Document:

Form of 2003 Stock Incentive Plan of the Registrant

 Exhibit 10.3 
  

  
 MULTI-FINELINE ELECTRONIX, INC. 
  
 2004 STOCK INCENTIVE PLAN 
  
 (Adopted by the Board as of June 15, 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

  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004 STOCK
INCENTIVE PLAN 
  

 -iii- 

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

  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004 STOCK
INCENTIVE PLAN 
  

 -iv- 

 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

  
  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004
STOCK INCENTIVE PLAN 
  

 -1- 

 (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” shall mean the Internal Revenue Code of 1986, as amended. 
  
 MULTI-FINELINE ELECTRONIX,
INC. 
 2004 STOCK INCENTIVE PLAN 
  

 -2- 

 (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 
  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004
STOCK INCENTIVE PLAN 
  

 -3- 

 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 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). 
  
  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004 STOCK INCENTIVE PLAN 
  

 -4- 

 (s) “Parent” 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” shall mean the Common Stock of the Company. 
  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004 STOCK
INCENTIVE PLAN 
  

 -5- 

 (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. 
  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004
STOCK INCENTIVE PLAN 
  

 -6- 

 (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; 
  

 MULTI-FINELINE ELECTRONIX, INC. 

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-quarter 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 15,000 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. 
  

 MULTI-FINELINE ELECTRONIX, INC. 

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. 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. 
  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -11- 

 (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. 
  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -12- 

 (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. 
  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004 STOCK
INCENTIVE PLAN 
  

 -13- 

 (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 
  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004 STOCK INCENTIVE PLAN 
  

 -14- 

 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. 
  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004 STOCK
INCENTIVE PLAN 
  

 -15- 

 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 
  
 MULTI-FINELINE ELECTRONIX,
INC. 
 2004 STOCK INCENTIVE PLAN 
  

 -16- 

 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 
  
 MULTI-FINELINE ELECTRONIX, INC. 
 2004 STOCK INCENTIVE PLAN 
  

 17 

 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 
  
 MULTI-FINELINE ELECTRONIX,
INC. 
 2004 STOCK INCENTIVE PLAN 
  

 -18- 

 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 
  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -19- 

 (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. 
  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -20- 

 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. 
  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -21- 

 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. 
  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -22- 

 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. 
  
 [Remainder of this page intentionally left blank] 
  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -23- 

 SECTION 20. EXECUTION. 
  

To record the adoption of the Plan by the Board of Directors on June 15, 2004, the Company has caused its authorized officer to execute the same.

  

			
	MULTI-FINELINE ELECTRONIX, INC.
		
	By	 	 /s/    PHILIP A. HARDING

		
	Name	 	 Philip A. Harding

		
	Title	 	 Chief Executive Officer

  

 MULTI-FINELINE ELECTRONIX, INC. 

2004 STOCK INCENTIVE PLAN 
  
 -24-Corporate Services Agreement

 EXHIBIT 10.4 
  
 CORPORATE SERVICES AGREEMENT 
  

THIS AGREEMENT (this “Agreement”) is made as of June 4, 2004 (the “Effective Date”) BETWEEN:

  

	(1)	 	WEARNE BROTHERS SERVICES (PRIVATE) LIMITED (“WBS”), a company incorporated in Singapore with its registered office at 65 Chulia Street, #31-00 OCBC Centre,
Singapore 049513; and 

  

	(2)	 	MULTI-FINELINE ELECTRONIX, INC. (the “Company”), a Delaware corporation with its registered office at 3140 East Coronado Street, Suite A, Anaheim, CA 92806.

  
 W H E R E A S: 
  

	(A)	 	WBS has the staff and facilities to provide certain corporate services required by the Company to the Company. 

  

	(B)	 	WBS has, at the request of the Company, agreed to provide the corporate services hereinafter mentioned subject to and upon the terms and conditions of this Agreement.

  
 IT IS HEREBY AGREED as follows:

  

	1.	 	REPRESENTATIONS AND WARRANTIES 

  

	 	(A)	 	The Company represents and warrants the following: 

  

	 	(a)	 	The Company is a corporation duly organized and validly existing under the laws of the state of Delaware. The Company has all necessary corporate power and authority to execute and
deliver this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement, and the performance of the Company’s obligations hereunder, have been duly authorized by all necessary action on the part of the
Company and this Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against it in accordance with its terms. 

  

	 	(b)	 	Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will conflict with, or result in a breach or default of any of
the terms, conditions or provisions of the Certificate of Incorporation or Bylaws (or other similar governing documents) of the Company or any law or any regulation, order, writ, injunction, license, franchise or decree of any court or governmental
instrumentality or agency or of any agreement or instrument to which the Company is a party or by which it is bound. 

  

	 	(B)	 	WBS represents and warrants the following: 

	 	(a)	 	WBS is a corporation duly organized and validly existing under the laws of the country of Singapore. WBS has all necessary corporate power and authority to execute and deliver this
Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement, and the performance of the WBS’ obligations hereunder, have been duly authorized by all necessary corporate action on the part of WBS and this
Agreement constitutes the legal, valid and binding obligation of WBS, enforceable against it in accordance with its terms. 

  

	 	(b)	 	Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will conflict with, or result in a breach or default of any of
the terms, conditions or provisions of the Articles of Association (or other similar governing documents) of WBS or any law or any regulation, order, writ, injunction, license, franchise or decree of any court or governmental instrumentality or
agency or of any agreement or instrument to which WBS is a party or by which it is bound. 

  

	2.	 	AGREEMENT TO PROVIDE SERVICES 

  
 (A) Subject to the terms and conditions of this Agreement and upon the written request of the Company, WBS shall provide certain corporate services
(together, the “WBS Services”) to the Company, each of which is more particularly described in Schedule I, and the Company shall accept and use the WBS Services. 
  
 (B) Notwithstanding any provision herein to the contrary, the parties agree that there shall be no minimum purchase
obligation with respect to any of the WBS Services under this Agreement. 
  
 (C) WBS agrees to use, and to cause its employees and agents to use, good faith efforts to provide the WBS Services in a good, workmanlike and professional manner as if such entities were performing such services on
their own respective behalf. 
  
 (D) Notwithstanding any other
provision herein to the contrary, the parties agree that in no event shall WBS be entitled to any payment with respect to the activities related to managing the investment or holdings of WBS or any of its “affiliates” (as such term is
defined by the U.S. Securities Exchange Act of 1934) in the Company (including, without limitation, any activities in connection with consolidating the financial statements of the Company with the financial statements of WBS or any of its affiliates
or the preparation or filing of any tax returns with respect to WBS or any of its affiliates) and such activities shall not constitute WBS Services under this Agreement; provided, however, that this paragraph shall not preclude WBS or
its affiliates from receiving standard and customary director fees or reimbursement of director expenses in connection with service by any such WBS affiliate on the Board of Directors of the Company. 
  

 2 

	3.	 	OTHER SERVICES 

  
 (A) From time to time, the Company may request WBS to provide other services in addition to the WBS Services contained in Schedule I, and the cost
and expenses of any such additional services shall be determined and charged in such amount and manner as may be mutually agreed between the parties hereto. 
  
 (B) From time to time, the parties may amend Schedule I to add or modify additional WBS Services or modify the fees with respect to WBS Services.
Any such modification or amendment shall be in writing signed by the parties, shall be attached to this Agreement and shall constitute an amendment hereto. 
  

	4.	 	INFORMATION AND DOCUMENTS 

  
 The Company shall submit and make available to WBS all information and documents as WBS reasonably requires so as to enable WBS to effectively fulfill and
discharge its obligations and perform its duties and render the WBS Services under this Agreement. Upon the termination of this Agreement, all such information and documents (including copies thereof) in the possession or under the control of WBS
shall be returned to the Company or destroyed at the request of the Company. WBS agrees that all information provided pursuant to this Section 4 shall constitute “Confidential Information” under Section 7 hereof. 

 

	5.	 	NO AGENCY OR PARTNERSHIP 

  
 Notwithstanding any other provision herein to the contrary, WBS acknowledges and agrees that (i) the relationship between WBS, on the one hand, and the
Company, on the other hand, is that of independent contractor only and in no event shall any representative of WBS be deemed to be an employee of the Company and (ii) WBS shall have no authority to enter into any agreement or to make any
representation, commitment or warranty binding upon the Company or to obtain or incur any right, obligation or liability on behalf of the Company. This Agreement is not intended to create any other relationship of any kind, including, but not
limited to, an employer-employee relationship, joint venture, franchise, partnership or other relationship of any similar kind between or among the Company and WBS or representatives of the Company or WBS, and the parties expressly deny the
existence of any such relationship. As an independent contractor, WBS solely is responsible for payment of all taxes relating to the services provided by WBS under this Agreement, and any employee of WBS, including, but not limited to, all federal,
state and local income taxes, employment-related taxes, worker’s compensation insurance, social security taxes and withholding taxes. 
  

	6.	 	FEES AND EXPENSES 

  
 (A) The parties agree that WBS shall charge the Company for the WBS Services at the respective WBS Costs with respect to the WBS Service performed. For
the purposes of this Agreement, the “WBS Costs,” with respect to any WBS Service, means the product of 1.05 multiplied by the aggregate of all related costs and expenses which WBS incurs, directly or indirectly, in the provision of
such WBS Service. 
  

 3 

 (B) WBS shall invoice the Company for the WBS Services in accordance with its usual administrative and
operational procedures, provided that such invoices shall provide, in reasonable detail, a breakdown of the WBS Services provided and the charges relating to each WBS Service provided. 
  
 (C) WBS shall allow the Company, each of its independent directors and authorized representatives full access during office
hours to all relevant accounting records, documents, books and information (except for certain confidential information, such as salary, which only the external auditors of each party shall be allowed access to) to verify the basis of costs and the
Company shall be permitted to make copies of such records, documents, books and information for its record and retention. Notwithstanding the foregoing, WBS shall allow and render full assistance to external auditors appointed by the other to carry
out from time to time an audit and review of the charges to ensure that WBS is in compliance with the terms of this Agreement. 
  

	7.	 	CONFIDENTIALITY 

  
 (A) No party (a “Disclosing Party”) shall, without the prior written consent of the other party (the “Non-disclosing
Party”), disclose any Confidential Information (defined below) of the Non-disclosing Party, except to a Disclosing Party’s employees or representatives who need to know such information for any reason contemplated by this Agreement
(and then only to the extent that any such persons are under an obligation to maintain the confidentiality of, and to abide by the non-use provisions set forth herein with respect to, the Confidential Information), or use any Confidential
Information of the Non-disclosing Party for any reason other than as contemplated by this Agreement. Without limiting the provisions of Section 7(B) below, in the event that the Disclosing Party is requested or required by documents subpoena,
civil investigative demand or other similar process or applicable law to disclose any Confidential Information, the Disclosing Party shall provide the Non-disclosing Party with prompt written notice of such demand or other similar process so that
the Non-disclosing Party may seek an appropriate protective order or, to the extent such subpoena, demand, process or law is mandatory and no protective order is possible, waive the Disclosing Party’s compliance with the provisions of this
Section 7(A), as appropriate. In addition to the foregoing, each party agrees that it will disclose Confidential Information only to such employees or representatives who need to know such information for any reason contemplated by this
Agreement or to assist such party in fulfilling its obligations or enforcing its rights under this Agreement (and then only to the extent that any such person is under an obligation to maintain the confidentiality of such Confidential Information).

  
 (B) The term “Confidential Information” as
used in this Section 7 means the following (and whether disclosed prior to or after the date of this Agreement): (i) as to the Company, all confidential information relating to the business and operations of the Company and (ii) as to WBS and
its affiliates, all confidential information relating to the business and operations of WBS and its affiliates; provided, however, that the term “Confidential Information” does not include information which (1) is
generally available to the public currently, (2) becomes generally available to the public other than as a result of disclosure by the Disclosing Party or (3) becomes available to the Disclosing Party on a non-confidential basis from a source other
than the Non-disclosing Party (so long as such source is not bound by a duty of confidentiality (whether by agreement or otherwise) to the Non-disclosing Party). 
  

 4 

	8.	 	INDEMNIFICATION 

  
 (A) Subject to Section 8(F) below, the Company shall indemnify and save and hold WBS and its respective officers, directors and employees
(individually, a “WBS Indemnified Party” and collectively, the “WBS Indemnified Parties”) harmless from and against any and all damages, liabilities, losses, costs and expenses (including, without limitation,
reasonable attorney’s fees, court costs and other out-of-pocket expenses incurred in investigating, preparing or defending the foregoing) (collectively, “Losses”) resulting from, arising out of, or in connection with, this
Agreement or the acceptance or performance of any duties or rendering of any WBS Services performed by any WBS Indemnified Party under this Agreement; provided, however, that the Company shall have no liability hereunder in respect of
any act or omission of a WBS Indemnified Party caused by such WBS Indemnified Party’s willful breach of this Agreement in any material respect, reckless disregard of its obligations and duties under this Agreement, or willful misconduct, gross
negligence or willful malfeasance in the performance of or in connection with providing the WBS Services. 
  
 (B) WBS shall indemnify and save and hold the Company and the officers, directors and employees of the Company (individually, a “Company
Indemnified Party” and collectively the “Company Indemnified Parties,” and together with the WBS Indemnified Parties, the “Indemnified Parties”) harmless from and against any and all Losses resulting from
or arising out of a willful breach by WBS of this Agreement in any material respect, reckless disregard of its obligations and duties under this Agreement, or willful misconduct, gross negligence or willful malfeasance in the performance of or in
connection with providing the WBS Services. 
  
 (C) In order for
an Indemnified Party to be entitled to any indemnification provided for under this Agreement in respect of, arising out of or involving any suit, action, proceeding, claim, demand or written notice made by any third party against an Indemnified
Party (a “Third Party Claim”), the Indemnified Party must notify the party of whom it is requesting such indemnification (the “Indemnifying Party”) in writing of the Third Party Claim within thirty
(30) calendar days after receipt by such Indemnified Party of written notice of the Third Party Claim; provided, however, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of
any liability hereunder unless the Indemnifying Party has suffered material prejudice by such failure. If a Third Party Claim is made against an Indemnified Party, the Indemnifying Party shall be entitled, if it so chooses, to elect to compromise or
assume the defense thereof by delivering written notice to such effect to the Indemnified Party within thirty (30) calendar days or such shorter period as is reasonably required, following receipt by the Indemnifying Party of the
notice of the Third Party Claim. If the Indemnifying Party elects to compromise or assume the defense of any Third Party Claim, it may not agree to any settlement or compromise of such claim, other than a settlement or compromise solely for monetary
damages for which the Indemnifying Party shall be responsible, without the prior written consent of the Indemnified Party. The Indemnified Party will cooperate in all reasonable respects with the Indemnifying Party in connection with such compromise
or defense and shall have the right to participate in such compromise or defense with counsel (but not more than one firm) selected (with the consent of the Indemnifying Party, not to be withheld unreasonably) and paid for by the Indemnifying Party.
Except as otherwise provided, regardless of which party assumes the defense of a Third Party Claim, (i) the Indemnified Party shall not 
  

 5 

 settle or compromise any Third Party Claim without the consent of the Indemnifying Party, (ii) the Indemnifying Party
shall not withhold unreasonably consent to any settlement or compromise of such claim and (iii) the Indemnified Party and the Indemnifying Party shall cooperate in any settlement or compromise of such claim, whether by the Indemnifying Party or the
Indemnified Party, as the case may be. In the event the Indemnifying Party does not compromise or assume the defense of any Third Party Claim, the Indemnifying Party shall promptly pay to the Indemnified Party all reasonable costs and expenses
incurred by an Indemnified Party in defending any claim in advance of the final disposition thereof; provided, however, that if it ultimately is determined by a court of competent jurisdiction (from whose decision no appeals may be
taken or the time for appeal has lapsed) that the Indemnified Party was not entitled to indemnity hereunder, then the Indemnified Party shall repay promptly all amounts so advanced. The Indemnified Party shall deliver to the Indemnifying Party
statements of the reasonable costs and expenses so incurred on a monthly basis, and the Indemnifying Party shall pay promptly to the Indemnified Party the amounts shown on such statements. 
  
 (D) In the event an Indemnified Party shall claim a right to payment pursuant
to this Agreement for other than a Third Party Claim, such Indemnified Party shall send written notice of such claim to the Indemnifying Party within a reasonable period of time after first learning of such claim and such notice shall specify the
basis for such claim in reasonable detail; provided, however, that the failure to give such notice or to specify such claim shall not relieve the Indemnifying Party of any liability hereunder (unless the Indemnifying Party has suffered
material prejudice by such failure). Any dispute between the parties with respect to a claim for indemnity under this Agreement shall be resolved in accordance with the provisions of Section 9 below. 
  
 (E) Absent fraud, the indemnification provided in this Section 8 shall
be the sole and exclusive remedy available to the parties for breach of any of the terms, conditions, representations or warranties contained herein or any right, claim or action arising from the transactions contemplated hereby; provided,
however, this exclusive remedy does not preclude a party from (i) bringing an action for specific performance or other equitable remedy to require a party to perform its obligations under this Agreement or (ii) otherwise exercising any rights
of such party under the terms of this Agreement. 
  
 (F)
Notwithstanding any other provision of this Agreement, (i) no party shall be liable to the other party for indemnification under this Section 8 for any indirect, special, incidental, punitive, exemplary or consequential damages arising out of
this Agreement, including, but not limited to, loss of profits, and each party hereby releases the other party from any claims that it may have against the other party for any such damages and loss of profits, unless such damages or loss of profits
are covered by insurance, in which event the insured party shall be obligated to seek recovery and submit any recovery to the Indemnified Party; provided, however, that the foregoing shall not be construed to preclude recovery by the
Indemnified Party in respect to Losses directly incurred from Third Party Claims and (ii) in no event shall either party have any liability (in any single instance or in the aggregate) that is in excess of the sum of all fees paid hereunder. Both
parties shall take commercially reasonable actions to mitigate their damages. 
  

 6 

	9.	 	DISPUTE RESOLUTION 

  
 (A) In the event that a party to this Agreement has reasonable grounds to believe that the other party hereto has breached or failed to satisfactorily
perform any of its obligations hereunder, such party will notify promptly the other party in writing of the substance of its belief. The party receiving such notice must respond in writing within ten (10) calendar days of receipt of
such notice and either provide evidence that it has cured (or is diligently in the process of curing) the condition specified, or provide an explanation why it believes that its performance is in accordance with the terms and conditions of this
Agreement and also specify three (3) dates (excluding holidays and weekends) for a meeting to resolve the dispute. The claiming party will then select one of the three (3) dates, and a dispute resolution meeting will be
held. If the parties cannot resolve their dispute by good faith negotiations, then the parties shall be free to seek relief in the courts as specified in Section 9(B) below. 
  
 (B) The Company and WBS irrevocably submit to the jurisdiction of the United States District Court for the District of
Delaware or any court of the State of Delaware for the purposes of any suit, action or other proceeding arising out of this Agreement or any transaction contemplated hereby (and each agrees that no such action, suit or proceeding relating to this
Agreement or any transaction contemplated hereby shall be brought by it or any of its affiliates except in such courts). The Company and WBS agree that service of any process, summons, notice or document by registered mail to such person’s
respective address set forth below shall be effective service of process for any action, suit or proceeding in Delaware with respect to any matters to which it has submitted to jurisdiction as set forth above in the immediately preceding sentence.

  
 (C) Each party hereby waives and agrees to cause each of its
affiliates to waive, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any litigation directly and indirectly arising, out of, under or in connection with this Agreement. 
  

	10.	 	DURATION AND TERMINATION 

  
 (A) This Agreement shall be deemed to come into force on the Effective Date and shall continue in force until terminated by either party giving not less
than thirty (30) calendar days’ prior notice in writing to the other party. 
  
 (B) Notwithstanding the provisions of Section 10(A) above, either party hereto shall have the right at any time by giving notice in writing to the other party to terminate this Agreement forthwith in any of the
following events: 
  

	 	(1)	 	if such other party commits any material breach of any of the terms of this Agreement (including but not limited to a failure to pay any sum which is due and payable under the terms
of this Agreement) on its part to be observed or performed and shall not remedy such breach within thirty (30) days after notice is given to it requiring such remedy; or 

  

	 	(2)	 	if such other party shall enter into liquidation whether it be compulsory or voluntary (not being a voluntary liquidation for the purpose of amalgamation or reconstruction) or have
a receiver or judicial manager 

  

 7 

 appointed over it or any of its assets or shall make any assignment for the benefit of its creditors or
take or suffer any similar action. 
  
 (C) If this Agreement is
terminated in accordance with this Section 10, from and after the date of such termination, this Agreement shall have no further force or effect, without any liability on the part of any party or its directors, officers, members or
stockholders, except for the obligations of the parties hereto which continue after termination as provided in Section 12 below and that WBS shall be entitled to receive all undisputed invoice amounts which have not been paid prior to the
date of such termination. Nothing in this Section 10 shall be deemed to release either party from any liability for any willful and material breach of any obligation hereunder. 
  

	11.	 	NO ASSIGNMENT OR TRANSFER 

  
 This Agreement may not be assigned by the Company or WBS without the prior written consent of the other party, except that the Company may assign its
rights and delegate its obligations hereunder without WBS’ consent to (i) one or more of its affiliates or (ii) in connection with a sale of all or substantially all of the assets of the Company or in connection with a merger, acquisition or
other corporate reorganization of the Company. Any attempt to assign any rights or obligations arising under this Agreement, except as set forth in this Section 11, without such prior consent shall be null and void. Subject to the foregoing,
this Agreement will be binding upon and inure to the benefit of the parties and their successors and permitted assigns. Nothing contained in this Agreement, express or implied, is intended to confer upon any person other than the parties to it and
their respective successors and permitted assigns any rights or remedies under or by reason of this Agreement. 
  

	12.	 	SEVERABILITY AND SURVIVAL 

  
 (A) In the event that any of the provisions of this Agreement shall be determined invalid, void or unenforceable, such provision shall be deemed to be
deleted from this Agreement and the remaining provisions of this Agreement shall continue in full force and effect. 
  
 (B) In the event this Agreement is terminated pursuant to Article 10, from and after the date of termination, this Agreement shall have no further
force or effect, except for the provisions of Sections 4, 5, 6, 7, 8, 9 and 11, this Section 12 and Sections 14, 16, 18 and 19 which shall survive such termination. 
  

	13.	 	NON-WAIVER 

  
 No failure to exercise, nor delay in exercising on the part of either party, any right, power or remedy under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of their right, power or remedy preclude any other or further exercise thereof of any other right, power or remedy. 
  

 8 

	14.	 	ENTIRE AGREEMENT; MODIFICATIONS AND AMENDMENTS 

  
 This Agreement (including, but not limited to, Schedule I attached hereto) and any other agreements executed and delivered by the parties
contemporaneously herewith constitute the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements and understandings both oral or written, between the parties with respect to the subject matter
hereof. Except to the limited extent provided herein, no provision of this Agreement may be amended or waived unless such amendment or waiver is agreed to in writing and signed by the parties to this Agreement. 
  

	15.	 	NON-EXCLUSIVITY 

  
 The services of WBS hereunder are not to be deemed exclusive and WBS shall be free to render similar services to others on such terms as may be arranged
so long as its services hereunder are not impaired thereby and to retain for its own use and benefit fees or other moneys payable thereby and WBS shall not be deemed to be affected with notice of or to be under any duty to disclose to the Company
any fact or thing which may come to the notice of WBS or any of its respective employees, servants or agents in the course of rendering similar services to others or in the course of its business in any other capacity or in any manner whatsoever,
otherwise than in the course of carrying out its duties hereunder. 
  

	16.	 	NOTICES 

  
 All notices, requests and other communications hereunder must be in writing and will be deemed to have been duly given only if delivered (i) personally,
(ii) by courier, (iii) by facsimile transmission (with receipt confirmed) or (iv) mailed (first class postage prepaid) or sent by overnight courier to the parties at the following addresses: 
  

	 	(A)	 	To the Company: 

  
 Multi-Fineline Electronix, Inc. 
 3140 E.
Coronado Street, Suite A 
 Anaheim, California 92806 
 Attention: Philip A. Harding 
 Facsimile: (714) 238-1487 
  
 With a copy to: 
  
 Pillsbury Winthrop LLP 
 50 Fremont Street 
 San Francisco, California
94105 
 Attention: Stanton D. Wong, Esq. 
 Facsimile: (415) 983-1200 
  

 9 

 (B) To WBS: 
  
 Wearne Brothers Services (Private) Limited 
 c/o WBL Corporation Limited 
 65 Chulia Street #31-00 
 OCBC Centre 
 Singapore 049513 
 Attention: Kevin Lew 
 Facsimile: (65) 6534-1443 
  
 All such notices, requests and other communications will (i) if delivered
personally to the address provided in this Section 16, be deemed given upon delivery, (ii) if delivered by facsimile transmission to the facsimile number as provided in this Section 16, be deemed given upon receipt, provided
confirmation of such receipt is obtained, and (iii) if delivered by mail or courier service in the manner described above to the address as provided in this Section 16, be deemed given upon receipt, provided confirmation of such receipt is
obtained (in each case regardless, of whether such notice, request or other communication is received by any other person to whom a copy of such notice is to be delivered pursuant to this Section 16). Any party from time to time may change
its address, facsimile number or other information for the purpose of notices to that party by giving notice specifying such change to the other parties hereto as herein provided. Notwithstanding any other provision herein to the contrary, in the
event that any obligation hereunder falls on a weekend or holiday, such obligation shall be deemed to be due on the next business day following such weekend or holiday. 
  

	17.	 	POWER TO DELEGATE 

  
 WBS shall not have the power to delegate the whole or any part of its functions, powers, duties, authorities and discretions under this Agreement to any
person(s) (other than its employees, agents or consultants) without the express prior written consent of the Company, which consent shall not be withheld unreasonably. Any such delegation may be by power of attorney or in such other manner as WBS
may think fit and may be made upon such terms and subject to such conditions as WBS may think fit, provided that WBS shall remain in all respects liable for the fulfillment and compliance of its obligations under this Agreement. 
  

	18.	 	GOVERNING LAW 

  
 This Agreement shall be governed by, and construed in accordance with, the laws of Delaware applicable to a contract executed and performed in such state,
without regard to the conflicts of laws principles thereof. 
  

	19.	 	INTERPRETATION 

  
 In this Agreement, unless the context otherwise requires: 
 (A) Words importing a person shall include a firm, company or corporation and vice versa; and 
  

 10 

 (B) The headings in this Agreement are inserted for convenience only and shall be ignored in construing
this Agreement. References to the “Sections” and “Schedules” are to be construed as references to the Sections of and the Schedules to this Agreement. 
  

	20.	 	COUNTERPARTS 

  
 This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and
the same instrument. 
  
 [Remainder of Page Intentionally Left
Blank] 
  

 11 

 SCHEDULE I 
  

WBS SERVICES 
  

	1.	 	Corporate, Financial, Treasury and Taxation Services 

  

	 	(a)	 	To assist in providing finance, costing and management accounting support including, inter alia, assisting in the preparation of annual budgets; rolling forecasts and
monitoring performance against them. 

  

	 	(b)	 	To assist in the management of the treasury functions of the Company and/or its subsidiaries, including the management of its foreign currency and interest rate hedging, cash
management and corporate finance activities. 

  

	 	(c)	 	To assist in dealing with the corporate secretarial matters entrusted to WBS by the Company and/or its subsidiaries. 

  

	 	(d)	 	To assist in reviewing and dealing with all legal matters entrusted to WBS by the Company and/or its subsidiaries. 

  

	 	(e)	 	To assist in providing tax planning and compliance services for the Company and/or its subsidiaries, including making recommendations for a tax efficient structure, preparation of
tax compliance schedules of the Company and/or its subsidiaries in China and correspondence and agreement of tax assessments with the relevant revenue authorities. 

  

	2.	 	General Management Services 

  

	 	(a)	 	To assist in providing, managing and reviewing from time to time the management information system used by the Company and/or its subsidiaries and to make recommendations for
improvement. 

  

	 	(b)	 	To assist in rendering services with respect to the evaluation, development and execution of sales and marketing strategies in order to achieve growth expectations in the sales of
the products manufactured or distributed by the Company and/or its subsidiaries. 

  

	 	(c)	 	To assist in exploring new and potential markets for the products of the Company and/or its subsidiaries. 

  

	 	(d)	 	To assist in rendering services in connection with investor relations. 

  

 SA-1 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 
  
 MULTI-FINELINE ELECTRONIX, INC. 
  
 By: /s/ Philip A. Harding 
 Its: Chief Executive Officer 
 Print Name: Philip A. Harding 
  
 WEARNE BROTHERS SERVICES (PRIVATE) LIMITED 
  
 By: /s/ Kevin Lew 
 Its: Chief Financial Officer 
 Print Name: Kevin Lew 
  
 [SIGNATURE PAGE TO CORPORATE SERVICES AGREEMENT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]