Document:

Exhibit 4.5

                              CONDOR SYSTEMS, INC.

                       1999 EMPLOYEE STOCK INCENTIVE PLAN

                       EFFECTIVE AS OF DECEMBER 14, 1999

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                              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);

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          (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

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     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.

          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;

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          (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.

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     (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.

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     (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

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     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 2,840,000
     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

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     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

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     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) Other Forms of Payment. To the extent that this Section 7(c) is
     applicable, payment may be made in any other form that is consistent with
     applicable laws, regulations and rules.

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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.

     (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

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     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.

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

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     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 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).

                                      12
<PAGE>

     (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
<PAGE>

                               TABLE OF CONTENTS

                                                                           Page
                                                                           ----
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

                                      -i-
<PAGE>

                                                                           Page
                                                                           ----
           (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

                                     -ii-
<PAGE>

                                                                           Page
                                                                           ----
           (c)  Other Forms of Payment.......................................9

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

                                     -iii-<PAGE>

                                                                     Exhibit 4.3

================================================================================

                             ASAT (FINANCE) LLC.,
                                   as Issuer

                            ASAT HOLDINGS LIMITED,
                   and its Subsidiaries referred to herein,
                                 as Guarantors

                                    - and -

                           THE CHASE MANHATTAN BANK,
                                  as Trustee

                         FIRST SUPPLEMENTAL INDENTURE

                         Dated as of August ____, 2000

                            ______________________

                          Supplementing the Indenture
                                  dated as of
                               October 29, 2000

================================================================================
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>

Article 1  MODIFICATION OF THE ORIGINAL INDENTURE........................     1
     SECTION 1.1   Modifications of the Original Indenture...............     1

Article 2  REPRESENTATIONS AND WARRANTIES................................     2
     SECTION 2.1   Authority of the Company..............................     2
     SECTION 2.2   Truth of Recitals and Statements......................     2

Article 3  CONCERNING THE TRUSTEE........................................     2
     SECTION 3.1   Acceptance of Duties..................................     2
     SECTION 3.2   No Responsibility of Trustee for Recitals, etc........     2

Article 4  MISCELLANEOUS PROVISIONS......................................     3
     SECTION 4.1   Relation to the Original Indenture....................     3
     SECTION 4.2   Meaning of Terms......................................     3
     SECTION 4.3   Counterparts of First Supplemental Indenture..........     3
     SECTION 4.4   Governing Law.........................................     3
</TABLE>

                                      (i)
<PAGE>

          THE FIRST SUPPLEMENTAL INDENTURE, dated as of August ____, 2000
between ASAT (Finance) LLC., a Delaware limited liability corporation (the
"Company"), and the Guarantors (as defined in the Original Indenture) and The
Chase Manhattan Bank, as Trustee (the "Trustee") under the Original Indenture
referred to below.

                                  WITNESSETH:

          WHEREAS, the Company has duly authorized and issued U.S.$155,000,000
of 12 1/2% Series A Senior Notes due 2006 (the "Notes"); and the Company has
heretofore made, executed and delivered to the Trustee its Indenture dated as of
October 29, 1999 (the "Original Indenture") pursuant to which the Notes were
issued;

          WHEREAS, Article 9 of the Original Indenture provides that under
certain conditions the Company and the Trustee may, from time to time and at any
time, enter into an Indenture or Indentures supplemental thereto; and

          WHEREAS, all things necessary to authorize the execution and delivery
of this First Supplemental Indenture and to make the Original Indenture, as
supplemented by this First Supplemental Indenture (the Original Indenture, as
supplemented by this First Supplemental Indenture referred to herein as the
"Indenture"), a valid agreement of the Company, in accordance with its terms,
have been done;

          NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH, that for
and in consideration of the premises and the covenants hereby contained and
other good and valuable consideration, and of the sum of one U.S. dollar paid to
the Company on or before the delivery hereof, the receipt of which is hereby
acknowledged, the Company, for itself and its successors and assigns, hereby
covenants and agrees to and with the Trustee and its successors for the equal
and proportionate benefit and security of those who shall hold the Notes, except
as otherwise provided in the Indenture, as hereinafter set forth:

                                   Article 1

                    MODIFICATION OF THE ORIGINAL INDENTURE

          SECTION 1.1    Modifications of the Original Indenture.

          Section 4.8 of the Original Indenture is hereby modified by adding the
following paragraph at the end of the text of section 4.8 as follows:

          "Notwithstanding anything to the contrary in the foregoing, ASAT
          Holdings, including its subsidiaries, will not be required to include
          in the annual, quarterly or other reports, set forth in this section
          4.8, unless otherwise required to be disclosed by a foreign private
          issuer any information required by items 400 to 405 of Regulation S-K
          of the Exchange Act, as amended."

                                                                               1
<PAGE>

                                   Article 2

                        REPRESENTATIONS AND WARRANTIES

          SECTION 2.1    Authority of the Company.

          The Company is duly authorized to execute and deliver this First
Supplemental Indenture, and all corporate action on its part required for the
execution and delivery of this First Supplemental Indenture has been duly and
effectively taken.

          SECTION 2.2  Truth of Recitals and Statements.

          The Company warrants that the recitals of fact and statements
contained in this First Supplemental Indenture are true and correct, and that
the recitals of fact and statements contained in all certificates and other
documents furnished thereunder will be true and correct.

                                   Article 3

                            CONCERNING THE TRUSTEE

          SECTION 3.1    Acceptance of Duties.

          The Trustee accepts its duties hereunder and agrees to perform the
same, but only upon the terms and conditions set forth in the Original Indenture
and in this First Supplemental Indenture, to all of which the Company and the
respective Noteholders at any time hereafter outstanding agree by their
acceptance thereof.

          SECTION 3.2  No Responsibility of Trustee for Recitals, etc.

          The recitals and statements contained in this First Supplemental
Indenture shall be taken as the recitals and statements of the Company, and the
Trustee assumes no responsibility for the correctness of the same.  The Trustee
makes no representations as to the validity or sufficiency of this First
Supplemental Indenture, except that the Trustee has duly authorized the
execution and delivery of this First Supplemental Indenture.

                                                                               2
<PAGE>

                                   Article 4

                           MISCELLANEOUS PROVISIONS

          SECTION 4.1  Relation to the Original Indenture.

          The provisions of this First Supplemental Indenture shall become
effective immediately upon the execution and delivery hereof. Thereupon, this
First Supplemental Indenture and all the terms and provisions herein contained
shall form a part of the Original Indenture as fully and with the same effect as
if all such terms and provisions had been set forth in the Original Indenture.
The Original Indenture is hereby ratified and confirmed and shall remain and
continue in full force and effect in accordance with the terms and provisions
thereof, as supplemented by this First Supplemental Indenture, and the Original
Indenture and this First Supplemental Indenture shall be read, taken and
construed together as one instrument.

          SECTION 4.2  Meaning of Terms.

          Any term used in this First Supplemental Indenture which is defined in
the Indenture shall have the meaning specified in the Indenture, unless the
context shall otherwise require.

          SECTION 4.3  Counterparts of First Supplemental Indenture.

          This First Supplemental Indenture may be executed in several
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one instrument.

          SECTION 4.4  Governing Law.

          THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THIS FIRST SUPPLEMENTAL
INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

                                                                               3
<PAGE>

IN WITNESS WHEREOF, has caused this First Supplemental Indenture to be executed
in its corporate name by a duly authorized officer and the Trustee has caused
this First Supplemental Indenture to be executed in its corporate name by a duly
authorized officer, all as of the date of this First Supplemental Indenture.

                                             ASAT (FINANCE) LLC.

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

Attest:________________________
Name:__________________________
Title:_________________________

                                             ASAT HOLDINGS LIMITED

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

Attest:________________________
Name:__________________________
Title:_________________________

                                             ASAT LIMITED

The COMMON SEAL of                           )
ASAT LIMITED                                 )
was affixed by                               )

duly authorized for and on behalf of         )
ASAT LIMITED                                 )
in the presence of:                          )

                                                                               4
<PAGE>

                                             ASAT (CAYMAN) LIMITED

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

Attest:________________________
Name:__________________________
Title:_________________________

                                             ASAT, INC.

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

Attest:________________________
Name:__________________________
Title:_________________________

                                             TIMERSON LIMITED

The COMMON SEAL of                           )
TIMERSON LIMITED                             )
was affixed by                               )

duly authorized for and on behalf of         )
TIMERSON LIMITED                             )
in the presence of:                          )

                                             THE CHASE MANHATTAN BANK
                                             as Trustee

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

Attest:________________________
Name:__________________________
Title:_________________________

                                                                               5

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