Document:

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Merix Corporation

                          EXECUTIVE SEVERANCE AGREEMENT

Anaya Vardya                                                    JANUARY 18, 2000
14937 N.W. Fawnlilly Drive
Portland, Oregon 97229

Merix Corporation
an Oregon corporation
PO Box 3000
Forest Grove, Oregon 97116

     Merix considers the establishment and maintenance of a sound and vital
management to be essential to protecting and enhancing the best interests of
Merix and its shareholders. In this connection, Merix recognizes that, as is the
case with many publicly held corporations, the possibility of a change of
control may exist and that such possibility, and the uncertainty and questions
which it may raise among management, may result in the departure or distraction
of management personnel to the detriment of Merix and its shareholders. In order
to induce Executive to remain employed by Merix in the face of uncertainties
about the long-term strategies of Merix and possible change of control of Merix
and their potential impact on Executive's position with Merix, this Agreement,
which has been approved by the Board of Directors of Merix, sets forth the
severance benefits that Merix will provide to Executive in the event Executive's
employment by Merix is terminated under the circumstances described in this
Agreement.

1.   EMPLOYMENT RELATIONSHIP. Executive is currently employed by Merix as Vice
President Operations. Executive and Merix acknowledge that either party may
terminate this employment relationship at any time and for any or no reason,
subject to the obligation of Merix to provide the severance benefits specified
in this Agreement in accordance with the terms hereof.

2.   RELEASE OF CLAIMS. In consideration for and as a condition precedent to
receiving the severance benefits outlined in this Agreement, Executive agrees to
execute a Release of Claims in the appropriate form attached as Exhibit A
("Release of Claims"). Executive promises to execute and deliver the Release of
Claims to Merix within the later of (a) 45 days from the date Executive receives
the Release of Claims or (b) the last day of Executive's active employment.

3.   COMPENSATION UPON TERMINATION. In the event of a Termination of Executive's
Employment (as defined in Section 8.1) at any time other than for Cause (as
defined in Section 8.2 of this Agreement), death or Disability (as defined in
Section 8.4 of this Agreement), and contingent upon Executive's execution of the
Release of Claims and compliance with Section 10, Executive shall be entitled to
the following benefits:

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Merix Corporation

3.1  As severance pay and in lieu of any other compensation for periods
subsequent to the date of termination, Merix shall pay Executive, in a single
payment after employment has ended and eight days have passed following
execution of the Release of Claims without revocation, an amount in cash equal
to one year of Executive's annual base pay at the rate in effect immediately
prior to the date of termination.

3.2  Executive is entitled to extend coverage under any group health plan in
which Executive and Executive's dependents are enrolled at the time of
termination of employment under the COBRA continuation laws for the 18-month
statutory period, or so long as Executive remains eligible under COBRA. Merix
will pay Executive a lump sum payment in an amount equivalent to the reasonably
estimated cost Executive may incur to extend for a period of 18 months under the
COBRA continuation laws Executive's group health and dental plan coverage in
effect at the time of termination. Executive may use this payment, as well as
any payment made under Section 3.1, for such COBRA continuation coverage or for
any other purpose.

3.3  Executive shall be entitled to a portion of the benefits under any annual
cash incentive plans in effect at the time of termination equal to the greater
of (a) 50 percent of Executive's target benefit under such plan for the year or
(b) a prorated amount representing the portion of the plan year during which
Executive was a participant. For purposes of this Agreement, Executive's
participation in any such plan will be considered to have ended on Executive's
last day of active employment. In making the proration calculation, the amount
of Executive's award if Executive had been a participant for the full incentive
period shall be divided by the total number of days in the incentive period and
the result multiplied by the actual number of days Executive participated in the
plan. The payment amount shall be calculated at the end of the incentive period
and the amount shall not be due and payable by Merix to Executive until the date
that all awards are payable to other eligible employees after the close of the
incentive period, except that Executive may elect at any time after termination,
by written notice to Merix, to receive 50 percent of Executive's target benefit
instead of the prorated amount, in which case the payment shall be made within
20 days of such election. If the applicable plan provides for a greater payment
for a participant whose employment terminates prior to the end of an incentive
period, the applicable plan payment shall be made.

3.4  Merix will pay up to $12,500 to a third party outplacement firm selected by
Executive to provide career counseling assistance to Executive for a period of
one year following Executive's termination date. Executive may elect to receive
the $12,500 in cash in lieu of payment to a third party outplacement firm.

3.5  All outstanding stock options, restricted stock, stock bonuses or other
stock awards shall be governed by the terms of the applicable agreement or plan.

3.6  In the event that Executive's employment with Merix terminates for any
reason prior to a Change of Control (as defined in Section 8.3), other than at
the direction of a person who has entered into an agreement with Merix, the
consummation of which will constitute a Change of Control, Executive shall not
be entitled to benefits under Section 4 of this Agreement.

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Merix Corporation

4.   ADDITIONAL COMPENSATION UPON TERMINATION FOLLOWING A CHANGE OF CONTROL. In
the event of a Termination of Executive's Employment other than for Cause, death
or Disability within 24 months following a Change of Control, or prior to a
Change of Control at the direction of a person who has entered into an agreement
with Merix, the consummation of which will constitute a Change of Control, and
contingent upon Executive's execution of the Release of Claims and compliance
with Sections 5 and 10, Executive shall be entitled to the following benefits,
which benefits shall be in addition to the benefits provided in Section 3:

4.1  Merix shall pay Executive, in a single payment within the latter of (a)
eight days after the last day of employment, including employment during the up
to the six months employment period referred to in Section 5 if Merix or the
surviving company has requested Executive to continue employment during such
period and (b) eight days after execution of the Release of Claims without
revocation, an amount in cash equal to one year of Executive's annual base
compensation at the rate in effect immediately prior to the date of termination.

4.2  Executive shall be entitled to receive an amount such that the amount
payable pursuant to Section 3.3 plus the amount payable pursuant to this Section
4.2 equals 100 percent of the Executive's target benefit for the year under
annual cash incentive plans in effect at the time of termination. The amount
payable pursuant to Section 4.2 shall be paid on the same date that the Section
4.1 payment is payable.

4.3  Merix shall maintain in full force and effect, at its sole cost and
expense, for Executive's continued benefit for a period terminating 18 months
after the date of termination a life insurance policy insuring Executive's life
with coverage equal to two times Executive's annual base pay in effect
immediately prior to termination, provided that Executive's continued
participation is possible under the general terms and provisions of such policy.
At Executive's election or in the event that Executive's continued participation
in such policy is barred, Merix shall make a lump sum payment to Executive equal
to the total premiums that would have been paid by Merix for such 18 month
period. The maximum amount that Merix shall be obligated to pay pursuant to this
Section 4.3 in premiums and payments to Executive shall be $5,000.

4.4  The possibility of forfeiture to Merix of all stock issued to Executive
under all Executive Stock Bonus Agreements shall immediately lapse.

4.5  All outstanding stock options held by Executive under all stock option and
stock incentive plans of Merix shall become immediately exercisable in full and
shall remain exercisable until the earlier of (a) two years after termination of
employment or (b) the option expiration date as set forth in the applicable
option agreement.

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Merix Corporation

4.6  Notwithstanding any provision in this Agreement, in the event that
Executive would receive a greater after-tax benefit from the Capped Benefit (as
defined in the next sentence) than from the payments pursuant to this Agreement
(the "Specified Benefits"), the Capped Benefit shall be paid to Executive and
the Specified Benefits shall not be paid. The Capped Benefit is the Specified
Benefits, reduced by the amount necessary to prevent any portion of the
Specified Benefits from being "parachute payments" as defined in section
280G(b)(2) of the Internal Revenue Code of 1986, as amended ("IRC"), or any
successor provision. For purposes of determining whether Executive would receive
a greater after-tax benefit from the Capped Benefit than from the Specified
Benefits, there shall be taken into account all payments and benefits Executive
will receive upon a change in control of the Company (collectively, excluding
the Specified Benefits, the "Change of Control Payments"). To determine whether
Executive's after-tax benefit from the Capped Benefit would be greater than
Executive's after-tax benefit from the Specified Benefits, there shall be
subtracted from the sum of the before-tax Specified Benefits and the Change of
Control Payments (including the monetary value of any non-cash benefits) any
excise tax that would be imposed under IRC ss. 4999 and all federal, state and
local taxes required to be paid by Executive in respect of the receipt of such
payments, assuming that such payments would be taxed at the highest marginal
rate applicable to individuals in the year in which the Specified Benefits are
to be paid or such lower rate as Executive advises Merix in writing is
applicable to Executive.

5.   ADDITIONAL SERVICE. Executive agrees that, if requested by Merix or the
surviving company following a Change of Control, Executive will continue his or
her employment with Merix or the surviving company for a period of up to six
months following the Change of Control in any capacity requested by Merix or the
surviving company consistent with Executive's areas of professional expertise.
During this period Executive shall receive the same salary and substantially the
same benefits as in effect prior to the Change of Control. Executive shall not
be entitled to any benefits provided by Section 4 if Executive fails to perform
in accordance with this Section 5.

6.   TAX WITHHOLDING; SUBSEQUENT EMPLOYMENT.

6.1  All payments provided for in this Agreement are subject to applicable tax
withholding obligations imposed by federal, state and local laws and
regulations.

6.2  The amount of any payment provided for in this Agreement shall not be
reduced, offset or subject to recovery by Merix by reason of any compensation
earned by Executive as the result of employment by another employer after
termination.

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Merix Corporation

7.   OTHER AGREEMENTS. This Agreement replaces and supersedes the Executive
Severance Agreement dated June 1, 1994 between Executive and Merix. In the event
that severance benefits are payable to Executive under any other agreement with
Merix in effect at the time of termination (including but not limited to any
employment agreement, but excluding for this purpose any stock option agreement
or stock bonus agreement or stock appreciation right agreement that may provide
for accelerated vesting or related benefits upon the occurrence of a change in
control), the benefits provided in this Agreement shall not be payable to
Executive. Executive may, however, elect to receive all of the benefits provided
for in this Agreement in lieu of all of the benefits provided in all such other
agreements. Any such election shall be made with respect to the agreements as a
whole, and Executive cannot select some benefits from one agreement and other
benefits from this Agreement.

8.   DEFINITIONS.

8.1  TERMINATION OF EXECUTIVE'S EMPLOYMENT. Termination of Executive's
Employment means that Merix has terminated Executive's employment with Merix
(including any subsidiary of Merix). For purposes of Section 3, if Executive is
assigned additional or different titles, tasks or responsibilities from those
currently held or assigned, consistent with Executive's areas of professional
expertise and with no decrease in annual base compensation, whether at Merix or
any subsidiary of Merix, such circumstances shall not constitute a Termination
of Executive's Employment. For purposes of Section 4, Termination of Executive's
Employment shall include termination by Executive, within 24 months of a Change
of Control, by written notice to Merix referring to the applicable paragraph of
Section 8.1, for "Good Reason" based on:

                    (a) the assignment to Executive of a different title, job or
               responsibilities that results in a decrease in the level of
               responsibility of Executive with respect to the surviving company
               after the Change of Control when compared to Executive's level of
               responsibility for Merix' operations prior to the Change of
               Control; provided that Good Reason shall not exist if Executive
               continues to have the same or a greater general level of
               responsibility for the former Merix operations after the Change
               of Control as Executive had prior to the Change of Control even
               if the former Merix operations are a subsidiary or division of
               the surviving company;

                    (b) a reduction by Merix or the surviving company in
               Executive's base pay as in effect immediately prior to the Change
               of Control;

                    (c) a significant reduction by Merix or the surviving
               company in total benefits available to Executive under cash
               incentive, stock incentive and other employee benefit plans after
               the Change of Control compared to the

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               total package of such benefits as in effect prior to the Change
               of Control;

                    (d) Merix or the surviving company requires Executive to be
               based more than 50 miles from where Executive's office is located
               immediately prior to the Change of Control except for required
               travel on company business to an extent substantially consistent
               with the business travel obligations which Executive undertook on
               behalf of Merix prior to the Change of Control; or

                    (e) the failure by Merix to obtain from any successor
               (whether direct or indirect, by purchase, merger, consolidation
               or otherwise) to all or substantially all of the business and/or
               assets of Merix ("Successor") the assent to this Agreement
               contemplated by Section 9 hereof.

8.2  CAUSE. Termination of Executive's Employment for "Cause" shall mean
termination upon (a) the willful and continued failure by Executive to perform
substantially Executive's reasonably assigned duties with Merix (other than any
such failure resulting from Executive's incapacity due to physical or mental
illness) after a demand for substantial performance is delivered to Executive by
the Board, the Chief Executive Officer or the President of Merix which
specifically identifies the manner in which the Board or Merix believes that
Executive has not substantially performed Executive's duties or (b) the willful
engaging by Executive in illegal conduct which is materially and demonstrably
injurious to Merix. No act, or failure to act, on Executive's part shall be
considered "willful" unless done, or omitted to be done, by Executive without
reasonable belief that Executive's action or omission was in, or not opposed to,
the best interests of Merix. Any act, or failure to act, based upon authority
given pursuant to a resolution duly adopted by the Board or based upon the
advice of counsel for Merix shall be conclusively presumed to be done, or
omitted to be done, by Executive in the best interests of Merix.

8.3  CHANGE OF CONTROL. A Change of Control shall mean that one of the following
events has taken place:

                    (a) The shareholders of Merix approve one of the following
               ("Approved Transactions"):

                         (i) Any merger or statutory plan of exchange involving
                    Merix ("Merger") in which Merix is not the continuing or
                    surviving corporation or pursuant to which Common Stock
                    would be converted into cash, securities or other property,
                    other than a Merger involving Merix in which the holders of
                    Common Stock immediately prior to the Merger have the same
                    proportionate ownership of Common Stock of the surviving
                    corporation after the Merger; or

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Merix Corporation

                         (ii) Any sale, lease, exchange, or other transfer (in
                    one transaction or a series of related transactions) of all
                    or substantially all of the assets of Merix or the adoption
                    of any plan or proposal for the liquidation or dissolution;

                    (b) A tender or exchange offer, other than one made by (i)
               Merix or (ii) Tektronix, Inc. at a time when Merix is in default
               under any of the Supply Agreements between Tektronix or any of
               its subsidiaries and Merix, is made for Common Stock (or
               securities convertible into Common Stock) and such offer results
               in a portion of those securities being purchased and the offeror
               after the consummation of the offer is the beneficial owner (as
               determined pursuant to Section 13(d) of the Securities Exchange
               Act of 1934, as amended (the "Exchange Act")), directly or
               indirectly, of securities representing at least 20 percent of the
               voting power of outstanding securities of Merix;

                    (c) Merix receives a report on Schedule 13D of the Exchange
               Act reporting the beneficial ownership by any person (other than
               Tektronix, Inc. or any of its affiliates) of securities
               representing 20 percent or more of the voting power of
               outstanding securities of Merix, except that (i) if such receipt
               shall occur as the result of sale of Common Stock (or securities
               convertible into Common Stock) by Tektronix, Inc. or any of its
               affiliates, it shall not constitute a Change of Control, or (ii)
               if such receipt shall occur during a tender offer or exchange
               offer described in (b) above, a Change of Control shall not take
               place until the conclusion of such offer; or

                    (d) During any period of 12 months or less, individuals who
               at the beginning of such period constituted a majority of the
               Board of Directors cease for any reason to constitute a majority
               thereof unless the nomination or election of such new directors
               was approved by a vote of at least two-thirds of the directors
               then still in office who were directors at the beginning of such
               period.

Notwithstanding anything in the foregoing to the contrary, no Change of Control
shall be deemed to have occurred for purposes of this Agreement by virtue of any
transaction which results in Executive, or a group of persons which includes
Executive, acquiring, directly or indirectly, securities representing 20 percent
or more of the voting power of outstanding securities of Merix.

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Merix Corporation

8.4  DISABILITY. Termination of Executive's Employment based on "Disability"
shall mean termination without further compensation under this Agreement, due to
Executive's absence from Executive's full-time duties with Merix for 180
consecutive days as a result of Executive's incapacity due to physical or mental
illness, unless within 30 days after notice of termination by Merix following
such absence Executive shall have returned to the full-time performance of
Executive's duties.

9.   SUCCESSORS; BINDING AGREEMENT.

9.1  This Agreement shall be binding on and inure to the benefit of Merix and
its Successors and assigns. Upon Executive's written request, Merix will seek to
have any Successor by agreement, assent to the fulfillment by Merix of its
obligations under this Agreement. If such a request is made, failure of Merix to
obtain such assent prior to or at the time a company becomes a Successor shall
constitute Good Reason for termination by Executive of his or her employment
and, if a Change of Control of the Company has occurred, shall entitle Executive
to the benefits pursuant to Section 4.

9.2  This Agreement shall inure to the benefit of and be enforceable by
Executive and Executive's legal representatives, executors, administrators and
heirs.

10.  RESIGNATION OF CORPORATE OFFICES. Executive will resign Executive's office,
if any, as a director, officer or trustee of Merix, its subsidiaries or
affiliates and of any other corporation or trust of which Executive serves as
such at the request of Merix, effective as of the date of termination of
employment. Executive agrees to provide Merix such written resignation(s) upon
request and that no severance will be paid until after such resignation(s) are
provided.

11.  GOVERNING LAW, ARBITRATION. This Agreement shall be construed in accordance
with and governed by the laws of the State of Oregon. Any dispute or controversy
arising under or in connection with this Agreement or the breach thereof, shall
be settled exclusively by arbitration under the Mutual Agreement to Arbitrate
Claims signed by the Executive, and judgment upon the award rendered by the
Arbitrator may be entered in any Court having jurisdiction thereof.
Notwithstanding any provision in the Mutual Agreement to Arbitrate Claims, Merix
shall pay all arbitration fees and reasonable attorney's fees and expenses
(including at trial and on appeal) of Executive in enforcing its rights under
this Agreement in the event of a Termination of Executive's Employment within 24
months following a Change of Control.

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Merix Corporation

12.  AMENDMENT. No provision of this Agreement may be modified unless such
modification is agreed to in writing signed by Executive and Merix.

13.  SEVERABILITY. If any of the provisions or terms of this Agreement shall for
any reason be held invalid or unenforceable, such invalidity or unenforceability
shall not affect any other terms of this Agreement, and this Agreement shall be
construed as if such unenforceable term had never been contained in this
Agreement.

MERIX CORPORATION

By:

Title:                            Executive

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                                    EXHIBIT A

                                RELEASE OF CLAIMS

1.   PARTIES.

     The parties to Release of Claims (hereinafter "Release") are ___________
and Merix Corporation, an Oregon corporation, as hereinafter defined.

     1.1  EXECUTIVE.

          For the purposes of this Release, "Executive" means ____________,
and his or her attorneys, heirs, executors, administrators, assigns, and
spouse.

     1.2  THE COMPANY.

          For purposes of this Release the "Company" means Merix Corporation, an
Oregon corporation, its predecessors and successors, corporate affiliates, and
all of each corporation's officers, directors, employees, insurers, agents, or
assigns, in their individual and representative capacities.

2.   BACKGROUND AND PURPOSE.

     Executive was employed by Company. Executive's employment is ending
effective __________ [following a Change in Control as defined in Section 8.3
("Change in Control") of Amended Executive Severance Agreement ("Agreement")].
Executive has elected pursuant to the terms of Section 3.3 of the [Amended
Executive Severance Agreement ("Agreement")/Agreement] to receive [50 percent of
target/the applicable prorated amount] of Executive's annual cash incentive and
elected pursuant to Section 3.4 of the Agreement to [receive $12,500 (less
proper withholding) in lieu of outplacement services/have payments up to $12,500
paid directly to a third party outplacement firm.] [Pursuant to Section 4.3 of
the Agreement, Merix shall pay [the cash equivalent not exceeding $5,000 (less
proper withholding) of] the cost and expense of maintaining a life insurance
policy for the Executive's benefit for 18 months.]

     The purpose of this Release is to settle, and the parties hereby settle,
fully and finally, any and all claims Executive may have against Company,
whether asserted or not, known or unknown, including, but not limited to, claims
arising out of or related to Executive's employment, any claim for reemployment,
or any other claims whether asserted or not, known or unknown, past or future,
that relate to Executive's employment, reemployment, or application for
reemployment.

3.   RELEASE.

     Except as reserved in paragraphs 3 or 3.1, Executive waives, acquits and
forever discharges Company from any obligations Company has and all claims
Executive may have including but not limited to obligations and/or claims
arising from the Agreement or any other document or oral agreement relating to
employment compensation, benefits severance or post-employment issues. Except as
reserved in

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Paragraph 3.1, Executive hereby releases Company from any and all claims,
demands, actions, or causes of action, whether known or unknown, arising from or
related in any way to any employment of or past or future failure or refusal to
employ Executive by Company, or any other past or future claim (except as
reserved by this Release or where expressly prohibited by law) that relates in
any way to Executive's employment, compensation, benefits, reemployment, or
application for employment, with the exception of any claim Executive may have
against Company for enforcement of this Release. This release includes any and
all claims, direct or indirect, which might otherwise be made under any
applicable local, state or federal authority, including but not limited to any
claim arising under the Oregon statutes dealing with employment, discrimination
in employment, Title VII of the Civil Rights Act of 1964, the Civil Rights Act
of 1991, the Americans With Disabilities Act, the Family and Medical Leave Act
of 1993, the Equal Pay Act of 1963, Executive Order 11246, the Rehabilitation
Act of 1973, the Uniformed Services Employment and Reemployment Rights Act of
1994, the Age Discrimination in Employment Act, the Fair Labor Standards Act,
Oregon wage and hour statutes, all as amended, any regulations under such
authorities, and any applicable contract, tort, or common law theories.

     3.1  RESERVATIONS OF RIGHTS.

          This Release shall not affect any rights which Executive may have
under any medical insurance, disability plan, workers' compensation,
unemployment compensation, applicable company stock incentive plan(s),
indemnifications, or the 401(k) plan maintained by the Company.

     3.2  NO ADMISSION OF LIABILITY.

          It is understood and agreed that the acts done and evidenced hereby
and the release granted hereunder is not an admission of liability on the part
of Executive or Company, by whom liability has been and is expressly denied.

4.   CONSIDERATION TO EXECUTIVE.

     After receipt of this Release fully endorsed by Executive, and the
expiration of the seven- (7) day revocation period provided by the Older Workers
Benefit Protection Act without Executive's revocation, Company shall pay:

          (a) the lump sum of ________________________________ and __/100
Dollars ($__________) to Executive (less proper withholding) for severance and
the reasonable estimate of COBRA continuation coverage as provided in Section[s]
3.1, 3.2 [and 4.1 and 4.6] of the Agreement;

          (b) Company will pay [up to $12,500 directly to the third party
outplacement firm selected by Executive for up to one year's outplacement
services as needed/$12,500 (less proper withholding) in lieu of outplacement
services];

          (c) the amount of annual cash incentive when due based on the terms of
Section[s] 3.3 [and 4.2] of the Agreement [as elected by Executive];[and]

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          [(d) [the cash equivalent (less proper withholding) of] the premium to
maintain Executive's life insurance plan for 18 months as provided in Section
4.3 of the Agreement.]

5.   NO DISPARAGEMENT.

     Executive agrees that henceforth Executive will not disparage or make false
or adverse statements about Company. The Company should report to Executive any
actions or statements that are attributed to Executive that the Company believes
are disparaging. The Company may take actions consistent with breach of this
Release should it determine that Executive has disparaged or made false or
adverse statements about Company. The Company agrees to follow the applicable
policy(ies) regarding release of employment reference information.

6.   CONFIDENTIALITY, PROPRIETARY, TRADE SECRET AND RELATED INFORMATION.

     Executive acknowledges the duty and agrees not to make unauthorized use or
disclosure of any confidential, proprietary or trade secret information learned
as an employee about Company, its products, customers and suppliers, and
covenants not to breach that duty. Moreover, Executive acknowledges that,
subject to the enforcement limitations of applicable law, the Company reserves
the right to enforce the terms of Executive's Employment Agreement with Company
and any paragraph(s) therein. Should Executive, Executive's attorney or agents
be requested in any judicial, administrative, or other proceeding to disclose
confidential, proprietary or trade secret information Executive learned as an
employee of Company, Executive shall promptly notify the Company of such request
by the most expeditious means in order to enable the Company to take any
reasonable and appropriate action to limit such disclosure.

7.   ARBITRATION OF CERTAIN DISPUTES.

     Executive and Company agree that should the issue arise of whether either
party to this Agreement has failed to satisfy or has breached the terms of this
Agreement, any dispute regarding the issue, except for any claim excepted under
the Mutual Agreement to Arbitration Claims, shall be submitted to arbitration
pursuant to the Mutual Agreement to Arbitrate Claims signed by Executive. In
such event, [each party shall pay its own costs and attorneys'
fees/notwithstanding contrary language in the Mutual Agreement to Arbitrate
Claims, because this Release follows a Change in Control, the reasonable
attorneys fees incurred by Executive to seek enforcement of this Release shall
be paid by the Company].

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8.   SCOPE OF RELEASE.

     The provisions of this Release shall be deemed to obligate, extend to, and
inure to the benefit of the parties; Company's parents, subsidiaries,
affiliates, successors, predecessors, assigns, directors, officers, and
employees; and each parties insurers, transferees, grantees, legatees, agents
and heirs, including those who may assume any and all of the above-described
capacities subsequent to the execution and effective date of this Release.

9.   OPPORTUNITY FOR ADVICE OF COUNSEL.

     Executive acknowledges that Executive has been encouraged to seek advice of
counsel with respect to this Release and has had the opportunity to do so.

10.  ENTIRE RELEASE.

     This Release, the Mutual Agreement to Arbitrate Claims, [as modified
herein] and the Employment Agreement signed by Executive contain the entire
agreement and understanding between the parties and, except as reserved in
paragraph 3 and 3.1, supersede and replace all prior agreements written or oral
including but not limited to the Agreement and the Executive Stock Bonus
Agreement, prior negotiations and proposed agreements, written or oral.
Executive and Company acknowledge that no other party, nor agent nor attorney of
any other party, has made any promise, representation, or warranty, express or
implied, not contained in this Release concerning the subject matter of this
Release to induce this Release, and Executive and Company acknowledge that they
have not executed this Release in reliance upon any such promise,
representation, or warranty not contained in this Release.

11.  SEVERABILITY.

     Every provision of this Release is intended to be severable. In the event
any term or provision of this Release is declared to be illegal or invalid for
any reason whatsoever by a court of competent jurisdiction or by final and
unappealed order of an administrative agency of competent jurisdiction, such
illegality or invalidity should not affect the balance of the terms and
provisions of this Release, which terms and provisions shall remain binding and
enforceable.

12.  PARTIES MAY ENFORCE RELEASE.

     Nothing in this Release shall operate to release or discharge any parties
to this Release or their successors, assigns, legatees, heirs, or personal
representatives from any rights, claims, or causes of action arising out of,
relating to, or connected with a breach of any obligation of any party contained
in this Release.

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13.  COSTS AND ATTORNEY'S FEES.

     [The parties each agree to bear their own costs and attorneys' fees which
have been or may be incurred in connection with any matters released herein or
in connection with the negotiation and consummation of this Release. In the
event of any administrative or civil action to enforce the provisions of this
Release, the prevailing party shall be entitled to attorney fees and costs
through trial and/or on appeal. Because this Release follows a Change of
Control, reasonable attorneys' fees which have been or may be incurred in
connection with any matters released herein or in connection with the
negotiation and consummation of this Release shall be paid by Company. In the
event of any administrative or civil action to enforce the provisions of this
Release, the Company shall pay Executive's reasonable attorneys' fees through
trial and/or on appeal.]

14.  ACKNOWLEDGMENTS.

     Executive acknowledges that the Release provides severance pay and benefits
which the Company would otherwise have no obligation to provide.

     Executive acknowledges that Company has provided the following information:
(a) the class or group of employees offered the opportunity to obtain severance
benefits similar to those in the Release, (b) the eligibility factors required
to obtain severance benefits similar to those in the Release, (c) the time
limits required to obtain severance benefits similar to those in the Release,
(d) the job titles and ages of employees eligible or selected for severance
benefits similar to those in the Release, and (e) the ages of employees in the
same classification either not eligible or not selected.

5

<PAGE>

15.  REVOCATION.

     As provided by the Older Workers Benefit Protection Act, Executive's is
entitled to have forty-five (45) days to consider this Release. For a period of
seven (7) days from execution of this Release, Executive may revoke this
Release. Upon receipt of Executive's signed Release and the end of the
revocation period, payment by Company as described in paragraph 4 above will be
forwarded by mail in a timely manner as provided herein.

Dated: ________________, 199_

[Name of Executive]

STATE OF OREGON   )
                  ) ss.
County of _________        )

     Personally appeared the above named __________________ and acknowledged
the foregoing instrument to be his or her voluntary act and deed.

                                    Before me:_________________________________
                                                  Notary Public for Oregon

MERIX CORPORATION

By:                                 Dated:

Its:

     On Behalf of "Company"

6

                                       13<PAGE>

                               INDEMNITY AGREEMENT

          This Agreement is made as of December 20, 1999, by and between Merix
Corporation, an Oregon corporation (the "Corporation"), and ANAYA VARDYA
("Indemnitee"), an officer of the Corporation.

          WHEREAS, it is essential to the Corporation to retain and attract as
directors and officers of the Corporation and its subsidiaries the most capable
persons available; and

          WHEREAS, corporate litigation subjects directors and officers to
expensive litigation risks at the same time that adequate coverage of directors'
and officers' liability insurance may be unavailable; and

          WHEREAS, the Articles of Incorporation of the Corporation require
indemnification of the officers and directors of the Corporation to the fullest
extent permitted by law. The Articles and the Oregon Business Corporation Act
(the "Act") expressly provide that the indemnification provisions set forth in
the Act are not exclusive, and thereby contemplate that contracts may be entered
into between the Corporation and members of the Board of Directors and officers
with respect to indemnification of directors and officers; and

          WHEREAS, Indemnitee does not regard the protection available under the
Corporation's Articles of Incorporation, Bylaws and insurance adequate in the
present circumstances, and may not be willing to serve as a director or officer
without adequate protection, and the Corporation desires Indemnitee to serve in
such capacity.

          NOW THEREFORE, the Corporation and Indemnitee agree as follows:

     1. AGREEMENT TO SERVE. Indemnitee agrees to serve or continue to serve as a
director and/or officer of the Corporation and/or one or more of its
subsidiaries for so long as Indemnitee is duly elected or appointed or until
such time as Indemnitee tenders a resignation in writing.

     2. DEFINITIONS. As used in this Agreement:

          (a) The term "Proceeding" shall include any threatened, pending or
completed action, suit or proceeding, whether brought in the right of the
Corporation or otherwise, whether of a civil, criminal, administrative or
investigative nature, and whether formal or informal, in which Indemnitee may be
or may have been involved as a party or otherwise, by reason of the fact that
Indemnitee is or was a director and/or officer of the Corporation, or is or was
serving at the request of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise,

                                       1

<PAGE>

whether or not serving in such capacity at the time any liability or expense is
incurred for which indemnification or reimbursement can be provided under this
Agreement.

          (b) The term "Expenses" includes, without limitation thereto, expense
of investigations, judicial or administrative proceedings or appeals, amounts
paid in settlement by Indemnitee, attorneys' fees and disbursements and any
expenses of establishing a right to indemnification under Section 7 of this
Agreement, but shall not include the amount of judgments or fines against
Indemnitee.

          (c) References to "other enterprises" shall include employee benefit
plans; references to "fines" shall include any excise tax assessed with respect
to any employee benefit plan; references to "serving at the request of the
corporation" shall include any service as a director, officer, employee or agent
of the Corporation which imposes duties on, or involves services by, such
director, officer, employee or agent with respect to an employee benefit plan,
its participants, or beneficiaries; and a person who acted in good faith and in
a manner reasonably believed to be in the interest of an employee benefit plan
shall be deemed to have acted in a manner "not opposed to the best interests of
the Corporation" as referred to in this Agreement.

     3. INDEMNITY IN THIRD PARTY PROCEEDINGS. The Corporation shall indemnify
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is
a party to or threatened to be made a party to any Proceeding (other than a
Proceeding by or in the right of the Corporation to procure a judgment in its
favor) against all Expenses, judgments and fines actually and reasonably
incurred by Indemnitee in connection with such Proceeding, but only if
Indemnitee acted in good faith and in a manner which Indemnitee reasonably
believed to be in or not opposed to the best interests of the Corporation and,
in the case of a criminal proceeding, in addition, had no reasonable cause to
believe that Indemnitee's conduct was unlawful. The termination of any such
Proceeding by judgment, order of court, settlement, conviction or upon a plea of
nolo contendere, or its equivalent, shall not, of itself, create a presumption
that Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in the best interest of the Corporation, and with
respect to any criminal proceeding, that such person had reasonable cause to
believe that Indemnitee's conduct was unlawful.

          Pursuant to this Agreement, the Corporation specifically will, and
hereby does, indemnify, to the fullest extent permitted by law, Indemnitee
against any and all losses, claims, damages, liabilities and expenses, joint or
several, (or actions or proceedings, whether commenced or threatened, in respect
thereof) to which Indemnitee may become subject, as a result of serving as a
director and/or officer of Merix, under the Securities Act or any other statute
or common law, including any amount paid in settlement of any litigation,
commenced or threatened, and to reimburse them for any legal or other expenses
incurred by them in

                                       2

<PAGE>

connection with investigating any claims and defending any actions, insofar as
any such losses, claims, damages, liabilities, expenses or actions arise out of
or are based upon any untrue statement or alleged untrue statement of a material
fact regarding Merix, or the omission or alleged omission to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.

     4. INDEMNITY IN PROCEEDINGS BY OR IN THE RIGHT OF THE CORPORATION. The
Corporation shall indemnify Indemnitee in accordance with the provisions of this
Section 4 if Indemnitee is a party to or threatened to be made a party to any
Proceeding by or in the right of the Corporation to procure a judgment in its
favor against all Expenses actually and reasonably incurred by Indemnitee in
connection with the defense or settlement of such Proceeding, but only if
Indemnitee acted in good faith and in a manner which Indemnitee reasonably
believed to be in or not opposed to the best interests of the Corporation,
except that no indemnification for Expenses shall be made under this Section 4
in respect of any claim, issue or matter as to which such person shall have been
finally adjudged by a court to be liable for negligence or misconduct in the
performance of Indemnitee's duty to the Corporation, unless and only to the
extent that any court in which such Proceeding was brought shall determine upon
application that, despite the adjudication of liability but in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnity.

     5. INDEMNIFICATION OF EXPENSES OF SUCCESSFUL PARTY. Notwithstanding any
other provisions of this Agreement, to the extent that Indemnitee has been
successful on the merits or otherwise, in defense of any Proceeding or in
defense of any claim, issue or matter therein, including the dismissal of an
action without prejudice, Indemnitee shall be indemnified against all Expenses
incurred in connection therewith.

     6. ADVANCES OF EXPENSES. The Expenses incurred by Indemnitee pursuant to
Sections 3, 4 and 8 in any Proceeding shall be paid by the Corporation in
advance at the written request of Indemnitee, if Indemnitee shall undertake to
repay such amount to the extent that it is ultimately determined by a court that
Indemnitee is not entitled to be indemnified by the Corporation and shall
furnish the Corporation a written affirmation of the Indemnitee's good faith
belief that Indemnitee is entitled to be indemnified by the Corporation under
this Agreement. Such advances shall be made without regard to Indemnitee's
ability to repay such expenses.

     7. RIGHT OF INDEMNITEE TO INDEMNIFICATION UPON APPLICATION; PROCEDURE UPON
APPLICATION. Any indemnification or advances under Sections 3, 4, 6 or 8 shall
be made no later than 45 days after receipt of the written request of
Indemnitee, unless a determination is made within such 45 day period by (a) the
Board of Directors by a majority vote of a quorum consisting of directors who
were not parties to such proceeding, or (b) independent legal

                                       3

<PAGE>

counsel in a written opinion (which counsel shall be appointed if such quorum is
not obtainable), that the Indemnitee has not met the relevant standards for
indemnification set forth in Section 3, 4 or 8 or an exclusion set forth in
Section 9 is applicable.

          The right to indemnification or advances as provided by this Agreement
shall be enforceable by Indemnitee in any court of competent jurisdiction. The
burden of proving that indemnification or advances are not appropriate shall be
on the Corporation. Neither the failure of the Corporation (including its Board
of Directors or independent legal counsel) to have made a determination prior to
the commencement of such action that indemnification or advances are proper in
the circumstances because Indemnitee has met the applicable standard of conduct
nor an actual determination by the Corporation (including its Board of Directors
or independent legal counsel) that Indemnitee has not met such applicable
standard of conduct, shall be a defense to the action or create a presumption
that Indemnitee has not met the applicable standard of conduct. Indemnitee's
expenses incurred in connection with successfully establishing Indemnitee's
right to indemnification or advances, in whole or in part, in any such
Proceeding shall also be indemnified by the Corporation.

     8. ADDITIONAL INDEMNIFICATION.

          (a) Notwithstanding any limitation in Sections 3 or 4, the Corporation
shall indemnify Indemnitee in accordance with the provisions of this Section
8(a) to the fullest extent permitted by law if Indemnitee is party to or
threatened to be made a party to any Proceeding (including a Proceeding by or in
the right of the Corporation to procure a judgment in its favor) involving a
claim against Indemnitee for breach of fiduciary duty by Indemnitee against all
Expenses, judgments and fines actually and reasonably incurred by Indemnitee in
connection with such Proceeding, provided that no indemnity shall be made under
this Section 8(a) on account of Indemnitee's conduct which constitutes a breach
of Indemnitee's duty of loyalty to the Corporation or its stockholders or is an
act or omission not in good faith or which involves intentional misconduct or a
knowing violation of the law or with respect to an unlawful distribution under
ORS 60.367.

          (b) Notwithstanding any limitation in Sections 3, 4 or 8(a), the
Corporation shall indemnify Indemnitee if Indemnitee is a party to or threatened
to be made a party to any Proceeding (including a Proceeding by or in the right
of the Corporation to procure a judgment in its favor) against all Expenses,
judgments and fines actually and reasonably incurred by Indemnitee in connection
with such Proceeding to the fullest extent permitted by the Act, including the
nonexclusivity provision of ORS 60.414(1) and any successor provision and
including any amendments to the Act adopted after the date hereof that may
increase the extent to which a corporation may indemnify its officers and
directors.

                                       4

<PAGE>

          (c) The indemnification provided by this Agreement shall not be deemed
exclusive of any other rights to which Indemnitee may be entitled under the
Restated Articles of Incorporation, the Bylaws, any other agreement, any vote of
shareholders or directors, the Act, or otherwise, both as to action in
Indemnitee's official capacity or as to action in another capacity while holding
such office. The indemnification under this Agreement shall continue as to
Indemnitee even though Indemnitee may have ceased to be a director or officer
and shall inure to the benefit of the heirs and personal representatives of
Indemnitee.

     9. EXCLUSIONS. Notwithstanding any provision in this Agreement, the
Corporation shall not be obligated under this Agreement to make any
indemnification or advances in connection with any claim made against
Indemnitee:

          (a) for which payment is required to be made to or on behalf of
Indemnitee under any insurance policy, except with respect to any excess beyond
the amount of required payment under such insurance, unless payment under such
insurance policy is not made after reasonable effort by Indemnitee to obtain
payment. The Corporation shall be subrogated with respect to any other rights of
Indemnitee with respect to any payment made by the Corporation to or on behalf
of the Corporation under this Agreement;

          (b) for any transaction from which Indemnitee derived an improper
personal benefit; or

          (c) for an accounting of profits made from the purchase and sale by

Indemnitee of securities of the Corporation within the meaning of Section 16(b)
of the Securities Exchange Act of 1934 and amendments thereto or similar
provisions of any state statutory law or common law.

     10. PARTIAL INDEMNIFICATION. If Indemnitee is entitled under any provisions
of this Agreement to indemnification by the Corporation for some or a portion of
the Expenses, judgments and fines actually and reasonably incurred by Indemnitee
in the investigation, defense, appeal or settlement of any Proceeding but not,
however, for the total amount thereof, the Corporation shall nevertheless
indemnify Indemnitee for the portion of such Expenses, judgments or fines to
which Indemnitee is entitled.

     11. BUSINESS TRANSACTIONS. The Corporation agrees that it will not effect
any Business Transaction (as defined in Article XI of the Restated Articles of
Incorporation of the Corporation) which has not been approved by the Continuing
Directors (as defined in Article XI of the Restated Articles of Incorporation of
the Corporation) of the Corporation unless the other party to the transaction
agrees in writing to (a) use its best efforts to maintain for the subsequent two
year period any and all directors' and officers' liability insurance in effect
prior to any discussions or announcement relating to such Business Transaction
and (b) assume all obligations of the Corporation under this Agreement and
indemnify Indemnitee and advance litigation expenses in accordance with this
Agreement.

                                       5

<PAGE>

     12. SEVERABILITY. If this Agreement or any portion thereof shall be
invalidated on any ground by any court of competent jurisdiction, then the
Corporation shall nevertheless indemnify Indemnitee as to Expenses, judgments
and fines with respect to any Proceeding to the full extent permitted by any
applicable portion of this Agreement that shall not have been invalidated or by
any other applicable law.

     13. NOTICE. Indemnitee shall, as a condition precedent to Indemnitee's
right to be indemnified under this Agreement, give to the Corporation notice in
writing as soon as practicable of any claim made against Indemnitee for which
indemnity will or could be sought under this Agreement. Notice to the
Corporation shall be directed to Merix Corporation, 1521 Poplar Lane, Forest
Grove, Oregon 97116, Attention: Secretary (or such other address as the
Corporation shall designate in writing to Indemnitee). Notice shall be deemed
received three days after the date postmarked if sent by prepaid mail, properly
addressed. In addition, Indemnitee shall give the Corporation such information
and cooperation as it may reasonably require and as shall be within Indemnitee's
power.

     14. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall constitute the original.

     15. APPLICABLE LAW. This Agreement shall be governed by and construed in
accordance with Oregon law.

     16. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon the
Corporation and its successors and assigns.

          IN WITNESS WHEREOF, the parties hereby have caused this Agreement to
be duly executed and signed as of the day and year first above written.

                                    MERIX CORPORATION

                                    By ___________________________

                                    Chief Executive Officer and President

                                    INDEMNITEE

                                    ______________________________
                                    Anaya Vardya

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