THIS ADMINISTRATIVE PENALTY ORDER IS ISSUED TO THE MERIX CORPORATION FOR FAILURE TO TIMELY SUBMIT A COMPLETE AND ACCURATE FORM R OR FORM A FOR CALENDAR YEAR 1997 FOR NITRATE COMPOUNDS TO EPA AND TO THE STATE. THE PENALTY FOR THIS VIOLATION IS $5,000. THIS ORDER IS SUBJECT TO THE 22 RULE WHICH IS ENTERED INTO BY THE PARTIES FOR THE PURPOSE OF SIMULTANEOUSLY COMMENCING AND CONCLUDING THIS MATTER.