EMPLOYMENT AGREEMENT
                            --------------------


      AGREEMENT (the "Agreement") made as of the 26th day of June, 1996, by 
and between Parlex Corporation, a Massachusetts corporation (the "Company"), 
and Peter J. Murphy of Bedford, New Hampshire (the "Employee").


      In consideration of the mutual promises herein contained, the Company 
and the Employee hereby agree as follows:


      1.  Employment
          ----------
          

      The Company hereby employs the Employee, and the Employee hereby 
accepts employment by the Company to render such services in connection with 
the business of the Company as the Company may from time to time request. 
The term of the Employee's employment hereunder shall begin on July 1, 1996 
and shall end on June 30, 1999.


      2.  Compensation
          ------------


      2.1  In consideration of all services to be rendered by the Employee 
during the term of this Agreement, the Company shall pay to the Employee 
during the term of his employment hereunder compensation at the rate of 
eight thousand twenty-one dollars ($8,021.00) twice a month, payable in 
accordance with Company's current policy for senior management.


      2.2  The amount of compensation provided in subsection 2.1 above may 
be reviewed from time to time by the Compensation Committee of the Board of 
Directors of the Company in its sole discretion.


      3.  Death Benefit
          -------------


      If the Employee dies during the term of employment hereunder, this 
Agreement shall terminate and all obligations of Company to Employee shall 
terminate except  that Company agrees to pay to the Designated Beneficiary 
(as hereinafter defined) on a monthly basis for a period of twenty-four (24) 
months beginning with the first month after Employee's death, an amount 
equal to seventy-five percent (75%) of the rate of compensation payable per 
month to Employee, at the time of Employee's death, pursuant to subsection 
2.1 above.

      For purposes of this Agreement, the term "Designated Beneficiary" 
shall be the person or persons designated in a writing filed by the Employee 
with the Company or, upon the death of the Employee without having made such 
a designation, the Employee's estate.


      4.  Fringe Benefits
          ---------------


      In addition to the compensation provided for in section 2 above, while 
this Agreement is in effect Employee shall be entitled to receive all fringe 
benefits and perquisites customarily extended to officers and key employees 
of the Company, including but not limited to, profit sharing, bonus, stock 
option, health and life insurance.


      5.  Further Covenants
          -----------------


      5.1  The Employee agrees that all knowledge and information of a 
secret or confidential nature with respect to the business of the Company 
possessed or acquired by him will be held in confidence and will not, either 
during or after his employment by the Company, be disclosed, published, or 
made use of except when in the ordinary course of business the disclosure is 
in the best interest of the Company or  unless and until such knowledge and 
information shall have ceased to be secret or confidential as evidenced by 
general public knowledge.


      5.2  The Employee agrees that all inventions, developments, patents, 
and patent applications relating to the business of the Company made, 
conceived, or obtained by him either alone or in conjunction with others 
during the term of his employment by the Company shall be the sole property 
of the Company.  The Employee agrees to promptly disclose and assign to the 
Company all such inventions, developments, patents, and patent applications, 
and, at the request of the Company to promptly execute and deliver any 
documents and take any other action which the Company deems necessary or 
advisable in order to vest in it all rights to such inventions, 
developments, patents, and patent applications.


      5.3  The Employee agrees that at the termination of his employment by 
the Company he will promptly deliver to the Company all technical data, 
drawings, memoranda, customer lists, and other documents in his possession 
or control which relate to the business of the Company.


      5.4  The Employee agrees that so long as he is employed by the Company 
hereunder, and for a period of twelve (12) months after he ceases for any 
reason to be employed by the Company, he will not, directly or indirectly, 
own, operate, manage or participate in the ownership, operation, or 
management of, or be connected or employed in any way (whether as owner, 
employee, officer, director, partner, shareholder, consultant, joint 
venturer, investor, lender or in any other capacity) with, or engage, enter 
into or participate in any business in competition with the business of the 
Company, including, but not limited to, the business of the design, 
manufacture, and sale of flexible circuits, laminated cable and related 
products, operating units of flexible circuit competitors, laminated cable 
competitors, material or service suppliers to competitors or customer owned 
printed circuit facilities, anywhere in the United States; provided, 
however, the Employee shall not be deemed to be in violation of this 
subsection 5.4 solely by reason of his ownership of not more than two 
percent (2%) of the equity of any corporation whose stock is regularly 
traded on a national securities exchange or in the over-the-counter market.


      5.5  The Employee agrees that so long as he is employed by the Company 
hereunder, and for a period of twelve (12) months after he ceases for any 
reason to be employed by the Company, he will not, directly or indirectly, 
through one or more persons, offer employment to any employee of the 
Company, assist in the hiring of any employee of the Company by any other 
person, or encourage any employee of the Company to terminate his or her 
employment with the Company.


      5.6  The Employee agrees that so long as he is employed by the Company 
hereunder, and for a period of twelve (12) months after he ceases for any 
reason to be employed by Company, Employee shall not, directly or 
indirectly, solicit, divert or take away, or attempt to divert or take away, 
the business of any client, account or customer, or prospective client, 
customer or account of Company or with whom Employee has had any contact as 
a result of his employment by Company hereunder nor shall he divulge, 
disclose or communicate the list of customers (present or potential) of the 
Company's business to any person, firm, corporation, association or other 
entity.


      5.7  In consideration of and as an inducement to both parties to enter 
into this Agreement, Employee and Company represent and agree that the 
provisions of this covenant not to compete are proper and customary for 
Employee's level of responsibility and there is mutual advantage to both 
parties for execution of this Agreement.  The Employee represents and agrees 
that he has received fair and reasonable compensation for his employment and 
further represents and warrants that although a disadvantage,his education, 
training and experience are such that the provisions of this Covenant will 
not prevent him from earning a living.  The Company acknowledges that the 
employment restriction could significantly damage the Employee's ability to 
quickly retain suitable employment but will not prevent him from earning a 
living.  Employee agrees and acknowledges that Company will suffer 
irreparable injury and damage and cannot be reasonably or adequately 
compensated in monetary damages for the loss by the Company of its benefits 
or rights under this Agreement as a result of a breach, default or violation 
by the Employee of his obligations hereunder.  Accordingly, the Company 
shall be entitled, in addition to all other remedies which may be available 
to it (including monetary damage), 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 the Employee of any provision hereunder or to enforce any such 
provision.  Any legal action or other proceeding for any purpose with 
respect to this Section 5 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 
the proceeding.

      It is acknowledged further by Employee that the provisions of Section 
5 are restrictive and intended to prevent Employee from competing with 
Company, soliciting its customers or influencing Company's employees in any 
way to discontinue their employment relationship with Company.

      If at any time the provisions relating to the agreement of the 
Employee not to compete with the Company or raid or entice away its 
employees shall be deemed invalid or unenforceable by the laws of the 
jurisdiction wherein it is to be enforced, by reason of being vague or 
unreasonable as to duration or geographic scope or scope of activities 
restricted, or for any other reason, the remaining provisions thereof shall 
nevertheless continue to be valid and enforceable as though the invalid or 
unenforceable parts had not been included therein and the covenant shall be 
considered divisible as to such invalid or unenforceable portion, and it 
shall be construed to include only such restrictions and to such extent as 
shall be deemed to be reasonable and enforceable by the court or other body 
of such jurisdiction charged with interpreting and/or enforcing this 
Agreement, and the Company, and Employee agree that the restrictions of such 
covenant as so construed shall be valid and binding as though the invalid or 
unenforceable portion had not been included herein.


      5.8  For purposes of this Agreement, the words "so long as he is 
employed by the Company hereunder" as used herein shall refer to the time 
period when the Company shall have terminated Employee's employment without 
cause pursuant to Section 6.3 below and Employee continues to be paid 
compensation in accordance with the provisions of Section 2 above.


      6.  Employment Termination
          ----------------------


      Section 1 of this Agreement notwithstanding, the employment of the 
Employee by the Company pursuant to this Agreement shall terminate upon the 
occurrence of any of the following:


      6.1  At the election of the Company, for cause, immediately upon 
written notice by the Company to the Employee.  For the purposes of this 
Agreement  the term "Cause" shall mean that the Employee shall have breached 
or failed to perform his obligations and job responsibilities in accordance 
with the terms and conditions of this Agreement or his job description, 
shall demonstrate negligence, inefficiency, gross misconduct, dishonesty, or 
insubordination in the execution of his duties as an employee of the 
Company, or upon conviction of a felony or any crime involving moral 
turpitude;


      6.2  Upon the death or total disability of the Employee.  As used in 
this Agreement, the term "total disability" shall mean the inability of the 
Employee, due to a physical or mental disability, for a period of 90 
consecutive days during any 360-day period, to perform the services 
contemplated under this Agreement.  A determination of total disability 
shall be made by a physician satisfactory to both the Employee and the 
Company, provided that if the Employee and the Company do not agree on a 
physician, the Employee and the Company shall each select a physician and 
these two together shall select a third physician, whose determination as to 
disability shall be binding on all parties.  Notwithstanding the foregoing, 
the Company may, in its sole discretion, enlarge the time period definition 
provided herein; or


      6.3  Upon notice of termination given at the election of the Company 
by action of its board of directors without Cause provided that the Employee 
shall be entitled to receive the compensation described in Section 7.3 
below.


      7.  Effect of Termination
          ---------------------


      7.1  In the event the Employee's employment is terminated for Cause 
pursuant to Section 6.1, the Company shall pay to the Employee the 
compensation and benefits otherwise payable to him under Section 2 through 
the last day of his actual employment by the Company.


      7.2  If the Employee's employment is terminated because of disability 
pursuant to Section 6.2 above, the Company shall pay to the Employee both 
the compensation which would otherwise be payable to the Employee up to the 
end of the month in which the termination of his employment because of 
disability occurs and an amount, payable on a monthly basis, for a period of 
six (6) months beginning with the first month after termination of his 
employment because of disability occurs, equal to one hundred percent (100%) 
of the rate of compensation payable per month to Employee, at the time of 
Employee's termination, pursuant to subsection 2.1 above.  Notwithstanding 
the foregoing, Company's obligation to pay compensation to Employee for six 
months after termination of his employment shall be reduced dollar for 
dollar by the amount of any long term disability payments received by or 
payable to Employee for this same time period.


      7.3  If the Employee's employment is terminated without Cause pursuant 
to Section 6.3 or in the event the Company decides after expiration of this 
Agreement not to renew Employee's employment with the Company and said 
decision was made without Cause, the Company shall pay to the Employee both 
(i) the compensation and benefits otherwise payable to him under Section 2 
through the last day of his actual employment by the Company and (ii) an 
amount, payable on a monthly basis, through June 30, 1999 equal to one 
hundred percent (100%) of the rate of compensation payable per month to 
Employee, at the time of Employee's termination, pursuant to subsection 2.1 
above.  Additionally, Company shall pay to Employee a monthly sum equivalent 
to fifty percent (50%) of the rate of compensation payable per month to 
Employee, at the time of Employee's termination, pursuant to subsection 2.1 
above ("Termination Pay"), for each month or pro rata portion of each month, 
from July 1, 1999 to the earlier to occur of the following dates: (a) June 
30, 2000; (b) Employee's reemployment; or (c) Company determining, in its 
sole discretion, that it will waive compliance by the Employee with the 
provisions of section 5.4 herein.


      8.  Attachment; assignability
          -------------------------


      The right of the Employee or his Designated Beneficiary to any payment 
hereunder shall not be subject in any manner to attachment or other legal 
process for the debts of the Employee or such Designated Beneficiary, and 
the right to any such payment shall not be subject to anticipation, 
alienation, sale, transfer, assignment, or encumbrance.


      9.  Severability
          ------------


      The provisions of this Agreement shall be severable, and the 
invalidity of any portion of this Agreement shall not affect the validity of 
any other portion hereof.


      10.  Successors
           ----------


      This Agreement shall be binding upon and shall inure to the benefit of 
the Company, its successors and assigns, and the Employee, his executors, 
administrators, and personal representatives.  The parties further agree 
that this Agreement contains the entire understanding of the parties and is 
the complete and exclusive statement of the Agreement between them, and that 
they understand and agree to be bound by its terms and conditions.


      11.  Governing Law
           -------------


      This Agreement shall be construed and interpreted in accordance with 
the laws of the Commonwealth of Massachusetts.


      IN WITNESS WHEREOF, the Company has caused this Agreement to be 
executed in its behalf by an officer thereof thereunto duly authorized and 
has caused its seal to be hereunto affixed and duly attested, and the 
Employee has hereunto set his hand and seal, as of the day and year first 
above written.


ATTEST:                                PARLEX CORPORATION:


                                       By: /s/ Herbert W. Pollack
-----------------------------              ------------------------------------
                                           Herbert W. Pollack,
                                           Chief Executive Officer



                                       EMPLOYEE:

                                           /s/ Peter J. Murphy
-----------------------------              ------------------------------------
                                           Peter J. Murphy