Document:

<PAGE>

                                  EXHIBIT 10.8

                                EXAR CORPORATION

                      EXECUTIVE OFFICERS' CHANGE OF CONTROL
                             SEVERANCE BENEFIT PLAN

SECTION 2.        INTRODUCTION.

         This EXAR Corporation Executive Officers' Change of Control Severance
Benefit Plan (the "Plan") was approved by the Compensation Committee of the
Board of Directors of EXAR Corporation (the "Company") on June 24, 1999 (the
"Effective Date"). The purpose of the Plan is to encourage valued officers to
work in the Company's best interests during and following a Change of Control
(as defined below) by providing for the payment of severance benefits as set
forth herein. This Plan shall supersede any group severance benefit plan, policy
or practice previously maintained by the Company for the employees described
herein. This Plan shall supersede any agreement between the Eligible Employees
(as defined below) for monetary severance payments, but not for other forms of
severance compensation including stock or accelerated vesting of stock options
as set forth in the EXAR Corporation 1997 Equity Incentive Plan. This Plan
document also is the Summary Plan Description for the Plan.

SECTION 3.    DEFINITIONS.

                       When used herein, the following terms shall have the
following definitions:

         (a) "BASE SALARY" shall mean an Eligible Employee's salary from the
Company, at the rate in effect on the date of a Change of Control (or as
increased thereafter), excluding all bonus, commissions and other incentive
compensation, such as, but not by way of limitation, payments under the
Company's Executive Incentive Compensation Program, Sales Incentive Compensation
Program and Key Employee Compensation Program.

         (b) "CAUSE" shall mean: (i) conviction of any felony or conviction of
any crime involving moral turpitude or dishonesty; (ii) participation in a fraud
or act of dishonesty against the Company; (iii) conduct by an Eligible Employee
which, based upon a good faith and reasonable factual investigation and
determination by the Company, demonstrates gross incompetence; or (iv)
intentional, material violation by an Eligible Employee of any contract between
the Eligible Employee and the Company or any statutory duty of the Eligible
Employee to the Company that is not corrected within thirty (30) days after
written notice to the Eligible Employee thereof. Physical or mental disability
shall not constitute "Cause."

         (c) "CHANGE OF CONTROL" shall mean (i) a dissolution or liquidation of
the Company; (ii) a merger or consolidation in which the Company is not the
surviving corporation; (iii) a reverse merger in which the Company is the
surviving corporation but the shares of the Company's common stock outstanding
immediately preceding the merger are converted by virtue of the merger into
other property, whether in the form of securities, cash or otherwise; (iv) any
other capital reorganization in which more than thirty-five percent (35%) of the
shares of the Company entitled to vote are exchanged, excluding in each case a
capital reorganization in which the sole purpose is to change the state of
incorporation of the Company; (v) a transaction or group of related transactions
involving the sale of all or substantially all of the Company's assets; or (vi)
the acquisition by any person, entity or group (excluding any employee benefit
plan, or related trust, sponsored or maintained by the Company or any subsidiary
of the Company) of the beneficial ownership, directly or indirectly, of
securities of the Company representing more than thirty-five percent (35%) of
the combined voting power in the election of

<PAGE>

directors. For purposes of this paragraph, acquisition of ownership interests
by any Eligible Employee, whether through a "management buy-out" or
otherwise, shall not constitute a "Change of Control."

     "ELIGIBLE EMPLOYEES" shall mean those executives as may be designated from
     time to time by the Board of Directors to be a participant. The Board of
     Directors, or the Compensation Committee of the Board of Directors, may, in
     its sole discretion, designate additional employees to be Eligible
     Employees under the Plan.

         (d) "GOOD REASON" shall mean any one of the following events which
occurs within thirteen (13) months after the effective date of a Change of
Control: (i) any reduction of the Eligible Employee's rate of total compensation
(including base salary, bonus, stock, stock options, etc.); (ii) any reduction
in the package of welfare benefit plans, taken as a whole, provided to the
Eligible Employee (except that employee contributions may be raised to the
extent of any cost increases imposed by third parties) or any action by the
Company which would adversely affect the Eligible Employee's participation or
reduce the Eligible Employee's benefits under any of such plans; (iii) any
change in the Eligible Employee's responsibilities, duties, authority, title,
reporting relationship or offices resulting in any diminution of position
(including, but not limited to, a change of responsibility from company-wide
responsibility to division-level responsibility); (iv) request that the Eligible
Employee relocate to a worksite that is more than thirty-five (35) miles from
the Eligible Employee's prior worksite, unless the Eligible Employee accepts
such relocation opportunity; (v) failure or refusal of a successor to the
Company to assume the Company's obligations under the Plan; or (vii) material
breach by the Company or any successor to the Company of any of the material
provisions of the Plan.

         (e) "TERMINATION DATE" shall mean the date upon which an Eligible
Employee's employment with the Company terminates within thirteen (13) months
after the effective date of a Change of Control.

SECTION 4.    ELIGIBILITY FOR BENEFITS.

         (a) GENERAL RULES. Subject to the requirements set forth in this
Section 3, and subject to further limitations set forth subsequently in this
Plan, the Company will grant severance benefits to Eligible Employees. As a
condition of receiving severance benefits under the Plan, each Eligible Employee
must execute an effective general waiver and release, on the appropriate form
attached hereto as Exhibits A and B, which releases the Company from any and all
claims the Eligible Employee may have against the Company.

         (b) EXCEPTIONS. An employee who otherwise is an Eligible Employee will
not receive severance benefits under the Plan in any of the following
circumstances:

                  (i) The employee voluntarily terminates employment with the
Company other than for Good Reason.

                  (ii) The employee voluntarily terminates employment with the
Company in order to accept employment with another entity that is wholly or
partly owned (directly or indirectly) by the Company or a successor to the
Company, or is wholly or partly owned (directly or indirectly) by the parent or
other affiliate of the Company or its successor.

SECTION 5.    AMOUNT OF SEVERANCE BENEFITS.

         Eligible Employees whose employment is terminated without Cause or for
Good Reason on a Termination Date will receive, subject to Section 5 hereof, a
lump sum payment equal to two (2) times the Eligible Employee's Base Salary. In
the event of an Eligible Employee's death prior to the receipt of a payment to
which he or she is entitled, such payment shall be made to the Eligible
Employee's surviving spouse or, if

                                       2

<PAGE>

none, to the Eligible Employee's estate. The foregoing severance benefits
shall be subject to applicable federal, state, local and foreign tax
withholdings.

SECTION 6.    LIMITATION ON AMOUNT OF BENEFIT; GOLDEN PARACHUTE TAXES.

         (a) Notwithstanding any other provision of the Plan to the contrary,
(i) the severance benefits under this Plan are in lieu of any other benefit
provided under any other group severance plan of the Company and (ii) severance
benefits under this Plan shall be reduced by the amount of any payment to which
the Eligible Employee is entitled under any individual severance agreement or
other arrangement then in effect between the Eligible Employee and the Company.
The accelerated vesting of stock options under the Company's 1997 Equity
Incentive Plan shall not be subject to this Section 5(a).

         (b) Notwithstanding any other provision of the Plan to the contrary, in
the event it shall be determined, either by the Company or by a final
determination of the Internal Revenue Service, that any payment, distribution or
benefit by or from the Company to or for the benefit of an Eligible Employee,
whether paid or payable or distributed or distributable pursuant to the terms of
the Plan or otherwise (the "Payments"), would cause the Eligible Employee to
become subject to the excise tax imposed by Section 4999 of the Code (the
"Excise Tax"), then the Company shall pay to or for the benefit of the Eligible
Employee, within the later of ninety (90) days of the Termination Date or ninety
(90) days of the date of determination referred to above, an additional amount
(the "Gross-Up Payment") in an amount that shall fund the payment by the
Eligible Employee of any Excise Tax on the Payments, as well as any income taxes
imposed on the Gross-Up Payment, any Excise Tax imposed on the Gross-Up Payment
and any interest or penalties imposed with respect to taxes on the Gross-Up
Payment or any Excise Tax. For purposes of determining the amount of the
Gross-Up Payment, the Eligible Employee shall be deemed to pay federal, state
and local income taxes at the highest nominal marginal rate of such federal,
state and local income taxation in the calendar year in which the Gross-Up
Payment is due, net of the maximum reduction in federal income taxes which could
be obtained from deduction of such state and local taxes. In the event that the
Excise Tax is subsequently determined to be less than the amount taken into
account to determine the amount of the Gross-Up Payment, then the Eligible
Employee shall repay to the Company at that time the portion of the Gross-Up
Payment attributable to such reduction (plus an amount equal to any tax
reduction, whether of the Excise Tax, any applicable income tax, or any
applicable employment tax, which the Eligible Employee has received as a result
of such initial repayment). In the event that the Excise Tax is subsequently
determined, whether by the Company or by a final determination of the Internal
Revenue Service, to be more than the amount taken into account to determine the
amount of the Gross-Up Payment, then the Company shall pay to the Eligible
Employee an additional amount, which shall be determined using the same methods
as were used for calculating the Gross-Up Payment, with respect to such excess.
For purposes of this Section 5(b), a determination of the Internal Revenue
Service as to the amount of Excise Tax for which an Eligible Employee is liable
shall not be treated as final until the time that either (i) the Company agrees
to acquiesce to the determination of the Internal Revenue Service or (ii) the
determination of the Internal Revenue Service has been upheld in a court of
competent jurisdiction and the Company decides not to appeal such judicial
decision or such decision is not appealable. If the Company chooses to contest
the determination of the Internal Revenue Service, then all costs, attorneys'
fees, charges assessed and other expenses shall be borne and paid when due by
the Company.

SECTION 7.    NOTICE OF TERMINATION.

         Any termination by the Company, whether or not for Cause, or by the
Eligible Employee for Good Reason, shall be communicated by a Notice of
Termination to the other party hereto given by hand delivery or by registered or
certified mail, return receipt requested, postage prepaid, if to the Eligible
Employee, then to the Eligible Employee at the Eligible Employee's address as
set forth in the Company's records, and, if to the Company, to EXAR Corporation,
48720 Kato Road, Fremont, California 94538 Attention: Law Department. For
purposes of the Plan, a Notice of Termination means a written notice which (i)
indicates the specific termination provision in the Plan relied upon and (ii) if
the Termination

                                       3

<PAGE>

Date is other than the date of receipt of such notice, specifies the
Termination Date (which date shall be not more than fifteen (15) days after
the giving of such notice). The failure by the Company or the Eligible
Employee to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Cause or of Good Reason shall not waive any
right of the Company or of the Eligible Employee, respectively, or preclude
the Company or the Eligible Employee, respectively, from asserting such fact
or circumstance in enforcing its, his or her rights hereunder.

SECTION 8.    TIME OF PAYMENT.

         The Company will pay the severance payments described in Section 4
above within thirty (30) days after the Termination Date of an Eligible
Employee, but not sooner than the effective date of the release attached as
Exhibit A or B, as appropriate.

SECTION 9.    MITIGATION.

         The Eligible Employee shall not be required to mitigate the amount of
the severance benefits payable under this Plan by seeking other employment or
otherwise, and any amount earned by the Eligible Employee after the Termination
Date shall not reduce or otherwise affect the amount of such severance benefits.

SECTION 10.   RIGHT TO INTERPRET PLAN; AMEND AND TERMINATE; OTHER ARRANGEMENTS.

         (a) EXCLUSIVE DISCRETION. The Plan Administrator (as defined in Section
14 below) shall have the exclusive discretion and authority to establish rules,
forms, and procedures for the administration of the Plan, to construe and
interpret the Plan and to decide any and all questions of fact, interpretation,
definition, computation or administration arising in connection with the
operation of the Plan, including, but not limited to, the eligibility to
participate in the Plan and the amount of benefits to be paid under the Plan.
The rules, interpretations, computations and other actions of the Plan
Administrator shall be binding and conclusive on all persons.

         (b) AMENDMENT OR TERMINATION. The Compensation Committee of the Board
of Directors of the Company reserves the right to amend or discontinue this Plan
or the benefits provided hereunder at any time; PROVIDED, HOWEVER, that no such
amendment or termination shall affect the right to any unpaid benefit of any
Eligible Employee whose Termination Date has occurred prior to such amendment or
termination of the Plan, and that no amendment or discontinuance of this Plan
may occur after the effective date of a Change of Control or in anticipation of
a Change of Control. Any action amending or terminating the Plan shall be in
writing and executed by the Chair of the Compensation Committee of the Board of
Directors of the Company.

SECTION 11.   NO IMPLIED EMPLOYMENT CONTRACT.

         The Plan shall not be deemed (i) to give any Eligible Employee any
right to be retained in the employ of the Company or (ii) to interfere with the
right of the Company to discharge any Eligible Employee or other person at any
time and for any reason, which right is hereby reserved.

                                       4

<PAGE>

SECTION 12.   LEGAL CONSTRUCTION.

         This Plan is intended to be governed by and shall be construed in
accordance with the Employee Retirement Income Security Act of 1974 ("ERISA") as
a "welfare benefit plan" as defined in Section 3(1) of ERISA, and, to the extent
not preempted by ERISA, the laws of the State of California. If any term,
provision, covenant or restriction of the Plan is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions of the Plan shall
remain in full force and effect and shall in no way be affected, impaired or
invalidated.

SECTION 13.   CLAIMS, INQUIRIES AND APPEALS.

         (a) APPLICATIONS FOR BENEFITS AND INQUIRIES. Any application for
benefits, inquiries about the Plan or inquiries about present or future rights
under the Plan must be submitted to the Plan Administrator in writing. The Plan
Administrator is:

                                    Compensation Committee
                                    EXAR Corporation
                                    48720 Kato Road
                                    Fremont, CA 94538
                                    Attention:  Chair of Compensation Committee

         (b) DENIAL OF CLAIMS. In the event that any application for severance
benefits is denied in whole or in part, the Plan Administrator must notify the
Eligible Employee, in writing, of the denial of the application, and of the
Eligible Employee's right to review the denial. The written notice of denial
will be set forth in a manner designed to be understood by the Eligible
Employee, and will include specific reasons for the denial, specific references
to the Plan provision upon which the denial is based, a description of any
information or material that the Plan Administrator needs to complete the review
and an explanation of the Plan's review procedure.

         This written notice will be given to the Eligible Employee within
ninety (90) days after the Plan Administrator receives the application, unless
special circumstances require an extension of time, in which case, the Plan
Administrator has up to an additional ninety (90) days for processing the
application. If an extension of time for processing is required, written notice
of the extension will be furnished to the Eligible Employee before the end of
the initial ninety (90)-day period.

         This notice of extension will describe the special circumstances
necessitating the additional time and the date by which the Plan Administrator
is to render its decision on the application. If written notice of denial of the
application for severance benefits is not furnished within the specified time,
the application shall be deemed to be denied. The Eligible Employee will then be
permitted to appeal the denial in accordance with the review procedure described
below.

         (c) REQUEST FOR A REVIEW. Any Eligible Employee (or that person's
authorized representative) for whom an application for severance benefits is
denied (or deemed denied), in whole or in part, may appeal the denial by
submitting a request for a review to the Plan Administrator within sixty (60)
days after the application is denied (or deemed denied). The Plan Administrator
will give the Eligible Employee (or his or her representative) an opportunity to
review pertinent documents in preparing a request for a review. A request for a
review shall be in writing and shall be addressed to:

                                    Compensation Committee
                                    EXAR Corporation
                                    48720 Kato Road
                                    Fremont, CA 94538
                                    Attn:  Chair of Compensation Committee

                                       5

<PAGE>

A request for review must set forth all of the grounds on which it is based, all
facts in support of the request and any other matters that the Eligible Employee
feels are pertinent. The Plan Administrator may require the Eligible Employee to
submit additional facts, documents or other material as it may find necessary or
appropriate in making its review.

         (d) DECISION ON REVIEW. The Plan Administrator will act on each request
for review within sixty (60) days after receipt of the request, unless special
circumstances require an extension of time (not to exceed an additional sixty
(60) days), for processing the request for a review. If an extension for review
is required, written notice of the extension will be furnished to the Eligible
Employee within the initial sixty (60)-day period. The Plan Administrator will
give prompt, written notice of its decision to the Eligible Employee. In the
event that the Plan Administrator confirms the denial of the application for
benefits in whole or in part, the notice will outline, in a manner calculated to
be understood by the Eligible Employee, the specific Plan provisions upon which
the decision is based. If written notice of the Plan Administrator's decision is
not given to the Eligible Employee within the time prescribed in this Section
12(d), the application will be deemed denied on review.

         (e) RULES AND PROCEDURES. The Plan Administrator will establish rules
and procedures, consistent with the Plan and with ERISA, as necessary and
appropriate in carrying out its responsibilities in reviewing severance benefit
claims. The Plan Administrator may require an Eligible Employee who wishes to
submit additional information in connection with an appeal from the denial (or
deemed denial) of severance benefits to do so at the Eligible Employee's own
expense.

         (f) EXHAUSTION OF REMEDIES. No legal action for severance benefits
under the Plan may be brought until the Eligible Employee (i) has submitted a
written application for severance benefits in accordance with the procedures
described by Section 12(a) above, (ii) has been notified by the Plan
Administrator that the application is denied (or the application is deemed
denied due to the Plan Administrator's failure to act on it within the
established time period), (iii) has filed a written request for a review of the
application in accordance with the appeal procedure described in Section 12(c)
above and (iv) has been notified in writing that the Plan Administrator has
denied the appeal (or the appeal is deemed to be denied due to the Plan
Administrator's failure to take any action on the claim within the time
prescribed by Section 12(d) above).

SECTION 14.   BASIS OF PAYMENTS TO AND FROM PLAN.

         All benefits under the Plan shall be paid by the Company. The Plan
shall be unfunded, and benefits hereunder shall be paid only from the general
assets of the Company.

SECTION 15.   OTHER PLAN INFORMATION.

         (a) EMPLOYER AND PLAN IDENTIFICATION NUMBERS. The Employer
Identification Number assigned to the Company (which is the "Plan Sponsor" as
that term is used in ERISA) by the Internal Revenue Service is 94-1741481. The
Plan Number assigned to the Plan by the Plan Sponsor pursuant to the
instructions of the Internal Revenue Service is 510.

         (b) ENDING DATE FOR PLAN'S FISCAL YEAR. The date of the end of the
fiscal year for the purpose of maintaining the Plan's records is December 31.

         (c) AGENT FOR THE SERVICE OF LEGAL PROCESS. Service of legal process
may be made upon the Plan Administrator.

         (d) PLAN SPONSOR AND ADMINISTRATOR. The "Plan Sponsor" of the Plan is
EXAR Corporation and the "Plan Administrator" of the Plan is the Compensation
Committee of the Board of Directors of the Company, both having the following
address: 48720 Kato Road, Fremont, CA 94538. The Plan Sponsor's and Plan

                                       6

<PAGE>

Administrator's telephone number is (510) 668-7112. The Plan Administrator is
the named fiduciary charged with the responsibility for administering the Plan.

SECTION 16.   STATEMENT OF ERISA RIGHTS.

         Eligible Employees participating in this Plan (which is intended to be
an ERISA welfare benefit plan sponsored by EXAR Corporation) are entitled to
certain rights and protections under ERISA. If you are an Eligible Employee, you
are considered a participant in the Plan and, under ERISA, you are entitled to:

         (a) Examine, without charge, at the Plan Administrator's office and at
other specified locations, such as work sites, all Plan documents and copies of
all documents filed by the Plan with the U.S. Department of Labor, such as
detailed annual reports;

         (b) Obtain copies of all Plan documents and Plan information upon
written request to the Plan Administrator. The Administrator may make a
reasonable charge for the copies;

         (c) Receive a summary of the Plan's annual financial report, in the
case of a plan which is required to file an annual financial report with the
Department of Labor. (Generally, all pension plans and welfare plans with one
hundred (100) or more participants must file these annual reports.)

         In addition to creating rights for Eligible Employees, ERISA imposes
duties upon the people responsible for the operation of the employee benefit
plan. The people who operate the Plan, called "fiduciaries" of the Plan, have a
duty to do so prudently and in the interest of you and other Plan participants
and beneficiaries.

         No one, including your employer or any other person, may fire you or
otherwise discriminate against you in any way to prevent you from obtaining a
Plan benefit or exercising your rights under ERISA. If your claim for a Plan
benefit is denied in whole or in part, you must receive a written explanation of
the reason for the denial. You have the right to have the Plan review and
reconsider your claim.

         Under ERISA, there are steps you can take to enforce the above rights.
For instance, if you request materials from the Plan and do not receive them
within thirty (30) days, you may file suit in a federal court. In such a case,
the court may require the Plan Administrator to provide the materials and pay
you up to $110 a day until you receive the materials, unless the materials were
not sent because of reasons beyond the control of the Plan Administrator. If you
have a claim for benefits that is denied or ignored, in whole or in part, you
may file suit in a state or federal court. If it should happen that the Plan
fiduciaries misuse the Plan's money, or if you are discriminated against for
asserting your rights, you may seek assistance from the U.S. Department of
Labor, or you may file suit in a federal court. The court will decide who should
pay court costs and legal fees. If you are successful, the court may order the
person you have sued to pay these costs and fees. If you lose, the court may
order you to pay these costs and fees, for example, if it finds your claim is
frivolous.

         If you have any questions about the Plan, you should contact the Plan
Administrator. If you have any questions about your rights under ERISA, you
should contact the nearest office of the Pension and Welfare Benefits
Administration, U.S. Department of Labor, listed in your telephone directory or
the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits
Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
Washington, D.C. 20210.

                                       7

<PAGE>

                                    EXHIBIT A

                   RELEASE AGREEMENT - INDIVIDUAL TERMINATION

         I UNDERSTAND AND AGREE COMPLETELY TO THE TERMS SET FORTH IN THE EXAR
CORPORATION EXECUTIVE OFFICERS' CHANGE OF CONTROL SEVERANCE BENEFIT PLAN (THE
"PLAN").

         I acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR." I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any claims I may
have against the Company.

         Except as otherwise set forth in this Agreement, in consideration of
benefits I will receive under the Plan, I hereby release, acquit and forever
discharge the Company, its parents and subsidiaries, and their officers,
directors, agents, servants, employees, shareholders, successors, assigns and
affiliates, of and from any and all claims, liabilities, demands, causes of
action, costs, expenses, attorneys' fees, damages, indemnities and obligations
of every kind and nature, in law, equity, or otherwise, known and unknown,
suspected and unsuspected, disclosed and undisclosed (other than any claim for
indemnification I may have as a result of any third party action against me
based on my employment with the Company), arising out of or in any way related
to agreements, events, acts or conduct at any time prior to and including the
Effective Date of this Agreement, including but not limited to: all such claims
and demands directly or indirectly arising out of or in any way connected with
my employment with the Company or the termination of that employment, including
but not limited to, claims of intentional and negligent infliction of emotional
distress, any and all tort claims for personal injury, claims or demands related
to salary, bonuses, commissions, stock, stock options, or any other ownership
interests in the Company, vacation pay, fringe benefits, expense reimbursements,
severance pay, or any other form of compensation; claims pursuant to any
federal, state or local law or cause of action including, but not limited to,
the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination
in Employment Act of 1967, as amended ("ADEA"); the federal Americans with
Disabilities Act of 1990; the California Fair Employment and Housing Act, as
amended; tort law; contract law; wrongful discharge; discrimination; fraud;
defamation; emotional distress; and breach of the implied covenant of good faith
and fair dealing.

         I acknowledge that I am knowingly and voluntarily waiving and releasing
any rights I may have under ADEA. I also acknowledge that the consideration
given for the waiver and release in the preceding paragraph hereof is in
addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA,
that: (a) my waiver and release do not apply to any rights or claims that may
arise after the Effective Date of this Agreement; (b) I have the right to
consult with an attorney prior to executing this Agreement; (c) I have
twenty-one (21) days to consider this Agreement (although I may choose to
voluntarily execute this Agreement earlier); (d) I have seven (7) days following
the execution of this Agreement by the parties to revoke the Agreement; and (e)
this Agreement shall not be effective until the date upon which the revocation
period has expired, which shall be the eighth (8th) day after this Agreement is
executed by me, provided that the Company has also executed this Agreement by
that date (the "Effective Date").

                                       8

<PAGE>

EXAR CORPORATION                            EMPLOYEE

By:                                         Name:

Title:                                      Date:

Date:

                                       9

<PAGE>

                                    EXHIBIT B

                      RELEASE AGREEMENT - GROUP TERMINATION

         I UNDERSTAND AND AGREE COMPLETELY TO THE TERMS SET FORTH IN THE EXAR
CORPORATION EXECUTIVE OFFICERS' CHANGE OF CONTROL SEVERANCE BENEFIT PLAN (THE
"PLAN").

         I acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR." I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any claims I may
have against the Company.

         Except as otherwise set forth in this Agreement, in consideration of
benefits I will receive under the Plan, I hereby release, acquit and forever
discharge the Company, its parents and subsidiaries, and their officers,
directors, agents, servants, employees, shareholders, successors, assigns and
affiliates, of and from any and all claims, liabilities, demands, causes of
action, costs, expenses, attorneys' fees, damages, indemnities and obligations
of every kind and nature, in law, equity, or otherwise, known and unknown,
suspected and unsuspected, disclosed and undisclosed (other than any claim for
indemnification I may have as a result of any third party action against me
based on my employment with the Company), arising out of or in any way related
to agreements, events, acts or conduct at any time prior to and including the
Effective Date of this Agreement, including but not limited to: all such claims
and demands directly or indirectly arising out of or in any way connected with
my employment with the Company or the termination of that employment, including
but not limited to, claims of intentional and negligent infliction of emotional
distress, any and all tort claims for personal injury, claims or demands related
to salary, bonuses, commissions, stock, stock options, or any other ownership
interests in the Company, vacation pay, fringe benefits, expense reimbursements,
severance pay, or any other form of compensation; claims pursuant to any
federal, state or local law or cause of action including, but not limited to,
the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination
in Employment Act of 1967, as amended ("ADEA"); the federal Americans with
Disabilities Act of 1990; the California Fair Employment and Housing Act, as
amended; tort law; contract law; wrongful discharge; discrimination; fraud;
defamation; emotional distress; and breach of the implied covenant of good faith
and fair dealing.

         I acknowledge that I am knowingly and voluntarily waiving and releasing
any rights I may have under ADEA. I also acknowledge that the consideration
given for the waiver and release in the preceding paragraph hereof is in
addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA,
that: (a) my waiver and release do not apply to any rights or claims that may
arise after the Effective Date of this Agreement; (b) I have the right to
consult with an attorney prior to executing this Agreement; (c) I have
forty-five (45) days to consider this Agreement (although I may choose to
voluntarily execute this Agreement earlier); (d) I have seven (7) days following
the execution of this Agreement by the parties to revoke the Agreement; and (e)
this Agreement shall not be effective until the date upon which the revocation
period has expired, which shall be the eighth (8th) day after this Agreement is
executed by me, provided that the Company has also executed this Agreement by
that date (the "Effective Date"); and (f) I have received with this Agreement a
detailed list of the job titles and ages of all employees who were terminated in
this group termination and the ages of all employees of the Company in the same
job classification or organizational unit who were not terminated.

                                       10

<PAGE>

EXAR CORPORATION                            EMPLOYEE

By:                                         Name:

Title:                                      Date:

Date:

                                       11

<PAGE>

                                EXAR CORPORATION

                      EXECUTIVE OFFICERS' CHANGE OF CONTROL
                             SEVERANCE BENEFIT PLAN

SECTION 17.       INTRODUCTION.

        This EXAR Corporation Executive Officers' Change of Control Severance
Benefit Plan (the "Plan") was approved by the Compensation Committee of the
Board of Directors of EXAR Corporation (the "Company") on June 24, 1999 (the
"Effective Date"). The purpose of the Plan is to encourage valued officers to
work in the Company's best interests during and following a Change of Control
(as defined below) by providing for the payment of severance benefits as set
forth herein. This Plan shall supersede any group severance benefit plan,
policy or practice previously maintained by the Company for the employees
described herein. This Plan shall supersede any agreement between the Eligible
Employees (as defined below) for monetary severance payments, but not for other
forms of severance compensation including stock or accelerated vesting of stock
options as set forth in the EXAR Corporation 1997 Equity Incentive Plan. This
Plan document also is the Summary Plan Description for the Plan.

SECTION 18.   DEFINITIONS.

                    When used herein, the following terms shall have the
following definitions:

      (a)  "BASE SALARY" shall mean an Eligible Employee's salary from the
Company, at the rate in effect on the date of a Change of Control (or as
increased thereafter), excluding all bonus, commissions and other incentive
compensation, such as, but not by way of limitation, payments under the
Company's Executive Incentive Compensation Program, Sales Incentive
Compensation Program and Key Employee Compensation Program.

      (b)  "CAUSE" shall mean: (i) conviction of any felony or conviction of
any crime involving moral turpitude or dishonesty; (ii) participation in a
fraud or act of dishonesty against the Company; (iii) conduct by an Eligible
Employee which, based upon a good faith and reasonable factual investigation
and determination by the Company, demonstrates gross incompetence; or (iv)
intentional, material violation by an Eligible Employee of any contract between
the Eligible Employee and the Company or any statutory duty of the Eligible
Employee to the Company that is not corrected within thirty (30) days after
written notice to the Eligible Employee thereof. Physical or mental disability
shall not constitute "Cause."

      (c)  "CHANGE OF CONTROL" shall mean (i) a dissolution or liquidation of
the Company; (ii) a merger or consolidation in which the Company is not the
surviving corporation; (iii) a reverse merger in which the Company is the
surviving corporation but the shares of the Company's common stock outstanding
immediately preceding the merger are converted by virtue of the merger into
other property, whether in the form of securities, cash or otherwise; (iv) any
other capital reorganization in which more than thirty-five percent (35%) of
the shares of the Company entitled to vote are exchanged, excluding in each
case a capital reorganization in which the sole purpose is to change the state
of incorporation of the Company; (v) a transaction or group of related
transactions involving the sale of all or substantially all of the Company's
assets; or (vi) the acquisition by any person, entity or group (excluding any
employee benefit plan, or related trust, sponsored or maintained by the Company
or any subsidiary of the Company) of the beneficial ownership, directly or
indirectly, of securities of the Company representing more than thirty-five
percent (35%) of the combined voting power in the election of directors. For
purposes of this paragraph, acquisition of ownership interests by any Eligible
Employee, whether through a "management buy-out" or otherwise, shall not
constitute a "Change of Control."

                                       12

<PAGE>

           (i)   "ELIGIBLE EMPLOYEES" shall mean those executives as may be
designated from time to time by the Board of Directors to be a participant.
The Board of Directors, or the Compensation Committee of the Board of
Directors, may, in its sole discretion, designate additional employees to be
Eligible Employees under the Plan.

      (d)  "GOOD REASON" shall mean any one of the following events which
occurs within thirteen (13) months after the effective date of a Change of
Control: (i) any reduction of the Eligible Employee's rate of total
compensation (including base salary, bonus, stock, stock options, etc.); (ii)
any reduction in the package of welfare benefit plans, taken as a whole,
provided to the Eligible Employee (except that employee contributions may be
raised to the extent of any cost increases imposed by third parties) or any
action by the Company which would adversely affect the Eligible Employee's
participation or reduce the Eligible Employee's benefits under any of such
plans; (iii) any change in the Eligible Employee's responsibilities, duties,
authority, title, reporting relationship or offices resulting in any diminution
of position (including, but not limited to, a change of responsibility from
company-wide responsibility to division-level responsibility); (iv) request
that the Eligible Employee relocate to a worksite that is more than thirty-five
(35) miles from the Eligible Employee's prior worksite, unless the Eligible
Employee accepts such relocation opportunity; (v) failure or refusal of a
successor to the Company to assume the Company's obligations under the Plan; or
(vii) material breach by the Company or any successor to the Company of any of
the material provisions of the Plan.

      (e)  "TERMINATION DATE" shall mean the date upon which an Eligible
Employee's employment with the Company terminates within thirteen (13) months
after the effective date of a Change of Control.

SECTION 19.   ELIGIBILITY FOR BENEFITS.

           (i)   GENERAL RULES. Subject to the requirements set forth in this
Section 3, and subject to further limitations set forth subsequently in this
Plan, the Company will grant severance benefits to Eligible Employees. As a
condition of receiving severance benefits under the Plan, each Eligible
Employee must execute an effective general waiver and release, on the
appropriate form attached hereto as Exhibits A and B, which releases the
Company from any and all claims the Eligible Employee may have against the
Company.

      (b)  EXCEPTIONS. An employee who otherwise is an Eligible Employee will
not receive severance benefits under the Plan in any of the following
circumstances:

           (i)   The employee voluntarily terminates employment with the
Company other than for Good Reason.

           (ii)  The employee voluntarily terminates employment with the
Company in order to accept employment with another entity that is wholly or
partly owned (directly or indirectly) by the Company or a successor to the
Company, or is wholly or partly owned (directly or indirectly) by the parent or
other affiliate of the Company or its successor.

SECTION 20.   AMOUNT OF SEVERANCE BENEFITS.

      Eligible Employees whose employment is terminated without Cause or for
Good Reason on a Termination Date will receive, subject to Section 5 hereof, a
lump sum payment equal to the greater of (a) one (1) times the Eligible
Employee's Base Salary or (b) one (1) month of Base Salary for each complete
year of service with the Company, up to a maximum of two (2) times the Eligible
Employee's Base Salary. In the event of an Eligible Employee's death prior to
the receipt of a payment to which he or she is entitled, such payment shall be
made to the Eligible Employee's surviving spouse or, if none, to the Eligible
Employee's estate. The foregoing severance benefits shall be subject to
applicable federal, state, local and foreign tax withholdings.

                                       13

<PAGE>

SECTION 21.   LIMITATION ON AMOUNT OF BENEFIT; GOLDEN PARACHUTE TAXES.

      (a)  Notwithstanding any other provision of the Plan to the contrary, (i)
the severance benefits under this Plan are in lieu of any other benefit
provided under any other group severance plan of the Company and (ii) severance
benefits under this Plan shall be reduced by the amount of any payment to which
the Eligible Employee is entitled under any individual severance agreement or
other arrangement then in effect between the Eligible Employee and the Company.
The accelerated vesting of stock options under the Company's 1997 Equity
Incentive Plan shall not be subject to this Section 5(a).

      (b)  Notwithstanding any other provision of the Plan to the contrary, in
the event it shall be determined, either by the Company or by a final
determination of the Internal Revenue Service, that any payment, distribution
or benefit by or from the Company to or for the benefit of an Eligible
Employee, whether paid or payable or distributed or distributable pursuant to
the terms of the Plan or otherwise (the "Payments"), would cause the Eligible
Employee to become subject to the excise tax imposed by Section 4999 of the
Code (the "Excise Tax"), then the Company shall pay to or for the benefit of
the Eligible Employee, within the later of ninety (90) days of the Termination
Date or ninety (90) days of the date of determination referred to above, an
additional amount (the "Gross-Up Payment") in an amount that shall fund the
payment by the Eligible Employee of any Excise Tax on the Payments, as well as
any income taxes imposed on the Gross-Up Payment, any Excise Tax imposed on the
Gross-Up Payment and any interest or penalties imposed with respect to taxes on
the Gross-Up Payment or any Excise Tax. For purposes of determining the amount
of the Gross-Up Payment, the Eligible Employee shall be deemed to pay federal,
state and local income taxes at the highest nominal marginal rate of such
federal, state and local income taxation in the calendar year in which the
Gross-Up Payment is due, net of the maximum reduction in federal income taxes
which could be obtained from deduction of such state and local taxes. In the
event that the Excise Tax is subsequently determined to be less than the amount
taken into account to determine the amount of the Gross-Up Payment, then the
Eligible Employee shall repay to the Company at that time the portion of the
Gross-Up Payment attributable to such reduction (plus an amount equal to any
tax reduction, whether of the Excise Tax, any applicable income tax, or any
applicable employment tax, which the Eligible Employee has received as a result
of such initial repayment). In the event that the Excise Tax is subsequently
determined, whether by the Company or by a final determination of the Internal
Revenue Service, to be more than the amount taken into account to determine the
amount of the Gross-Up Payment, then the Company shall pay to the Eligible
Employee an additional amount, which shall be determined using the same methods
as were used for calculating the Gross-Up Payment, with respect to such excess.
For purposes of this Section 5(b), a determination of the Internal Revenue
Service as to the amount of Excise Tax for which an Eligible Employee is liable
shall not be treated as final until the time that either (i) the Company agrees
to acquiesce to the determination of the Internal Revenue Service or (ii) the
determination of the Internal Revenue Service has been upheld in a court of
competent jurisdiction and the Company decides not to appeal such judicial
decision or such decision is not appealable. If the Company chooses to contest
the determination of the Internal Revenue Service, then all costs, attorneys'
fees, charges assessed and other expenses shall be borne and paid when due by
the Company.

                                       14

<PAGE>

SECTION 22.   NOTICE OF TERMINATION.

         Any termination by the Company, whether or not for Cause, or by the
Eligible Employee for Good Reason, shall be communicated by a Notice of
Termination to the other party hereto given by hand delivery or by registered
or certified mail, return receipt requested, postage prepaid, if to the
Eligible Employee, then to the Eligible Employee at the Eligible Employee's
address as set forth in the Company's records, and, if to the Company, to EXAR
Corporation, 48720 Kato Road, Fremont, California 94538 Attention: Law
Department. For purposes of the Plan, a Notice of Termination means a written
notice which (i) indicates the specific termination provision in the Plan
relied upon and (ii) if the Termination Date is other than the date of receipt
of such notice, specifies the Termination Date (which date shall be not more
than fifteen (15) days after the giving of such notice). The failure by the
Company or the Eligible Employee to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Cause or of Good Reason
shall not waive any right of the Company or of the Eligible Employee,
respectively, or preclude the Company or the Eligible Employee, respectively,
from asserting such fact or circumstance in enforcing its, his or her rights
hereunder.

SECTION 23.   TIME OF PAYMENT.

         The Company will pay the severance payments described in Section 4
above within thirty (30) days after the Termination Date of an Eligible
Employee, but not sooner than the effective date of the release attached as
Exhibit A or B, as appropriate.

SECTION 24.   MITIGATION.

         The Eligible Employee shall not be required to mitigate the amount of
the severance benefits payable under this Plan by seeking other employment or
otherwise, and any amount earned by the Eligible Employee after the Termination
Date shall not reduce or otherwise affect the amount of such severance benefits.

SECTION 25.   RIGHT TO INTERPRET PLAN; AMEND AND TERMINATE; OTHER ARRANGEMENTS.

         (a)  EXCLUSIVE DISCRETION. The Plan Administrator (as defined in
Section 14 below) shall have the exclusive discretion and authority to
establish rules, forms, and procedures for the administration of the Plan, to
construe and interpret the Plan and to decide any and all questions of fact,
interpretation, definition, computation or administration arising in connection
with the operation of the Plan, including, but not limited to, the eligibility
to participate in the Plan and the amount of benefits to be paid under the
Plan. The rules, interpretations, computations and other actions of the Plan
Administrator shall be binding and conclusive on all persons.

         (b)  AMENDMENT OR TERMINATION. The Compensation Committee of the Board
of Directors of the Company reserves the right to amend or discontinue this
Plan or the benefits provided hereunder at any time; PROVIDED, HOWEVER, that no
such amendment or termination shall affect the right to any unpaid benefit of
any Eligible Employee whose Termination Date has occurred prior to such
amendment or termination of the Plan, and that no amendment or discontinuance
of this Plan may occur after the effective date of a Change of Control or in
anticipation of a Change of Control. Any action amending or terminating the
Plan shall be in writing and executed by the Chair of the Compensation
Committee of the Board of Directors of the Company.

SECTION 26.   NO IMPLIED EMPLOYMENT CONTRACT.

         The Plan shall not be deemed (i) to give any Eligible Employee any
right to be retained in the employ of the Company or (ii) to interfere with the
right of the Company to discharge any Eligible Employee or other person at any
time and for any reason, which right is hereby reserved.

                                       15

<PAGE>

SECTION 27.   LEGAL CONSTRUCTION.

         This Plan is intended to be governed by and shall be construed in
accordance with the Employee Retirement Income Security Act of 1974 ("ERISA")
as a "welfare benefit plan" as defined in Section 3(1) of ERISA, and, to the
extent not preempted by ERISA, the laws of the State of California. If any
term, provision, covenant or restriction of the Plan is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of the Plan
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated.

SECTION 28.   CLAIMS, INQUIRIES AND APPEALS.

         (a)  APPLICATIONS FOR BENEFITS AND INQUIRIES. Any application for
benefits, inquiries about the Plan or inquiries about present or future rights
under the Plan must be submitted to the Plan Administrator in writing. The Plan
Administrator is:

                       Compensation Committee
                       EXAR Corporation
                       48720 Kato Road
                       Fremont, CA 94538
                       Attention:  Chair of Compensation Committee

         (b)  DENIAL OF CLAIMS. In the event that any application for severance
benefits is denied in whole or in part, the Plan Administrator must notify the
Eligible Employee, in writing, of the denial of the application, and of the
Eligible Employee's right to review the denial. The written notice of denial
will be set forth in a manner designed to be understood by the Eligible
Employee, and will include specific reasons for the denial, specific references
to the Plan provision upon which the denial is based, a description of any
information or material that the Plan Administrator needs to complete the
review and an explanation of the Plan's review procedure.

         This written notice will be given to the Eligible Employee within
ninety (90) days after the Plan Administrator receives the application, unless
special circumstances require an extension of time, in which case, the Plan
Administrator has up to an additional ninety (90) days for processing the
application. If an extension of time for processing is required, written notice
of the extension will be furnished to the Eligible Employee before the end of
the initial ninety (90)-day period.

         This notice of extension will describe the special circumstances
necessitating the additional time and the date by which the Plan Administrator
is to render its decision on the application. If written notice of denial of
the application for severance benefits is not furnished within the specified
time, the application shall be deemed to be denied. The Eligible Employee will
then be permitted to appeal the denial in accordance with the review procedure
described below.

                                       16

<PAGE>

         (c)  REQUEST FOR A REVIEW. Any Eligible Employee (or that person's
authorized representative) for whom an application for severance benefits is
denied (or deemed denied), in whole or in part, may appeal the denial by
submitting a request for a review to the Plan Administrator within sixty (60)
days after the application is denied (or deemed denied). The Plan Administrator
will give the Eligible Employee (or his or her representative) an opportunity
to review pertinent documents in preparing a request for a review. A request
for a review shall be in writing and shall be addressed to:

                       Compensation Committee
                       EXAR Corporation
                       48720 Kato Road
                       Fremont, CA 94538
                       Attn:  Chair of Compensation Committee

A request for review must set forth all of the grounds on which it is based,
all facts in support of the request and any other matters that the Eligible
Employee feels are pertinent. The Plan Administrator may require the Eligible
Employee to submit additional facts, documents or other material as it may find
necessary or appropriate in making its review.

         (d)  DECISION ON REVIEW. The Plan Administrator will act on each
request for review within sixty (60) days after receipt of the request, unless
special circumstances require an extension of time (not to exceed an additional
sixty (60) days), for processing the request for a review. If an extension for
review is required, written notice of the extension will be furnished to the
Eligible Employee within the initial sixty (60)-day period. The Plan
Administrator will give prompt, written notice of its decision to the Eligible
Employee. In the event that the Plan Administrator confirms the denial of the
application for benefits in whole or in part, the notice will outline, in a
manner calculated to be understood by the Eligible Employee, the specific Plan
provisions upon which the decision is based. If written notice of the Plan
Administrator's decision is not given to the Eligible Employee within the time
prescribed in this Section 12(d), the application will be deemed denied on
review.

         (e)  RULES AND PROCEDURES. The Plan Administrator will establish rules
and procedures, consistent with the Plan and with ERISA, as necessary and
appropriate in carrying out its responsibilities in reviewing severance benefit
claims. The Plan Administrator may require an Eligible Employee who wishes to
submit additional information in connection with an appeal from the denial (or
deemed denial) of severance benefits to do so at the Eligible Employee's own
expense.

         (f)  EXHAUSTION OF REMEDIES. No legal action for severance benefits
under the Plan may be brought until the Eligible Employee (i) has submitted a
written application for severance benefits in accordance with the procedures
described by Section 12(a) above, (ii) has been notified by the Plan
Administrator that the application is denied (or the application is deemed
denied due to the Plan Administrator's failure to act on it within the
established time period), (iii) has filed a written request for a review of the
application in accordance with the appeal procedure described in Section 12(c)
above and (iv) has been notified in writing that the Plan Administrator has
denied the appeal (or the appeal is deemed to be denied due to the Plan
Administrator's failure to take any action on the claim within the time
prescribed by Section 12(d) above).

SECTION 29.   BASIS OF PAYMENTS TO AND FROM PLAN.

         All benefits under the Plan shall be paid by the Company. The Plan
shall be unfunded, and benefits hereunder shall be paid only from the general
assets of the Company.

                                       17

<PAGE>

SECTION 30.   OTHER PLAN INFORMATION.

         (a) EMPLOYER AND PLAN IDENTIFICATION NUMBERS. The Employer
Identification Number assigned to the Company (which is the "Plan Sponsor" as
that term is used in ERISA) by the Internal Revenue Service is 94-1741481.
The Plan Number assigned to the Plan by the Plan Sponsor pursuant to the
instructions of the Internal Revenue Service is 510.

         (b) ENDING DATE FOR PLAN'S FISCAL YEAR. The date of the end of the
fiscal year for the purpose of maintaining the Plan's records is December 31.

         (c) AGENT FOR THE SERVICE OF LEGAL PROCESS. Service of legal process
may be made upon the Plan Administrator.

         (d) PLAN SPONSOR AND ADMINISTRATOR. The "Plan Sponsor" of the Plan
is EXAR Corporation and the "Plan Administrator" of the Plan is the
Compensation Committee of the Board of Directors of the Company, both having
the following address: 48720 Kato Road, Fremont, CA 94538. The Plan Sponsor's
and Plan Administrator's telephone number is (510) 668-7112. The Plan
Administrator is the named fiduciary charged with the responsibility for
administering the Plan.

SECTION 31.   STATEMENT OF ERISA RIGHTS.

         Eligible Employees participating in this Plan (which is intended to
be an ERISA welfare benefit plan sponsored by EXAR Corporation) are entitled
to certain rights and protections under ERISA. If you are an Eligible
Employee, you are considered a participant in the Plan and, under ERISA, you
are entitled to:

         (a) Examine, without charge, at the Plan Administrator's office and
at other specified locations, such as work sites, all Plan documents and
copies of all documents filed by the Plan with the U.S. Department of Labor,
such as detailed annual reports;

         (b) Obtain copies of all Plan documents and Plan information upon
written request to the Plan Administrator. The Administrator may make a
reasonable charge for the copies;

         (c) Receive a summary of the Plan's annual financial report, in the
case of a plan which is required to file an annual financial report with the
Department of Labor. (Generally, all pension plans and welfare plans with one
hundred (100) or more participants must file these annual reports.)

         In addition to creating rights for Eligible Employees, ERISA imposes
duties upon the people responsible for the operation of the employee benefit
plan. The people who operate the Plan, called "fiduciaries" of the Plan, have
a duty to do so prudently and in the interest of you and other Plan
participants and beneficiaries.

         No one, including your employer or any other person, may fire you or
otherwise discriminate against you in any way to prevent you from obtaining a
Plan benefit or exercising your rights under ERISA. If your claim for a Plan
benefit is denied in whole or in part, you must receive a written explanation
of the reason for the denial. You have the right to have the Plan review and
reconsider your claim.

         Under ERISA, there are steps you can take to enforce the above
rights. For instance, if you request materials from the Plan and do not
receive them within thirty (30) days, you may file suit in a federal court.
In such a case, the court may require the Plan Administrator to provide the
materials and pay you up to $110 a day until you receive the materials,
unless the materials were not sent because of reasons beyond the control of
the Plan Administrator. If you have a claim for benefits that is denied or
ignored, in whole or in part, you may file suit in a state or federal court.
If it should happen that the Plan fiduciaries misuse the Plan's money, or if
you are discriminated against for asserting your rights, you may seek
assistance from the U.S. Department of Labor, or you may file suit in a
federal court. The court will

                                       18

<PAGE>

decide who should pay court costs and legal fees. If you are successful, the
court may order the person you have sued to pay these costs and fees. If you
lose, the court may order you to pay these costs and fees, for example, if it
finds your claim is frivolous.

         If you have any questions about the Plan, you should contact the
Plan Administrator. If you have any questions about your rights under ERISA,
you should contact the nearest office of the Pension and Welfare Benefits
Administration, U.S. Department of Labor, listed in your telephone directory
or the Division of Technical Assistance and Inquiries, Pension and Welfare
Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue
N.W., Washington, D.C. 20210.

                                       19

<PAGE>

                                    EXHIBIT A

                   RELEASE AGREEMENT - INDIVIDUAL TERMINATION

         I UNDERSTAND AND AGREE COMPLETELY TO THE TERMS SET FORTH IN THE EXAR
CORPORATION EXECUTIVE OFFICERS' CHANGE OF CONTROL SEVERANCE BENEFIT PLAN (THE
"PLAN").

         I acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: "A GENERAL RELEASE DOES NOT
EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." I hereby expressly waive
and relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any claims I may
have against the Company.

         Except as otherwise set forth in this Agreement, in consideration of
benefits I will receive under the Plan, I hereby release, acquit and forever
discharge the Company, its parents and subsidiaries, and their officers,
directors, agents, servants, employees, shareholders, successors, assigns and
affiliates, of and from any and all claims, liabilities, demands, causes of
action, costs, expenses, attorneys' fees, damages, indemnities and
obligations of every kind and nature, in law, equity, or otherwise, known and
unknown, suspected and unsuspected, disclosed and undisclosed (other than any
claim for indemnification I may have as a result of any third party action
against me based on my employment with the Company), arising out of or in any
way related to agreements, events, acts or conduct at any time prior to and
including the Effective Date of this Agreement, including but not limited to:
all such claims and demands directly or indirectly arising out of or in any
way connected with my employment with the Company or the termination of that
employment, including but not limited to, claims of intentional and negligent
infliction of emotional distress, any and all tort claims for personal
injury, claims or demands related to salary, bonuses, commissions, stock,
stock options, or any other ownership interests in the Company, vacation pay,
fringe benefits, expense reimbursements, severance pay, or any other form of
compensation; claims pursuant to any federal, state or local law or cause of
action including, but not limited to, the federal Civil Rights Act of 1964,
as amended; the federal Age Discrimination in Employment Act of 1967, as
amended ("ADEA"); the federal Americans with Disabilities Act of 1990; the
California Fair Employment and Housing Act, as amended; tort law; contract
law; wrongful discharge; discrimination; fraud; defamation; emotional
distress; and breach of the implied covenant of good faith and fair dealing.

         I acknowledge that I am knowingly and voluntarily waiving and
releasing any rights I may have under ADEA. I also acknowledge that the
consideration given for the waiver and release in the preceding paragraph
hereof is in addition to anything of value to which I was already entitled. I
further acknowledge that I have been advised by this writing, as required by
the ADEA, that: (a) my waiver and release do not apply to any rights or
claims that may arise after the Effective Date of this Agreement; (b) I have
the right to consult with an attorney prior to executing this Agreement; (c)
I have twenty-one (21) days to consider this Agreement (although I may choose
to voluntarily execute this Agreement earlier); (d) I have seven (7) days
following the execution of this Agreement by the parties to revoke the
Agreement; and (e) this Agreement shall not be effective until the date upon
which the revocation period has expired, which shall be the eighth (8th) day
after this Agreement is executed by me, provided that the Company has also
executed this Agreement by that date (the "Effective Date").

                                       20

<PAGE>

EXAR CORPORATION                        EMPLOYEE

By:                                     Name:

Title:                                  Date:

Date:

                                       21

<PAGE>

EXHIBIT B

                      RELEASE AGREEMENT - GROUP TERMINATION

         I UNDERSTAND AND AGREE COMPLETELY TO THE TERMS SET FORTH IN THE EXAR
CORPORATION EXECUTIVE OFFICERS' CHANGE OF CONTROL SEVERANCE BENEFIT PLAN (THE
"PLAN").

         I acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: "A GENERAL RELEASE DOES NOT
EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." I hereby expressly waive
and relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any claims I may
have against the Company.

         Except as otherwise set forth in this Agreement, in consideration of
benefits I will receive under the Plan, I hereby release, acquit and forever
discharge the Company, its parents and subsidiaries, and their officers,
directors, agents, servants, employees, shareholders, successors, assigns and
affiliates, of and from any and all claims, liabilities, demands, causes of
action, costs, expenses, attorneys' fees, damages, indemnities and
obligations of every kind and nature, in law, equity, or otherwise, known and
unknown, suspected and unsuspected, disclosed and undisclosed (other than any
claim for indemnification I may have as a result of any third party action
against me based on my employment with the Company), arising out of or in any
way related to agreements, events, acts or conduct at any time prior to and
including the Effective Date of this Agreement, including but not limited to:
all such claims and demands directly or indirectly arising out of or in any
way connected with my employment with the Company or the termination of that
employment, including but not limited to, claims of intentional and negligent
infliction of emotional distress, any and all tort claims for personal
injury, claims or demands related to salary, bonuses, commissions, stock,
stock options, or any other ownership interests in the Company, vacation pay,
fringe benefits, expense reimbursements, severance pay, or any other form of
compensation; claims pursuant to any federal, state or local law or cause of
action including, but not limited to, the federal Civil Rights Act of 1964,
as amended; the federal Age Discrimination in Employment Act of 1967, as
amended ("ADEA"); the federal Americans with Disabilities Act of 1990; the
California Fair Employment and Housing Act, as amended; tort law; contract
law; wrongful discharge; discrimination; fraud; defamation; emotional
distress; and breach of the implied covenant of good faith and fair dealing.

         I acknowledge that I am knowingly and voluntarily waiving and
releasing any rights I may have under ADEA. I also acknowledge that the
consideration given for the waiver and release in the preceding paragraph
hereof is in addition to anything of value to which I was already entitled. I
further acknowledge that I have been advised by this writing, as required by
the ADEA, that: (a) my waiver and release do not apply to any rights or
claims that may arise after the Effective Date of this Agreement; (b) I have
the right to consult with an attorney prior to executing this Agreement; (c)
I have forty-five (45) days to consider this Agreement (although I may choose
to voluntarily execute this Agreement earlier); (d) I have seven (7) days
following the execution of this Agreement by the parties to revoke the
Agreement; and (e) this Agreement shall not be effective until the date upon
which the revocation period has expired, which shall be the eighth (8th) day
after this Agreement is executed by me, provided that the Company has also
executed this Agreement by that date (the "Effective Date"); and (f) I have
received with this Agreement a detailed list of the job titles and ages of
all employees who were terminated in this group termination and the ages of
all employees of the Company in the same job classification or organizational
unit who were not terminated.

                                       22

<PAGE>

EXAR CORPORATION                          EMPLOYEE

By:                                       Name:

Title:                                    Date:

Date:

                                       23

<PAGE>

                                EXAR CORPORATION

                      EXECUTIVE OFFICERS' CHANGE OF CONTROL
                             SEVERANCE BENEFIT PLANS

<TABLE>
<CAPTION>

------------------------------------------------------- -----------------------------------------------------
                       GROUP I                                                GROUP II
---------------------------- -------------------------- -------------------------- --------------------------
NAME                         EFFECTIVE                  NAME                       EFFECTIVE
---------------------------- -------------------------- -------------------------- --------------------------
<S>                          <C>                        <C>                        <C>
Donald L. Ciffone, Jr.       06/24/99                   Susan J. Hardman           03/06/00
---------------------------- -------------------------- -------------------------- --------------------------
Michael J. Class             06/24/99                   Thomas W. Jones            06/24/99
---------------------------- -------------------------- -------------------------- --------------------------
Roubik Gregorian             06/24/99                   Thomas R. Melendrez        06/24/99
---------------------------- -------------------------- -------------------------- --------------------------
Ronald W. Guire              06/24/99                   Stephen W. Michael         06/24/99
---------------------------- -------------------------- -------------------------- --------------------------
John Sramek                  06/24/99
---------------------------- -------------------------- -------------------------- --------------------------
</TABLE>

                                       24<PAGE>

                                                                  Exhibit 4.2

                            REGISTRATION RIGHTS AGREEMENT
                            -----------------------------

              REGISTRATION RIGHTS AGREEMENT, dated as of December 15, 1998 (this
"AGREEMENT") among Pacific Circuits, Inc. (the "COMPANY"), Lewis O. Coley III
("COLEY") and Circuit Holdings, LLC, a Delaware limited liability company
("HOLDINGS," and with COLEY, each a "HOLDER" and collectively the "HOLDERS").

              WHEREAS, contemporaneously herewith, the Company, Holdings, Coley,
The Colleen Beckholdt Trust No. 2 and the Ian Lewis Coley Trust No. 2 are
entering into a Recapitalization and Stock Purchase Agreement simultaneously
upon execution of this Agreement (the "PURCHASE AGREEMENT") pursuant to which
Holdings will acquire 90% of the outstanding shares of capital stock of the
Company (the "ACQUISITION");

              WHEREAS,  it is a condition to the consummation of the Acquisition
that each Holder enter into this Agreement; and

              WHEREAS, the parties hereto desire to provide for certain rights
and obligations of the Holders and the Company.

              NOW, THEREFORE, in consideration of the premises and the mutual
agreements and covenants hereinafter set forth, the parties hereto hereby agree
as follows:

                                     ARTICLE I

                                    DEFINITIONS

              SECTION 1.01.  As used in this Agreement, the following terms
shall have the following respective meanings:

                     "ADDITIONAL HOLDER" shall mean any Company Shareholder
       (other than Holdings or Coley) or any transferee or assignee thereof to
       whom the Company has contractually granted incidental registration
       rights.

                     "BUSINESS DAY" means any day that is not a Saturday, a
       Sunday or other day on which banks are required or authorized by law to
       be closed in Seattle, Washington or the District of Columbia.

                     "COMMISSION" shall mean the United States Securities and
       Exchange Commission, or any other United States federal agency at the
       time administering the Securities Act or the Exchange Act, as applicable,
       whichever is the relevant statute.

                     "COMPANY COMMON STOCK" shall mean the common stock, no par
       value per share, of the Company.

                     "EXCHANGE ACT" shall mean the United States Securities
       Exchange Act of 1934, or any similar federal statute, and the rules and
       regulations of the Commission thereunder, all as the same shall be
       amended from time to time.

                                       1
<PAGE>

                     "PERSON" shall mean an individual, corporation,
       association, partnership, limited liability company, trust, organization,
       group (as such term is used in Rule 13d-5 under the Exchange Act),
       business, government or political subdivision thereof, governmental
       agency or other entity.

                     "PROSPECTUS" shall mean the prospectus included in any
       Registration Statement, as amended or supplemented by any prospectus
       supplement with respect of the terms of the offering of any security of
       the Company covered by such Registration Statement and all other
       amendments or supplements to the prospectus, including post-effective
       amendments, and all material incorporated, or deemed to be incorporated,
       by reference in such prospectus.

                     "PUBLIC OFFERING" shall mean a sale pursuant to a
       Registration Statement filed pursuant to the Securities Act where the
       issuance of stock pursuant to such sale has a market value of at least
       $20 million and a capitalization on a fully diluted basis of at least $75
       million (based on the per share price of shares sold in such offering).

                     "REGISTRABLE SECURITIES" shall mean any Company Common
       Stock issued or retained pursuant to the Purchase Agreement or securities
       which may be issued or distributed in respect thereof by way of stock
       dividend or stock split or other distribution, exchange,
       recapitalization, or reclassification.  For purposes of this Agreement,
       any Registrable Securities shall cease to be Registrable Securities when
       (i) a Registration Statement with respect to the sale of such securities
       shall have become effective under the Securities Act and such securities
       shall have been disposed of in accordance with such Registration
       Statement, (ii) such Registrable Securities are sold by a person in a
       transaction in which the rights under the provisions of this Agreement
       are not assigned, or (iii) such Registrable Securities shall have ceased
       to be outstanding.

                     "REGISTRATION STATEMENT" shall mean any registration
       statement under the Securities Act filed by the Company, including the
       Prospectus contained therein, any amendments and supplements to such
       registration statement, including post-effective amendments, and all
       exhibits and all material incorporated, or deemed to be incorporated, by
       reference in such registration statement.

                     "SECURITIES ACT" shall mean the United States Securities
       Act of 1933, or any similar federal statute, and the rules and
       regulations of the Commission thereunder, all as the same shall be
       amended from time to time.

                                       2
<PAGE>

                                     ARTICLE II

                AGREEMENTS IN RESPECT OF THE REGISTRABLE SECURITIES

              SECTION 2.01.  DEMAND REGISTRATIONS.  (a)  Subject to the
limitations set forth below, Holdings shall have the right (a "DEMAND RIGHT") to
require the Company to file a Registration Statement under the Securities Act in
respect of Registrable Securities held by it.  If at the time that a Demand
Right is exercised by Holdings, the Company is not eligible to use Form S-3,
such Demand Right shall be a "LONG-FORM DEMAND RIGHT".  If at the time that a
Demand Right is exercised by Holdings, the Company is eligible to use Form S-3,
such Demand Right shall be a "SHORT-FORM DEMAND RIGHT".  Holdings shall be
entitled to exercise a Demand Right on up to four occasions; PROVIDED, HOWEVER,
that Holdings may not require the Company to file a registration statement on a
form other than Form S-3 on more than two occasions.

              (b)    Subject to the limitations set forth below, Coley shall
have one Short Form Demand Right.  (For purposes of this Section 2.01, the party
exercising a Demand Right is, where applicable, referred to as the "SELLING
SHAREHOLDER").

              (c)    Each Long-Form Demand Right must be exercised in respect of
a number of Registrable Securities greater than the number (subject to equitable
adjustment in the event of stock splits, stock dividends and similar events)
equal to 10% of the Registrable Securities outstanding at the effective time of
the Acquisition (the "Effective Time").  Each Short-Form Demand Right must be
exercised in respect of at least 2,000 Registrable Securities (subject to
equitable adjustment in the event of stock splits, stock dividends and similar
events).  No Demand Right may be exercised within 6 months after the date that
the registration of Registrable Securities pursuant to a prior exercise of a
Demand Right was declared effective.  Coley's Short Form Demand Right must be
exercised in respect of a number of Registrable Securities greater than the
number (subject to equitable adjustment in the event of stock splits, stock
dividends and similar events) equal to 5% of the Registrable Securities
outstanding at the effective time of the Acquisition.

              (d)    As promptly as practicable, but in no event later than 45
days after the Company receives a written request from a Selling Shareholder
demanding that the Company so register the number of Registrable Securities
specified in such request, the Company shall file with the Commission and
thereafter use its reasonable best efforts to cause to be declared effective
promptly a Registration Statement (a "DEMAND REGISTRATION") providing for the
registration of all Registrable Securities as the Selling Shareholder shall have
demanded be registered.

              (e)    Anything in this Agreement to the contrary notwithstanding,
the Company shall be entitled to postpone and delay, for a reasonable period of
time (the "Blackout Period"), not to exceed 60 days after the exercise of a
Demand Right in the case of subsections (i) and (iii) below, the filing of any
Demand Registration if:

                                       3
<PAGE>

                     (i)    the Company will be filing, within 30 days after the
       exercise of a Demand Right, a Registration Statement pertaining to a
       public offering of Company Common Stock in which the Holders are entitled
       to join pursuant to Section 2.02 hereof;

                     (ii)   the Company is subject to an existing contractual
       obligation to its underwriters not to engage in a public offering;

                     (iii)  the Company shall determine that any such filing or
       the offering of any Registrable Securities would

                            (A)    in the good faith judgment of the Board of
              Directors of the Company, impede, delay or otherwise interfere
              with any pending or contemplated financing, acquisition, corporate
              reorganization or other similar transaction involving the Company
              or its wholly owned subsidiaries;

                            (B)    based upon advice from the Company's
              investment banker or financial advisor, adversely affect any
              pending or contemplated offering or sale of any class of
              securities by the Company; or

                            (C)    in the good faith judgment of the Board of
              Directors of the Company, require disclosure of material nonpublic
              information which, if disclosed at such time, would be materially
              harmful to the interests of the Company and its shareholders;

PROVIDED, HOWEVER, that the Blackout Period shall terminate upon the completion
or abandonment of the relevant securities offering or sale, the termination or
expiration of the existing contractual obligation not to engage in a public
offering, the completion or abandonment of the relevant financing, acquisition,
corporate reorganization or other similar transaction, such time as such Demand
Registration shall no longer affect the relevant pending or contemplated
offering or sale of securities by the Company, the public disclosure by the
Company or public admission by the Company of such material nonpublic
information or such time as such material nonpublic information shall be
publicly disclosed not in breach of confidentiality obligations, as the case may
be.  After the expiration of any Blackout Period and without any further request
from the Selling Shareholder the Company shall effect the filing of the relevant
Demand Registration and shall use its reasonable best efforts to cause any such
Demand Registration to be declared effective as promptly as practicable unless
the Selling Shareholder shall have, prior to the effective date of such Demand
Registration, withdrawn in writing the initial request, in which case such
withdrawn request shall not constitute a Demand Registration for purposes of
determining the number of Demand Registrations to which the Selling Shareholder
is entitled hereunder.  The Company may not exercise its right to postpone or
delay the filing of any Demand Registration pursuant to this subsection (c) more
than twice during any 12 month period.

              (f)    Any request by a Selling Shareholder for a Demand
Registration which is subsequently withdrawn prior to such Demand Registration
becoming effective shall not constitute a Demand Registration for purposes of
determining the number of Demand

                                       4
<PAGE>

Registrations to which the Selling Shareholder is entitled if such withdrawal
(i) is due to a material adverse change affecting the Company, (ii) is due to a
notification by the Company of an intention to file a Registration Statement
with respect to Company Common Stock or (iii) is made in accordance with the
penultimate sentence of Section 2.01(c).

              (g)    The Company shall be entitled to include authorized but
unissued shares of Company Common Stock in any Demand Registration, subject to
Section 2.02.  Notwithstanding anything contained herein, if the lead
underwriter of an offering involving a Demand Registration delivers a written
opinion to the Selling Shareholder (a copy of which shall be provided to the
Company) that the number of shares of Company Common Stock included in such
Demand Registration would (i) materially and adversely affect the price of the
Company Common Stock to be offered or (ii) result in a greater amount of Company
Common Stock being offered than the market could reasonably absorb, then the
number of Registrable Securities to be registered by the Company and the number
of shares of Company Common Stock to be included in such Demand Registration by
other holders of shares of Company Common Stock pursuant to contractual
incidental registration rights, shall be reduced in proportion to the number of
securities originally requested to be registered by each of them to the extent
that, in the lead underwriter's opinion, neither of the effects in the foregoing
clauses (i) and (ii) would result from the number of shares of Company Common
Stock included in such Demand Registration.

              SECTION 2.02.  INCIDENTAL REGISTRATION.  (a)  If the Company
proposes to file a Registration Statement under the Securities Act with
respect to a Public Offering or, after a Public Offering with respect to any
offering of Company Common Stock (i) for its own account or (ii) for the
account of any Holder or each Additional Holder of Company Common Stock, the
Company shall give written notice of such proposed filing to each Holder and
any Additional Holder as soon as practicable (but in any event not less than
30 days before the anticipated filing date), and such notice shall offer each
Holder and each Additional Holder the opportunity to register such number of
Registrable Securities as each Holder or Additional Holder shall request.
Upon the written direction of a Holder or an Additional Holder, given within
20 days following the receipt by the Holder or Additional Holder of any such
written notice (which direction shall specify the number of Registrable
Securities intended to be disposed of by the Holder or Additional Holder),
the Company shall include in such Registration Statement (an "INCIDENTAL
REGISTRATION") such number of Registrable Securities as shall be set forth in
such written direction.  Notwithstanding anything contained herein, if the
lead underwriter of an offering involving an Incidental Registration delivers
a written opinion to the Company (a copy of which shall be provided to each
Holder and each Additional Holder requesting Incidental Registration rights
hereunder) that the number of shares of Company Common Stock included in such
Incidental Registration would (i) materially and adversely affect the price
of the Company Common Stock to be offered or (ii) result in a greater amount
of Company Common Stock being offered than the market could reasonably
absorb, then the number of Registrable Securities to be registered by any
Holder or Additional Holder requesting Incidental Registration rights
hereunder, shall be reduced in proportion to such Holder's respective pro
rata ownership interest in the Company at the time immediately preceding such
request for Incidental Registration to the extent that, in the lead
underwriter's opinion, neither of the effects in the foregoing clauses (i)
and (ii) would result from the number of shares of Company Common Stock
included in such Incidental Registration.

                                       5
<PAGE>

              SECTION 2.03.  REGISTRATION PROCEDURES. (a)   In connection with
each Registration, and in accordance with the intended method or methods of
distribution of the Company Common Stock as described in such Registration, the
Company shall, as soon as reasonably practicable (and, in any event, subject to
the terms of this Agreement, at or before the time required by applicable laws
and regulations):

              (i)    prepare and file with the Commission a Registration
       Statement with respect to such Registrable Securities, which, if the
       method of distribution is by means of an underwriting, shall be in form
       and substance reasonably acceptable to the underwriters for such
       underwriting, and use its reasonable best efforts to cause such
       Registration Statement to become and remain effective for the period of
       the distribution contemplated thereby; PROVIDED, HOWEVER, that the
       Company shall use its reasonable best efforts to cause a Registration
       Statement on Form S-3 to remain effective until the earlier of (i) the
       disposition of all the Registrable Securities registered thereunder, and
       (ii) the expiration of the 90-day period commencing on the first day of
       the effectiveness of such Registration;

              (ii)   prepare and file with the Commission such amendments and
       supplements to such Registration Statement and the Prospectus used in
       connection therewith as may be necessary to comply with the provisions of
       the Securities Act with respect to the disposition of all Registrable
       Securities covered by such Registration Statement;

              (iii)  furnish to each Holder and Additional Holder such numbers
       of copies of the Registration Statement and the Prospectus included
       therein (including each preliminary prospectus and any amendments or
       supplements thereto), in conformity with the requirements of the
       Securities Act and such other documents and information as it may
       reasonably request;

              (iv)   (A) make available for inspection by each Holder or
       Additional Holder and its counsel and financial advisors such financial
       and other information as shall be reasonably requested by them, and
       provide such Holder or Additional Holder and its counsel and financial
       advisors the opportunity to discuss the business affairs of the Company
       with its principal executives and accountants, for the purposes of
       enabling each Holder or Additional Holder to exercise its due diligence
       responsibilities under the Securities Act and (B) before the Registration
       Statement (and any amendments or supplements thereto) is filed, provide
       copies thereof to each Holder and Additional Holder and its counsel and
       provide them with adequate time to review and comment thereon;

              (v)    use its reasonable best efforts to register or qualify the
       Registrable Securities covered by such Registration Statement under such
       other securities or blue sky laws of such jurisdiction within the United
       States and Puerto Rico as shall be reasonably appropriate for the
       distribution of the Registrable Securities covered by the Registration
       Statement; PROVIDED, HOWEVER, that the Company shall not be required in
       connection therewith or as a condition thereto to qualify to do business
       in or to file a general consent

                                       6
<PAGE>

       to service of process in any jurisdiction wherein it would not but for
       the requirements of this paragraph (v) be obligated to do so; and
       PROVIDED, FURTHER, that the Company shall not be required to qualify
       such Registrable Securities in any jurisdiction in which the securities
       regulatory authority requires that a Holder or Additional Holder submit
       any of its Registrable Securities to the terms, provisions and
       restrictions of any escrow, lockup or similar agreement(s) for consent
       to sell Registrable Securities in such jurisdiction unless such Holder
       or Additional Holder agrees to do so;

              (vi)   promptly notify each Holder and Additional Holder, at any
       time when a Prospectus relating to the Registrable Securities is required
       to be delivered under the Securities Act, of the happening of any event
       as a result of which the Prospectus included in such Registration
       Statement, as then in effect, includes an untrue statement of a material
       fact or omits to state any material fact required to be stated therein or
       necessary to make the statements therein not misleading in light of the
       circumstances under which they were made, and at the request of a Holder
       or Additional Holder, promptly prepare and furnish to such Holder or
       Additional Holder a reasonable number of copies of a supplement to or an
       amendment of such Prospectus as may be necessary so that, as thereafter
       delivered to the purchasers of such securities, such Prospectus shall not
       include an untrue statement of a material fact or omit to state a
       material fact required to be stated therein or necessary to make the
       statements therein not misleading in light of the circumstances under
       which they were made;

              (vii)  enter into customary agreements (including if the method of
       distribution is by means of an underwriting, an underwriting agreement in
       customary form) and take such other actions as are reasonably required in
       order to expedite or facilitate the disposition of the Registrable
       Securities to be so included in the Registration Statement;

              (viii) otherwise use its reasonable best efforts to comply with
       all applicable rules and regulations of the Commission, and make
       available to its security holders, as soon as reasonably practicable, but
       not later than 18 months after the effective date of the Registration
       Statement, an earnings statement covering the period of at least 12
       months beginning with the first full month after the effective date of
       such Registration Statement, which earnings statements shall satisfy the
       provisions of Section 11(a) of the Securities Act;

              (ix)   file with any securities exchange where the Registrable
       Securities are to be listed, the required number of Prospectuses pursuant
       to the rules and regulations of such exchange as are from time to time in
       effect, and

              (x)    use its reasonable best efforts to list the Company Common
       Stock covered by such Registration Statement with any securities exchange
       or recognized trading market on which the Company Common Stock are then
       listed.

              (b)    Each Holder or Additional Holder requesting Incidental
Registration and each Selling Shareholder requesting Demand Registration shall
furnish to the Company in writing such information regarding such Holder,
Additional Holder or Selling Shareholder and

                                       7
<PAGE>

its intended method of distribution of the Registrable Securities as the
Company may from time to time reasonably request in writing, but only to the
extent that such information is required in order for the Company to comply with
its obligations under all applicable securities and other laws and to ensure
that the Prospectus relating to such Registrable Securities conforms to the
applicable requirements of the Securities Act and the rules and regulations
thereunder.  Each Holder, Additional Holder or Selling Shareholder shall notify
the Company as promptly as practicable of any inaccuracy or change in
information previously furnished by such Holder, Additional Holder or Selling
Shareholder to the Company or of the occurrence of any event, in either case as
a result of which any Prospectus relating to the Registrable Securities contains
or would contain an untrue statement of a material fact regarding such Holder or
its intended method of distribution of such Registrable Securities or omits to
state any material fact regarding such Holder, Additional Holder or Selling
Shareholder or its intended method of distribution of such Registrable
Securities required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, and promptly furnish to the Company any additional information
required to correct and update any previously furnished information, or required
so that such prospectus shall not contain, with respect to such Holder,
Additional Holder or Selling Shareholder or the intended method of distribution
of the Registrable Securities, an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

              SECTION 2.04.  REGISTRATION EXPENSES.   All expenses incurred in
connection with (i) each Registration pursuant to Section 2.01 of this
Agreement, excluding underwriters' discounts and commissions and any stamp or
transfer tax or duty and (ii) each Registration pursuant to Section 2.02 of this
Agreement, excluding any stamp or transfer tax or duty, but including in both
cases all registration, filing and qualification fees, printers' and accounting
fees, reasonable fees and disbursements of one counsel for the Selling
Shareholder, or in the case of an Incidental Registration, one counsel for all
Holders (selected by the Holders) and fees and disbursements of counsel for the
Company incurred in connection with each registration shall be paid by the
Company.  Each Holder or Additional Holder requesting Incidental Registration
shall bear and pay its pro-rata share of the underwriting commissions and
discounts and any stamp or transfer tax or duty and the fees and disbursements
of counsel for such parties other than the one counsel referred to above
incurred in connection with each Registration applicable to securities offered
for its account in connection with any Registrations, filings and qualifications
made pursuant to this Agreement.

              SECTION 2.05.  UNDERWRITING REQUIREMENTS.  In connection with any
underwritten offering, the Company shall not be required under either Section
2.01 or Section 2.02 of this Agreement to include shares of Registrable
Securities in such underwritten offering unless the Selling Shareholder, or in
the case of an Incidental Registration under Section 2.02, a Holder or
Additional Holder, accepts the terms of the underwriting of such offering that
have been reasonably agreed upon between the Company and the underwriters
selected by the Company.

                                       8
<PAGE>

              SECTION 2.06.  INDEMNIFICATION; CONTRIBUTION.

              (a)    INDEMNIFICATION BY THE COMPANY.  The Company shall, and it
hereby agrees to, indemnify and hold harmless each Holder or Additional Holder
and each Person who participates as a placement or sales agent or as an
underwriter (within the meaning of the Securities Act) in any offering or sale
of the Registered Securities, against any losses, claims, damages or liabilities
("LOSSES") to which such Holder or Additional Holder or their respective agents
or underwriters, may become subject, insofar as such Losses (or actions,
proceedings or investigations in respect thereof) arise out of or are based upon
an untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement or Prospectus contained therein or arise out of or
are based upon any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and the Company shall, and it hereby agrees to, reimburse each
Holder or Additional Holder or their respective agents or underwriters for any
legal or other out-of-pocket expenses reasonably incurred by them (but not in
excess of expenses incurred in respect of one counsel for all of them unless
there is an actual conflict of interest between any indemnified parties, which
indemnified parties may be represented by separate counsel) in connection with
investigating or defending any such action, proceeding or investigation;
PROVIDED, HOWEVER, that the indemnity agreement contained in this Section
2.06(a) shall not apply to amounts paid in settlement of any such Loss, action,
proceeding or investigation if such settlement is effected without the consent
of the Company which consent shall not be unreasonably withheld; PROVIDED,
FURTHER, that the Company shall not be liable to any such Person in any such
case to the extent that any such Loss or expense arises out of or is based upon
an untrue statement or alleged untrue statement or omission or alleged omission
made in such Registration Statement or Prospectus contained therein, in reliance
upon and in conformity with written information furnished to the Company by such
Holder or Additional Holder or any agent, underwriter or representative of such
Holder or Additional Holder expressly for use therein, or by the failure of such
Holder or Additional Holder to furnish the Company, upon request, with the
information required by Section 2.03(b) hereof with respect to such Holder or
Additional Holder (or agent, underwriter or representative of such Holder or
Additional Holder) or the intended method of distribution by such Holder or
Additional Holder, that is the subject of the untrue statement or omission or,
in the case of such agent or underwriter, if the Company shall sustain the
burden of proving that such agent or underwriter sold securities to the person
alleging such Loss without sending or giving, at or prior to the written
confirmation of such sale, a copy of the applicable Prospectus (excluding any
documents incorporated by reference therein) or of the applicable Prospectus, as
then amended or supplemented (excluding any documents incorporated by reference
therein) if the Company had previously furnished copies thereof to such agent or
underwriter, and such Prospectus corrected such untrue statement or alleged
untrue statement or omission or alleged omission made in such Registration.

              (b)    INDEMNIFICATION BY THE HOLDERS AND ANY AGENT OR
UNDERWRITERS.  Each  Holder or Additional Holder requesting or joining in a
Registration shall severally and not jointly indemnify and hold harmless the
Company, each of its directors and officers, each Person, if any, who controls
the Company within the meaning of the Securities Act, and each agent and any
underwriter for the Company (within the meaning of the Securities Act) against
any Losses, joint or several, to which the Company or any such director,
officer, controlling Person, agent or

                                       9
<PAGE>

underwriter may become subject, under the Securities Act or otherwise, and shall
reimburse any legal or other expenses reasonably incurred by the Company or any
such director, officer, controlling person, agent or underwriter (but not in
excess of expenses incurred in respect of one counsel for all of them unless
there is an actual conflict of interest between any indemnified parties, which
indemnified parties may be represented by separate counsel) in connection with
investigating or defending any such Loss or action, proceeding or investigation
insofar as such Losses (or actions, proceedings or investigations in respect
thereof) or expenses arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in such Registration
Statement on the effective date thereof (including any Prospectus filed under
Rule 424 under the Securities Act or any amendments or supplements thereto) or
arise out of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein not misleading, in each case to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or
alleged omission (i) was made in such Registration Statement or Prospectus, or
amendments or supplements thereto, in reliance upon and in conformity with
written information furnished by or on behalf of such Holder or additional
Holder expressly for use in connection with such Registration Statement or
Prospectus, or (ii) resulted from the failure of such Holder or Additional
Holders to furnish the Company, upon request, with the information required by
Section 2.03(b) hereof, with respect to such Holder or Additional Holder or
agent, underwriter or representative of such Holder or Additional Holder, or the
intended method of distribution by such Holder or Additional Holder, that is the
subject of the untrue statement or omission; PROVIDED, HOWEVER, that the
indemnity agreement contained in this Section 2.06(b) shall not apply to amounts
paid in settlement of any such Loss, action, proceeding or investigation if such
settlement is effected without the consent of such Holder or Additional Holder
which consent shall not be unreasonably withheld and in no event shall any
Holder or Additional Holder be liable under this Section 2.05(b) for an amount
in excess of the gross proceeds received by such Holder or Additional Holder
from the sale of securities pursuant to such Registration.

              (c)    NOTICE OF CLAIMS, ETC.  Promptly after receipt by an
indemnified party under subsection (a) or (b) above of written notice of the
commencement of any action or proceeding for which indemnification under
subsection (a) or (b) may be requested, such indemnified party shall, without
regard to whether a claim in respect thereof is to be made against an
indemnifying party pursuant to the indemnification provisions of, or as
contemplated by, this Section 2.06, notify such indemnifying party in writing of
the commencement of such action or proceeding; but the omission so to notify the
indemnifying party shall not relieve it from any liability which it may have to
any indemnified party in respect of such action or proceeding on account of the
indemnification provisions of or contemplated by Section 2.06(a) or 2.06(b)
hereof, except to the extent the indemnifying party was prejudiced by such
failure of the indemnified party to give such notice, and in no event shall such
omission relieve the indemnifying party from any other liability it may have to
such indemnified party.  In case any such action or proceeding shall be brought
against any indemnified party and it shall notify an indemnifying party of the
commencement thereof, such indemnifying party shall be entitled to participate
therein and, to the extent that it shall determine, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party, and, after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, such indemnifying party shall not be liable to

                                       10
<PAGE>

such indemnified party for any legal or any other expenses subsequently incurred
by such indemnified party, in connection with the defense thereof other than
reasonable costs of investigation (unless such indemnified party reasonably
objects to such assumption on the grounds that there are likely defenses
available to it which are different from and potentially inconsistent with the
defenses available to such indemnifying party, in which event the indemnified
party shall have the right to control its defense and shall be reimbursed by the
indemnifying party for the expenses incurred in connection with retaining
separate counsel).  If the indemnifying party is not entitled to, or elects not
to, assume the defense of a claim, it will not be obligated to pay the fees and
expenses of more than one counsel (in addition to local counsel) for all
indemnified parties with respect to such claim, unless counsel retained by the
indemnified party reasonably concludes that it is not able to represent any
other indemnified party as a result of an actual or likely potential conflict of
interest, in which event each such indemnified party shall have the right to
retain separate counsel.  The indemnifying party will not be subject to any
liability for any settlement made without its consent, which consent shall not
be unreasonably withheld or delayed.  No indemnifying party will consent to
entry of any judgment or enter into any settlement agreement which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such indemnified party of a release from all liability in respect of such
claim or litigation.

              (d)    CONTRIBUTION.  Each Holder and Additional Holder and the
Company agrees that if, for any reason, the indemnification provisions
contemplated by Section 2.06(a) or Section 2.06(b) hereof are unavailable to or
are insufficient to hold harmless an indemnified party in respect of any Losses
(or actions or proceedings in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such Losses (or actions or proceedings in
respect thereof) in such proportion as is appropriate to reflect the relative
fault of, and benefits derived by, the indemnifying party and the indemnified
party, as well as any other relevant equitable considerations.  The relative
fault of such indemnifying party and indemnified party shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact
relates to information supplied by such indemnifying party or by such
indemnified party, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 2.06(d) were determined (i) by pro rata allocation
(even if the Holders or any agents for, or underwriters of, the Registrable
Securities, or all of them, were treated as one entity for such purpose); or
(ii) by any other method of allocation which does not take account of the
equitable considerations referred to in this Section 2.06(d).  The amount paid
or payable by an indemnified party as a result of the Losses (or actions or
proceedings in respect thereof) referred to above shall be deemed to include
(subject to the limitations set forth in Section 2.06(c) hereof) any legal or
other fees or expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action, proceeding or claim.
No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

              (e)    BENEFICIARIES OF INDEMNIFICATION.  The obligations of the
Company under this Section 2.06 shall be in addition to any liability that it
may otherwise have and shall apply,

                                       11
<PAGE>

upon the same terms and conditions, to each Holder or Additional Holder and each
agent and underwriter of the Registrable Securities and each person, if any, who
controls any Holder or Additional Holder or any such agent or underwriter within
the meaning of the Securities Act; and the obligations of each Holder or
Additional Holder and any agents or underwriters contemplated by this Section
2.06 shall be in addition to any liability that each Holder or Additional Holder
or its respective agent or underwriter may otherwise have and shall apply, upon
the same terms and conditions, to each officer and director of the Company
(including any person who, with his consent, is named in any Registration
Statement as about to become a director of the Company) and to each person, if
any, who controls the Company within the meaning of the Securities Act.

              SECTION 2.07.  TERMINATION OF REGISTRATION RIGHTS.
Notwithstanding any other provisions of this Agreement to the contrary, the
registration rights granted pursuant to this Agreement shall terminate with
respect to each Holder or Additional Holder on the earlier of: (i) the date that
all Registrable Securities held by such Holder or Additional Holder are legally
permitted to be sold within a three month period under Rule 144 under the
Securities Act (or other similar rule), regardless of whether at the time of
such sales any Holder or Additional Holder is entitled to rely upon paragraph
(k) of Rule 144, provided that each Holder or Additional Holder is then entitled
to rely on Rule 144 with respect to all such Registrable Securities; or (ii) on
the sixth anniversary of the date of this Agreement, regardless of the
tradeability of any Registrable Securities held by any Holder or Additional
Holder.

              SECTION 2.08.  UNDERWRITERS.  If any of the Registrable Securities
are to be sold pursuant to an underwritten offering, the investment banker or
bankers and the managing underwriter or underwriters thereof shall be selected
by the Company after consultation with each Holder or Additional Holder
participating in such Registration, PROVIDED, that such managing underwriter or
underwriters must be of recognized national standing.

              SECTION 2.09.  LOCKUP.  Each Holder or Additional Holder shall, in
connection with any Registration of the Company's securities, upon the request
of the underwriters managing any underwritten offering of the Company's
securities, agree in writing not to effect any sale, disposition or distribution
of any Registrable Securities (other than that included in the Registration or,
if the effectiveness of such Registration is after one year after the date of
this Agreement, sales in accordance with Rule 144 under the Securities Act and
within the volume limitation of Rule 144(e) under the Securities Act, regardless
of whether at the time of such sales each Holder or Additional Holder is
entitled to rely upon paragraph (k) of Rule 144) without the prior written
consent of the Company or such underwriters, as the case may be, for such period
of time not to exceed 180 days from the effective date of such Registration as
the underwriters may specify; PROVIDED, HOWEVER, that all executive officers and
directors of the Company shall also have agreed not to effect any sale,
disposition or distribution of any Registrable Securities for a like period of
time pursuant to the terms set forth in this Section 2.09.

              SECTION 2.10.  LEGENDS.  (a)  Stop transfer restrictions will be
given to the Company's transfer agent(s) with respect to the Registrable
Securities and there will be placed on the certificate or instruments
representing the Registrable Securities, and on any certificate or instrument
delivered in substitution or exchange therefor, a legend stating in substance:

                                       12
<PAGE>

              "THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
       REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  NO
       REGISTRATION OF TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE
       BOOKS OF THE ISSUER UNLESS SUCH TRANSFER IS MADE IN CONNECTION
       WITH AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR
       PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
       SUCH ACT OR SUCH ACT DOES NOT APPLY.

              THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO
       CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN A SHAREHOLDERS'
       AGREEMENT, DATED AS OF DECEMBER 15, 1998, AS IT MAY BE AMENDED
       FROM TIME TO TIME, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL
       EXECUTIVE OFFICES OF THE ISSUER.  NO REGISTRATION OF TRANSFER OF
       SUCH SECURITIES WILL BE MADE ON THE BOOKS OF THE ISSUER UNLESS AND
       UNTIL SUCH RESTRICTIONS SHALL HAVE BEEN COMPLIED WITH."

              (b)    The Company hereby agrees that it will cause stop transfer
restrictions to be released with respect to any Registrable Securities that are
(i) transferred pursuant to an effective Registration Statement under the
Securities Act, (ii) transferred pursuant to Rule 144 under the Securities Act,
(iii) transferred pursuant to another exemption from the registration
requirements of the Securities Act, or (iv) freely transferable pursuant to Rule
144(k); PROVIDED, HOWEVER, that in the case of any transfer pursuant to clause
(ii) or (iii) above, the request for transfer is accompanied by a written
statement signed by each Holder or Additional Holder confirming compliance with
the requirements of the relevant exemption from registration; and PROVIDED,
FURTHER, that in the case of any transfer pursuant to clause (iii) above, the
Company shall have received a written opinion of counsel reasonably satisfactory
to the Company that such registration is not required.  The Company further
agrees that it will cause the legend described in subsection (a) of this Section
2.10 to be removed in the event of any transfer as provided in clause (i) or
(ii) above.

              SECTION 2.11.  ASSIGNMENT OF REGISTRATION RIGHTS.  The rights to
cause the Company to register Registrable Securities pursuant to this Section 2
may be assigned by a Holder or Additional Holder to a transferee or assignee,
provided that, the Company is, within a reasonable time after such transfer,
furnished with written notice of the name and address of such transferee or
assignee and the Registrable Securities with respect to which such registration
rights are being assigned; and, provided further, that such assignment shall be
effective only if immediately following such transfer the further disposition of
such Registrable Securities by the transferee or assignee is restricted under
the Securities Act.

              SECTION 2.12.  PUBLIC INFORMATION.  The Company covenants to make
available "adequate current public information" concerning the Company within
the meaning of Rule 144(c) under the Securities Act.

                                       13
<PAGE>

                                    ARTICLE III

                                   MISCELLANEOUS

              SECTION 3.01.  EXPENSES.  Except as otherwise specified in this
Agreement, all costs and expenses, including, without limitation, fees and
disbursements of counsel, financial advisors and accountants, incurred in
connection with this Agreement and the transactions contemplated hereby shall
be paid by the party incurring such costs and expenses.

              SECTION 3.02.  NOTICES.  All notices, requests, claims, demands
and other communications hereunder shall be in writing and shall be given or
made (and shall be deemed to have been duly given and made upon receipt) by
delivery in person, by courier service, by cable, by facsimile, by telegram, by
telex, or by registered or certified mail (postage prepaid, return receipt
requested) to the respective parties at the following addresses (or at such
other address for a party as shall be specified in a notice given in accordance
with this Section 3.02):

              (a)    if to the Company:

                     Pacific Circuits, Inc.
                     c/o Thayer Equity Investors III, L.P.
                     1455 Pennsylvania Avenue, NW
                     Suite 350
                     Washington, D.C.  20004
                     Facsimile:  (202) 371-0391
                     Attention:  Jeffrey W. Goettman

                     with a copy to:

                     Shearman & Sterling
                     555 California Street
                     San Francisco, California 94104
                     Facsimile:  (415) 616-1199
                     Attention:  Christopher D. Dillon, Esq.

              (b)    if to Coley:

                     Lewis O. Coley, III
                     1925 E. Beaver Lake Dr. S.E.
                     Issaquah, Washington  98029

                                       14
<PAGE>

                     with a copy to:

                     Preston Gates & Ellis LLP
                     5000 Columbia Center
                     701 5th Ave.
                     Seattle, WA  98104-7078
                     Facsimile:  (206) 623-7022
                     Attention:   Connie R. Collingsworth, Esq.

              (c)    if to Holdings:

                     Circuit Holdings, LLC
                     c/o Thayer Equity Investors III, L.P.
                     1455 Pennsylvania Avenue, NW
                     Suite 350
                     Washington, D.C.  20004
                     Facsimile:  (202) 371-0391
                     Attention:  Jeff Goettman

                     with a copy to:
                     Shearman & Sterling
                     555 California Street
                     San Francisco, California 94104
                     Facsimile:  (415) 616-1199
                     Attention:  Christopher D. Dillon, Esq.

              SECTION 3.03.  PRESS RELEASES.  No party to this Agreement
shall make, or cause to be made, any press release or public announcement in
respect of this Agreement or the transactions contemplated hereby or
otherwise communicate with any news media without the prior written consent
of the other party (except to the extent that such disclosure is required by
law or under any relevant listing agreement with a stock exchange or the
NASDAQ National Market), and, to the extent practicable, the parties shall
cooperate as to the timing and contents of any such press release or public
announcement.

              SECTION 3.04.  HEADINGS.  The descriptive headings contained in
this Agreement are for convenience of reference only and shall not affect in any
way the meaning or interpretation of this Agreement.

              SECTION 3.05.  SEVERABILITY.  If any term or other provision of
this Agreement is invalid, illegal, or incapable of being enforced by any rule
of law or public policy, all other terms and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party.  Upon such determination that any term or other
provision is invalid, illegal, or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as

                                       15
<PAGE>

possible in an acceptable manner in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest extent
possible.

              SECTION 3.06.  ENTIRE AGREEMENT.  This Agreement constitutes the
entire agreement of the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements and undertakings, both written and oral,
among the parties hereto with respect to the subject matter hereof, except as
otherwise expressly provided herein.

              SECTION 3.07.  NO THIRD PARTY BENEFICIARY.  This Agreement shall
be binding upon and inure solely to the benefit of the parties hereto and their
respective successors and nothing herein, express or implied, is intended to or
shall confer upon any other Person (including any Additional Holder) any legal
or equitable right, benefit or remedy of any nature whatsoever under or by
reason of this Agreement.

              SECTION 3.08.  AMENDMENT.  This Agreement may not be amended or
modified except (a) by an instrument in writing signed by, or on behalf of, the
Company and each Holder  or (b) by a waiver in accordance with Section 3.09 of
this Agreement.

              SECTION 3.09.  WAIVER.  Any party to this Agreement may (a) extend
the time for the performance of any obligations or other acts of any other party
hereto or (b) waive compliance with any agreements or conditions contained
herein.  Any such extension or waiver shall be valid against the Company only if
set forth in an instrument in writing signed by the Company and shall be valid
against each Holder or Additional Holder only if set forth in an instrument in
writing signed by such Holder or Additional Holder.  Any waiver of any term or
condition shall not be construed as a waiver of any subsequent breach or a
subsequent waiver of the same term or condition, or as a waiver of any other
term or condition, of this Agreement.  The failure of any party to assert any of
its rights hereunder shall not constitute a waiver of any of such rights.

              SECTION 3.10.  GOVERNING LAW; DISPUTE RESOLUTION.  This Agreement
shall be governed by, and construed in accordance with, the laws of the State of
Washington applicable to contracts executed in and to be performed entirely
within that State.  All actions and proceedings arising out of or relating to
this Agreement shall be heard and determined in any state or federal court
sitting in the State of Washington.

              SECTION 3.11.  COUNTERPARTS.  This Agreement may be executed in
one or more counterparts, and by the different parties hereto in separate
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

              SECTION 3.12.  SURVIVAL.  The several indemnities, agreements,
representations, warranties and each other provision set forth in this Agreement
and made pursuant hereto shall remain in full force and effect regardless of any
investigation (or statement as to the results thereof) made by or on behalf of
any party, any director or officer of such party, or any controlling person of
any of the foregoing, and shall survive the transfer of any Registrable
Securities by each Holder or Additional Holder, and the indemnification and
contribution provisions set forth in Section 2.06 hereof shall survive
termination of this Agreement.

                                       16
<PAGE>

              IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed as of the date first written above by their respective officers
thereunto duly authorized or in their individual capacities, as applicable.

                                   PACIFIC CIRCUITS, INC.

                                   By:    /s/ Jeffrey W. Goettman
                                      -----------------------------
                                   Name:  Jeffrey W. Goettman
                                   Title:  Secretary

                                   CIRCUIT HOLDINGS, LLC

                                   By:    /s/ Jeffrey W. Goettman
                                      -----------------------------
                                   Name:  Jeffrey W. Goettman
                                   Title:  Authorized Representative

                                   Lewis O. Coley, III

                                        /s/ Lewis O. Coley, III
                                      -----------------------------

                                       17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]