Document:

RadiSys Corporation
5445 NE Dawson Creek Drive
Hillsboro, OR 97124
(503) 615-1100
(503) 615-1150 fax
http://www.radisys.com

March 31, 1999

Stephen F. Loughlin
10515 SW Terwilliger Place
Portland, Oregon 97219

Dear Stephen:

We are pleased to offer you the position of Vice President and Chief Financial
Officer of RadiSys Corporation reporting to Glen Myers. Your base salary will be
$225,000 and your annual companywide incentive compensation plan target will be
35% of your base salary ($78,750). In addition, you will be given a sign-on
bonus of $18,000 to compensate you for the four-week sabbatical you will be
giving up at Sequent. You will also be given additional vacation time to take a
trip with your family at the end of the school year. This will not affect your 3
week vacation for 1999.

You will be eligible to participate in our companywide incentive compensation
plan which is paid out semiannually, in January and in July. The actual value
paid depends on the achievement of certain corporate and business unit goals.
You will be eligible to participate for the period beginning January 1, 1999 and
ending on June 30, 1999 on a pro-rated basis. You must be an active employee at
the end of the 2nd pay period after end of half to be eligible for an incentive
compensation plan payout.

You will also be granted 40,000 stock options under our 1995 Stock Option Plan.
Your options will vest over a three year period; one third of the shares are
exercisable on the first anniversary of your option grant date, one third on the
second anniversary, and one third on the third anniversary. The option agreement
is in effect for five years from the option grant date. The option price will be
the closing price on the NASDAQ on the date of the next Board of Directors
meeting. As much of the options as permitted by law will be granted as ISO
options, with the remainder issued as nonqualified options.

In the event that you are terminated from RadiSys for reasons other than cause,
you will be given six (6) months severance pay if you have been here less than
two years. This amount will be changed to one year of severance pay if you have
been here longer than two years.

Our benefits plan includes medical with Blue Cross Blue Shield, dental with ODS,
and vision insurance with Vision Service Plan (VSP). RadiSys pays 100% of the
cost of your insurance program, including the full premium for dependent
coverage under the medical, dental, and

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vision insurance. In keeping with our commitment to a smokefree workplace, we do
charge a nominal premium for employees or insured dependents who smoke.

RadiSys provides many other benefits to its employees, all of which will be
explained to you in the enclosed packet and at Orientation.

Stephen, we are very excited to have you as part of the RadiSys family. Please
read and sign the enclosed Employee Agreement and this offer letter and return
it to me. By signing, you acknowledge that you accept the terms set forth in
this letter.

Sincerely,

/s/ Diane M. Williams

Diane Marra Williams                          /s/ Stephen F. Loughlin 4/1/99
                                             ---------------------------------
Vice President, Human Resources              Employee                   Date

                                       2September 30, 2000

Mr. Stephen F. Loughlin
Chief Financial Officer
RadiSys Corporation
5445 NE Dawson Creek Drive
Hillsboro, OR 97124

Dear Stephen:

U.S Bank National Association, ("Bank") is pleased to provide a commitment for a
$20,000,000 (Twenty-Million Dollar), line of credit to RadiSys Corporation.
("Borrower"), subject to the follow terms and conditions:

Borrower:                           RadiSys Corporation

Guarantors:                         None

Operating Line of Credit

Borrowing Limit:                    $20,000,000.00 (Twenty-Million Dollars)

Purpose:                            Working capital, general corporate purposes
                                    and issuance of letters of credit up to
                                    $1,000,000 in the aggregate.

Expiry / Maturity:                  Expiry of September 30, 2001
                                    Standby Letters of Credit may have a final
                                    maturity of 11/30/2001

Pricing:
                  Fees:             Documentation, set-up, and commitment fee of
                                    5 basis points: $10,000

                                    Initial Unused fee is waived

                                    Initial Drawndown Fee of 25 basis points.
                                    Once drawn, a fee of 10 basis points on the
                                    unused portion of the facility, payable
                                    quarterly.

                  Interest Rate:    Interest on outstanding balances drawn under
                                    the revolving line of credit will be priced
                                    at the Bank's base rate, commonly announced
                                    as the Bank's Prime Rate, as it may change
                                    from time to time. The company will also
                                    have the option to price outstandings based
                                    on the London Inter-Bank Offering Rate,
                                    (LIBOR), plus a spread as tied to the
                                    company's leverage ratio as outlined in the
                                    table below.

                                    IBD is defined as the company's interest
                                    bearing debt. EBITDA is defined as the most
                                    recently reported quarterly earnings before

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                                    interest expense, taxes, depreciation and
                                    amortization expenses, multiplied by 4.

            --------------------------------------------------------------------
                   IBT / EBITDA               Prime          LIBOR
            --------------------------------------------------------------------
            Greater than 2.00                  +0%          200 bps
            --------------------------------------------------------------------
            1.50 to 2.00                       +0%         175 bps*
            --------------------------------------------------------------------
            1.25 to 1.50                       +0%          150 bps
            --------------------------------------------------------------------
            Less than 1.25                     +0%          125 bps
            --------------------------------------------------------------------
                       * current pricing

Other Terms:

            1.    Prime Rate: Borrower is advised that the U.S. Bank's Prime
                  Rate is the rate of interest which the Bank from time to time
                  identifies and publicly announces as its Prime Rate, and is
                  not necessarily, for example, the lowest rate of interest
                  which the Bank collects from any borrower or group of
                  borrowers.

                  Borrower may repay Prime Rate advances at anytime without a
                  prepayment penalty.

            2.    LIBOR: LIBOR is the London Inter-Bank Offering Rate and is the
                  rate per annum determined by Bank as the average rate offered
                  to banks for US Dollar deposits in the London inter-bank
                  market at approximately 11 AM London time, and adjusted for
                  reserves, if any. LIBOR borrowings are subject to the
                  following:

                  a.    Minimum advance of $500,000 and in increments of
                        $100,000 thereafter.

                  b.    Maturity and availability: One and two week, one, two,
                        and 3-month periods, subject to availability of funds.
                        Borrower acknowledges that the Bank will quote the
                        one-week Libor rate as the same rate offered for 2-week
                        and 1-month.

                  c.    Prepayment: Subject to indemnification of Bank.

                  d.    Notification: Two-business days-prior notice of request
                        for LIBOR advance or rollover is required. (Prior to
                        10:00 AM).

                  e.    Irrevocability: Acceptance of a pricing commitment from
                        Bank will constitute an irrevocable agreement of
                        Borrower to borrow.

Repayment Terms:        Revolving line of credit. Interest payable monthly.
                        Principal due at maturity.

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Collateral:             Unsecured, but subject to a Quick Ratio test. The
                        revolving line of credit provides for a flexible
                        collateral position according to the following matrix.
                        The assets of the Borrower, which are referenced below,
                        include accounts and inventory.

Quick Ratio*                         Collateral
--------------------------------------------------------------------------------
Greater than 1.50:1.00               Unsecured with negative pledge agreement.
--------------------------------------------------------------------------------
Less than or equal to 1.50:1.00      Unsecured with negative pledge if not
                                     borrowing, but converts to a secured
                                     facility if the ratio falls below the 1.50
                                     benchmark for two consecutive quarters. If
                                     borrowing then secured by accounts
                                     receivable and inventory.
--------------------------------------------------------------------------------
Less than or equal to 1.15:1.00      Unsecured with negative pledge if not
                                     borrowing. If borrowing then secured by
                                     accounts receivable and inventory with
                                     advances margined at 80% of eligible
                                     accounts receivable less than 30 days after
                                     due date
--------------------------------------------------------------------------------

                        *     Quick Ratio is defined as ((Cash + Net trade
                              A/R)/(Current Liabilities)) Based on the submitted
                              second quarter financial statements, the current
                              applicable Quick Ratio would be 2.4 to 1.0

                        Advances:

                        When the 80% eligibility test is applicable to the
                        advance criteria the following will apply: Ineligible
                        accounts will include, progress billings, retainages,
                        cash sales, COD, U.S. Government sales, potential
                        offsets, service charges and debtor aged accounts over
                        20 %. Additionally, Foreign receivables, which are
                        evidenced by letters-of-credit, will be eligible subject
                        to the aforementioned eligibility criteria, and other
                        Foreign receivables as pre approved by the Bank. Further
                        refinement of the advance may be necessary.

General Conditions:

Documentation:          Execution of notes, security agreements, loan
                        agreements, borrowing resolutions, and other documents
                        as required by Bank on forms prepared by Bank.

Covenants:              The following covenants will be measured quarterly:
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Page 4

                        o     Minimum Net Worth of $160,000,000 plus 50% of
                              quarterly Net Income with no deductions for losses
                              beginning in the fourth quarter of fiscal 2000.
                              Additionally this ratio will increase by 90% of
                              any new equity raised. (Current Net Worth based on
                              six month numbers is estimated to be $175 Million)

                        o     Minimum Current Ratio of 2.0 to 1.0. ( Currently
                              estimated to be 4.5 to 1.0)

                        o     Maximum Leverage Ratio of 1.25 to 1.0, defined as
                              Total Liabilities to Net worth. ( Currently
                              estimated to be less than 1.0 to 1.0)

                        Failure to comply with the above listed covenant
                        constitutes default under the terms of the Bank's
                        documents.

Financial Reporting:    Audited annual financial statements provided within 90
                        days of fiscal year end.

                        Quarterly interim financial statements, with compliance
                        certificate if borrowing, provided within 60 days of
                        fiscal quarter end.

Disbursements under the Revolving Line of Credit shall terminate on the earliest
of the occurrence of an event of default under any of the loan documents, the
date indicated above as the Expiry / Maturity Date, or the date on which this
Bank, in its sole discretion, determines that there has been a material adverse
change in the financial condition or management of the Borrower, or determines
that there has been any non-compliance with any term or condition stated herein.

Any non-compliance with the conditions and terms of this letter of commitment
will be considered as an event of default under each of the loan documents,
entitling the Bank to exercise rights and remedies provided for in the loan
documents.

This letter summarizes all or part of certain principal terms and conditions
relating to the loan and supersedes all prior oral or written negotiations,
understandings, representations and agreements with respect to the loan.
However, the loan documents will include additional material terms, conditions,
covenants, representations, warranties and other provision which Bank
customarily includes in similar transactions or which Bank determines to be
appropriate to this transaction. Neither Bank nor Borrower shall be liable to
the other on account of a failure to reach agreement on such other terms. Except
to the extent modified by any other agreement, all terms, conditions, covenants
and other provisions of this letter shall remain in effect until the loan
(including any renewals, extensions or modifications) is paid in full, and by
signing below, Borrower agrees to comply with all such provisions.

If the above terms and conditions of this letter to extend credit are acceptable
to you, please sign and return the acknowledgment copy of this letter no later
than November 30, 2000.

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Steve, it is my pleasure to assist the Company with its funding needs by
offering this line of credit commitment. Please let me know if you have any
questions concerning this renewal commitment.

Respectfully:

/s/ Ross A. Beaton

Ross A. Beaton
Vice President

By Oregon Statute (ORS 41.580), the following disclosure is required:

UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY US (BANK)
AFTER OCTOBER 3, 1989 CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT
FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER'S
RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY US TO BE
ENFORCEABLE.

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                                 ACKNOWLEDGMENT

The undersigned hereby acknowledges and accepts this offer to extend credit on
the terms and conditions stated above.

RadiSys Corporation, As Borrower

By: /s/  Brian Bronson
    ---------------------------------
Title: Treasurer
       ------------------------------
Date: 9-30-00
      -------------------------------

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