Document:

Form of Note

 EXHIBIT 4.1 
  

[Face of Note] 
  
 Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to
the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has
an interest herein. 
  

			
	 CUSIP NO. 949746FN6
	 	FACE AMOUNT: $            

 REGISTERED NO. 1 
  
 WELLS FARGO & COMPANY 
  
 Notes Linked to the Wells Fargo Headline Commodity IndexSM due June 5, 2006 
  
 WELLS FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company,” which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the Maturity Payment Amount (as defined below), in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts, on the Stated Maturity Date (as defined below). This Security shall not bear any interest. 
  
 Any payments on this Security at Maturity will be made against presentation of this Security at the office or agency of the
Company maintained for that purpose in the City of Minneapolis, Minnesota. 
  
 Determination of Maturity Payment Amount 
  
 “Maturity Payment Amount” shall mean, for each $1,000 Face Amount of this Security, the greater of (i) $900 and (ii) the Alternative Maturity Amount. 
  
 Set forth below are certain defined terms used in this Security in connection
with the determination of the Maturity Payment Amount. 

 “Alternative Maturity Amount” shall mean, for each $1,000 Face Amount of this Security,
$1,000 plus the product of: 
  

	 	•	$1,000; 

  

	 	•	Participation Rate; and 

  

	 	•	Final Index Level – Initial Index Level 

 Initial Index Level 
  
 “Business Day”
shall mean any day other than a Saturday, Sunday or a day on which banking institutions are authorized or required by law, regulation or executive order to close in New York City or Minneapolis, Minnesota. 
  
 “Calculation Agency Agreement” shall mean the Calculation
Agency Agreement dated as of June 4, 2004 between the Company and the Calculation Agent, as amended from time to time. 
  
 “Calculation Agent” shall mean the Person that has entered into the Calculation Agency Agreement with the Company providing for, among
other things, the determination of the Final Index Level and the Maturity Payment Amount, which term shall, unless the context otherwise requires, include its successors under such Calculation Agency Agreement. The initial Calculation Agent shall be
Wells Fargo Securities, LLC. Pursuant to the Calculation Agency Agreement, the Company may appoint a different Calculation Agent from time to time after the initial issuance of the Securities of this series without the consent of the Holders of the
Securities of this series and without notifying the Holders of the Securities of this series. 
  
 “Calculation Day” means any Trading Day on which a Market Disruption Event has not occurred. 
  
 “Calculation Period” shall mean the period of three Calculation Days beginning on and including the fourth Trading Day before June 5,
2006 to and including the second Trading Day before June 5, 2006; provided, however, that if one or more of such Trading Days is not a Calculation Day, the Calculation Period shall be extended to such date as is necessary so that the Calculation
Period consists of three Calculation Days. 
  
 The
“Closing Level” of the Index on any day shall be the sum of the products resulting from multiplying (i) the Market Price of each commodity included in the Index on such day by (ii) the Multiplier for such commodity. The Closing
Level resulting from this calculation shall be rounded up or down to the nearest 0.01, with 0.005 being rounded upward. 
  
 “Face Amount” shall mean, when used with respect to any Security or Securities of this series, the amount set forth on the face of such
Security or Securities as its or their “Face Amount.” 
  
 The “Final Index Level” shall be determined by the Calculation Agent and shall equal the average (i.e., arithmetic mean) of the Closing Levels of the Index determined on each of the three Calculation Days during the
Calculation Period. 
  

 2 

 “Index” shall mean the Wells Fargo Headline Commodity Index comprised of the following
five commodities: crude oil; gas oil; copper; gold; and silver. 
  
 “Initial Index Level” shall mean 1000. 
  
 The “Market Price” of a commodity included in the Index on any day shall be: 
  

	 	(i)	in the case of crude oil, the settlement price of the first nearby month futures contract for IPE Brent crude oil, expressed in U.S. dollars per barrel, traded on The International
Petroleum Exchange of London Ltd. (the “IPE”) on that day (the “IPE Brent Crude Price”); 

  

	 	(ii)	in the case of gas oil, the settlement price of the first nearby month futures contract for IPE gas oil, expressed in U.S. dollars per tonne, traded on the IPE on that day (the
“IPE Gas Oil Price”); 

  

	 	(iii)	in the case of copper, the LME official cash seller and settlement price of copper Grade A, expressed in U.S. dollars per tonne, traded on The London Metal Exchange Limited (the
“LME”) on that day (the “LME Copper Grade A Price”); 

  

	 	(iv)	in the case of gold, the London P.M. fixing price for one troy ounce of .995 gold, expressed in U.S. dollars, as determined by The London Gold Market Fixing Limited (the
“Gold Fixing Limited”) on that day (the “London Gold Fixing Price”); and 

  

	 	(v)	in the case of silver, the London fixing price for one troy ounce of .999 silver, expressed in U.S. cents, as determined by The London Silver Market Fixing Limited (the
“Silver Fixing Limited”) on that day (the “London Silver Fixing Price”). 

  
 The term “first nearby month futures contract” for a commodity on any day shall refer to the futures contract for that commodity with the expiration date
closest to such day. 
  
 The “Multiplier” shall
mean: 8.20120284, in the case of crude oil; 0.63643596, in the case of gas oil; 0.10598834, in the case of copper; 0.25429116, in the case of gold; and 0.16220600 in the case of silver. 
  
 The “Participation Rate” shall mean 0.90. 
  
 “Stated Maturity Date” shall mean June 5, 2006; provided, however, that if a Market Disruption Event occurs
during the period beginning on and including the fourth Trading Day before June 5, 2006 to and including the second Trading Day before June 5, 2006 such that one or more of such Trading Days is not a Calculation Day, the Stated Maturity Date will be
two Business Days after the final day of the Calculation Period. 
  

 3 

 “Trading Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday that is a
day on which the IPE and the LME are open for trading and the Gold Fixing Limited and the Silver Fixing Limited are conducting fixing activities. 
  
 Market Disruption Events 
  
 The occurrence or continuance on any Trading Day of any one or more market disruption events with respect to any of the commodities included in the Index
will be a “Market Disruption Event” for that Trading Day. 
  
 A “market disruption event” with respect to crude oil means: (i) a material limitation or suspension of trading in the first nearby month futures contract for IPE Brent crude oil traded on the IPE; or (ii)
the failure of the IPE to announce the IPE Brent Crude Price. 
  
 A “market disruption event” with respect to gas oil means: (i) a material limitation or suspension of trading in the first nearby month futures contract for IPE gas oil traded on the IPE; or (ii) the failure of the IPE to announce
the IPE Gas Oil Price. 
  
 A “market disruption event”
with respect to copper means: (i) a material limitation or suspension of trading in copper Grade A on the LME; or (ii) the failure of the LME to announce the LME Copper Grade A Price. 
  
 A “market disruption event” with respect to gold means: (i) a material limitation or suspension of trading in the
London P.M. gold fixing market; or (ii) the failure of the Gold Fixing Limited to announce or publish the London Gold Fixing Price. 
  
 A “market disruption event” with respect to silver means: (i) a material limitation or suspension of trading in the London silver fixing market;
or (ii) the failure of the Silver Fixing Limited to announce or publish the London Silver Fixing Price. 
  
 For purposes of the foregoing, a limitation on the hours or number of days of trading will not constitute a Market Disruption Event if it results from an
announced change in the regular business hours of the relevant trading facility. 
  
 Discontinuance Of Quotations; Alteration Of Manner Of Quotations 
  
 If the IPE, the LME, the Gold Fixing Limited or the Silver Fixing Limited discontinues quoting the Market Price for any of the commodities included in the Index as provided herein and another entity publishes a
quotation that the Calculation Agent determines, in its sole discretion, to be comparable to the discontinued quotation, then any subsequent Closing Level will be determined by reference to the quotation of such Market Price provided by such
successor entity (in any such case, referred to herein as a “Successor Quotation Source”) at 5:30 p.m., New York City time, on the date that any Closing Level is to be determined. 
  
 Upon any selection by the Calculation Agent of a Successor Quotation Source
the Company will promptly give notice to the Holders of the Securities of this series. 
  

 4 

 If the IPE, the LME, the Gold Fixing Limited or the Silver Fixing Limited discontinues quoting the Market
Price for any of the commodities included in the Index as provided herein and the Calculation Agent determines that no Successor Quotation Source for such Market Price is available at such time, then any subsequent Closing Level will be determined
by reference to the Calculation Agent’s good faith estimate of the Market Price for such commodity. 
  
 If a Successor Quotation Source is selected or the Calculation Agent calculates a Market Price in the absence of a successor quotation, such Successor
Quotation Source or Market Price will be used for all purposes with respect to calculation of the Closing Level, including for purposes of determining whether a Market Disruption Event exists. 
  
 If the method of quoting a Market Price as provided herein is changed in a
material respect by the IPE, the LME, the Gold Fixing Limited or the Silver Fixing Limited or a Successor Quotation Source, then the Calculation Agent shall, at 5:30 p.m., New York City time, on the date that the Closing Level is to be determined,
make such calculations and adjustments as, in its good faith judgment, may be necessary in order to arrive at a Market Price for such commodity as if such changes had not been made. The Calculation Agent will calculate the Closing Level with
reference to the Market Price, as adjusted. 
  
 Calculation Agent 
  
 The Calculation Agent will
determine the Maturity Payment Amount. In addition, the Calculation Agent will: 
  

	 	•	determine if adjustments are required to a Market Price under the circumstances described in this Security; 

  

	 	•	if quotation of a Market Price by the relevant trading facility is discontinued, select a Successor Quotation Source or, if no Successor Quotation Source is available, determine the
Market Price; and 

  

	 	•	determine whether a Market Disruption Event has occurred. 

  
 The Company covenants that, so long as any of the Securities of this series are Outstanding, there shall at all times be a Calculation Agent (which shall
be a broker-dealer, bank or other financial institution) with respect to the Securities of this series. 
  
 All determinations made by the Calculation Agent with respect to the Securities of this series will be at the sole discretion of the Calculation Agent
and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holders of the Securities of this series. Except with respect to the calculation of the Closing Level, all percentages and other amounts
resulting from any calculation with respect to the Securities of this series will be rounded at the Calculation Agent’s discretion. 
  
 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have
the same effect as if set forth at this place. 
  
 Unless the
certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall
not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
  

 5 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate
seal. 
  
 DATED:
                     
  

					
	 	 	 WELLS FARGO & COMPANY

			
	 	 	 By:
	 	  

	 	 	 Its:
	 	  

			
	 [SEAL]
	 	 	 	 
			
	 	 	 Attest:
	 	  

	 	 	 Its:
	 	  

  
 TRUSTEE’S CERTIFICATE OF

 AUTHENTICATION 
  
 This is one of the Securities of the 
 series designated therein described 
 in the within-mentioned Indenture. 
  

			
	 CITIBANK, N.A.,

	         as Trustee

		
	 By:
	 	  

	 	 	 Authorized Signature

	
	 OR

	
	 WELLS FARGO BANK, N.A.,
as Authenticating Agent for the Trustee

		
	 By:
	 	  

	 	 	 Authorized Signature

  

 6 

 [Reverse of Note] 
  

WELLS FARGO & COMPANY 
  
 Notes Linked to the Wells Fargo Headline Commodity IndexSM due June 5, 2006 
  
 This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an indenture dated as of July 21,
1999, as amended or supplemented from time to time (herein called the “Indenture”), between the Company and Citibank, N.A., as Trustee (herein called the “Trustee,” which term includes any successor trustee under
the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof, limited in aggregate Face Amount to $20,340,000; provided, however, that
the Company may, so long as no Event of Default has occurred and is continuing, without the consent of the Holders of the Securities of this series, issue additional Securities with the same terms as the Securities of this series, and such
additional Securities shall be considered part of the same series under the Indenture as the Securities of this series. 
  
 The Securities of this series are not subject to redemption at the option of the Company or repayment at the option of the Holder hereof prior to the
Stated Maturity Date. The Securities of this series will not be entitled to any sinking fund. 
  
 The Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against a Holder of Securities of this series. 
  
 If an Event of Default, as defined in the Indenture, with respect to
Securities of this series shall occur and be continuing, the Maturity Payment Amount (calculated as set forth in the next sentence) of the Securities of this series may be declared due and payable in the manner and with the effect provided in the
Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture will be equal to the Maturity Payment Amount hereof calculated as though the date of acceleration was the Stated Maturity Date. Upon payment of
the amount so declared due and payable, all of the Company’s obligations in respect of payment of the Maturity Payment Amount shall terminate. The Securities of this series will not bear a default rate of interest after the occurrence of an
Event of Default or an acceleration under the Indenture. 
  
 The
Company agrees, and by acceptance of a beneficial ownership interest in this Security each beneficial owner of this Security will be deemed to have agreed, for United States federal income tax purposes (i) to treat this Security as a single debt
instrument subject to the Treasury regulations governing contingent payment debt instruments, (ii) to report all income (or loss) with respect to this Security according to those Treasury regulations, and (iii) to be bound by the Company’s
determination of the “comparable yield” and the “projected payment schedule” (within 
  

 7 

 the meaning of such Treasury regulations) for this Security, unless such beneficial owner timely discloses and justifies
in its federal income tax return the use of a different comparable yield and projected payment schedule. 
  
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time
Outstanding of all series to be affected, acting together. The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the
Indenture, acting together, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain past defaults under the Indenture and their consequences may be waived under
the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series. Solely for the purpose of determining whether any consent, waiver,
notice or other action or Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate principal amount, the principal amount of this
Security will be deemed to be equal to its Face Amount. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 
  
 Section 403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating to defeasance at any
time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants and certain Events of Default, upon compliance by the Company with certain conditions set forth therein, shall not apply to this Security. The remaining
provisions of Section 401 of the Indenture shall apply to this Security. 
  
 Upon due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis, Minnesota, a new Security or Securities of this series in authorized denominations
for an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject to the limitations provided therein and to the limitations described below, without charge except for any tax or other
governmental charge imposed in connection therewith. 
  
 This
Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion
determines that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z) an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this
Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, having the same terms and of authorized denominations aggregating a like amount. 
  

 8 

 This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary
or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor. Except as provided above, owners of beneficial
interests in this Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture. 
  
 No reference herein to the Indenture and no provision of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the Maturity Payment Amount at the times and place, and in the coin or currency, herein prescribed, except as otherwise provided in this Security. 

 
 Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee
nor any such agent shall be affected by notice to the contrary. 
  
 No recourse shall be had for the payment of the Maturity Payment Amount, or for any claim based on this Security, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any
incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released. 
  
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise defined in
this Security. 
  
 This Security shall be governed by and
construed in accordance with the laws of the State of New York. 
  

 9 

 ABBREVIATIONS 
  
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they
were written out in full according to applicable laws or regulations: 
  

					
	TEN COM	 	—	 	as tenants in common
			
	TEN ENT	 	—	 	as tenants by the entireties
			
	JT TEN	 	—	 	as joint tenants with right
	 	 	 	 	of survivorship and not
	 	 	 	 	as tenants in common

  
 UNIF
GIFT MIN ACT —
                                        
                 Custodian
                                        
                     
 (Cust)                                      
                              (Minor) 
  

	
	Under Uniform Gifts to Minors Act
	  
  

	(State)

  
 Additional
abbreviations may also be used though not in the above list. 
  
 FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 
  

	
	 Please Insert Social Security or
 Other
Identifying Number of Assignee

	  
  

  

	
	  

	  

	  

	(PLEASE PRINT OR TYPE NAME AND ADDRESS INCLUDING
POSTAL ZIP CODE OF ASSIGNEE)

  

 10 

 the within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and appoint
                             attorney to transfer the said Security on the books of the Company, with
full power of substitution in the premises. 
  
 Dated:
                     
  

	
	  

	  

  
 NOTICE: The signature to this
assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatever. 
  

 11Form of 2004 Stock Incentive Plan of the Registrant.

 Exhibit 10.3 
  

  
 MULTI-FINELINE ELECTRONIX, INC. 
  
 2004 STOCK INCENTIVE PLAN 
  
 (Adopted by the Board on June 3, 2004) 
  

  

 Table of Contents 
  

					
	 	 	 	  	Page

	 SECTION 1.
	 	 ESTABLISHMENT AND PURPOSE
	  	1
			
	 SECTION 2.
	 	 DEFINITIONS
	  	1
	            (a)	 	“Affiliate”	  	1
	            (b)	 	“Award”	  	1
	            (c)	 	“Board of Directors”	  	1
	            (d)	 	“Change in Control”	  	1
	            (e)	 	“Code”	  	2
	            (f)	 	“Committee”	  	3
	            (g)	 	“Company”	  	3
	            (h)	 	“Consultant”	  	3
	            (i)	 	“Employee”	  	3
	            (j)	 	“Exchange Act”	  	3
	            (k)	 	“Exercise Price”	  	3
	            (l)	 	“Fair Market Value”	  	3
	            (m)	 	“ISO”	  	4
	            (n)	 	“Nonstatutory Option” or “NSO”	  	4
	            (o)	 	“Offeree”	  	4
	            (p)	 	“Option”	  	4
	            (q)	 	“Optionee”	  	4
	            (r)	 	“Outside Director”	  	4
	            (s)	 	“Parent”	  	4
	            (t)	 	“Participant”	  	5
	            (u)	 	“Plan”	  	5
	            (v)	 	“Purchase Price”	  	5
	            (w)	 	“Restricted Share”	  	5
	            (x)	 	“Restricted Share Agreement”	  	5
	            (y)	 	“SAR”	  	5
	            (z)	 	“SAR Agreement”	  	5
	            (aa)	 	“Service”	  	5
	            (bb)	 	“Share”	  	5
	            (cc)	 	“Stock”	  	5
	            (dd)	 	“Stock Option Agreement”	  	6
	            (ee)	 	“Stock Unit”	  	6
	            (ff)	 	“Stock Unit Agreement”	  	6
	            (gg)	 	“Subsidiary”	  	6
	            (hh)	 	“Total and Permanent Disability”	  	6
			
	 SECTION 3.
	 	 ADMINISTRATION
	  	6
	            (a)	 	Committee Composition	  	6
	            (b)	 	Committee for Non-Officer Grants	  	7

  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -i- 

					
	            (c)	 	Committee Procedures	  	7
	            (d)	 	Committee Responsibilities	  	7
			
	 SECTION 4.
	 	 ELIGIBILITY
	  	8
	            (a)	 	General Rule	  	8
	            (b)	 	Automatic Grants to Outside Directors	  	9
	            (c)	 	Ten-Percent Stockholders	  	10
	            (d)	 	Attribution Rules	  	10
	            (e)	 	Outstanding Stock	  	10
			
	SECTION 5.	 	STOCK SUBJECT TO PLAN	  	10
	            (a)	 	Basic Limitation	  	10
	            (b)	 	Option/SAR Limitation	  	10
	            (c)	 	Additional Shares	  	10
			
	SECTION 6.	 	RESTRICTED SHARES	  	11
	            (a)	 	Restricted Stock Agreement	  	11
	            (b)	 	Payment for Awards	  	11
	            (c)	 	Vesting	  	11
	            (d)	 	Voting and Dividend Rights	  	11
	            (e)	 	Restrictions on Transfer of Shares	  	12
			
	SECTION 7.	 	TERMS AND CONDITIONS OF OPTIONS	  	12
	            (a)	 	Stock Option Agreement	  	12
	            (b)	 	Number of Shares	  	12
	            (c)	 	Exercise Price	  	12
	            (d)	 	Withholding Taxes	  	12
	            (e)	 	Exercisability and Term	  	13
	            (f)	 	Exercise of Options Upon Termination of Service	  	13
	            (g)	 	Effect of Change in Control	  	13
	            (h)	 	Leaves of Absence	  	13
	            (i)	 	No Rights as a Stockholder	  	14
	            (j)	 	Modification, Extension and Renewal of Options	  	14
	            (k)	 	Restrictions on Transfer of Shares	  	14
	            (l)	 	Buyout Provisions	  	14
			
	 SECTION 8.
	 	 PAYMENT FOR SHARES
	  	14
	            (a)	 	General Rule	  	14
	            (b)	 	Surrender of Stock	  	14
	            (c)	 	Services Rendered	  	15
	            (d)	 	Cashless Exercise	  	15
	            (e)	 	Exercise/Pledge	  	15
	            (f)	 	Promissory Note	  	15
	            (g)	 	Other Forms of Payment	  	15
	            (h)	 	Limitations under Applicable Law	  	15

  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -ii- 

					
	SECTION 9. STOCK APPRECIATION RIGHTS	  	16
	    (a)	  	SAR Agreement	  	16
	    (b)	  	Number of Shares	  	16
	    (c)	  	Exercise Price	  	16
	    (d)	  	Exercisability and Term	  	16
	    (e)	  	Effect of Change in Control	  	16
	    (f)	  	Exercise of SARs	  	16
	    (g)	  	Modification or Assumption of SARs	  	17
		
	SECTION 10. STOCK UNITS	  	17
	    (a)	  	Stock Unit Agreement	  	17
	    (b)	  	Payment for Awards	  	17
	    (c)	  	Vesting Conditions	  	17
	    (d)	  	Voting and Dividend Rights	  	17
	    (e)	  	Form and Time of Settlement of Stock Units	  	18
	    (f)	  	Death of Recipient	  	18
	    (g)	  	Creditors’ Rights	  	18
		
	SECTION 11. ADJUSTMENT OF SHARES	  	18
	    (a)	  	Adjustments	  	18
	    (b)	  	Dissolution or Liquidation	  	19
	    (c)	  	Reorganizations	  	19
	    (d)	  	Reservation of Rights	  	20
		
	SECTION 12. DEFERRAL OF AWARDS	  	20
		
	SECTION 13. AWARDS UNDER OTHER PLANS	  	21
		
	SECTION 14. PAYMENT OF DIRECTOR’S FEES IN SECURITIES	  	21
	    (a)	  	Effective Date	  	21
	    (b)	  	Elections to Receive NSOs, Restricted Shares or Stock Units	  	21
	    (c)	  	Number and Terms of NSOs, Restricted Shares or Stock Units	  	21
		
	SECTION 15. LEGAL AND REGULATORY REQUIREMENTS	  	21
		
	SECTION 16. WITHHOLDING TAXES	  	22
	    (a)	  	General	  	22
	    (b)	  	Share Withholding	  	22
		
	SECTION 17. TRANSFERABILITY	  	22
		
	SECTION 18. NO EMPLOYMENT RIGHTS	  	22
		
	SECTION 19. DURATION AND AMENDMENTS	  	23
	    (a)	  	Term of the Plan	  	23
	    (b)	  	Right to Amend or Terminate the Plan	  	23

  
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	    (c)	  	Effect of Award or Termination	  	23
		
	SECTION 20. EXECUTION	  	24

  
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 MULTI-FINELINE ELECTRONIX, INC.

  
 2004 STOCK INCENTIVE
PLAN 
  
 SECTION 1. ESTABLISHMENT AND PURPOSE.

  
 The Plan was adopted by the Board of Directors on June 3,
2004, effective as of the date of the initial offering of Stock to the public pursuant to a registration statement filed by the Company with the Securities and Exchange Commission (the “Effective Date”). The purpose of the Plan is to
promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees,
Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing
for Awards in the form of restricted shares, stock units, options (which may constitute incentive stock options or nonstatutory stock options) or stock appreciation rights. 
  
 SECTION 2. DEFINITIONS. 
  
 (a) “Affiliate” 
  
 shall mean any entity other than a Subsidiary, if the Company and/or one of more Subsidiaries own not less than 50% of such entity. 
  
 (b) “Award” 
  
 shall mean any award of an Option, a SAR, a Restricted Share or a Stock Unit
under the Plan. 
  
 (c) “Board of Directors”

  
 shall mean the Board of Directors of the Company, as
constituted from time to time. 
  
 (d) “Change in
Control” 
  
 shall mean the occurrence of any of the
following events: 
  
 (i) A change in the
composition of the Board of Directors occurs, as a result of which fewer than one-half of the incumbent directors are directors who either: 
  
 (A) Had been directors of the Company on the “look-back date” (as defined below) (the “original directors”); or

  
  
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 (B) Were elected, or nominated for election, to the Board of Directors with the
affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved (the “continuing
directors”); or 
  
 (ii) Any
“person” (as defined below) who by the acquisition or aggregation of securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the “Base
Capital Stock”); except that any change in the relative beneficial ownership of the Company’s securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease
thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company; or 
  
 (iii) The consummation of a merger or consolidation of the
Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation
or other reorganization 50% or more of the voting power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or 
  
 (iv) The sale, transfer or other disposition of all or
substantially all of the Company’s assets. 
  
 For purposes
of subsection (d)(i) above, the term “look-back” date shall mean the later of (1) the Effective Date, or (2) the date 24 months prior to the date of the event that may constitute a Change in Control. 
  
 For purposes of subsection (d)(ii) above, the term “person” shall
have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan maintained by the Company or a Parent or Subsidiary and (2) a
corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Stock. 
  
 Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in Control if its sole purpose is to change the
state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, and a Change in Control
shall not be deemed to occur if the Company files a registration statement with the Securities and Exchange Commission for the initial offering of Stock to the public. 
  
 (e) “Code” 
  
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 2004 STOCK INCENTIVE PLAN 
  

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 shall mean the Internal Revenue Code of 1986, as amended. 
  
 (f) “Committee” 
  
 shall mean the Compensation Committee as designated by the Board of
Directors, which is authorized to administer the Plan, as described in Section 3 hereof. 
  
 (g) “Company” 
  
 shall mean Multi-Fineline Electronix, Inc., a Delaware corporation. 
  
 (h) “Consultant” 
  
 shall mean a consultant or advisor who provides bona fide services to the Company, a Parent, a Subsidiary or an Affiliate as an independent contractor or a member of the board of directors of a Parent or a Subsidiary who is not an Employee.
Service as a Consultant shall be considered Service for all purposes of the Plan. 
  
 (i) “Employee” 
  
 shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 
  
 (j) “Exchange Act” 
  
 shall mean the Securities Exchange Act of 1934, as amended. 
  
 (k) “Exercise Price” 
  
 shall mean, in the case of an Option, the amount for which one Common Share may be purchased upon exercise of such Option, as specified in the applicable
Stock Option Agreement. “Exercise Price,” in the case of a SAR, shall mean an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Common Share in determining the amount payable upon
exercise of such SAR. 
  
 (l) “Fair Market Value”

  
 with respect to a Share, shall mean the market price of
one Share of Stock, determined by the Committee as follows: 
  
 (i) If the Stock was traded over-the-counter on the date in question but was not traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last transaction price quoted for such date by the
OTC Bulletin Board or, if not so quoted, shall be equal to the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Stock is quoted or, if

  
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 the Stock is not quoted on any such system, by the “Pink Sheets” published by
the National Quotation Bureau, Inc.; 
  
 (ii) If
the Stock was traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last reported sale price quoted for such date by The Nasdaq Stock Market; 
  
 (iii) If the Stock was traded on a United States stock exchange on the date in question, then the Fair
Market Value shall be equal to the closing price reported for such date by the applicable composite-transactions report; and 
  
 (iv) If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on
such basis as it deems appropriate. 
  
 In all cases, the determination of Fair
Market Value by the Committee shall be conclusive and binding on all persons. 
  
 (m) “ISO” 
  
 shall mean an employee incentive stock option described in Section 422 of the Code. 
  
 (n) “Nonstatutory Option” or “NSO” 
  
 shall mean an employee stock option that is not an ISO. 
  
 (o) “Offeree” 
  
 shall mean an individual to whom the Committee has offered the right to acquire Shares under the Plan (other than upon exercise of an Option). 
  
 (p) “Option” 
  
 shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
  
 (q) “Optionee” 
  
 shall mean an individual or estate who holds an Option or SAR. 
  
 (r) “Outside Director” 
  
 shall mean a member of the Board of Directors who is not a common-law
employee of, or paid consultant to, the Company, a Parent or a Subsidiary. Service as an Outside Director shall be considered Service for all purposes of the Plan, except as provided in Section 4(a). 
  
 (s) “Parent” 
  
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INC. 
 2004 STOCK INCENTIVE PLAN 
  

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 shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the
Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a
Parent on a date after the adoption of the Plan shall be a Parent commencing as of such date. 
  
 (t) “Participant” 
  
 shall mean an individual or estate who holds an Award. 
  
 (u) “Plan” 
  
 shall mean this 2004
Stock Incentive Plan of Multi-Fineline Electronix, Inc., as amended from time to time. 
  
 (v) “Purchase Price” 
  
 shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Committee. 
  

(w) “Restricted Share” 
  
 shall mean a Share awarded under the Plan. 
  
 (x) “Restricted Share Agreement” 
  
 shall mean the agreement between the Company and the recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to
such Restricted Shares. 
  
 (y) “SAR” 

 
 shall mean a stock appreciation right granted under the Plan. 

 
 (z) “SAR Agreement” 
  
 shall mean the agreement between the Company and an Optionee which contains
the terms, conditions and restrictions pertaining to his or her SAR. 
  
 (aa) “Service” 
  
 shall mean service as
an Employee, Consultant or Outside Director. 
  
 (bb)
“Share” 
  
 shall mean one share of Stock, as
adjusted in accordance with Section 8 (if applicable). 
  
 (cc)
“Stock” 
  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004 STOCK
INCENTIVE PLAN 
  

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 shall mean the Common Stock of the Company. 
  
 (dd) “Stock Option Agreement” 
  
 shall mean the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining
to his Option. 
  
 (ee) “Stock Unit” 

 
 shall mean a bookkeeping entry representing the equivalent of one Share,
as awarded under the Plan. 
  
 (ff) “Stock Unit
Agreement” 
  
 shall mean the agreement between the
Company and the recipient of a Stock Unit which contains the terms, conditions and restrictions pertaining to such Stock Unit. 
  
 (gg) “Subsidiary” 
  
 shall mean any corporation, if the Company and/or one or more other Subsidiaries own not less than 50% of the total combined voting power of all classes
of outstanding stock of such corporation. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
  
 (hh) “Total and Permanent Disability” 
  
 shall mean that the Optionee is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted, or can be expected to last, for a continuous period of not less than 12 months. 
  
 SECTION 3. ADMINISTRATION. 
  
 (a) Committee Composition. The Plan shall be administered by the
Committee. The Committee shall consist of two or more directors of the Company, who shall be appointed by the Board. In addition, the composition of the Committee shall satisfy (i) such requirements as the Securities and Exchange Commission may
establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and (ii) such requirements as the Internal Revenue Service may establish for outside directors acting under
plans intended to qualify for exemption under Section 162(m)(4)(C) of the Code. 
  
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 (b) Committee for Non-Officer Grants. The Board may also appoint one or more separate committees
of the Board, each composed of one or more directors of the Company who need not satisfy the requirements of Section 3(a), who may administer the Plan with respect to Employees who are not considered officers or directors of the Company under
Section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and may determine all terms of such grants. Within the limitations of the preceding sentence, any reference in the Plan to the Committee shall include such committee
or committees appointed pursuant to the preceding sentence. The Board of Directors may also authorize one or more officers of the Company to designate Employees, other than officers under Section 16 of the Exchange Act, to receive Awards and/or to
determine the number of such Awards to be received by such persons; provided, however, that the Board of Directors shall specify the total number of Awards that such officers may so award. 
  
 (c) Committee Procedures. The Board of Directors shall designate one
of the members of the Committee as chairman. The Committee may hold meetings at such times and places as it shall determine. The acts of a majority of the Committee members present at meetings at which a quorum exists, or acts reduced to or approved
in writing by all Committee members, shall be valid acts of the Committee. 
  
 (d) Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have full authority and discretion to take the following actions: 
  
 (i) To interpret the Plan and to apply its provisions;

  
 (ii) To adopt, amend or rescind rules,
procedures and forms relating to the Plan; 
  
 (iii) To authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan; 
  
 (iv) To determine when Shares are to be awarded or offered for sale and when Options are to be granted under the Plan; 
  
 (v) To select the Offerees and Optionees; 
  
 (vi) To determine the number of Shares to be offered to each
Offeree or to be made subject to each Option; 
  
 (vii) To prescribe the terms and conditions of each award or sale of Shares, including (without limitation) the Purchase Price, the vesting of the award (including accelerating the vesting of awards, either at the time of the award or sale
or thereafter, without the consent of the Offeree or Optionee) and to specify the provisions of the Restricted Stock Agreement relating to such award or sale; 
  

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2004 STOCK INCENTIVE PLAN 
  
 -7- 

 (viii) To prescribe the terms and conditions of each Option, including (without
limitation) the Exercise Price, the vesting or duration of the Option (including accelerating the vesting of the Option), to determine whether such Option is to be classified as an ISO or as a Nonstatutory Option, and to specify the provisions of
the Stock Option Agreement relating to such Option; 
  
 (ix) To amend any outstanding Restricted Stock Agreement or Stock Option Agreement, subject to applicable legal restrictions and to the consent of the Offeree or Optionee who entered into such agreement if the Offeree’s or
Optionee’s rights or obligations would be adversely affected; 
  
 (x) To prescribe the consideration for the grant of each Option or other right under the Plan and to determine the sufficiency of such consideration; 
  
 (xi) To determine the disposition of each Option or other right under the Plan in the event of an
Optionee’s or Offeree’s divorce or dissolution of marriage; 
  
 (xii) To determine whether Options or other rights under the Plan will be granted in replacement of other grants under an incentive or other compensation plan of an acquired business; 
  
 (xiii) To correct any defect, supply any omission, or
reconcile any inconsistency in the Plan, any Stock Option Agreement or any Restricted Stock Agreement; and 
  
 (xiv) To take any other actions deemed necessary or advisable for the administration of the Plan. 
  
 Subject to the requirements of applicable law, the Committee may designate persons other than
members of the Committee to carry out its responsibilities and may prescribe such conditions and limitations as it may deem appropriate, except that the Committee may not delegate its authority with regard to the selection for participation of or
the granting of Options or other rights under the Plan to persons subject to Section 16 of the Exchange Act. All decisions, interpretations and other actions of the Committee shall be final and binding on all Offerees, all Optionees, and all persons
deriving their rights from an Offeree or Optionee. No member of the Committee shall be liable for any action that he has taken or has failed to take in good faith with respect to the Plan, any Option, or any right to acquire Shares under the Plan.

  
 SECTION 4. ELIGIBILITY. 
  
 (a) General Rule. Only Employees shall be eligible for the grant of
ISOs. Only Employees, Consultants and Outside Directors shall be eligible for the grant of Restricted Shares, Stock Units, Nonstatutory Options or SARs. 
  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -8- 

 (b) Automatic Grants to Outside Directors 
  
 (i) Each Outside Director who first joins the Board of
Directors after the effective date of the Plan, and who was not previously an Employee, shall receive a Nonstatutory Option, subject to approval of the Plan by the Company’s stockholders, to purchase 30,000 Shares (subject to adjustment under
Section 11) on the first business day after his or her election to the Board of Directors. One-third of the Shares subject to each Option granted under this Section 4(b)(i) shall vest and become exercisable on the first anniversary of the date of
grant. The balance of the Shares subject to such Option (i.e., the remaining three-quarters) shall vest and become exercisable monthly over a three-year period beginning on the day which is one month after the first anniversary of the date of
grant, at a monthly rate of 2.083 % of the total number of Shares subject to such Options. Notwithstanding the foregoing, each such Option shall become vested if a Change in Control occurs with respect to the Company during the Optionee’s
Service. 
  
 (ii) On the first business day
following the conclusion of each regular annual meeting of the Company’s stockholders, commencing with the annual meeting occurring after the adoption of the Plan, each Outside Director who was not elected to the Board for the first time at
such meeting and who will continue serving as a member of the Board of Directors thereafter shall receive an Option to purchase 20,000 Shares (subject to adjustment under Section 11), provided that such Outside Director has served on the Board of
Directors for at least six months. Each Option granted under the preceding sentence of this Section 4(b)(ii) shall fully vest and become exercisable on the first anniversary of the date of grant; provided, however, that each such Option shall become
exercisable in full immediately prior to the next regular annual meeting of the Company’s stockholders following such date of grant in the event such meeting occurs prior to such first anniversary date. Notwithstanding the foregoing, each
Option granted under this Section 4(b)(ii) shall become vested if a Change in Control occurs with respect to the Company during the Optionee’s Service. 
  
 (iii) The Exercise Price of all Nonstatutory Options granted to an Outside Director under this Section 4(b) shall be equal to 100% of the
Fair Market Value of a Share on the date of grant, payable in one of the forms described in Section 8(a), (b) or (d). 
  
 (iv) All Nonstatutory Options granted to an Outside Director under this Section 4(b) shall terminate on the earlier of (A) the day before
the tenth anniversary of the date of grant of such Options or (B) the date twelve months after the termination of such Outside Director’s Service for any reason; provided, however, that any such Options that are not vested upon the termination
of the Outside Director’s Service for any reason shall terminate immediately and may not be exercised. 
  

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2004 STOCK INCENTIVE PLAN 
  
 -9- 

 (c) Ten-Percent Stockholders. An Employee who owns more than 10% of the total combined voting
power of all classes of outstanding stock of the Company, a Parent or Subsidiary shall not be eligible for the grant of an ISO unless such grant satisfies the requirements of Section 422(c)(5) of the Code. 
  
 (d) Attribution Rules. For purposes of Section 4(c) above, in
determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for such Employee’s brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a
corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its stockholders, partners or beneficiaries. 
  
 (e) Outstanding Stock. For purposes of Section 4(c) above, “outstanding stock” shall include all stock actually issued and outstanding
immediately after the grant. “Outstanding stock” shall not include shares authorized for issuance under outstanding options held by the Employee or by any other person. 
  
 SECTION 5. STOCK SUBJECT TO PLAN. 
  
 (a) Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares or treasury Shares. The maximum aggregate number of
Options, SARs, Stock Units and Restricted Shares awarded under the Plan shall not exceed 2,876,400 Shares, plus an annual increase on the first day of each fiscal year during the term of the Plan, with the first such increase occurring on
October 1, 2005, in each case in an amount equal to the lesser of (i) 500,000 Shares, (ii) 2% of the outstanding Shares on the last day of the immediately preceding year, or (iii) an amount determined by the Board. The limitations of this
Section 5(a) shall be subject to adjustment pursuant to Section 11. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall not exceed the number of Shares which then remain available for
issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. 
  
 (b) Option/SAR Limitation. Subject to the provisions of Section 11, no Participant may receive Options or SARs under
the Plan in any calendar year that relate to more than 1,000,000 Shares. 
  
 (c) Additional Shares. If Restricted Shares or Shares issued upon the exercise of Options are forfeited, then such Shares shall again become available for Awards under the Plan. If Stock Units, Options or SARs
are forfeited or terminate for any other reason before being exercised, then the 
  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -10- 

 corresponding Shares shall again become available for Awards under the Plan. If Stock Units are settled, then only the
number of Shares (if any) actually issued in settlement of such Stock Units shall reduce the number available under Section 5(a) and the balance shall again become available for Awards under the Plan. If SARs are exercised, then only the number of
Shares (if any) actually issued in settlement of such SARs shall reduce the number available in Section 5(a) and the balance shall again become available for Awards under the Plan. 
  
 SECTION 6. RESTRICTED SHARES. 
  
 (a) Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the
recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered
into under the Plan need not be identical. 
  
 (b) Payment for
Awards. Subject to the following sentence, Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including (without limitation) cash, cash equivalents, full-recourse promissory notes, past
services and future services. To the extent that an Award consists of newly issued Restricted Shares, the Award recipient shall furnish consideration with a value not less than the par value of such Restricted Shares in the form of cash, cash
equivalents, or past services rendered to the Company (or a Parent or Subsidiary), as the Committee may determine. 
  
 (c) Vesting. Each Award of Restricted Shares may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Restricted Stock Agreement. A Restricted Stock Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may
determine, at the time of granting Restricted Shares of thereafter, that all or part of such Restricted Shares shall become vested in the event that a Change in Control occurs with respect to the Company. 
  
 (d) Voting and Dividend Rights. The holders of Restricted Shares
awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Stock Agreement, however, may require that the holders of Restricted Shares invest any cash dividends received in
additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 
  

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2004 STOCK INCENTIVE PLAN 
  
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 (e) Restrictions on Transfer of Shares. Restricted Shares shall be subject to such rights of
repurchase, rights of first refusal or other restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Restricted Stock Agreement and shall apply in addition to any general restrictions that may apply to all
holders of Shares. 
  
 SECTION 7. TERMS AND CONDITIONS OF OPTIONS.

  
 (a) Stock Option Agreement. Each grant of an
Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are
not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock Option Agreement. The Stock Option Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the various Stock Option
Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a reduction in the Optionee’s other compensation. 
  

(b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the
adjustment of such number in accordance with Section 11. 
  
 (c) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, except as otherwise provided in
Section 4(c), and the Exercise Price of an NSO shall not be less 85% of the Fair Market Value of a Share on the date of grant. Notwithstanding the foregoing, a Stock Option Agreement may specify that the exercise price of an NSO may vary in
accordance with a predetermined formula. Subject to the foregoing in this Section 7(c), the Exercise Price under any Option shall be determined by the Committee at its sole discretion. The Exercise Price shall be payable in one of the forms
described in Section 8. 
  
 (d) Withholding Taxes. As a
condition to the exercise of an Option, the Optionee shall make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise.
The Optionee shall also make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Shares acquired by exercising
an Option. 
  

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 (e) Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any
installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term of an ISO shall in no event exceed 10 years from the date of grant (five years for Employees described
in Section 4(c). A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability, or retirement or other events and may provide for expiration prior to the end of its term in the event of the
termination of the Optionee’s Service. Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be exercisable unless the related SARs are forfeited. Subject to the foregoing in this Section 7(e),
the Committee at its sole discretion shall determine when all or any installment of an Option is to become exercisable and when an Option is to expire. 
  
 (f) Exercise of Options Upon Termination of Service. Each Stock Option Agreement shall set forth the extent to which the Optionee shall have the
right to exercise the Option following termination of the Optionee’s Service with the Company and its Subsidiaries, and the right to exercise the Option of any executors or administrators of the Optionee’s estate or any person who has
acquired such Option(s) directly from the Optionee by bequest or inheritance. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination of Service. 
  
 (g) Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option in the event that a
Change in Control occurs with respect to the Company. 
  
 (h)
Leaves of Absence. An Employee’s Service shall cease when such Employee ceases to be actively employed by, or a Consultant to, the Company (or any subsidiary) as determined in the sole discretion of the Board of Directors. For purposes of
Options, Service does not terminate when an Employee goes on a bona fide leave of absence, that was approved by the Company in writing, if the terms of the leave provide for continued service crediting, or when continued service crediting is
required by applicable law. However, for purposes of determining whether an Option is entitled to ISO status, an Employee’s Service will be treated as terminating 90 days after such Employee went on leave, unless such Employee’s right to
return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved leave ends, unless such Employee immediately returns to active work. The Company determines which leaves count toward Service, and when
Service terminates for all purposes under the Plan. 
  
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 (i) No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights
as a stockholder with respect to any Shares covered by his Option until the date of the issuance of a stock certificate for such Shares. No adjustments shall be made, except as provided in Section 11. 
  
 (j) Modification, Extension and Renewal of Options. Within the
limitations of the Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding options (to the extent not previously exercised), whether or not granted hereunder, in return for the grant of new
Options for the same or a different number of Shares and at the same or a different exercise price, or in return for the grant of the same or a different number of Shares. The foregoing notwithstanding, no modification of an Option shall, without
the consent of the Optionee, adversely affect his or her rights or obligations under such Option. 
  
 (k) Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions, rights
of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general restrictions that may
apply to all holders of Shares. 
  
 (l) Buyout Provisions.
The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and based upon such
terms and conditions as the Committee shall establish. 
  
 SECTION 8. PAYMENT
FOR SHARES. 
  
 (a) General Rule. The entire Exercise
Price or Purchase Price of Shares issued under the Plan shall be payable in lawful money of the United States of America at the time when such Shares are purchased, except as provided in Section 8(b) through Section 8(g) below. 
  
 (b) Surrender of Stock. To the extent that a Stock Option Agreement so
provides, payment may be made all or in part by surrendering, or attesting to the ownership of, Shares which have already been owned by the Optionee or his representative. Such Shares shall be valued at their Fair Market Value on the date when the
new Shares are purchased under the Plan. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the 
  
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 Company to recognize compensation expense (or additional compensation expense) with respect to the Option for financial
reporting purposes. 
  
 (c) Services Rendered. At the
discretion of the Committee, Shares may be awarded under the Plan in consideration of services rendered to the Company or a Subsidiary prior to the award. If Shares are awarded without the payment of a Purchase Price in cash, the Committee shall
make a determination (at the time of the award) of the value of the services rendered by the Offeree and the sufficiency of the consideration to meet the requirements of Section 6(b). 
  
 (d) Cashless Exercise. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by
delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price. 
  
 (e) Exercise/Pledge. To the extent that a Stock Option Agreement so
provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker or lender to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds
to the Company in payment of the aggregate Exercise Price. 
  
 (f) Promissory Note. To the extent that a Stock Option Agreement or Restricted Stock Agreement so provides, payment may be made all or in part by delivering (on a form prescribed by the Company) a full-recourse promissory note.
However, the par value of the Common Shares being purchased under the Plan, if newly issued, shall be paid in cash or cash equivalents. 
  
 (g) Other Forms of Payment. To the extent that a Stock Option Agreement or Restricted Stock Agreement so provides, payment may be made in any other
form that is consistent with applicable laws, regulations and rules. 
  
 (h) Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option Agreement or Restricted Stock Agreement to the contrary, payment may not be made in any form that is unlawful, as determined by the Committee
in its sole discretion. 
  
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 SECTION 9. STOCK APPRECIATION RIGHTS. 
  
 (a) SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and
the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical.
SARs may be granted in consideration of a reduction in the Optionee’s other compensation. 
  
 (b) Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Section 11. 
  
 (c) Exercise Price. Each SAR Agreement shall specify the Exercise
Price. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. 
  
 (d) Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR
Agreement shall also specify the term of the SAR. A SAR Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of its
term in the event of the termination of the Optionee’s service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. A SAR may be included
in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. A SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
  
 (e) Effect of Change in Control. The Committee may determine, at the
time of granting a SAR or thereafter, that such SAR shall become fully exercisable as to all Common Shares subject to such SAR in the event that a Change in Control occurs with respect to the Company. 
  
 (f) Exercise of SARs. Upon exercise of a SAR, the Optionee (or any
person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall determine. The amount of cash and/or 
  
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 the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which
the Fair Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price. 
  
 (g) Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or may
accept the cancellation of outstanding SARs (whether granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price. The foregoing
notwithstanding, no modification of a SAR shall, without the consent of the holder, may alter or impair his or her rights or obligations under such SAR. 
  
 SECTION 10. STOCK UNITS. 
  
 (a) Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the
Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan need not be
identical. Stock Units may be granted in consideration of a reduction in the recipient’s other compensation. 
  
 (b) Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award
recipients. 
  
 (c) Vesting Conditions. Each Award of Stock
Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. A Stock Unit Agreement may provide for accelerated vesting in the event of the
Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Stock Units or thereafter, that all or part of such Stock Units shall become vested in the event that a Change in Control occurs
with respect to the Company. 
  
 (d) Voting and Dividend
Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles
the holder to be credited with an amount equal to all cash dividends paid on one Share while the Stock Unit is outstanding. Dividend equivalents may 
  
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 be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form
of Shares, or in a combination of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions (including without limitation, any forfeiture conditions) as the Stock Units to which
they attach. 
  
 (e) Form and Time of Settlement of Stock
Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger or smaller than the
number included in the original Award, based on predetermined performance factors. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Shares over a series of trading days.
Vested Stock Units may be settled in a lump sum or in installments. The distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The
amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 11. 
  
 (f) Death of Recipient. Any Stock Units Award that becomes payable
after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock Units Award under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form
with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives the Award
recipient, then any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s estate. 
  
 (g) Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units
represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 
  
 SECTION 11. ADJUSTMENT OF SHARES. 
  
 (a) Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of a dividend
payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a 
  
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 recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole
discretion, deems appropriate in one or more of: 
  
 (i) The number of Options, SARs, Restricted Shares and Stock Units available for future Awards under Section 5; 
  
 (ii) The limitations set forth in Section 5(a) and (b); 
  
 (iii) The number of NSOs to be granted to Outside Directors under Section 4(b); 
  
 (iv) The number of Shares covered by each outstanding Option
and SAR; 
  
 (v) The Exercise Price under each
outstanding Option and SAR; or 
  
 (vi) The
number of Stock Units included in any prior Award which has not yet been settled. 
  
 Except as provided in this Section 11, a Participant shall have no rights by reason of any issue by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of
any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class. 
  
 (b) Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior
to the dissolution or liquidation of the Company. 
  
 (c)
Reorganizations. In the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement shall provide for: 
  
 (i) The continuation of the outstanding Awards by the
Company, if the Company is a surviving corporation; 
  
 (ii) The assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary; 
  
 (iii) The substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards; 

 
 (iv) Full exercisability or vesting and accelerated
expiration of the outstanding Awards; or 
  

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 (v) Settlement of the full value of the outstanding Awards in cash or cash equivalents
followed by cancellation of such Awards. 
  
 (d) Reservation of
Rights. Except as provided in this Section 11, an Optionee or Offeree shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other increase or decrease in the number
of shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number
or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business
structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 
  
 SECTION 12. DEFERRAL OF AWARDS. 
  
 The Committee (in its sole discretion) may permit or require a Participant to: 
  
 (a) Have cash that otherwise would be paid to such Participant as a result of the exercise of a SAR or the settlement of
Stock Units credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books; 
  
 (b) Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR converted into an equal number of
Stock Units; or 
  
 (c) Have Shares that otherwise would be
delivered to such Participant as a result of the exercise of an Option or SAR or the settlement of Stock Units converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the
Company’s books. Such amounts shall be determined by reference to the Fair Market Value of such Shares as of the date when they otherwise would have been delivered to such Participant. 
  
 A deferred compensation account established under this Section 12 may be
credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is established shall have no rights other than those of a general creditor of the Company. Such an account shall
represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement between such Participant and the Company. If the deferral or conversion of Awards is permitted or required,
the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts established under this Section 12. 
  

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 SECTION 13. AWARDS UNDER OTHER PLANS. 
  
 The Company may grant awards under other plans or programs. Such awards may be settled in the form of Shares issued under
this Plan. Such Shares shall be treated for all purposes under the Plan like Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Shares available under Section 5. 
  
 SECTION 14. PAYMENT OF DIRECTOR’S FEES IN SECURITIES. 
  
 (a) Effective Date. No provision of this Section 14 shall be
effective unless and until the Board has determined to implement such provision. 
  
 (b) Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs,
Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An election under this Section 14 shall be filed with the Company on the prescribed
form. 
  
 (c) Number and Terms of NSOs, Restricted Shares or
Stock Units. The number of NSOs, Restricted Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a manner determined by the Board. The
terms of such NSOs, Restricted Shares or Stock Units shall also be determined by the Board. 
  
 SECTION 15. LEGAL AND REGULATORY REQUIREMENTS. 
  
 Shares shall not be issued under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of law, including (without limitation) the Securities Act of
1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations and the regulations of any stock exchange on which the Company’s securities may then be listed, and the Company has obtained the approval
or favorable ruling from any governmental agency which the Company determines is necessary or advisable. 
  

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 SECTION 16. WITHHOLDING TAXES. 
  
 (a) General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her
successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Shares or make any cash payment under the
Plan until such obligations are satisfied. 
  
 (b) Share
Withholding. The Committee may permit a Participant to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or by
surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. In no event may a Participant have Shares withheld
that would otherwise be issued to him or her in excess of the number necessary to satisfy the legally required minimum tax withholding. 
  
 SECTION 17. TRANSFERABILITY. 
  
 Unless the agreement evidencing an Award (or an amendment thereto authorized by the Committee) expressly provides otherwise, no Award granted under this
Plan, nor any interest in such Award, may be sold, assigned, conveyed, gifted, pledged, hypothecated or otherwise transferred in any manner (prior to the vesting and lapse of any and all restrictions applicable to Shares issued under such Award),
other than by will or the laws of descent and distribution; provided, however, that an ISO may be transferred or assigned only to the extent consistent with Section 422 of the Code. Any purported assignment, transfer or encumbrance in violation of
this Section 17 shall be void and unenforceable against the Company. 
  
 SECTION 18. NO EMPLOYMENT RIGHTS. 
  
 No
provision of the Plan, nor any right or Option granted under the Plan, shall be construed to give any person any right to become, to be treated as, or to remain an Employee. The Company and its Subsidiaries reserve the right to terminate any
person’s Service at any time and for any reason, with or without notice. 
  

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 SECTION 19. DURATION AND AMENDMENTS. 
  
 (a) Term of the Plan. The Plan, as set forth herein, shall terminate automatically ten (10) years after its adoption
by the Board. The Plan may be terminated on any earlier date pursuant to Subsection (b) below. 
  
 (b) Right to Amend or Terminate the Plan. The Board of Directors may amend the Plan at any time and from time to time. Rights and obligations under any Award granted before amendment of the Plan shall not be
materially impaired by such amendment, except with consent of the Participant. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules.

  
 (c) Effect of Termination. No Awards shall be granted
under the Plan after the termination thereof. The termination of the Plan shall not affect any Award previously granted under the Plan. 
  
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 SECTION 20. EXECUTION. 
  

To record the adoption of the Plan by the Board of Directors on June 3, 2004, the Company has caused its authorized officer to execute the same.

  

			
	MULTI-FINELINE ELECTRONIX, INC.
		
	By	 	  

		
	Name	 	  

		
	Title	 	  

  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -24-

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