day as reported by the principal
        national securities exchange on which the shares are listed and traded;
        (3) if the shares of Class C Common Stock then are not listed and traded
        on any such securities exchange, the last reported sale price on such
        day on the National Market of the National Association of Securities
        Dealers, Inc. Automated Quotation System ("NASDAQ"); (4) if the shares
        of Class C Common Stock then are not listed and traded on any such
        securities exchange and not traded on the NASDAQ National Market, the
        average of the highest reported bid and lowest reported asked price on
        such day as reported by NASDAQ; or (5) if such shares are not listed and
        traded on any such securities exchange, not traded on the NASDAQ
        National Market and bid and asked prices are not reported by NASDAQ,
        then the average of the closing bid and asked prices, as reported by The
        Wall Street Journal for the over-the-counter market. If on any
        determination date the shares of Class C Common Stock are not quoted by
        any such organization, the Current Market Price per shares of Class C
        Common Stock shall be the fair market value of such shares on such
        determination date as determined by the Board of Directors, without
        regard to considerations of the lack of liquidity, applicable regulatory
        restrictions or any of the transfer restrictions or other obligations
        imposed on such shares set forth in the Investors' Agreement. For
        purposes of any computation under this paragraph (h), the number of
        shares of Class C Common Stock outstanding at any given time shall not
        include shares owned or held by or for the account of the Company.

                (7) No adjustment in the Exercise Price shall be required unless
        such adjustment would require an increase or decrease of at least one
        percent in such price; provided that any adjustments which by reason of
        this paragraph (h)(7) are not required to be made shall be carried
        forward and taken into account in any subsequent adjustment. All
        calculations under this paragraph (h) shall be made to the nearest one
        hundredth of a cent or to the nearest hundredth of a share, as the case
        may be.

                (8) In the event that, at any time as a result of the provisions
        of this paragraph (h), the holder of this Warrant upon subsequent
        exercise shall become entitled to receive any shares of capital stock or
        other securities of the Company other than shares of Class C Common
        Stock, the number of such other shares so receivable upon exercise of
        this

                                       10
<PAGE>   11

        Warrant shall thereafter be subject to adjustment from time to time in a
        manner and on terms as nearly equivalent as practicable to the
        provisions contained herein.

                (9) Upon each adjustment of the Exercise Price as a result of
        the calculations made in paragraphs (h)(1), (2), (3), (4) or (5) hereof,
        the number of shares for which this Warrant is exercisable immediately
        prior to the making of such adjustment shall thereafter evidence the
        right to purchase, at the adjusted Exercise Price, that number of shares
        of Class C Common Stock obtained by (i) multiplying the number of shares
        covered by this Warrant immediately prior to this adjustment of the
        number of shares by the Exercise Price in effect immediately prior to
        such adjustment of the Exercise Price and (ii) dividing the product so
        obtained by the Exercise Price in effect immediately after such
        adjustment of the Exercise Price.

                (10) The Company shall notify all Holders of (x) the fixing of a
        record date for the purpose of payment of a cash dividend to holders of
        shares of Class C Common Stock, and (y) the record date or effective
        date, as the case may be, of any action which requires or might require
        an adjustment or readjustment pursuant to this paragraph (h), in each
        case as soon as reasonably practicable, but in no event less than 20
        days prior to any such record date or effective date.

                (11) Not less than 10 nor more than 30 days prior to the record
        date or effective date, as the case may be, of any action which requires
        or might require an adjustment or readjustment pursuant to this
        paragraph (h), the Company shall forthwith file in the custody of its
        Secretary or an Assistant Secretary at its principal executive office
        and with its stock transfer agent or its warrant agent, if any, an
        officers' certificate showing the adjusted Exercise Price determined as
        herein provided, setting forth in reasonable detail the facts requiring
        such adjustment and the manner of computing such adjustment. Each such
        officer's certificate shall be signed by the chairman, president or
        chief financial officer of the Company and by the secretary or any
        assistant secretary of the Company. Each such officers' certificate
        shall be made available at all reasonable times for inspection by the
        Holder or any holder of a Warrant executed and delivered pursuant to
        paragraph (f) and the Company shall, forthwith after each such
        adjustment, mail a copy, by first-class mail, of such certificate to the
        Holder.

                (12) The Holder shall, at its option, be entitled to receive, in
        lieu of the adjustment pursuant to paragraph (h)(5) otherwise required
        thereof, on the date of exercise of the Warrants, the evidences of
        indebtedness,

                                       11
<PAGE>   12

        other securities, cash, property or other assets which such Holder would
        have been entitled to receive if it had exercised its Warrants for
        shares of Class C Common Stock immediately prior to the record date with
        respect to such distribution. The Holder may exercise its option under
        this paragraph (h)(12) by delivering to the Company a written notice of
        such exercise within seven days of its receipt of the certificate of
        adjustment required pursuant to paragraph (h)(11) to be delivered by the
        Company in connection with such distribution.

        (i) CONSOLIDATION, MERGER, OR SALE OF ASSETS. In case of any
consolidation of the Company with, or merger of the Company into, any other
Person, any merger of another Person into the Company (other than a merger which
does not result in any reclassification, conversion, exchange or cancellation of
outstanding shares of Class C Common Stock) or any sale or transfer of all or
substantially all of the assets of the Company or of the Person formed by such
consolidation or resulting from such merger or which acquires such assets, as
the case may be, the Holder shall have the right thereafter to exercise this
Warrant for the kind and amount of securities, cash and other property
receivable upon such consolidation, merger, sale or transfer by a holder of the
number of shares of Class C Common Stock for which this Warrant may have been
exercised immediately prior to such consolidation, merger, sale or transfer,
assuming (i) such holder of shares of Class C Common Stock is not a Person with
which the Company consolidated or into which the Company merged or which merged
into the Company or to which such sale or transfer was made, as the case may be
("CONSTITUENT PERSON"), or an Affiliate of a constituent Person and (ii) in the
case of a consolidation, merger, sale or transfer which includes an election as
to the consideration to be received by the holders, such holder of shares of
Class C Common Stock failed to exercise its rights of election, as to the kind
or amount of securities, cash and other property receivable upon such
consolidation, merger, sale or transfer (provided that if the kind or amount of
securities, cash and other property receivable upon such consolidation, merger,
sale or transfer is not the same for each share of Class C Common Stock held
immediately prior to such consolidation, merger, sale or transfer by a Person
other than a constituent Person or an Affiliate thereof and in respect of which
such rights of election shall not have been exercised ("NON-ELECTING SHARE"),
then for the purpose of this paragraph (i) the kind and amount of securities,
cash and other property receivable upon such consolidation, merger, sale or
transfer for each non-electing share shall be deemed to be the kind and amount
so receivable per share by a plurality of the non-electing shares). Adjustments
for events subsequent to the effective date of such a consolidation, merger and
sale of assets shall be as nearly equivalent as may be practicable to the
adjustments provided for

                                       12
<PAGE>   13

in this Warrant. In any such event, effective provisions shall be made in the
certificate or articles of incorporation of the resulting or surviving
corporation, in any contract of sale, conveyance, lease or transfer, or
otherwise so that the provisions set forth herein for the protection of the
rights of the Holder shall thereafter continue to be applicable; and any such
resulting or surviving corporation shall expressly assume the obligation to
deliver, upon exercise, such shares of stock, other securities, cash and
property. The provisions of this paragraph (i) shall similarly apply to
successive consolidations, mergers, sales, leases or transfers.

        (j) NOTICES. Any notice, demand or delivery authorized by this Warrant
Certificate shall be in writing and shall be given to the Holder or the Company
as the case may be, at its address (or telecopier number) set forth below, or
such other address (or telecopier number) as shall have been furnished to the
party giving or making such notice, demand or delivery:

        If to the Company: Condor Systems, Inc.
                           2133 Samaritan Drive
                           San Jose, California 95124
                           Attention: John L. Taft

        If to the Holder:  To the address of such holder set forth on the
                           signature page hereof.

        Each such notice, demand or delivery shall be effective (i) if given by
telecopy, when such telecopy is transmitted to the telecopy number specified
herein and the intended recipient confirms the receipt of such telecopy or (ii)
if given by any other means, when received at the address specified herein.

        (k) RIGHTS OF THE HOLDER. Prior to the exercise of any Warrant, the
Holder shall not, by virtue hereof, be entitled to any rights of a shareholder
of the Company, including, without limitation, the right to vote, to receive
dividends or other distributions or to receive any notice of meetings of
shareholders or any notice of any proceedings of the Company except as may be
specifically provided for herein.

        (l) REGISTRATION RIGHTS. The Holder of this Warrant is entitled to the
registration rights, if any, which may be available to such Holder of Warrants
and Warrant Shares under the Investors' Agreement.

        (m) GOVERNING LAW. THIS WARRANT CERTIFICATE AND ALL RIGHTS ARISING
HEREUNDER SHALL BE CONSTRUED AND

                                       13
<PAGE>   14

DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT
REGARD TO THE CONFLICT OF LAWS RULES OF SUCH STATE.

        (n) AMENDMENTS; WAIVERS. Any provision of this Warrant Certificate may
be amended or waived if, and only if, such amendment or waiver is in writing and
signed, in the case of an amendment, by the Holder and the Company, or in the
case of a waiver, by the party against whom the waiver is to be effective. No
failure or delay by either party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein provided
shall be cumulative and not exclusive of any rights or remedies provided by law.

                                       14
<PAGE>   15

        IN WITNESS WHEREOF, the Company has duly caused this Warrant Certificate
to be signed by its duly authorized officer and to be dated as of April 30,
2000.

                                       CONDOR SYSTEMS, INC.

                                       By:  ___________________________________
                                       Name:
                                       Title:

<PAGE>   16

Acknowledged and Agreed:

By:     _______________________________
        Name:
        Title:
        Address:

<PAGE>   17

                            WARRANT SUBSCRIPTION FORM

To:     Condor Systems, Inc.

        The undersigned irrevocably exercises the Warrant for the purchase of
___________ shares of Class C Common Stock (the "SHARES"), par value $0.001 per
share, of Condor Systems, Inc. (the "COMPANY") at $_____ per Share (the Exercise
Price currently in effect pursuant to the Warrant) and herewith makes payment of
$___________ (such payment being made in cash or by certified or official bank
or bank cashier's check payable to the order of the Company or by any permitted
combination of such cash or check), all on the terms and conditions specified in
the within Warrant Certificate, surrenders this Warrant Certificate and all
right, title and interest therein to the Company and directs that the Shares
deliverable upon the exercise of this Warrant be registered or placed in the
name and at the address specified below and delivered thereto.

                                       -OR-

        The undersigned irrevocably exercises the Warrant for the purchase of
___________ shares of Class C Common Stock (the "SHARES"), par value $0.001 per
share, of Condor Systems, Inc. (the "COMPANY") at $_____ per Share (the Exercise
Price currently in effect pursuant to the Warrant) (provided that in lieu of
payment of $_________, the undersigned will receive a number of Shares reduced
by a number of shares of Class C Common Stock having an aggregate Fair Market
Value (as defined in the Warrant) equal to the aggregate Exercise Price for the
Shares), all on the terms and conditions specified in the within Warrant
Certificate, surrenders this Warrant Certificate and all right, title and
interest therein to the Company and directs that the Shares deliverable upon the
exercise of this Warrant be registered or placed in the name and at the address
specified below and delivered thereto.

                                       -OR-

        The undersigned irrevocably exercises the Warrant for the purchase
__________ shares of Class C Common Stock (the "SHARES"), par value $0.001 per
share, of Condor Systems, Inc. (the "COMPANY") at $_______ per Share (the
Exercise Price currently in effect pursuant to the Warrant), and herewith makes
payment of $_____ of the aggregate Exercise Price for the Shares in cash,
certified or official bank or bank cashier's check (or a combination of cash and
check), and herewith delivers as payment of $____ of the aggregate Exercise
Price that number of shares of Class C Common Stock having an aggregate Fair
Market Value (as defined in the Warrant) equal to such non-cash portion of the
aggregate Exercise

<PAGE>   18

Price for the Shares, all on the terms and conditions specified in the within
Warrant Certificate, surrenders this Warrant Certificate and all right, title
and interest therein to the Company and directs that the Shares deliverable upon
the exercise of this Warrant be registered or placed in the name and at the
address specified below and delivered thereto.

                                       -OR-

        The undersigned irrevocably exercises the Warrant for the purchase of
__________ shares of Class C Common Stock, par value $0.001 per share, of Condor
Systems, Inc. (the "COMPANY") at $____ per share (the Exercise Price currently
in effect pursuant to the Warrant), and herewith makes payment of $_____ of the
aggregate Exercise Price for the Shares in cash, certified or official bank or
bank cashier's check (or a combination of cash and check), and herewith delivers
as payment of $____ of the aggregate Exercise Price that number of Warrants
which, if exercised, would result in a number of shares of Class C Common Stock
having an aggregate Fair Market Value (as defined in the Warrant) equal to (x)
such non-cash portion of the aggregate Exercise Price for the Shares, plus (y)
the Exercise Price currently in effect of the Warrants delivered herewith, all
on the terms and conditions specified in the within Warrant Certificate,
surrenders this Warrant Certificate and all right, title and interest therein to
the Company and directs that the Shares deliverable upon the exercise of this
Warrant be registered or placed in the name and at the address specified below
and delivered thereto.

                                       18
<PAGE>   19

        Date: __________ __, ____.

                                       -----------------------------------------
                                                 (Signature of Owner)

                                       -----------------------------------------
                                                 (Street Address)

                                       -----------------------------------------
                                                 (City) (State) (Zip Code)

                                       19
<PAGE>   20

        Securities and/or check to be issued to:

        Please insert social security or identifying number:

        Name:

        Street Address:

        City, State and Zip Code:

        Any unexercised portion of the Warrant evidenced by the

        within Warrant Certificate to be issued to:

        Please insert social security or identifying number:

        Name:

        Street Address:

        City, State and Zip Code:

<PAGE>   21

                             WARRANT ASSIGNMENT FORM

                                                            Dated

                FOR VALUE RECEIVED, _______________________________ hereby
                sells, assigns and transfers unto,
                _______________________________________ (the "ASSIGNEE"),
                (please type or print in block letters)
                ______________________________________________________(insert
                address) its right to purchase up to _____ shares of Class C
                Common Stock represented by this Warrant and does hereby
                irrevocably constitute and appoint _______________________
                Attorney, to transfer the same on the books of the Company, with
                full power of substitution in the premises.

                       Signature __________________________<PAGE>   1
                                                                    Exhibit 10.3

                              CONDOR SYSTEMS, INC.

                       1999 EMPLOYEE STOCK INCENTIVE PLAN

                        EFFECTIVE AS OF DECEMBER 14, 1999

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>          <C>                                                                          <C>
SECTION 1.   INTRODUCTION...................................................................1

SECTION 2.   DEFINITIONS....................................................................1

                 (a)    "Affiliate".........................................................1

                 (b)    "Award".............................................................1

                 (c)    "Board".............................................................1

                 (d)    "Cause".............................................................1

                 (e)    "Change In Control".................................................2

                 (f)    "Code"..............................................................3

                 (g)    "Committee".........................................................3

                 (h)    "Common Stock"......................................................3

                 (i)    "Company"...........................................................3

                 (j)    "Consultant"........................................................3

                 (k)    "Director"..........................................................3

                 (l)    "Disability"........................................................3

                 (m)    "Employee"..........................................................3

                 (n)    "Exchange Act"......................................................3

                 (o)    "Exercise Price"....................................................3

                 (p)    "Fair Market Value".................................................3

                 (q)    "Good Reason".......................................................4

                 (r)    "Grant".............................................................4

                 (s)    "Incentive Stock Option" or "ISO"...................................4

                 (t)    "Investors' Agreement"..............................................4

                 (u)    "Key Employee"......................................................4

                 (v)    "Non-Employee Director".............................................4

                 (w)    "Nonstatutory Stock Option" or "NSO"................................4

                 (x)    "Option"............................................................5

                 (y)    "Optionee"..........................................................5

                 (z)    "Parent"............................................................5

                 (aa)   "Participant".......................................................5

                 (bb)   "Permitted Transferee"..............................................5

                 (cc)   "Plan"..............................................................5

                 (dd)   "Restricted Stock"..................................................5
</TABLE>

                                      -i-
<PAGE>   3

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>          <C>                                                                          <C>
                 (ee)   "Restricted Stock Agreement"........................................5

                 (ff)   "Securities Act"....................................................5

                 (gg)   "Service"...........................................................5

                 (hh)   "Share".............................................................5

                 (ii)   "Stock Option Agreement"............................................5

                 (jj)   "Subsidiary"........................................................5

                 (kk)   "Substitute Awards".................................................5

                 (ll)   "10-Percent Shareholder"............................................6

SECTION 3.   ADMINISTRATION.................................................................6

                 (a)    Committee Composition...............................................6

                 (b)    Authority of the Committee..........................................6

                 (c)    Indemnification.....................................................6

                 (d)    Financial Reports...................................................7

SECTION 4.   ELIGIBILITY....................................................................7

                 (a)    General Rules.......................................................7

                 (b)    Incentive Stock Options.............................................7

SECTION 5.   SHARES SUBJECT TO PLAN.........................................................7

                 (a)    Basic Limitation....................................................7

                 (b)    Additional Shares...................................................7

                 (c)    Dividend Equivalents................................................7

SECTION 6.   TERMS AND CONDITIONS OF OPTIONS................................................7

                 (a)    Stock Option Agreement..............................................7

                 (b)    Number of Shares....................................................8

                 (c)    Exercise Price......................................................8

                 (d)    Exercisability and Term.............................................8

                 (e)    Modifications or Assumption of Options..............................8

                 (f)    Transferability of Options..........................................9

                 (g)    No Rights as a Shareholder..........................................9

                 (h)    Restrictions on Transfer............................................9

SECTION 7.   PAYMENT FOR OPTION SHARES......................................................9

                 (a)    General Rule........................................................9

                 (b)    Surrender of Stock..................................................9
</TABLE>

                                      -ii-
<PAGE>   4

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>          <C>                                                                          <C>
                 (c)    Promissory Note.....................................................9

                 (d)    Other Forms of Payment.............................................10

SECTION 8.   TERMS AND CONDITIONS FOR AWARDS OF RESTRICTED STOCK...........................10

                 (a)    Time, Amount and Form of Awards....................................10

                 (b)    Restricted Stock Agreement.........................................10

                 (c)    Payment for Restricted Stocks......................................10

                 (d)    Vesting Conditions.................................................10

                 (e)    Assignment or Transfer of Restricted Stocks........................10

                 (f)    Trusts.............................................................10

                 (g)    Voting and Dividend Rights.........................................11

SECTION 9.   PROTECTION AGAINST DILUTION...................................................11

                 (a)    Adjustments........................................................11

SECTION 10.  EFFECT OF A CHANGE IN CONTROL.................................................11

SECTION 11.  LIMITATIONS ON RIGHTS.........................................................12

                 (a)    Retention Rights...................................................12

                 (b)    Shareholders' Rights...............................................12

                 (c)    Regulatory Requirements............................................12

SECTION 12.  WITHHOLDING TAXES.............................................................12

                 (a)    General............................................................12

                 (b)    Share Withholding..................................................12

SECTION 13.  DURATION AND AMENDMENTS.......................................................12

               (a)    Term of the Plan....................................................12

               (b)    Right to Amend or Terminate the Plan................................13

SECTION 14.  EXECUTION....................................................................13
</TABLE>

                                     -iii-
<PAGE>   5

                              CONDOR SYSTEMS, INC.

                       1999 EMPLOYEE STOCK INCENTIVE PLAN

                        EFFECTIVE AS OF DECEMBER 14, 1999

SECTION 1. INTRODUCTION.

        The Company's Board of Directors adopted the Condor Systems, Inc. 1999
        Employee Stock Incentive Plan on December 14, 1999, subject to approval
        by the Company's shareholders.

        The purpose of the Plan is to promote the long-term success of the
        Company and the creation of shareholder value by offering Key Employees
        an opportunity to acquire a proprietary interest in the success of the
        Company, or to increase such interest, and to encourage such selected
        persons to continue to provide services to the Company and to attract
        new individuals with outstanding qualifications.

        The Plan seeks to achieve this purpose by providing for Options (which
        may constitute Incentive Stock Options or Nonstatutory Stock Options)
        and Awards of Restricted Stock.

        The Plan shall be governed by, and construed in accordance with, the
        laws of the State of California (except its choice-of-law provisions).
        Capitalized terms shall have the meaning provided in Section 2 unless
        otherwise provided in this Plan or Stock Option Agreement or Restricted
        Stock Agreement.

SECTION 2. DEFINITIONS.

        (a) "AFFILIATE" means any entity other than a Subsidiary, if the Company
        and/or one or more Subsidiaries own not less than 50% of such entity.
        For purposes of determining an individual's "Service," this definition
        shall include any entity other than a Subsidiary, if the Company, a
        Parent and/or one or more Subsidiaries own not less than 50% of such
        entity.

        (b) "AWARD" means any award of an Option or Restricted Stock under the
        Plan.

        (c) "BOARD" means the Board of Directors of the Company, as constituted
        from time to time.

        (d) "CAUSE" means "cause" as defined in any Employment Agreement or
        Stock Option Agreement or Restricted Stock Agreement, or if not so
        defined:

                      (i)    a Participant's willful and continued failure
               substantially to perform his or her duties (other than as a
               result of total or partial incapacity due to physical or mental
               illness);

<PAGE>   6

                      (ii)   an act or acts on a Participant's part constituting
               a felony under the laws of the United States or any state thereof
               or any other jurisdiction in which the Company conducts business;

                      (iii)  a Participant being repeatedly under the influence
               of illegal drugs or alcohol while performing his or her duties;
               or

                      (iv)   any other act or omission which is materially
               injurious to the financial condition or business reputation of
               the Company or any of its Affiliates as determined in the sole
               discretion of the Committee, including a Participant's breach of
               the provisions of any non-competition, non-solicitation or
               confidentiality covenant in favor of the Company or its
               Affiliates binding upon such participant.

        (e) "CHANGE IN CONTROL", except as may otherwise be provided in the
        Stock Option Agreement or Restricted Stock Agreement, means the
        occurrence of any of the following:

                      (i)    A change in the composition of the Board, as a
               result of which fewer that one-half of the incumbent directors
               are directors who either (i) had been directors of the Company on
               the date 24 months prior to the date of the event that may
               constitute a Change in Control (the "original directors") or (ii)
               were elected, or nominated for election, to the Board with the
               affirmative votes of at least a majority of the aggregate of the
               original directors who were still in office at the time of the
               election or nomination and the directors whose election or
               nomination was previously so approved;

                      (ii)   Any transaction as a result of which any person is
               the "beneficial owner" (as defined in Rule 13d-3 under the
               Exchange Act), directly or indirectly, of securities of the
               Company representing at least 20% of the total voting power
               represented by the Company's then outstanding voting securities.
               For purposes of this Paragraph (ii), the term "person" shall have
               the same meaning as when used in sections 13(d) and 14(d) of the
               Exchange Act but shall exclude:

                             (A)    A trustee or other fiduciary holding
                      securities under an employee benefit plan of the Company
                      or a subsidiary of the Company; and

                             (B)    A corporation owned directly or indirectly
                      by the stockholders of the Company in substantially the
                      same proportions as their ownership of the common stock of
                      the Company.

                      (iii)  any "person" (as such term is used in Section
               3(a)(9) and 13(d)(3) of the Exchange Act) other than (A) the
               DLJMB Entities and/or their respective Permitted Transferees (as
               defined in the Investors' Agreement) or (B) any "group" (within
               the meaning of such Section 13(d)(3)) of which any of the DLJMB
               Entities is a part, acquires, directly or indirectly, by virtue
               of the consummation of any purchase, merger or other combination,
               securities of the Company representing more than 51% of the
               combined voting power of the

                                       2
<PAGE>   7

               Company's then outstanding voting securities with respect to
               matters submitted to a vote of the shareholders generally; or

                      (iv)   a sale or transfer by the Company or any of its
               Subsidiaries of substantially all of the stock or consolidated
               assets of the Company and its Subsidiaries to an entity which is
               not an Affiliate of the Company prior to such sale or transfer;
               provided that such sale or transfer achieves a minimum value per
               diluted common share of the Company as described in Attachment I.

               A transaction shall not constitute a Change in Control if its
        sole purpose is to change the state of the Company's incorporation or to
        create a holding company that will be owned in substantially the same
        proportions by the persons who held the Company's securities immediately
        before such transactions.

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

        (g) "COMMITTEE" means a committee consisting of one or more members of
        the Board that is appointed by the Board (as described in Section 3) to
        administer the Plan.

        (h) "COMMON STOCK" means the Company's Class A common stock.

        (i) "COMPANY" means Condor Systems, Inc., a California corporation.

        (j) "CONSULTANT" means an individual who performs bona fide services to
        the Company, a Parent, a Subsidiary or an Affiliate other than as an
        Employee or Director or Non-Employee Director.

        (k) "DIRECTOR" means a member of the Board who is also an Employee.

        (l) "DISABILITY" means that the Key Employee is unable to engage in any
        substantial gainful activity by reason of any medically determinable
        physical or mental impairment which can be expected to result in death
        or which has lasted or can be expected to last for a continuous period
        of not less than 12 months.

        (m) "EMPLOYEE" means any individual who is a common-law employee of the
        Company, a Parent, a Subsidiary or an Affiliate.

        (n) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
        amended.

        (o) "EXERCISE PRICE" means the amount for which a Share may be purchased
        upon exercise of such Option, as specified in the applicable Stock
        Option Agreement.

        (p) "FAIR MARKET VALUE" means the market price of Shares, determined by
        the Committee as follows:

               (i)    As of the consummation of the merger of the Company and
        WDC Acquisition Corp., $1.00 per share;

                                       3
<PAGE>   8

               (ii)   If the Shares were traded over-the-counter on the date in
        question but were not classified as a national market issue, then the
        Fair Market Value shall be equal to the mean between the last reported
        representative bid and asked prices quoted by the NASDAQ system for such
        date;

               (iii)  If the Shares were traded over-the-counter on the date in
        question and were classified as a national market issue, then the Fair
        Market Value shall be equal to the last-transaction price quoted by the
        NASDAQ system for such date;

               (iv)   If the Shares were traded on a stock exchange on the date
        in question, then the Fair Market Value shall be equal to the closing
        price reported by the applicable composite transactions report for such
        date; and

               (v)    If none of the foregoing provisions is applicable, then
        the Fair Market Value shall be determined by the Committee in good faith
        on such basis as it deems appropriate.

        Whenever possible, the determination of Fair Market Value by the
        Committee shall be based on the prices reported in the Wall Street
        Journal. Such determination shall be conclusive and binding on all
        persons.

        (q) "GOOD REASON" means "good reason", as defined in any Employment
        Agreement or Stock Option or Restricted Stock Agreement, or if not so
        defined,:

               (i)    A Participant's removal from his/her position or assigned
        duties and responsibilities materially inconsistent with his/her
        position; or

               (ii)   One or more reductions of more than 10% in the aggregate
        in a Participant's base salary and benefits (including target bonus
        opportunities and criteria but not actual bonus payments), except for
        across-the-board reductions similarly affecting similarly situated
        employees.

        (r) "GRANT" means any grant of an Option under the Plan.

        (s) "INCENTIVE STOCK OPTION" or "ISO" means an incentive stock option
        described in Code section 422(b).

        (t) "INVESTORS' AGREEMENT" means the Investors' Agreement dated as of
        April 15, 1999 among Condor Systems and the several Shareholders (as
        defined therein) from time to time parties thereto.

        (u) "KEY EMPLOYEE" means an Employee, Director, Non-Employee Director or
        Consultant who has been selected by the Committee to receive an Award
        under the Plan.

        (v) "NON-EMPLOYEE DIRECTOR" means a member of the Board who is not an
        Employee.

        (w) "NONSTATUTORY STOCK OPTION" or "NSO" means a stock option that is
        not an ISO.

                                       4
<PAGE>   9

        (x) "OPTION" means an ISO or NSO granted under the Plan entitling the
        Optionee to purchase Shares.

        (y) "OPTIONEE" means an individual, estate or other entity that holds an
        Option.

        (z) "PARENT" means any corporation (other than the Company) in an
        unbroken chain of corporations ending with the Company, if each of the
        corporations other than the Company owns stock possessing fifty percent
        (50%) or more of the total combined voting power of all classes of stock
        in one of the other corporations in such chain. A corporation that
        attains the status of a Parent on a date after the adoption of the Plan
        shall be considered a Parent commencing as of such date.

        (aa)   "PARTICIPANT" means an individual or estate or other entity that
        holds an Award.

        (bb)   "PERMITTED TRANSFEREE" shall have the meaning assigned to it in
        the Investors' Agreement.

        (cc)   "PLAN" means this Condor Systems, Inc. 1999 Employee Stock
        Incentive Plan as it may be amended from time to time.

        (dd)   "RESTRICTED STOCK" means a Share awarded under the Plan.

        (ee)   "RESTRICTED STOCK AGREEMENT" means the agreement described in
        Section 8 evidencing each Award of Restricted Stock.

        (ff)   "SECURITIES ACT" means the Securities Act of 1933, as amended.

        (gg)   "SERVICE" means service as an Employee, Director, Non-Employee
        Director or Consultant.

        (hh)   "SHARE" means one share of Class A Common Stock.

        (ii)   "STOCK OPTION AGREEMENT" means the agreement described in Section
        6 evidencing each Grant of an Option.

        (jj)   "SUBSIDIARY" means any corporation (other than the Company) in an
        unbroken chain of corporations beginning with the Company, if each of
        the corporations other than the last corporation in the unbroken chain
        owns stock possessing fifty percent (50%) or more of the total combined
        voting power of all classes of stock in one of the other corporations in
        such chain. A corporation that attains the status of a Subsidiary on a
        date after the adoption of the Plan shall be considered a Subsidiary
        commencing as of such date.

        (kk)   "SUBSTITUTE AWARDS" means Awards granted in assumption of, or in
        substitution for, outstanding awards previously granted by a company
        acquired by the Company or with which the Company combines. Rollover
        Shares shall not constitute Substitute Awards for purposes hereof.

                                       5
<PAGE>   10

        (ll)   "10-PERCENT SHAREHOLDER" means an individual who owns more than
        ten percent (10%) of the total combined voting power of all classes of
        outstanding stock of the Company, its Parent or any of its subsidiaries.
        In determining stock ownership, the attribution rules of section 424(d)
        of the Code shall be applied.

SECTION 3. ADMINISTRATION.

        (a) COMMITTEE COMPOSITION. A Committee appointed by the Board shall
        administer the Plan. The Board shall designate one of the members of the
        Committee as chairperson. If no Committee has been approved, the entire
        Board shall constitute the Committee. Members of the Committee shall
        serve for such period of time as the Board may determine and shall be
        subject to removal by the Board at any time. The Board may also at any
        time terminate the functions of the Committee and reassume all powers
        and authority previously delegated to the Committee.

        Effective with the Company's initial public offering, the Committee
        shall consist either (i) of those individuals who shall satisfy the
        requirements of Rule 16b-3 (or its successor) under the Exchange Act
        with respect to Options to persons who are officers or directors of the
        Company under Section 16 of the Exchange Act or (ii) of the Board
        itself.

        The Board may also appoint one or more separate committees of the Board,
        each composed of one or more directors of the Company who need not
        qualify under Rule 16b-3, who may administer the Plan with respect to
        Key Employees who are not considered officers or directors of the
        Company under Section 16 of the Exchange Act, may grant Awards under the
        Plan to such Key Employees and may determine all terms of such Awards.

        (b) AUTHORITY OF THE COMMITTEE. Subject to the provisions of the Plan,
        the Committee shall have full authority and discretion to take any
        actions it deems necessary or advisable for the administration of the
        Plan. Such actions shall include:

               (i)    selecting Key Employees who are to receive Awards under
                      the Plan;

               (ii)   determining the type, number, vesting requirements and
                      other features and conditions of such Awards;

               (iii)  interpreting the Plan; and

               (iv)   making all other decisions relating to the operation of
                      the Plan.

        The Committee may adopt such rules or guidelines, as it deems
        appropriate to implement the Plan. The Committee's determinations under
        the Plan shall be final and binding on all persons.

        (c) INDEMNIFICATION. Each member of the Committee, or of the Board,
        shall be indemnified and held harmless by the Company against and from
        (i) any loss, cost, liability, or expense that may be imposed upon or
        reasonably incurred by him or her in connection with or resulting from
        any claim, action, suit, or proceeding to which he or she may be a party
        or in which he or she may be involved by reason of any action taken or
        failure to act under the Plan or any Stock Option Agreement or any
        Restricted Stock

                                       6
<PAGE>   11

        Agreement, and (ii) from any and all amounts paid by him or her in
        settlement thereof, with the Company's approval, or paid by him or her
        in satisfaction of any judgment in any such claim, action, suit, or
        proceeding against him or her, provided he or she shall give the Company
        an opportunity, at its own expense, to handle and defend the same before
        he or she undertakes to handle and defend it on his or her own behalf.
        The foregoing right of indemnification shall not be exclusive of any
        other rights of indemnification to which such persons may be entitled
        under the Company's Articles of Incorporation or Bylaws, by contract, as
        a matter of law, or otherwise, or under any power that the Company may
        have to indemnify them or hold them harmless.

        (d) FINANCIAL REPORTS. To the extent required by applicable law, the
        Company shall furnish to Participants the Company's summary financial
        information including a balance sheet regarding the Company's financial
        condition and results of operations, unless such Participants have
        duties with the Company that assure them access to equivalent
        information. Such financial statements need not be audited.

SECTION 4. ELIGIBILITY.

        (a) GENERAL RULES. Only Employees, Directors, Non-Employee Directors and
        Consultants shall be eligible for designation as Key Employees by the
        Committee.

        (b) INCENTIVE STOCK OPTIONS. Only Key Employees who are common-law
        employees of the Company, a Parent or a Subsidiary shall be eligible for
        the grant of ISOs. In addition, a Key Employee who is a 10-Percent
        Shareholder shall not be eligible for the grant of an ISO unless the
        requirements set forth in section 422(c)(5) of the Code are satisfied.

SECTION 5. SHARES SUBJECT TO PLAN.

        (a) BASIC LIMITATION. The stock issuable under the Plan shall be
        authorized but unissued Shares or treasury Shares. The aggregate number
        of Shares reserved for Awards under the Plan shall not exceed 3,000,000
        Shares on a fully diluted basis, subject to adjustment pursuant to
        Section 9. Any Shares underlying Substitute Awards shall not be counted
        against the Shares available for Awards under the Plan.

        (b) ADDITIONAL SHARES. If Awards are forfeited or terminate for any
        other reason before being exercised, then the Shares underlying such
        Awards shall again become available for Awards under the Plan.

        (c) DIVIDEND EQUIVALENTS. Any dividend equivalents distributed under the
        Plan shall not be applied against the number of Shares available for
        Awards.

SECTION 6. TERMS AND CONDITIONS OF OPTIONS.

        (a) STOCK OPTION AGREEMENT. Each Grant under the Plan shall be evidenced
        by a Stock Option Agreement between the Optionee and the Company. Such
        Option shall be subject

                                       7
<PAGE>   12

        to all applicable terms and conditions of the Plan and may be subject to
        any other terms and conditions that are not inconsistent with the Plan
        and that the Committee deems appropriate for inclusion in a Stock Option
        Agreement. The provisions of the various Stock Option Agreements entered
        into under the Plan need not be identical. A Stock Option Agreement may
        provide that new Options will be granted automatically to the Optionee
        when he or she exercises the prior Options. The Stock Option Agreement
        shall also specify whether the Option is an ISO or an NSO.

        (b) NUMBER OF SHARES. Each Stock Option Agreement shall specify the
        number of Shares that are subject to the Option and shall provide for
        the adjustment of such number in accordance with Section 9.

        (c) EXERCISE PRICE. An Option's Exercise Price shall be established by
        the Committee and set forth in a Stock Option Agreement. To the extent
        required by applicable law the Exercise Price of an ISO shall not be
        less than 100% of the Fair Market Value (110% for 10-Percent
        Shareholders) of a Share on the date of Grant. In the case of an NSO, a
        Stock Option Agreement may specify an Exercise Price that varies in
        accordance with a predetermined formula while the NSO is outstanding. To
        the extent required by applicable law, the Exercise Price for an NSO
        shall not be less than 85% of the Fair Market Value (110% for 10-Percent
        Shareholders) of a Share on the date of Grant.

        (d) EXERCISABILITY AND TERM. Each Stock Option Agreement shall specify
        the date when all or any installment of the Option is to become
        exercisable. To the extent required by applicable law, Options shall
        vest at least as rapidly as 20% annually over a five-year period. The
        Stock Option Agreement shall also specify the term of the Option;
        provided that the term of an ISO, and to the extent required by
        applicable law a NSO, shall in no event exceed ten (10) years from the
        date of Grant. An ISO that is granted to a 10-Percent Shareholder shall
        have a maximum term of five (5) years. To the extent required by
        applicable law, vested Options shall be exercisable for a minimum period
        of six (6) months following termination of employment due to death or
        Disability and thirty (30) days following termination of employment
        (other than terminations for cause, as defined in the Company's
        personnel policies). Notwithstanding the previous sentence, no Option
        can be exercised after the expiration date provided in the applicable
        Stock Option Agreement. A Stock Option Agreement may provide for
        accelerated exercisability in the event of the Optionee's death,
        disability or retirement or other events and may provide for expiration
        prior to the end of its term in the event of the termination of the
        Optionee's service. A Stock Option Agreement may permit an Optionee to
        exercise an Option before it is vested, subject to the Company's right
        of repurchase over any Shares acquired under the unvested portion of the
        Option (an "early exercise"), which right of repurchase shall lapse at
        the same rate the Option would have vested had there been no early
        exercise. In no event shall the Company be required to issue fractional
        Shares upon the exercise of an Option.

        (e) MODIFICATIONS OR ASSUMPTION OF OPTIONS. Within the limitations of
        the Plan, the Committee may modify, extend or assume outstanding options
        or may accept the cancellation of outstanding options (whether granted
        by the Company or by another issuer) in return for the grant of new
        Options for the same or a different number of Shares

                                       8
<PAGE>   13

        and at the same or a different Exercise Price. The foregoing
        notwithstanding, no modification of an Option shall, without the consent
        of the Optionee, alter or impair his or her rights or obligations under
        such Option.

        (f) TRANSFERABILITY OF OPTIONS. Except as otherwise provided in the
        applicable Stock Option Agreement and then only to the extent permitted
        by applicable law, no Option shall be transferable by the Optionee other
        than by will or by the laws of descent and distribution. Except as
        otherwise provided in the applicable Stock Option Agreement, an Option
        may be exercised during the lifetime of the Optionee only or by the
        guardian or legal representative of the Optionee. No Option or interest
        therein may be assigned, pledged or hypothecated by the Optionee during
        his lifetime, whether by operation of law or otherwise, or be made
        subject to execution, attachment or similar process.

        (g) NO RIGHTS AS A SHAREHOLDER. An Optionee, or a transferee of an
        Optionee, shall have no rights as a shareholder with respect to any
        Common Stock covered by an Option until such person becomes entitled to
        receive such Common Stock by filing a notice of exercise and paying the
        Exercise Price pursuant to the terms of such Option.

        (h) RESTRICTIONS ON TRANSFER. Any Shares issued upon exercise of an
        Option shall be subject to such rights of repurchase, rights of first
        refusal and other transfer restrictions as the Committee may determine.
        Such restrictions shall apply in addition to any restrictions that may
        apply to holders of Shares generally and shall also comply to the extent
        necessary with applicable law.

SECTION 7. PAYMENT FOR OPTION SHARES.

        (a) GENERAL RULE. The entire Exercise Price of Shares issued upon
        exercise of Options shall be payable in cash at the time when such
        Shares are purchased, except as follows:

               (i)    In the case of an ISO granted under the Plan, payment
        shall be made only pursuant to the express provisions of the applicable
        Stock Option Agreement. The Stock Option Agreement may specify that
        payment may be made in any form(s) described in this Section 7.

               (ii)   In the case of an NSO granted under the Plan, the
        Committee may in its discretion, at any time accept payment in any
        form(s) described in this Section 7.

        (b) SURRENDER OF STOCK. To the extent that this Section 7(b) is
        applicable, payment for all or any part of the Exercise Price may be
        made with Shares which have already been owned by the Optionee for such
        duration as shall be specified by the Committee. Such Shares shall be
        valued at their Fair Market Value on the date when the new Shares are
        purchased under the Plan.

        (c) PROMISSORY NOTE. To the extent that this Section 7(c) is applicable,
        payment for all or any part of the Exercise Price may be made with a
        full-recourse promissory note.

                                       9
<PAGE>   14

        (d) OTHER FORMS OF PAYMENT. To the extent that this Section 7(d) is
        applicable, payment may be made in any other form that is consistent
        with applicable laws, regulations and rules.

SECTION 8. TERMS AND CONDITIONS FOR AWARDS OF RESTRICTED STOCK.

        (a) TIME, AMOUNT AND FORM OF AWARDS. Awards under the Plan may be
        granted in the form of Restricted Stock.

        (b) RESTRICTED STOCK AGREEMENT. Each Award of Restricted Stock under the
        Plan shall be evidenced by a Restricted Stock Agreement between the
        Participant and the Company. Such Award shall be subject to all
        applicable terms and conditions of the Plan and may be subject to any
        other terms and conditions that are not inconsistent with the Plan and
        that the Committee deems appropriate for inclusion in a Restricted Stock
        Agreement. The provisions of the various Restricted Stock Agreements
        entered into under the Plan need not be identical.

        (c) PAYMENT FOR RESTRICTED STOCKS. Restricted Stock may be issued with
        or without cash consideration under the Plan.

        (d) VESTING CONDITIONS. Each Award of Restricted Stock shall become
        vested, in full or in installments, upon satisfaction of the conditions
        specified in the Restricted Stock Agreement. A Restricted Stock
        Agreement may provide for accelerated vesting in the event of the
        Participant's death, Disability or retirement or other events.

        (e) ASSIGNMENT OR TRANSFER OF RESTRICTED STOCKS. Except as provided in
        Section 12, or in a Restricted Stock Agreement, or as required by
        applicable law, a Restricted Stock granted under the Plan shall not be
        anticipated, assigned, attached, garnished, optioned, transferred or
        made subject to any creditor's process, whether voluntarily,
        involuntarily or by operation of law. Any act in violation of this
        Section 8(e) shall be void. However, this Section 8(e) shall not
        preclude a Participant from designating a beneficiary who will receive
        any outstanding Restricted Stocks in the event of the Participant's
        death, nor shall it preclude a transfer of Restricted Stocks by will or
        by the laws of descent and distribution.

        (f) TRUSTS. Neither this Section 8 nor any other provision of the Plan
        shall preclude a Participant from transferring or assigning Restricted
        Stock to (a) the trustee of a trust that is revocable by such
        Participant alone, both at the time of the transfer or assignment and at
        all times thereafter prior to such Participant's death, or (b) the
        trustee of any other trust to the extent approved in advance by the
        Committee in writing. A transfer or assignment of Restricted Stock from
        such trustee to any person other than such Participant shall be
        permitted only to the extent approved in advance by the Committee in
        writing, and Restricted Stock held by such trustee shall be subject to
        all of the conditions and restrictions set forth in the Plan and in the
        applicable Restricted Stock Agreement, as if such trustee were a party
        to such Agreement.

                                       10
<PAGE>   15

        (g) VOTING AND DIVIDEND RIGHTS. The holders of Restricted Stock awarded
        under the Plan shall have the same voting, dividend and other rights as
        the Company's other shareholders. A Restricted Stock Agreement, however,
        may require that the holders of Restricted Stock invest any cash
        dividends received in additional Restricted Stock. Such additional
        Restricted Stock shall be subject to the same conditions and
        restrictions as the Award with respect to which the dividends were paid.
        Such additional Restricted Stock shall not reduce the number of Shares
        available under Section 5.

SECTION 9. PROTECTION AGAINST DILUTION.

        (a) ADJUSTMENTS. In the event of a subdivision of the outstanding
        Shares, a declaration of a dividend payable in Shares, a declaration of
        a dividend payable in a form other than Shares in an amount that has a
        material effect on the price of Shares, a combination or consolidation
        of the outstanding Shares (by reclassification or otherwise) into a
        lesser number of Shares, a recapitalization, a spin-off or a similar
        occurrence, the Committee shall make such adjustments as it, in its sole
        discretion, deems appropriate in one or more of:

               (i)    the number of Shares available for future Awards under
        Section 5;

               (ii)   the number of Shares covered by each outstanding Award; or

               (iii)  the Exercise Price under each outstanding Option.

        (b) PARTICIPANT RIGHTS. Except as provided in this Section 9, a
        Participant shall have no rights by reason of any issue by the Company
        of stock of any class or securities convertible into stock of any class,
        any subdivision or consolidation of shares of stock of any class, the
        payment of any stock dividend or any other increase or decrease in the
        number of shares of stock of any class.

SECTION 10. EFFECT OF A CHANGE IN CONTROL.

        (a) MERGER OR REORGANIZATION. In the event that the Company is a party
        to a merger or other reorganization, outstanding Awards shall be subject
        to the agreement of merger or reorganization. Such agreement may
        provide, without limitation, for the assumption of outstanding Awards by
        the surviving corporation or its parent, for their continuation by the
        Company (if the Company is a surviving corporation), for accelerated
        vesting or for their cancellation with or without consideration, in all
        cases without the consent of the Participant.

        (b) ACCELERATION. The Committee may determine, at the time of granting
        an Award or thereafter, that such Award shall become fully vested as to
        all Shares subject to such Award in the event that a Change in Control
        occurs with respect to the Company.

                                       11
<PAGE>   16

SECTION 11. LIMITATIONS ON RIGHTS.

        (a) RETENTION RIGHTS. Neither the Plan nor any Award granted under the
        Plan shall be deemed to give any individual a right to remain an
        employee, consultant or director of the Company, a Parent, a Subsidiary
        or an Affiliate. The Company and its Parents and Subsidiaries and
        Affiliates reserve the right to terminate the Service of any person at
        any time, and for any reason, subject to applicable laws, the Company's
        Articles of Incorporation and Bylaws and a written employment agreement
        (if any).

        (b) SHAREHOLDERS' RIGHTS. A Participant shall have no dividend rights,
        voting rights or other rights as a shareholder with respect to any
        Shares covered by his or her Award prior to the issuance of a stock
        certificate for such Shares. No adjustment shall be made for cash
        dividends or other rights for which the record date is prior to the date
        when such certificate is issued, except as expressly provided in Section
        9.

        (c) REGULATORY REQUIREMENTS. Any other provision of the Plan
        notwithstanding, the obligation of the Company to issue Shares under the
        Plan shall be subject to all applicable laws, rules and regulations and
        such approval by any regulatory body as may be required. The Company
        reserves the right to restrict, in whole or in part, the delivery of
        Shares pursuant to any Award prior to the satisfaction of all legal
        requirements relating to the issuance of such Shares, to their
        registration, qualification or listing or to an exemption from
        registration, qualification or listing.

SECTION 12. WITHHOLDING TAXES.

        (a) GENERAL. A Participant shall make arrangements satisfactory to the
        Company for the satisfaction of any withholding tax obligations that
        arise in connection with his or her Award. The Company shall not be
        required to issue any Shares or make any cash payment under the Plan
        until such obligations are satisfied.

        (b) SHARE WITHHOLDING. If a public market for the Company's Shares
        exists, the Committee may permit a Participant to satisfy all or part of
        his or her withholding or income tax obligations by having the Company
        withhold all or a portion of any Shares that otherwise would be issued
        to him or her or by surrendering all or a portion of any Shares that he
        or she previously acquired. Such Shares shall be valued at their Fair
        Market Value on the date when taxes otherwise would be withheld in cash.
        Any payment of taxes by assigning Shares to the Company may be subject
        to restrictions, including, but not limited to, any restrictions
        required by rules of the Securities and Exchange Commission.

SECTION 13. DURATION AND AMENDMENTS.

        (a) TERM OF THE PLAN. The Plan, as set forth herein, shall become
        effective on the date of its adoption by the Board, subject to the
        approval of the Company's shareholders. No Options shall be exercisable
        until such shareholder approval is obtained. In the event that the
        shareholders fail to approve the Plan within twelve (12) months after
        its adoption by

                                       12
<PAGE>   17

        the Board, any Awards made shall be null and void and no additional
        Awards shall be made. To the extent required by applicable law, the Plan
        shall terminate on the date that is ten (10) years after its adoption by
        the Board and may be terminated on any earlier date pursuant to Section
        13(b).

        (b) RIGHT TO AMEND OR TERMINATE THE PLAN. The Board may amend or
        terminate the Plan at any time and for any reason. The termination of
        the Plan, or any amendment thereof, shall not affect any Award
        previously granted under the Plan. No Awards shall be granted under the
        Plan after the Plan's termination. An amendment of the Plan shall be
        subject to the approval of the Company's shareholders only to the extent
        required by applicable laws, regulations or rules.

SECTION 14. EXECUTION.

        To record the adoption of the Plan by the Board, the Company has caused
        its duly authorized officer to execute this Plan on behalf of the
        Company.

                                        CONDOR SYSTEMS, INC.

                                        By ____________________________________

                                        Title _________________________________

                                       13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00024-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00024-of-00352.parquet"}]]