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EXHIBIT 10.30

 
ALTERNATIVE RATE OPTIONS
 PROMISSORY NOTE
 (PRIME RATE, LIBOR)  

$8,000,000.00                                    
  Dated
as of: January 27, 2000

Merix
Corporation ("Borrower")

U.S. BANK NATIONAL ASSOCIATION ("Lender")

1.  TYPE OF CREDIT.  This note is given to evidence Borrower's obligation to repay all sums which Lender may from time to
time advance to Borrower ("Advances") under a:

	 

/ /	 
 	 

single disbursement loan. Amounts loaned to Borrower hereunder will be disbursed in a single Advance in the amount shown in Section 2.
	 

/x/	 
 	 

revolving line of credit. No Advances shall be made which create a maximum amount outstanding at any one time which exceeds the maximum amount shown in Section 2. However, Advances hereunder may be borrowed, repaid and reborrowed, and the aggregate
Advances loaned hereunder from time to time may exceed such maximum amount.
	 

/ /	 
 	 

non-revolving line of credit. Each Advance made from time to time hereunder shall reduce the maximum amount available shown in Section 2. Advances loaned hereunder which are repaid may not be reborrowed.

2.  PRINCIPAL BALANCE.  The unpaid principal balance of all Advances outstanding under this note ("Principal Balance") at
one time shall not exceed the lesser of $8,000,000.00 or 70% of eligible accounts receivable as outlined in the Commitment Letter dated 12-22-99.

3.  PROMISE TO PAY.  For value received Borrower promises to pay to Lender or order at Commercial Loan
Servicing—West, the Principal Balance of this note, with interest thereon at the rate(s) specified in Sections 4 and 11 below.

4.  INTEREST RATE.  The interest rate on the Principal Balance outstanding may vary from time to time pursuant to the
provisions of this note. Subject to the provisions of this note, Borrower shall have the option from time to time of choosing to pay interest at the rate or rates and for the applicable periods of
time based on the rate options provided herein; provided, however, that once Borrower notifies Lender of the rate option chosen in accordance with the
provisions of this note, such notice shall be irrevocable. The rate options are the Prime Borrowing Rate and the LIBOR Borrowing Rate, each as defined herein.

(a)  Definitions.  The following terms shall have the following meanings:

    "Business
Day" means any day other than a Saturday, Sunday, or other day that commercial banks in Portland, Oregon, Minneapolis, Minnesota, or New York City are authorized or required
by law to close; provided, however that when used in connection with a LIBOR Rate, LIBOR Amount or LIBOR Interest Period such term shall also exclude any day on which dealings in U.S. dollar deposits
are not carried on in the London interbank market.

    "Dow
Jones Page 3750" means the display designated as such on the Dow Jones Markets Service (formerly known as Telerate) (or such other page as may replace
page 3750 on that service for the
purpose of displaying London interbank offered rates of major banks for United States Dollar deposits).

    "LIBOR
Amount" means each principal amount for which Borrower chooses to have the LIBOR Borrowing Rate apply for any specified LIBOR Interest Period.

    "LIBOR
Interest Period" means as to any LIBOR Amount, a period of 1, 2 or 3 months commencing on the date the LIBOR Borrowing Rate
becomes applicable thereto; provided, however, that: (i) the first day of each LIBOR Interest Period must be a Business Day; (ii) no LIBOR
Interest Period shall commence on or after expiry; (iii) no LIBOR Interest Period shall be selected which would extend beyond expiry; (iv) no
LIBOR Interest Period shall extend beyond the date of any principal payment required under Section 6 of this note, unless the sum
of the Prime Rate Amount, plus LIBOR Amounts with LIBOR Interest Periods ending on or before the scheduled date of such principal payment, plus principal amounts remaining unborrowed under a line of
credit, equals or exceeds the amount of such principal payment; (v) any LIBOR Interest Period which would otherwise expire on a day which is not a Business Day, shall be extended to the next
succeeding Business Day, unless the result of such extension would be to extend such LIBOR Interest Period into another calendar month, in which event the LIBOR Interest Period shall end on the
immediately preceding Business Day; and (vi) any LIBOR Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such LIBOR Interest Period) shall end on the last Business Day of a calendar month.

    "LIBOR
Rate" means, for any LIBOR Interest Period, the average offered rate for deposits in United States Dollars (rounded upwards, if necessary, to the nearest 1/16 of 1%) for
delivery of such deposits on the first day of such LIBOR Interest Period, for the number of months therein, which appears on Dow Jones Page 3750 as of 11:00 a.m., London time (or such
other time as of which such rate appears) on the day that is two Business Days preceding the first day of such LIBOR Interest Period; or the rate for such deposits determined by Lender at such time
based on such other published service of general application as shall be selected by Lender for such purpose; provided, that in lieu of determining the rate in the foregoing manner, Lender may
determine the rate based on the rates offered to Lender for deposits in United States Dollars (rounded upwards, if necessary, to the nearest 1/16 of 1%) in the interbank eurodollar market at such time
for delivery on the first day of such LIBOR Interest Period for the number of months therein; and provided, further, that in any case the LIBOR Rate shall be adjusted to take into account the maximum
reserves required to be maintained for Eurocurrency liabilities by banks during each such LIBOR Interest Period as specified in Regulation D of the Board of Governors of the Federal Reserve System or
any successor regulation.

    "Prime
Rate" means the rate of interest which Lender from time to time establishes as its prime or reference rate and is not, for example, the lowest rate of interest which Lender
collects from any borrower or class of borrowers. When the Prime Rate is applicable under Section 4(b) or 11(b), the interest rate hereunder shall be adjusted without notice effective on the
day the Prime Rate changes, but in no event shall the rate of interest be higher than allowed by law.

    "Prime
Rate Amount" means any portion of the Principal Balance bearing interest at the Prime Borrowing Rate.

(b)  The Prime Borrowing Rate.  

       (i) The
Prime Borrowing Rate is a variable per annum rate equal to the Prime Rate.

      (ii) Whenever
Borrower desires to use the Prime Borrowing Rate option, Borrower shall give Lender notice orally or in writing in accordance with Section 15 of this
note, which notice shall specify the requested effective date (which must be a Business Day) and principal amount of the Advance or
increase in the Prime Rate Amount, and whether Borrower is requesting a new Advance under a line of credit or conversion of a LIBOR Amount to the Prime Borrowing Rate.

      (iii) Subject
to Section 11 of this note, interest shall accrue on the unpaid Principal Balance at the Prime Borrowing Rate unless and except to the extent that the
LIBOR Borrowing Rate is in effect.

(c)  The LIBOR Borrowing Rate.  

       (i) The
LIBOR Borrowing Rate is the LIBOR Rate plus See attached Pricing Matrix% per annum.

      (ii) Borrower
may obtain LIBOR Borrowing Rate quotes from Lender before 10:00 a.m. (Portland, Oregon time) on any Business Day. Borrower may request an Advance,
conversion of any portion of the Prime Rate Amount to a LIBOR Amount or a new LIBOR Interest Period for an existing LIBOR Amount, at such rate only by giving Lender notice in accordance with Section
4(c)(iii) before 10:00 a.m. (Portland, Oregon time) on such day.

      (iii) Whenever
Borrower desires to use the LIBOR Borrowing Rate option, Borrower shall give Lender irrevocable notice (either in writing or orally and promptly
confirmed in writing) no later than 10:00 a.m. (Portland, Oregon time) two (2) Business Days prior to the desired effective date of such rate. Any oral notice shall be given by, and any
written notice or confirmation of an oral notice shall be signed by, the person(s) authorized in Section 15 of this note, and shall specify the requested effective date of the rate, LIBOR Interest
Period and LIBOR Amount, and whether Borrower is requesting a new Advance at the LIBOR Borrowing Rate under a line of credit, conversion of all or any portion of the Prime Rate Amount to a LIBOR
Amount, or a new LIBOR Interest Period for an outstanding LIBOR Amount. Notwithstanding any other term of this note, Borrower may elect the LIBOR Borrowing Rate in the minimum principal amount of
$500,000.00 and in multiples of $100,000.00 above such amount.

      (iv) If
at any time the LIBOR Rate is unascertainable or unavailable to Lender or if LIBOR Rate loans become unlawful, the option to select the LIBOR Borrowing Rate
shall terminate immediately. If the LIBOR Borrowing Rate is then in effect, (A) it shall terminate automatically with respect to all LIBOR Amounts (i) on the last day of each then
applicable LIBOR Interest Period, if Lender may lawfully continue to maintain such loans, or (ii) immediately if Lender may not lawfully continue to maintain such loans through such day, and
(B) subject to Section 11, the Prime Borrowing Rate automatically shall become effective as to such amounts upon such termination.

      (v) If
at any time after the date hereof (A) any revision in or adoption of any applicable law, rule, or regulation or in the interpretation or administration
thereof (i) shall subject Lender or its Eurodollar lending office to any tax, duty, or other charge, or change the basis of taxation of payments to Lender with respect to any loans bearing
interest based on the LIBOR Rate, or (ii) shall impose or modify any reserve, insurance, special deposit, or similar requirements against assets of, deposits with or for the account of, or
credit extended by Lender or its Eurodollar lending office, or impose on Lender or its Eurodollar lending office any other condition affecting any such loans, and (B) the result of any of the
foregoing is (i) to increase the cost to Lender of making or maintaining any such loans or (ii) to reduce the amount of any sum receivable under this note by Lender or its Eurodollar
lending office, Borrower shall pay Lender within 15 days after demand by Lender such additional amount as will compensate Lender for such increased cost or reduction. The determination hereunder by
Lender of such additional amount shall be conclusive in the absence of manifest error. If Lender demands compensation under this Section 4(c)(v), Borrower may upon three (3) Business Days'
notice to Lender pay the accrued interest on all LIBOR Amounts, together with any additional amounts payable under Section 4(c)(vi). Subject to Section 11, upon Borrower's paying such accrued interest
and additional costs, the Prime Borrowing Rate immediately shall be effective with respect to the unpaid principal balance of such LIBOR Amounts.

      (vi) Borrower
will indemnify Lender upon demand against any loss or expense which Lender may sustain or incur (including, without limitation, any loss or expense
sustained or incurred in obtaining, liquidating or employing deposits or other funds acquired to effect, fund or maintain any portion of the loan or any Advance) as a consequence of (A) any
failure of Borrower to make any payment when due of any amount due hereunder, (B) any failure of Borrower to borrow, if permitted by the terms of this note, continue or convert any portion of
the Prime Rate Amount to a LIBOR Amount, on a date specified therefor in a notice thereof, or (C) any payment, voluntary or mandatory prepayment or payment on default or conversion of any LIBOR
Amount to the Prime Borrowing Rate, on a date other than the last day of the applicable LIBOR Interest Period. Determinations by Lender of the amount required to indemnify Lender shall be conclusive
in the absence of manifest error.

     (vii) Notwithstanding
any provision of this note to the contrary, Lender shall be entitled to fund and maintain its funding of all or any part of the loan evidenced by
this note in any manner it elects; it being understood, however, that with respect to any LIBOR Amount, all determinations hereunder shall be made as if Lender had actually funded and maintained each
LIBOR Amount during the LIBOR Interest Period applicable to it through the purchase of deposits having a term corresponding to such LIBOR Interest Period and bearing an interest rate equal to the
LIBOR Rate for such LIBOR Interest Period (whether or not Lender shall have granted any participations in such LIBOR Amounts).

     (viii) Notwithstanding
any other term of this note, Borrower may not select the LIBOR Borrowing Rate if an event of default hereunder has occurred and is continuing.

      (ix) Nothing
contained in this note, including without limitation the determination of any LIBOR Interest Period or Lender's quotation of any LIBOR Borrowing Rate,
shall be construed to prejudice Lender's right, if any, to decline to make any requested Advance or to require payment on demand.

5.  COMPUTATION OF INTEREST.  All interest under Section 4 and Section 11 will be computed at the applicable rate based on
a 360-day year and applied to the actual number of days elapsed.

6.  PAYMENT SCHEDULE.  

(a)  Principal.  Principal shall be paid:

	/ /	 	on demand.
	/ /	 	on demand, or if no demand, on               .
	/x/	 	on February 26, 2001.
	/ /	 	subject to Section 8, in installments of
	 

 	 
 	 

/ /	 
 	 

        each, plus accrued interest, beginning on         and on the same day of each         thereafter until  
       when the entire Principal Balance plus interest thereon shall be due and payable.
	 	 	/ /	 	        each, including accrued interest, beginning on         and on the same day of each        
   thereafter until         when the entire Principal Balance plus interest thereon shall be due and payable.
	 

/ /	 
 	 

                        .

(b)  Interest.  

	(i)
	Interest
on the Prime Rate Amount shall be paid:

	 	 	/x/	 	on the 1st day of March, 2000 and on the same day of each month thereafter prior to maturity and at maturity.
	 	 	/ /	 	at maturity.
	 	 	/ /	 	at the time each principal installment is due and at maturity.
	 	 	/ /	 	                        .

                        .

	(ii)
	Interest
on all LIBOR Amounts shall be paid:

	 	 	/x/	 	on the last day of the applicable LIBOR Interest Period, and if such LIBOR Interest Period is longer than three months, on the last day of each three month period occurring during such LIBOR Interest Period, and at
maturity.
	 	 	/ /	 	on the         day of         and on the same day of each         thereafter prior to maturity
and at maturity.
	 	 	/ /	 	at maturity.
	 	 	/ /	 	at the time each principal installment is due and at maturity.
	 	 	/ /	 	                        .

7.  PREPAYMENT.  

	(a)
	Prepayments
of all or any part of the Prime Rate Amount may be made at any time without penalty.

	(b)
	Except
as otherwise specifically set forth herein, Borrower may not prepay all or any part of any LIBOR Amount or terminate any LIBOR Borrowing Rate, except on the last day of the
applicable LIBOR Interest Period.

	(c)
	Principal
prepayments will not postpone the date of or change the amount of any regularly scheduled payment. At the time of any principal prepayment, all accrued interest, fees,
costs and expenses shall also be paid.

8.  ALTERNATE PAYMENT DATE.  Notwithstanding any other term of this note, if in any month there is no day on which a
scheduled payment would otherwise be due (e.g. February 31), such payment shall be paid on the last banking day of that month.

9.  PAYMENT BY AUTOMATIC DEBIT.  

    /x/  Borrower
hereby authorizes Lender to automatically deduct the amount of all principal and interest payments from account number
          with Lender. If there are insufficient funds in the account to pay the automatic deduction in full, Lender may allow the account to become overdrawn, or
Lender may reverse the automatic deduction. Borrower will pay all the fees on the account which result from the automatic deductions, including any overdraft and non-sufficient funds charges. If for
any reason Lender does not charge the account for a payment, or if an automatic payment is reversed, the payment is still due according to this note. If the account is a Money Market Account, the
number of withdrawals from that account is limited as set out in the account agreement. Lender may cancel the automatic deduction at any time in its discretion.

    Provided,
however, if no account number is entered above, Borrower does not want to make payments by automatic debit.

10.  DEFAULT.  

    (a) Without
prejudice to any right of Lender to require payment on demand or to decline to make any requested Advance, each of the following shall be an event of
default: (i) Borrower fails to make any payment when due. (ii) Borrower fails to perform or comply with any term, covenant or obligation in this note or any agreement related to this
note, or in any other agreement or loan Borrower has with Lender or any affiliate of Lender. (iii) Borrower defaults under any loan, extension of credit, security agreement, purchase or sales
agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this note or perform Borrower's
obligations under this note or any related documents. (iv) Any representation or statement made or furnished to Lender by Borrower or on Borrower's behalf is false or misleading in any material
respect either now or at the time made or furnished. (v) Borrower becomes insolvent, liquidates or dissolves, a receiver is appointed for any part of Borrower's property, Borrower makes an
assignment for the benefit of creditors, or any proceeding is commenced either by Borrower or against Borrower under any bankruptcy or insolvency laws. (vi) Any creditor tries to take any of
Borrower's property on or in which Lender has a lien or security interest. This includes a garnishment of any of Borrower's accounts with Lender. (vii) Any of the events described in this
default section occurs with respect to any guarantor of this note, or any guaranty of Borrower's indebtedness to Lender ceases to be, or is asserted not to be, in full force and effect.
(viii) There is any material adverse change in the financial condition or management of Borrower or Lender in good faith deems itself insecure with respect to the payment or performance of
Borrower's obligations to Lender. If this note is payable on demand, the inclusion of specific events of default shall not prejudice Lender's right to require payment on demand or to decline to make
any requested Advance.

    (b) Without
prejudice to any right of Lender to require payment on demand, upon the occurrence of an event of default, Lender may declare the entire unpaid Principal
Balance on this note and all accrued unpaid interest immediately due and payable, without notice; provided, however, that if any proceeding under any bankruptcy or insolvency law is commenced by or
against Borrower, the availability of Advances shall be immediately terminated without notice and the entire Principal Balance and all accrued interest shall, without notice, become immediately due
and payable. Upon default, including failure to pay upon final maturity, Lender, at its option, may also, if permitted under

applicable
law, increase the interest rate on this note to a rate equal to the Prime Borrowing Rate plus 5%. The interest rate will not exceed the maximum rate permitted by applicable law. In
addition, if any payment of principal or interest is 19 or more days past due, Borrower will be charged a late charge of 5% of the delinquent payment.

    (c) Any
event of default under or any failure of Borrower to pay, perform or comply with any term, covenant or obligation set forth in that certain Note Purchase
Agreement dated September 10, 1996 between Borrower and the Purchasers (as defined in such Note Purchase Agreement) or any amendment, supplement, extension, renewal or replacement thereof or
therefor.

11.  EVIDENCE OF PRINCIPAL BALANCE; PAYMENT ON DEMAND.  Holder's records shall, at any time, be conclusive evidence of the
unpaid Principal Balance and interest owing on this note absent manifest error. Notwithstanding any other provisions of this note, in the event holder makes Advances hereunder which result in an
unpaid Principal Balance on this note which at any time exceeds the maximum amount specified in Section 2, Borrower agrees that all such Advances, with interest, shall be payable on demand.

12.  REQUESTS FOR ADVANCES.  

    (a) Any
Advance may be made or interest rate option selected upon the request of Borrower (if an individual), any of the undersigned (if Borrower consists of more than
one individual), any person or
persons authorized in subsection (b) of this Section 15, and any person or persons otherwise authorized to execute and deliver promissory notes to Lender on behalf of Borrower.

    (b) Borrower
hereby authorizes any one of the following individuals to request Advances and to select interest rate options:

                                      
          

                                      
          

                                      
           

unless
Lender is otherwise instructed in writing.

    (c) All
Advances shall be disbursed by deposit directly to Borrower's account number           with Lender, or by cashier's check
issued to Borrower.

    (d) Borrower
agrees that Lender shall have no obligation to verify the identity of any person making any request pursuant to this Section 15, and Borrower assumes all
risks of the validity and authorization of such requests. In consideration of Lender agreeing, to make Advances upon such requests, Borrower promises to pay holder, in accordance with the provisions
of this note, the Principal Balance together with interest thereon and other sums due hereunder, although any Advances may have been requested by a person or persons not authorized to do so.

13.  PERIODIC REVIEW.  Lender will review Borrower's credit accommodations periodically. At the time of the review,
Borrower will furnish Lender with any additional information regarding Borrower's financial condition and business operations that Lender requests. This information may include but is not limited to,
financial statements, tax returns, lists of assets and liabilities, agings of receivables and payables, inventory schedules, budgets and forecasts. If upon review, Lender, in its sole discretion,
determines that there has been a material adverse change in Borrower's financial condition, Borrower will be in default. Upon default, Lender shall have all rights specified herein.

14.  NOTICES.  Any notice hereunder may be given by ordinary mail, postage paid and addressed to Borrower at the last
known address of Borrower as shown on holder's records. If Borrower consists of more than one person, notification of any of said persons shall be complete notification of all.

15.  ATTORNEY FEES.  Whether or not litigation or arbitration is commenced, Borrower promises to pay all costs of
collecting overdue amounts. Without limiting the foregoing, in the event that holder

consults
an attorney regarding the enforcement of any of its rights under this note or any document securing the same, or if this note is placed in the hands of an attorney for collection or if suit
or litigation is brought to enforce this note or any document securing the same, Borrower promises to pay all costs thereof including such additional sums as the court or arbitrator(s) may adjudge
reasonable as attorney fees, including without limitation, costs and attorney fees incurred in any appellate court, in any proceeding under the bankruptcy code, or in any receivership and
post-judgment attorney fees incurred in enforcing any judgment.

16.  WAIVERS; CONSENT.  Each party hereto, whether maker, co-maker, guarantor or otherwise, waives diligence, demand,
presentment for payment, notice of non-payment, protest and notice of protest and waives all defenses based on suretyship or impairment of collateral. Without notice to Borrower and without
diminishing or affecting Lender's rights or Borrower's obligations hereunder, Lender may deal in any manner with any person who at any time is liable for, or provides any real or personal property
collateral for, any indebtedness of Borrower to Lender, including the indebtedness evidenced by this
note. Without limiting the foregoing, Lender may, in its sole discretion: (a) make secured or unsecured loans to Borrower and agree to any number of waivers, modifications, extensions and
renewals of any length of such loans, including the loan evidenced by this note; (b) impair, release (with or without substitution of new collateral), fail to perfect a security interest in,
fail to preserve the value of, fail to dispose of in accordance with applicable law, any collateral provided by any person; (c) sue, fail to sue, agree not to sue, release, and settle or
compromise with, any person.

17.  JOINT AND SEVERAL LIABILITY.  All undertakings of the undersigned Borrowers are joint and several and are binding
upon any marital community of which any of the undersigned are members. Holder's rights and remedies under this note shall be cumulative.

18.  SEVERABILITY.  If any term or provision of this note is declared by a court of competent jurisdiction to be illegal,
invalid or unenforceable for any reason whatsoever, such illegality, invalidity or unenforceability shall not affect the balance of the terms and provisions hereof, which terms and provisions shall
remain binding and enforceable, and this note shall be construed as if such illegal, invalid or unenforceable provision had not been contained herein.

19.  ARBITRATION.  

    (a) Either
Lender or Borrower may require that all disputes, claims, counterclaims and defenses, including those based on or arising from any alleged tort ("Claims")
relating in any way to this note or any transaction of which this note is a part (the "Loan"), be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the
American Arbitration Association and Title 9 of the U.S. Code. All Claims will be subject to the statutes of limitation applicable if they were litigated. This provision is void if the Loan, at
the time of the proposed submission to arbitration, is secured by real property located outside of Oregon or Washington, or if the effect of the arbitration procedure (as opposed to any Claims of
Borrower) would be to materially impair Lender's ability to realize on any collateral securing the Loan.

    (b) If
arbitration occurs and each party's Claim is less than $100,000, one neutral arbitrator will decide all issues; if any party's Claim is $100,000 or more, three
neutral arbitrators will decide all issues. All arbitrators will be active Oregon State Bar members in good standing. All arbitration hearings will be held in Portland, Oregon. In addition to all
other powers, the arbitrator(s) shall have the exclusive right to determine all issues of arbitrability. Judgment on any arbitration award may be entered in any court with jurisdiction.

    (c) If
either party institutes any judicial proceeding relating to the Loan, such action shall not be a waiver of the right to submit any Claim to arbitration. In
addition, each has the right before, during and after any arbitration to exercise any number of the following remedies, in any order or concurrently: (i) setoff; (ii) self-help
repossession; (iii) judicial or non-judicial foreclosure against real or personal property collateral; and (iv) provisional remedies, including injunction, appointment of receiver, attachment,
claim and delivery and replevin.

20.  GOVERNING LAW.  This note shall be governed by and construed and enforced in accordance with the laws of the State of
Oregon without regard to conflicts of law principles; provided, however, that to the extent that Lender has greater rights or remedies under Federal
law, this provision shall not be deemed to deprive Lender of such rights and remedies as may be available under Federal law.

21.  DISCLOSURE.  

    Under Oregon law, most agreements, promises and commitments made by lenders after October 3, 1989, concerning loans and other credit extensions which
are not for personal, family or household purposes or
secured solely by the borrower's residence must be in writing, express consideration and be signed by the lender to be enforceable.

EACH OF THE UNDERSIGNED HEREBY ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS DOCUMENT.

	Merix Corporation
 Borrower Name (Corporation, Partnership or other Entity)
	 

JANIE BROWN
 By	 
 	 

CHIEF FINANCIAL OFFICER
 Title

    For
valuable consideration, Lender agrees to the terms of the arbitration provision set forth in this note.

	 	 	U.S. BANK NATIONAL ASSOCIATION
	 

 	 
 	 

By:	 
 	 

ROSS BEATON

	 

 	 
 	 

Title:	 
 	 

VICE PRESIDENT

	 

 	 
 	 

Date:	 
 	 

February 15, 2000

  EXHIBIT "A"  

    This exhibit is attached and made a part of that certain Promissory Note for $8,000,000.00, dated January 27,
2000, from Merix Corporation to U.S. Bank National Association.

Incentive Pricing Matrix

    Interest Rate Margin to be governed by the Borrower's Quarterly Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) as expressed in the
following matrix:

	1 QUARTER EBITDA

	 	LIBOR INTEREST RATE MARGIN
	 	PRIME

	< $4,000,000	 	+2.00	 	0.00
	$4,000,000 - $5,000,000	 	+1.50	 	0.00
	> $5,000,000	 	+1.25	 	0.00

    The
Interest Rate Margin will change on the 1st day of each fiscal quarter based upon Borrower's EBITDA for the preceding fiscal quarter.

Merix Corporation

By:
JANIE BROWN

Title:
VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

U.S. Bank National Association

By:
ROSS BEATON

Title:
VICE PRESIDENT

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ALTERNATIVE RATE OPTIONS PROMISSORY NOTE (PRIME RATE, LIBOR)

EXHIBIT "A"<PAGE>

                               2000 INCENTIVE PLAN
                                       OF
                                 iCRYSTAL, INC.

         Section 1.     PURPOSE OF PLAN

         The purpose of this 2000 Incentive Plan (this "Plan") of iCrystal,
Inc., a Delaware corporation (the "Company"), is to enable the Company to
attract, retain and motivate their employees and consultants by providing for or
increasing the proprietary interests of such employees and consultants in the
Company, and to enable the Company to attract, retain and motivate its
non-employee directors and further align their interests with those of the
shareholders of the Company by providing for or increasing the proprietary
interests of such directors in the Company. The Plan is intended to permit the
grant of Awards (as defined below) meeting the requirements of (a) Rule 701
promulgated under the Securities Act of 1933, as amended (the "Securities Act"),
as such rule may be amended from time to time, and (b) Section 25102(o) of the
Corporations Code of the State of Delaware (the "Corporations Code"), and thus
offers and sales of securities pursuant to the Plan are intended to be exempt
from (i) the registration requirements of the Securities Act if and for so long
as the Company is not subject to the reporting requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
and (ii) the qualification requirements of Section 25110 of the Corporations
Code. Nothing in this Plan shall be deemed, however, to prohibit the granting of
Awards in compliance with federal and state securities laws other than pursuant
to Rule 701 and Section 25102(o).

         Section 2.     PERSONS ELIGIBLE UNDER PLAN

         Any employee, non-employee directors, independent contractors or
consultants of the Company or any of its subsidiaries (each, a "Participant")
shall be eligible to be considered for the grant of Awards (as defined in this
Plan) under this Plan.

         Section 3.     AWARDS

         (a) The Administrator (as hereinafter defined), on behalf of the
Company, is authorized under this Plan to enter into any type of arrangement
with a Participant that is not inconsistent with the provisions of this Plan and
that, by its terms, involves or might involve the issuance of (i) shares of
Common Stock of the Company ("Common Stock"), or (ii) a Derivative Security (as
such term is defined in Rule 16a-1 promulgated under the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), as such Rule may be amended from time
to time) with an exercise or conversion privilege at a price related to the
Common Stock or with a value derived from the value of the Common Stock. The
entering into of any such arrangement is referred to herein as the "grant" of an
"Award."

                                       1
<PAGE>

         (b) Awards are not restricted to any specified form or structure and
may include, without limitation, sales or bonuses of stock, restricted stock,
stock options, reload stock options, stock purchase warrants, other rights to
acquire stock, securities convertible into or redeemable for stock, stock
appreciation rights, limited stock appreciation rights, phantom stock, dividend
equivalents, performance units or performance shares, and an Award may consist
of one such security or benefit, or two or more of them in tandem or in the
alternative.

         (c) Common Stock and Derivative Securities may be issued pursuant to an
Award for any lawful consideration as determined by the Administrator,
including, without limitation, services rendered by the recipient of such Award.

         (d) Subject to the provisions of this Plan, the Administrator, in its
sole and absolute discretion, shall determine all of the terms and conditions of
each Award granted under this Plan, which terms and conditions may include,
among other things:

                  (i) a provision permitting the recipient of such Award,
         including any recipient who is a director or officer of the Company, to
         pay the purchase price of the Common Stock or Derivative Securities or
         other property issuable pursuant to such Award, or such recipient's tax
         withholding obligation with respect to such issuance, in whole or in
         part, by any one or more of the following:

                           (A) the delivery of cash;

                           (B) the delivery of previously owned shares of
                  capital stock of the Company (including "pyramiding") or other
                  property, provided that the Company is not then prohibited
                  from purchasing or acquiring shares of its capital stock or
                  such other property,

                           (C) a reduction in the amount of Common Stock or
                  Derivative Securities or other property otherwise issuable
                  pursuant to such Award, or

                           (D) the delivery of a promissory note, the terms and
                  conditions of which shall be determined by the Administrator;

                  (ii) a provision conditioning or accelerating the receipt of
         benefits pursuant to such Award, either automatically or in the
         discretion of the Administrator, upon the occurrence of specified
         events, including, without limitation, a change of control of the
         Company, an acquisition of a specified percentage of the voting power
         of the Company, the dissolution or liquidation of the Company, a sale
         of substantially all of the property and assets of the Company or an
         event of the type described in Section 7 hereof; or

                                       2
<PAGE>

                  (iii) a provision required in order for such Award to qualify
         as an incentive stock option (an "Incentive Stock Option") under
         Section 422 of the Internal Revenue Code ("Code"), provided that the
         recipient of such Award is eligible under the Code to receive an
         Incentive Stock Option. Stock options which do not so qualify are
         referred to as "Nonqualified Stock Options."

         Section 4.     STOCK SUBJECT TO PLAN

         (a) The aggregate number of shares of Common Stock that may be issued
or issuable pursuant to all Awards (including Incentive Stock Options,
Nonqualified Stock Options and other Awards) granted under this Plan shall not
exceed three million (3,000,000) shares of Common Stock and all of which shall
be subject to adjustment as provided in Section 8 hereof.

         (b) For purposes of Section 4(a) hereof, the aggregate number of shares
of Common Stock issued and issuable pursuant to all Awards granted under this
Plan shall at any time be deemed to be equal to the sum of the following:

                  (i) the number of shares of Common Stock that were issued
         prior to such time pursuant to Awards granted under this Plan, other
         than Common Stock that was subsequently reacquired by the Company
         pursuant to the terms and conditions of such Awards and with respect to
         which the holder thereof received no benefits of ownership such as
         dividends; plus

                  (ii) the number of shares of Common Stock that were otherwise
         issuable prior to such time pursuant to Awards granted under this Plan,
         but that were withheld by the Company as payment of the purchase price
         of the Common Stock issued pursuant to such Awards or as payment of the
         recipient's tax withholding obligation with respect to such issuance;
         plus

                  (iii) the maximum number of shares of Common Stock issuable at
         or after such time pursuant to Awards granted under this Plan prior to
         such time.

         (c) In the event any Participant is deemed to be a "covered Executive"
pursuant to Section 162(m) of the Code and the exercise of all or a portion of
the Awards would preclude the Company from taking full advantage of the
compensation deductions arising from the grant of such Awards, together with all
other taxable compensation payable to Participant by the Company, by virtue of
the limitations imposed by Section 162(m) of the Code, then the number of shares
as to which Awards shall be exercisable during the applicable tax year shall be
reduced to such number as would allow the Company to fully deduct the
compensation payable to Participant.

         (d) If and for so long as the Company is not subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, the amount of
securities offered and sold under the Plan shall not exceed the limitations set
forth in Rule 701 promulgated under the Securities Act, as such rule may be
amended from time to time.

                                       3
<PAGE>

         Section 5.     DURATION OF PLAN

         No Awards shall be granted under this Plan after April 4, 2010.
Although Common Stock may be issued after April 4, 2010 pursuant to Awards
granted prior to such date, no Common Stock shall be issued under this Plan
after April 4, 2010 (the "Termination Date").

         Section 6.     ADMINISTRATION OF PLAN

         (a) This Plan shall be administered by a Administrator of the Board
(the "Administrator") consisting of two or more directors. In the event that the
Company becomes "publicly held" within the meaning of Section 162(m) of the
Code, then, with respect to any Awards intended to qualify for the
"performance-based compensation" exception in Section 162(m) of the Code, the
Administrator shall, to the extent necessary, consist of two or more directors
each of whom is an "outside director" within the meaning of Section 162(m) of
the Code and such Award shall not be subject to Board approval.

         (b) Subject to the provisions of this Plan, the Administrator shall be
authorized and empowered to do all things necessary or desirable in connection
with the administration of this Plan, including, without limitation, the
following:

                  (i) adopt, amend and rescind rules and regulations relating to
         this Plan;

                  (ii) determine which persons are Participants and to which of
         such Participants, if any, Awards shall be granted hereunder;

                  (iii) grant Awards to Participants and determine the terms and
         conditions thereof, including the number of shares of Common Stock
         issuable pursuant thereto;

                  (iv) accelerate the exercisability of an Award or extend the
         period during which an owner of an Award may exercise his or her rights
         under such Award (but not beyond the Termination Date);

                  (v) determine whether, and the extent to which, adjustments
         are required pursuant to Section 7 hereof; and

                  (vi) interpret and construe this Plan and the terms and
         conditions of all Awards granted hereunder.

         The interpretation and construction by the Administrator of any term or
provision of the Plan or of any Award granted under it, including without
limitation any determination of adjustments required pursuant to Section 7
hereof, shall be conclusive, unless otherwise determined by the Board of
Directors of the Company (the "Board") in which event such action by the Board
shall be

                                       4
<PAGE>

conclusive, and such interpretation and construction shall be binding upon
all those who hold or are eligible to receive options under the Plan, and all
persons claiming under them. The Board or Administrator may from time to time
adopt rules and regulations for carrying out this Plan and, subject to the
provisions of this Plan, may prescribe the form or forms of the instruments
evidencing any Award granted under this Plan.

         (c) The Administrator will provide to each holder annual financial
statements of the Company to the extent required by law.

         Section 7.     ADJUSTMENTS

         If the outstanding securities of any class then subject to this Plan
are increased, decreased or exchanged for or converted into cash, property or
a different number or kind of securities, or if cash, property or securities
are distributed in respect of such outstanding securities, in either case as
a result of a reorganization, merger, consolidation, recapitalization,
restructuring, reclassification, dividend (other than a regular, quarterly
cash dividend) or other distribution, stock split, reverse stock split or the
like, or if substantially all of the property and assets of the Company are
sold, then, unless the terms of such transaction shall provide otherwise, the
Administrator shall make appropriate and proportionate adjustments in (a) the
number and type of shares or other securities or cash or other property that
may be acquired pursuant to Incentive Stock Options and other Awards
theretofore granted under this Plan, (b) the maximum number and type of
shares or other securities that may be issued pursuant to Incentive Stock
Options, Nonqualified Stock Options and other Awards thereafter granted under
this Plan, and (c) the maximum number of Common Shares that may be subject to
stock options or stock appreciation rights granted during any twelve-month
period to any Participant, as provided in Section 4(c) hereof; provided,
however, that no adjustment shall be made to the number of shares of Common
Stock that may be acquired pursuant to outstanding Incentive Stock Options or
the maximum number of shares of Common Stock with respect to which Incentive
Stock Options may be granted under this Plan to the extent such adjustment
would result in such options being treated as other than Incentive Stock
Options; provided, further, that no such adjustment shall be made to the
extent the Administrator determines that such adjustment would result in the
disallowance of a federal income tax deduction for compensation attributable
to Awards hereunder by causing such compensation to be other than
"performance-based compensation" within the meaning of Section 162(m)(4)(C)
of the Code.

         Section 8.     OTHER PROVISIONS

         Awards granted under this Plan shall contain such other terms and
provisions which are not inconsistent with this Plan as the Board or
Administrator may authorize, including but not limited to (a) vesting
schedules governing the exercisability of such Awards, (b) provisions for
acceleration of such vesting schedules in certain events, (c) arrangements
whereby the Company may fulfill any tax withholding obligations it may have
in connection with the exercise of such Awards, (d) provisions imposing
restrictions upon the transferability of stock acquired on exercise of such
Award, whether required by this Plan or applicable securities laws or imposed
for other reasons, and

                                       5
<PAGE>

(e) provisions regarding the termination or survival of any such Award
upon the optionee's death, retirement or other terminations of employment and
the extent, if any, to which any such Award may be exercised after such
event. Incentive Stock Options shall contain the terms and provisions
required of them under the Code.

         Section 9.     FINANCIAL ASSISTANCE

         The Company is vested with authority under this Plan to assist any
Participant to whom an Award is granted hereunder (including any director or
officer of the Company or any of its subsidiaries who is also a Participant)
in the payment of the purchase price payable on exercise of that Award, by
lending the amount of such purchase price to such Participant on such terms
and at such rates of interest and upon such security (or unsecured) as shall
have been authorized by or under authority of the Board.

         Section 10.    COMPANY'S RIGHT OF FIRST PURCHASE AND PARTICIPATION
                        IN COMMON STOCK TRANSACTIONS

         (a) While and so long as the Common Stock or any stock of any other
class subject to this Plan has not been Publicly Traded (as hereinafter
defined) for at least ninety (90) days, any stock issued on exercise of any
Award granted under this Plan shall be subject to the Company's right of
first purchase. By virtue of that right, (a) such stock may not be
transferred during the holder's lifetime to any person other than members of
the holder's Immediate Family, a partnership whose members are the holder
and/or members of the holder's Immediate Family, or a trust for the benefit
of the holder and/or members of the holder's Immediate Family, unless such
transfer occurs within fifteen (15) days following the expiration of thirty
(30) days after the Company has been given a written notice which correctly
identified the prospective transferee or transferees and which offered the
Company an opportunity to purchase such stock at its Fair Market Value in
cash, and such offer was not accepted within thirty (30) days after the
Company's receipt of that notice; and (b) upon the holder's death, the
Company shall have the right to purchase all or some of such stock at its
Fair Market Value within nine (9) months after the date of death. This right
of first purchase shall continue to apply to any such stock after the
transfer during the holder's lifetime of that stock to a member of the
holder's Immediate Family or to a family partnership or trust as aforesaid,
and after any transfer of that stock with respect to which the Company
expressly waived its right of first purchase without also waiving it as to
any subsequent transfers thereof, but it shall not apply after a transfer of
that stock with respect to which the Company was offered but did not exercise
or waive its right of first purchase or more than nine months after the
holder's death. The Company may assign all or any portion of its right of
first purchase to any one or more of its shareholders, or to a pension or
retirement plan or trust for Participants of the Company, who may then
exercise the right so assigned. Stock certificates evidencing stock subject
to this right of first purchase shall be appropriately legended to reflect
that right.

         (b) While and so long as the Common Stock or any stock of any other
class subject to this Plan has not been Publicly Traded (as hereinafter
defined) for at least ninety (90) days, upon the

                                       6
<PAGE>

exercise of any Awards granted under the Plan, the Company may require that
the Awards granted to Participants be subject to such requirements as the
Company may specify, including a requirement that a Participant participate
in transactions involving the purchase or exchange of all, or substantially
all, of the Common Stock of the Company (a "Transaction"). To the full extent
provided to any other holder of Common Stock of the Company on the date a
Participant exercises the Award, Participants shall be entitled to
participate in any Transaction on the same basis as the other holders of
Common Stock of the Company.

         Section 11.    LIMITATIONS OF RIGHTS OF PARTICIPANTS

         (a) A Participant under this Plan shall not have any interest in the
shares or in any dividends paid thereon, and shall not have any of the rights or
privileges of a shareholder with respect to such shares, until the certificates
therefor have been issued and delivered to him or her.

         (b) No shares of stock issuable under the Plan shall be issued and no
certificate therefor delivered unless and until, in the opinion of legal counsel
for the Company, such securities may be issued and delivered without causing the
Company to be in violation of or to incur any liability under any federal, state
or other securities law, or any other requirement of law or of any regulatory
body having jurisdiction over the Company.

         (c) The receipt of an option does not give the holder any right to
continued employment by the Company or a subsidiary for any period, nor shall
the granting of the option or the issuance of shares on exercise thereof give
the Company or any subsidiary any right to the continued services of the holder
for any period.

         (d) Nothing contained in this Plan shall constitute the granting of an
Award hereunder, which shall occur only pursuant to express authorization by the
Board or the Administrator.

         Section 12.    AMENDMENT AND TERMINATION

         The Board may alter, amend, suspend or terminate this Plan, provided
that no such action shall deprive a holder who has not consented thereto of any
Award granted to the holder pursuant to this Plan or of any of the holder's
rights under such Award. Except herein provided, no such action of the Board,
unless taken with the approval of the shareholders of the Company, may:

         (a) increase the maximum number of shares for which Awards granted
             under this Plan may be exercised;

         (b) reduce the minimum permissible exercise price;

         (c) extend the ten-year duration of the Plan set forth herein;

         (d) alter the class of Employees eligible to receive Awards under
             the Plan; or

                                       7
<PAGE>

         (e) amend the Plan in any other manner which the Board, in its
             discretion, determines should become effective only if
             approved by the shareholders even though such shareholder
             approval is not expressly required by this Plan.

         If an amendment to this Plan would (i) increase the maximum number
of shares of Common Stock that may be issued pursuant to (a) all Awards
granted under this Plan, (b) all Incentive Stock Options granted under this
Plan, or (c) Awards granted under this Plan during any calendar year to any
one Participant, (ii) change the class of persons eligible to receive Awards
under this Plan, (iii) otherwise materially increase the benefits hereunder
accruing to participants who are subject to Section 16 of the Exchange Act in
a manner not specifically contemplated herein or (iv) affect this Plan's
compliance with Rule 16b-3 or applicable provisions of the Code, as amended
from time to time, the amendment shall be subject to approval by the
Company's shareholders to the extent required to comply with Rule 16b-3,
Sections 422 and 162(m) of the Code, and other applicable provisions of or
rules under the Code, as amended from time to time.

         Section 13.    CERTAIN DEFINITIONS

         As used in this Plan, the following terms shall have the following
meanings:

         "Fair Market Value" shall mean the fair market value of the Common
Stock. If the Common Stock is not publicly traded, fair market value shall be
determined by the Board or the Administrator and may be computed by any
method which the Board or the Administrator in good faith believes reflects
the fair market value of the Common Stock on the date of such determination,
including without limitation, reference to the book value of the Common Stock
and reference to the most recent price at which the Common Stock, or a
Derivative Security of the Company, has been issued in an arms-length
transaction, provided however, that Fair Market Value shall not be less than
the exercise price paid by the Participant to receive the subject Common
Stock. If the Common Stock is publicly traded, fair market value shall be the
closing sale price per share of Common Stock, if the Common Stock is listed
on a national securities exchange or on the NASDAQ National Market, or if the
Common Stock is not then so listed, the closing bid price per share of Common
Stock, on the day in question (or, if such day is not a trading day or if no
sales of Common Stock were made on such day, on the nearest preceding trading
day on which sales of Common Stock were made), as reported in THE WALL STREET
JOURNAL, or, if trading in the Common Stock is not then reported in THE WALL
STREET JOURNAL, at such closing sale or bid price as may then appear in what
the Board or the Administrator in its judgment then deems to be the most
nearly comparable listing or reporting service.

         An individual's "Immediate Family" includes only his or her spouse,
parents or other ancestors, and children and other direct descendants of that
individual or of his or her spouse (including such ancestors and descendants
by adoption).

                                       8
<PAGE>

         Corporate stock is "Publicly Traded" if stock of that class is listed
or admitted to unlisted trading privileges on a national securities exchange or
on the NASDAQ National Market or if sale sor bid and offer quotations are
reported for that class of stock in the automated quotation system ("NASDAQ")
operated by the National Association of Securities Dealers, Inc.

         Section 14.       EFFECTIVE DATE OF PLAN

         This Plan shall be effective as of April 4, 2000, the date upon
which it was approved by the Board of Directors of the Company, subject to
approval by the Company's stockholders.

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