LICENSE AGREEMENT

      License Agreement (hereinafter referred to as ("AGREEMENT") entered 
into this 1st day of July, 1996, by and between Parlex Corporation, a 
Massachusetts corporation with a principal place of business at 145 Milk 
Street, Methuen, Massachusetts 01844 (hereinafter referred to as ("PARLEX"), 
and Pucka Industrial Co., Ltd.., a Taiwan corporation with a principal place 
of business at No. 13, Lane 417, Min An Road, Hsin Chung, Taipei, Taiwan, 
R.O.C.(hereinafter referred to as "PUCKA").

      WHEREAS, PARLEX has designed, developed and patented certain Flexible 
Circuit Technology (as defined below) to manufacture certain Products (as 
defined below) and wishes to transfer to PUCKA, a nonexclusive, 
nontransferable, area specific license and right to use and practice such 
Flexible Circuit Technology on the terms and conditions as provided for 
herein; and

      WHEREAS, PUCKA is desirous of acquiring such Flexible Circuit 
Technology with such right to use and practice such Flexible Circuit 
Technology for the purposes and on the terms and conditions as provided for 
herein.

      NOW, THEREFORE, in consideration of the mutual promises and covenants 
herein set forth and for other good and valuable consideration, the receipt 
and sufficiency of which the parties hereby acknowledge, the parties hereto 
agree as follows:

Section 1.  DEFINITIONS

      A.  Flexible Circuit Technology:  The term "Flexible Circuit 
Technology", as used herein, shall mean the process described in U.S. patent 
5,334,800 and U.S. patent 5,334,800 Rev. 1 Amendment A as well as any future 
amendments and revisions used by PARLEX as of the Effective Date (as defined 
below) to manufacture the circuits described under the definition of 
Products, including engineering and manufacturing documents and drawings, 
written procedures, processes, prints and process sheets now being used by 
PARLEX in the manufacture, use and sale of the Products (as defined below).
 
      B.  Products:  The term "Products" as used herein, shall mean all 
single-sided and double-sided flexible circuits with silver shielding using 
Flexible Circuit Technology..

      C.  Effective Date:  The term "Effective Date", as used herein, shall 
mean the date of this Agreement, the 1st day of July, 1996.

      D.  License Year:  The term "License Year", as used herein, shall mean 
a twelve (12) calendar month period; provided, however, that the first 
License Year shall commence on the Effective Date of this Agreement and end 
on December 31, 1996, and the subsequent License Years shall mean each 
twelve (12) calendar month period thereafter.

Section 2.  GRANT OF LICENSE

      2.1  Subject to the terms and conditions of this Agreement, PARLEX 
hereby grants to PUCKA an exclusive, nontransferable, area specific license 
and right to use and practice such Flexible Circuit Technology, without the 
right to grant sublicenses, for the sole purpose of using the Flexible 
Circuit Technology to design, develop, market, manufacture and sell the 
Products solely in Taiwan.  PARLEX will consider, on a written case by case 
basis, allowing PUCKA to sell to customers outside of Taiwan.

      2.2  Notwithstanding the foregoing, PARLEX hereby reserves the right 
to develop, manufacture and sell the Products to its existing and future 
customers worldwide.

      2.3  PUCKA shall use commercially reasonable efforts to manufacture 
and sell the Flexible Circuit Technology to the fullest extent possible.  
Pucka shall, at its own expense, provide, keep, maintain and operate a 
modern plant(s) designed for and equipped with the necessary machinery and 
equipment for manufacturing and processing the Products as well as any other 
equipment, materials and supplies which are necessary to promptly supply all 
demands and requirements for the Products.  Pucka shall maintain at all 
times in its plant(s) the necessary personnel (including qualified and 
experienced management) for manufacturing, processing and selling the 
Products, and shall operate all departments of its plant(s) in accordance 
with standards of orderliness, cleanliness and appearance as specified by 
PARLEX.

      2.4  PUCKA shall act as an independent contractor and will not be 
subject to the will and control of PARLEX.  Neither PUCKA or its employees 
are in any sense employees of PARLEX and PUCKA and its employees are not 
authorized to commit any acts which might be construed as acts of PARLEX.  
Both parties shall have no authority to bind the other in any respect.  It 
is agreed and understood that PUCKA and its employees are not employees of 
PARLEX under the meaning or application of any federal or state unemployment 
insurance law, or the social security law, tax law or any workmen's 
compensation law that relate to employer/employee relationships.  PUCKA 
hereby agrees to assume all liabilities or obligations imposed by or 
incurred as a result of anyone or more of the above-enumerated laws with 
respect to its employees and their performance under this Agreement.

      2.5  During the term of this Agreement, PUCKA shall have the right to 
indicate to the public that it is an authorized manufacturer of the Products 
and to use PARLEX's trademarks, marks, and trade names that PARLEX may adopt 
from time to time ("Trademarks") solely for the sale of the Products.  
Nothing herein shall grant to PUCKA any right, title or interest in the 
Trademarks.  At no time during or after the term of this Agreement shall 
PUCKA challenge or assist others to challenge the Trademarks or the 
registration thereof or attempt to register any trademarks, marks or trade 
names confusingly similar to the Trademarks.

      2.6  All representations of the Trademarks that PUCKA intends to use 
shall first be submitted to PARLEX for approval (which shall not be 
unreasonably withheld) of design, color, and other details or shall be exact 
copies of those used by PARLEX.  If any of the Trademarks are to be used in 
conjunction with another trademark on or in relation to the Products, then 
PARLEX's mark shall be presented equally legibly, equally prominently, and 
of equal or greater size than the other but nevertheless separated from the 
other so that each appears to be a mark in its own right, distinct from the 
other mark.

      2.7  Upon termination of this Agreement, PUCKA shall immediately cease 
displaying, advertising, and using the Trademarks, and shall not hereafter 
use, advertise or display any name, mark, or logo which is or any part of 
which is similar to or capable of being confused with any of the Trademarks. 

Section 3.  TRANSFER OF TECHNOLOGY AND TECHNICAL ASSISTANCE

      3.1   PARLEX shall to the extent practicable, provide at its 
facilities in Methuen, Massachusetts, training and instruction of PUCKA 
personnel in the use of the Flexible Circuit Technology for the manufacture 
of the Products.  Such training and instruction by PARLEX shall be according 
to EXHIBIT A. If at any time during the term of this Agreement PUCKA desires 
additional training and instruction beyond that outlined in EXHIBIT A, 
PARLEX shall provide such additional training and instruction to the extent 
agreed upon by the parties and at a charge by PARLEX of one thousand 
U.S.Dollars ($1,000) per day or fraction thereof and subject to the 
availability of PARLEX personnel.

      3.2  Upon PUCKA's reasonable request made during the term of this 
Agreement, PARLEX shall give or shall cause to be given to PUCKA such 
technical assistance after the date hereof as PUCKA and its employees may 
reasonably require in connection with the transfer of Flexible Circuit 
Technology provided in the preceding paragraph and to enable PUCKA to fully 
utilize the Flexible Circuit Technology to manufacture and sell Products as 
heretofore manufactured and sold by PARLEX and to provide services as 
heretofore provided by PARLEX.  The term "technical assistance" as used 
herein shall refer solely to consultation provided either by telephone or 
facsimile and there is no obligation expressed or implied that PARLEX will 
be expected to travel or visit for or at the request of PUCKA.  However, if 
PARLEX agrees to send personnel anywhere for or at the request of PUCKA, 
then all expenses, including salaries, shall be paid for by PUCKA.

      3.3  All costs incurred to provide technical assistance and training 
to PUCKA and its employees, as contemplated by Sections 3.1 and 3.2 above, 
including travel, living, lodging, and all other expenses, shall be borne by 
PUCKA.

      3.4  In accordance with the provisions of section 3.1 above PARLEX and 
PUCKA  agree to Exhibit A below.

      3.5  PARLEX may request PUCKA to provide technical or sales service to 
existing or future customers in Taiwan.  Costs incurred by PUCKA will be 
reimbursed by PARLEX only when specifically approved in advance.  The exact 
cost to provide this service shall be determined by PUCKA on a case-by-case 
basis and submitted to PARLEX prior to commencement of the service.

Section 4.  FLEXIBLE CIRCUIT TECHNOLOGY OWNERSHIP

      4.1  PUCKA acknowledges and agrees that PARLEX is the sole and 
exclusive owner of all right, title and interest, including all business or 
technical information proprietary to PARLEX and all trademarks, copyrights, 
patents, trade names, trade secrets and other intellectual property rights, 
in and to the Flexible Circuit Technology and Products and all products or 
information derived or to be derived from PUCKA'S use of said Flexible 
Circuit Technology and manufacture of the Products.

      4.2  PUCKA understands and acknowledges that the rights granted under 
this Agreement do not constitute a license to use the Flexible Circuit 
Technology and manufacture the Products for any reason or purpose other than 
as specified herein.

Section 5.  ROYALTIES AND PAYMENTS

      5.1  *

      5.2  The term "Net Sales Price", as used in this Section 5 and for 
purposes hereof, shall mean PUCKA's actual invoice price less cash and 
quantity discounts, and duties, excise and sales taxes paid.

      5.3  *

_______________________
<F*> Confidential information has been omitted and filed separately with the 
     Commission.

Section 6.  WARRANTIES AND REPRESENTATIONS

      6.1  PUCKA warrants and represents that it will in good faith provide 
PARLEX with all information relative to any modification, enhancements or 
improvement made to the manufacturing equipment, raw materials, processes or 
any other aspect of the Flexible Circuit Technology.

      6.2  PARLEX warrants and represents that it will in good faith provide 
PUCKA will all information relative to any modification, enhancements or 
improvement made to the manufacturing equipment, raw materials, processes or 
any other aspect of the Flexible Circuit Technology.

      6.3  PUCKA and PARLEX warrant and represent to each other that neither 
the execution, delivery nor performance of this Agreement will, with or 
without the giving of notice or the passage of time, or both, conflict with, 
result in a default, right to accelerate or loss of rights under, or result 
in the creation of any lien, charge or encumbrance pursuant to, any 
provision of either party's Articles of Organization or Bylaws or any 
franchise, mortgage, deed of trust, lease, license, agreement, 
understanding, law, rule, or regulation or any order, judgment or decree to 
which either is a party or by which it may be bound or affected.  Both 
parties have the full power and authority to enter into this Agreement and 
to carry out the transactions contemplated thereby, all proceedings required 
to be taken by them to authorize the execution, delivery and performance of 
this Agreement and all other agreements relating hereto or contemplated 
hereby have been properly taken and this Agreement constitutes a valid and 
binding obligation.

      6.4  PUCKA and PARLEX warrant and represent to each other that there 
is no claim, legal action, suit, arbitration, governmental investigation or 
other legal or administrative proceeding, nor any order, decree or judgment 
in progress, pending or in effect, or to their knowledge threatened, against 
or relating to either party and the transactions contemplated by this 
Agreement, and neither party knows or has reason to be aware of any basis 
for the same.

      6.5  PARLEX warrants and represents that it is the  owner of the 
right, title and interest in the Flexible Circuit Technology and that it has 
full right to grant the rights set forth in this Agreement.  PARLEX also 
warrants and represents that there are no outstanding agreements, 
assignments or encumbrances inconsistent with the provisions of this 
Agreement.  PARLEX makes no other representations or warranties, express or 
implied, nor does it assume any liability in respect of any infringement of 
patents or other rights of third parties due to PUCKA's operation under the 
rights granted herein.

      6.6  PUCKA warrants and represents that it will maximize its best 
efforts to manufacture and sell the Products.

Section 7.  COVENANT NOT TO COMPETE

      7.1  As further consideration for PARLEX's agreement to license the 
Flexible Circuit Technology under the terms and conditions of this 
Agreement,     *.

_______________________
<F*> Confidential information has been omitted and filed separately with the 
     Commission.

      7.2  PUCKA agrees and acknowledges PARLEX will suffer irreparable 
injury and damage and cannot be reasonably or adequately compensated in 
monetary damages for the loss by PARLEX of its benefits or rights under this 
Agreement as a result of a breach, default or violation by PUCKA of its 
obligations thereunder.  Accordingly, PARLEX shall be entitled, in addition 
to all other remedies which may be available to it (including monetary 
damages), to injunctive and other available equitable relief in any court of 
competent jurisdiction to prevent or otherwise restrain or terminate any 
actual or threatened breach, default or violation by PUCKA of any provision 
thereunder or to enforce any such provision.  Any legal action or other 
proceeding for any purpose with respect to this covenant shall be brought 
exclusively in any court of competent jurisdiction sitting in the 
Commonwealth of Massachusetts, and the parties hereto agree to submit to the 
jurisdiction of such court and to comply with all requirements necessary to 
give such court exclusive jurisdiction thereof.  The losing party to any 
such proceeding shall pay all costs (including reasonable attorney's fees) 
of all parties with respect to that proceeding.

      7.3  It is acknowledged further by PUCKA that this provision is 
restrictive but is necessary to induce PARLEX to enter into this Agreement. 

Section 8.  INDEMNIFICATION

      8.1  PUCKA agrees to indemnify and hold PARLEX harmless from and 
against any and all claims, damages, expenses, debts, demands, actions, 
causes of action, suits, costs and liabilities whatsoever (including 
reasonable attorneys' fees and costs of investigation and preparation) which 
may be brought against PARLEX by any third party arising out of, in 
connection with or related in any way to the design, manufacture, sale, use 
and marketing of the Flexible Circuit Technology and/or the Products 
including but not limited to, all product liability claims and patent 
infringement claims.

      8.2  PUCKA assumes full responsibility for any use by it of the 
Flexible Circuit Technology as well as the Products manufactured by it using 
the Flexible Circuit Technology.

Section 9.  CONFIDENTIALITY 

      9.1  PUCKA hereby covenants and agrees to keep and cause to be kept 
secret and confidential all business and technical information (whether 
written or oral) including the Flexible Circuit Technology and will not 
divulge, publish or use any such information to any person or persons, firms 
or corporations, nor use the same for its or their own benefit.

      9.2  PUCKA has or will require all of its employees and consultants 
who have access to any of the Flexible Circuit Technology to execute 
agreements similar in content to Section 9 and will exercise its best 
efforts to obtain compliance therewith.

Section 10.  RECORDS AND REPORTS

      10.1     *.

_______________________
<F*> Confidential information has been omitted and filed separately with the 
     Commission.

      10.2  PUCKA shall keep, for at least the three (3) most recent License 
Years, accurate books and records of the number and type of all Products 
sold, the amount of sales thereof and the royalties owed PARLEX.

      10.3  PARLEX may, on reasonable notice, have its duly authorized agent 
or representative, inspect, check, and verify all such books and records 
either at PUCKA's business premises or at a place mutually agreed upon.  The 
agent's reports and the aforesaid royalty statements, and the information 
contained therein, shall be maintained in confidence by PARLEX.

Section 11.  NOTICES 

      11.1  All notices required or permitted to be sent or delivered under 
the terms of this Agreement shall be considered to have been duly sent or 
delivered when sent by certified or registered mail, return receipt 
requested, postage prepaid, and addressed to the party for whom or for which 
intended at such party's address herein above set forth or to such other 
address or addresses as may be designated by like notice.

Section 12.  TERM

      12.1  This Agreement shall be in full force and effect commencing with 
the date of execution of this Agreement and shall continue in full force and 
effect for a term of five years.  In addition to all other remedies 
available to the parties under the law, and except as otherwise provided 
herein, this Agreement may be terminated by either party as specifically 
provided herein:

            (a)   PARLEX may, upon thirty (30) days written notice to PUCKA 
      terminate this Agreement if PUCKA fails to make any payment in 
      compliance with the terms of this Agreement.  However, notwithstanding 
      the foregoing, PUCKA shall have the right to cure said default for 
      failure to make payment if within ten (10) days after the date of 
      breach it tenders the overdue payment.

            (b)  If a petition of bankruptcy or any arrangement for the 
      benefit of creditors or a petition for reorganization is filed by or 
      against either party, or if either party makes an assignment for the 
      benefit of creditors; or if a receiver (permanent or temporary) of 
      either parties' property or any party thereof, is appointed by a court 
      of competent authority.

            (c)  Except as otherwise provided above in sub sections (a)and 
      (b), if either party defaults in the performance of any term, 
      condition or obligation hereunder, and if such default is not cured 
      within thirty (30) days after written notice by the non-defaulting 
      party.

      12.2  Upon termination, the due dates for royalties owed by PUCKA to 
PARLEX shall be accelerated automatically so that such amounts become due 
and payable on the Effective Date of Termination regardless of the payment 
term provisions set forth in this Agreement.

      12.3  All engineering and manufacturing documents, processes, written 
procedures, print and process sheets, trademarks, trade names, patents, 
designs, drawings, formulas or other data, photographs, samples, literature 
and sales aids of every kind shall remain the property of PARLEX.  Within 
thirty (30) days after termination of this Agreement for any reason, PUCKA 
shall prepare all such items in its possession for shipment as PARLEX may 
direct, at PARLEX's expense.  PUCKA shall not make or retain any copies of 
any confidential items or information which may have been entrusted to it.

      12.4  The provisions of Sections 4,5,6,7,8,9,and 13 shall survive the 
termination of this Agreement for any reason.  All other rights and 
obligations of the parties shall cease upon termination of this Agreement.

Section 13.  USE OF FLEXIBLE CIRCUIT TECHNOLOGY AFTER
             EXPIRATION OR TERMINATION OF AGREEMENT

      13.1.  Upon expiration of this Agreement, or upon termination of this 
Agreement by either party, the obligations of both parties to maintain the 
confidentiality of the Flexible Circuit Technology under Section 11 hereof 
shall continue.  All rights and Licenses granted to PUCKA under this 
Agreement shall immediately cease and terminate and PUCKA shall immediately 
cease all new developments of projects with the customers.  PUCKA shall have 
the right to continue to supply current customers with parts produced for 
those customers at the date of termination until the current purchase order 
runs out.

Section l4.  GOVERNING LAW

      14.1  This Agreement, executed in duplicate, shall be interpreted in 
accordance with and its performance shall be governed by the laws of the 
Commonwealth of Massachusetts.  Any litigation or legal action between the 
parties concerning this Agreement shall take place in a court of competent 
jurisdiction in the Commonwealth of Massachusetts.  PUCKA hereby consents to 
and submits itself to the jurisdiction of the Commonwealth of Massachusetts 
and agrees to appear in any such action upon written notice thereof.

      14.2.  All rights and remedies available to PARLEX shall be cumulative 
and in addition to all rights and remedies available to PARLEX under all 
applicable laws, including without limitation, the Uniform Commercial Code 
in effect in Massachusetts.  No waiver of any right or remedy available to 
PARLEX in any instance shall constitute a waiver of any other right of 
remedy.

Section l5.  BINDING EFFECT AND SEVERABILITY

      15.1.  The terms of this Agreement shall be binding upon and inure to 
the benefit of and shall be enforceable by the executors, administrators, 
successors, assigns and transferees of the parties hereto.  In case any term 
of this Agreement shall be held invalid, illegal or unenforceable in whole 
or in part, neither the validity of the remaining part of such term nor the 
validity of any other term of this Agreement shall in any way be affected 
thereby.

      15.2.  This Agreement constitutes the full and complete understanding 
and agreement of the parties, supersedes all prior understandings and 
agreements, both oral and written as to the subject matter of this 
Agreement, and cannot be amended, changed, modified, or terminated without 
the consent in writing of both parties hereto.

Section l6.  NON-WAIVER

      16.1  The failure of PARLEX, at any time or from time to time, to 
enforce or require the strict keeping and performance of any of the terms or 
conditions of this Agreement shall not constitute nor be construed to be a 
waiver of such terms or conditions in any way.  The exercise by PARLEX of 
any right arising thereunder shall not preclude nor prejudice it from 
thereafter exercising the same or any other right nor shall the waiver of 
any breach of the Agreement prevent a subsequent enforcement of such term or 
obligation or be deemed to be a waiver of a subsequent breach.

Section l7.  ASSIGNABILITY

      17.1  Neither party hereto shall, during the term of this Agreement, 
assign, transfer or otherwise dispose of this Agreement or its interests, 
rights and obligations in or under this Agreement, without the prior written 
approval of the other party hereto, except that either party may assign this 
Agreement without approval of the other party, to a wholly-owned subsidiary 
of the assigning party. 

Section l8.  LANGUAGE

      18.1  This Agreement is in the English language, and is to be governed 
and interpreted in the English language, and is executed in duplicate 
originals, one duplicate to be retained by each party hereto.

Section 19.  HEADINGS

      19.1  Any headings in this Agreement are inserted for convenience only 
and shall not constitute a part hereof for any purpose whatsoever.

Section 20.  SUCCESSION

      20.1  This agreement has override and supersede all previous License 
Agreements.


      IN WITNESS WHEREOF, the parties hereto have executed this Agreement by 
their duly authorized officers or representatives as of the day and year 
first above written.


                                    PARLEX CORPORATION



                                    By:________________________
                                         PETER J. MURPHY, 
                                         PRESIDENT



                                    PUCKA INDUSTRIAL CO., LTD.


                                    By:________________________
                                         SANDO CHEN,
                                         PRESIDENT

                                  EXHIBIT A

1.0 Training and Technology Transfer

      1.1  PHASE I

PUCKA agrees to send up to 3 individuals to PARLEX for a period of 2 months 
maximum for training in the areas of:

      *

      1.2  PHASE II

PUCKA agrees to send up to 3 individuals to PARLEX for a period of 2 months 
maximum for training in the following areas:

      *

2.0  Cost Considerations

      2.1      *             Should PUCKA request the additional support, 
the cost shall be paid for these services under the provisions of the basic 
AGREEMENT.

3.0  Equipment Procurement

      3.1      *

      3.2      *

4.0  Timing

      4.1  PHASE I

      -  PARLEX procure and ship equipment            *

      -  PARLEX commence training of PUCKA            *

      4.2  PHASE II

      -  PARLEX procure and ship equipment            *

      -  PARLEX commence training of PUCKA            *

- PARLEX commits to "best effort" in our attempt to meet the procurement and 
ship schedule however, due to the uncertainty of equipment manufacture 
performance we are unable to guarantee these dates.

_______________________
<F*> Confidential information has been omitted and filed separately with the 
     Commission.