Document:

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                                                                 EXHIBIT 10.40.2

                        AMENDMENT TO EMPLOYMENT AGREEMENT

     This Amendment to Employment Agreement (the "Amendment) is made as of this
5th day of October, 1999 by and between Morrison Knudsen Corporation, a Delaware
corporation (the "Company") and Ambrose L. Schwallie, an executive employee of
the Company ("Executive").

     WHEREAS, the Company and Executive are parties to a certain Employment
Agreement made as of August 1, 1999 (the "Agreement"); and

     WHEREAS, under the Agreement, if Executive is required to relocate to a job
location more than 50 miles from his current job location prior to March 31,
2000, Executive is entitled to receive a Relocation Allowance of $50,000 in
addition to any relocation allowance under the Company's regular relocation
program; and

     WHEREAS, the Company has agreed that the Agreement should be amended to
extend the term of the Relocation Allowance portion of the Agreement to March
31, 2001;

     NOW, THEREFORE, the Agreement is hereby amended by deleting paragraph c of
Section 4 in its entirety and replacing it with the following:

          c. Relocation Allowance. If you are required to relocate on or before
     March 31, 2001 to a job location more than 50 miles from your current job
     location, you will receive a relocation allowance of $50,000 in addition to
     any relocation allowance under the regular relocation program. In return
     for receiving this special relocation allowance, you agree to waive any
     severance benefits to which you might otherwise become entitled by virtue
     of the relocation.

     Except for the foregoing, the Agreement remains unamended and in full force
     and effect.

     IN WITNESS WHEREOF, the Executive and the Company have executed this
Amendment this 5th day of October, 1999.

                                             MORRISON KNUDSEN CORPORATION

                                    By:      /s/ S. G. Hanks
                                             -----------------------------------
                                             Stephen G. Hanks
                                             Executive Vice President

                                             EXECUTIVE

                                             /s/ Ambrose L. Schwallie
                                             -----------------------------------
                                             Ambrose L. Schwallie

                                                                 10/24/99<PAGE>

                                                                   EXHIBIT 10.41

MORRISON KNUDSEN CORPORATION
Morrison Knudsen Plaza
P. O. Box 73
Boise, Idaho, U.S.A. 83729

STEPHEN G. HANKS
Executive Vice President
and Chief Legal Officer

September 7, 1999

Mr. Leo Giacometto
6907 Highland Street
Springfield, VA 22150

RE: OFFER OF EMPLOYMENT

Dear Leo:

On behalf of Morrison Knudsen Corporation (the "Company"), I am pleased to offer
you employment pursuant to the terms and conditions set forth in this letter.

1.   Position and Services to be Rendered.  The Company hereby agrees to employ
     ------------------------------------
     you as Vice President -- Government Affairs, beginning on or about
     September 20, 1999.  You accept such employment and agree to devote your
     full time and attention exclusively to rendering services to the Company.
     You will report to the Company's Executive Vice President & Chief Legal
     Officer.  Your actual first date of active employment with the Company
     (whether September 20, 1999, or some other date) will hereafter be referred
     to as the "Effective Date".

2.   Salary.  You will receive an annual base salary of $200,000 commencing as
     ------
     of the Effective Date, payable in accordance with the Company's normal
     payroll practice (i.e., every two weeks).  Your position will be a regular
     full-time position, a Corporate Officer, and you will be assigned a Grade
     Level of 23.  The Company will review your base salary annually to
     determine any increase.

3.   Annual Cash Bonus.  You will be considered for a 25% of base salary annual
     -----------------
     cash bonus at the end of each fiscal year as determined by the Executive
     Compensation & Nominating Committee of the Board of Directors.  Any bonus
     paid for 1999 performance will be prorated based on your start date with
     the Company.
<PAGE>

Leo Giscometto
September 7, 1999
Page 2

4.   Stock Options.  You will be granted options to purchase 20,000 shares of
     -------------
     the Company's common stock under the Company's Stock Compensation Plan at a
     price equal to the per share closing price of the Company's common stock as
     of the Effective Date.  The option shall vest 25% each year for four years.
     Such option shall be subject to the terms and conditions of the Stock
     Compensation Plan and such additional conditions as the Executive
     Compensation & Nominating Committee may impose.

5.   Fringe Benefits.  You will be entitled to the Company's 401(k) Savings
     ---------------
     Plan, group medical and dental plan, and all other group plans and other
     benefits that are normally offered to regular full-time salaried employees.

     .    Subject to the approval of the Compensation Committee of the Board of
          Directors, the company will pay for your initial membership and annual
          dues to either a country club or business club. Any usage of this
          membership for personal services will be at your expense.

6.   Contingencies.  This employment offer must be contingent upon the following
     -------------
     contingencies:

     1.   The results of the company's background investigation and reference
          checks findings are consistent with those expected for an incumbent in
          the Vice President Government Affairs position.

     b.   Your passing of a drug screening test, pursuant to the Company's
          Substance Abuse Prevention Program, and your continued compliance with
          such program.  After reporting to work, you will also be required to
          complete an "Employment Certification" form that complies with the
          passing of the Drug-Free Workplace Act of 1988.

     c.   Your compliance with the following laws:

     .    In accordance with Public Law 99-603, the Immigration and
          Naturalization Act of 1986, this offer is made pending receipt of
          verifiable documentation from you confirming your eligibility for
          employment under the terms and conditions of this Act. Proof of U.S.
          citizenship or adequate identification is required before any hire can
          be processed. You must present acceptable documents for employment
          eligibility verifications when you report for your first day of work.
<PAGE>

Leo Giacometto
September 7, 1999
Page 3

     .    In accordance with Public Law 100-679, the Office of Federal
          Procurement Policy Act Amendments of 1988, the Company is prohibited
          for a period of two years from hiring former government officials or
          employees (military or civilian) who participated personally and
          substantially in the conduct of any Federal agency procurement.
          Consequently, this offer is contingent upon receipt of information
          from you that your employment with the Company will not result in a
          violation of the Procurement Policy Act. You will be required to
          complete an employee certification form verifying your prior
          employment before your employment with the Company begins.

By accepting this employment offer, you agree to the terms and conditions
established herein. To indicate your acceptance of this offer, please sign and
return this letter if you have any questions, please do not hesitate to contact
me.

Sincerely,

/s/ Stephen G. Hanks

Stephen G. Hanks

Agreed and Accepted:

/s/ Leo A. Giacometto

___________________________________

Date:

9 Sept 99

___________________________________NUMBER                   [INTERSIL LOGO]                              SHARES
CA

                         INTERSIL HOLDING CORPORATION
              INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

THIS CERTIFICATE IS TRANSFERABLE IN THE CITY OF             CUSIP 46069S 10 9
 BOSTON, MA, OR THE CITY OF NEW YORK, NY.                SEE REVERSE FOR CERTAIN
                                                               DEFINITIONS

THIS CERTIFIES THAT:

is the record holder of

     FULLY PAID AND NONASSESSABLE SHARES OF COMMON STOCK, $.01 PAR VALUE OF

                          INTERSIL HOLDING CORPORATION

transferable only on the books of the Corporation by the holder hereof in
person or by a duly authorized Attorney upon surrender of this certificate
properly endorsed. This certificate is not valid until countersigned by the
Transfer Agent and Registrar.
     WITNESS the facsimile signatures of the Corporation and the facsimile
signatures of its duly authorized officers.

DATED:

/s/ Daniel Hingham                                /s/ Craig Williams

     SECRETARY                                 CHIEF EXECUTIVE OFFICER

COUNTERSIGNED AND REGISTERED:
     Equiserve Trust Company, N.A.

                              TRANSFER AGENT AND REGISTRAR

BY

                                      AUTHORIZED SIGNATURE

<PAGE>

                          INTERSIL HOLDING CORPORATION

A summary of the designations, relative, participating, optional or other
special rights of each class of stock of the Corporation, or series thereof
and the qualifications, limitations or restrictions of such preferences and/or
rights, will be furnished by the Corporation to any stockholder on request and
without charge. Such request shall be made to the Corporation's Secretary at the
principal office of the Corporation or to the Transfer Agent and Registrar named
on the face of this Certificate.

     The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>      <C>  <C>                              <C>               <C>  <C>
TEN COM  --  as tenants in common              UNIF GIFT MIN ACT  --  ________ Custodian ________
TEN ENT  --  as tenants by the entireties                              (Cust)             (Minor)
JT TEN   --  as joint tenants with right of                           under Uniform Gifts to Minors
             survivorship and not as tenants                          Act ________________
             in common                                                           (State)
</TABLE>

    Additional abbreviations may also be used though not in the above list.

For Value Received, __________________hereby sell(s), assign(s) and transfer(s)

PLEASE INSERT SOCIAL SECURITY OR OTHER
    IDENTIFYING NUMBER OF ASSIGNEE

 _____________________________________
|                                     |
|                                     |
|_____________________________________|

________________________________________________________________________________
 PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE(S)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
of the Shares of capital stock represented by the within Certificate and do(es)
hereby irrevocably constitute and appoint

_______________________________________________________________________ Attorney
to transfer the said Shares on the books of the within named Corporation with
full power of substitution in the premises.

Dated ____________________         _____________________________________________

                                   NOTE: The signature to this assignment must
                                   correspond with the name as written upon the
                                   face of this certificate in every particular,
                                   without alteration or enlargement or any
                                   change whatever.
                                   Signature must be guaranteed.

Signature(s) Guaranteed

By

THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS
AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE
GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad.15.

KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR
DESTROYED, THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO
THE ISSUANCE OF A REPLACEMENT CERTIFICATE.

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