Document:

Promissory Note

 EXHIBIT 10.4 
  
 SUBORDINATED PROMISSORY NOTE 
  
 Merix Caymans Trading Company Limited 
  
 September 29, 2005 
  
 FOR VALUE RECEIVED, Merix Caymans Trading Company Limited, a company incorporated under the laws of the Cayman Islands with its registered office at Century Yark, Cricket
Square, Hutchins Drive, P.O. Box 2681 GT, Grand Cayman, British West Indies (the “Company”), unconditionally and irrevocably promises to pay to the order of Eastern Pacific Circuits Holdings Limited (“Seller”) the
aggregate of (a) Eleven Million U.S. Dollars (U.S.$11,000,000) and (b) an amount equal to the EBITDA Earnout Consideration (as defined in the SPA, as defined below) (“Principal”), plus interest on the unpaid balance of the
Principal from the date hereof at the rate of (i) 7% per annum from the date of this Note to and inclusive of 1 December, 2006, (ii) thereafter 8% per annum to and inclusive of 1 December 2007, and (iii) thereafter
9% per annum until this Note is fully paid as specified below (“Fixed Interest Rate”). The maturity date of this Note is the later of (a) 15 March 2009; and (b) the date that is ten (10) Business Days
after the date on which all Relevant Claims are settled (“Maturity Date”). 
  
 The Company and the Seller are party to a Seller Subordination Agreement dated on or about the date of this Note with Standard Chartered Bank (Hong Kong) Limited as the security agent under the Credit Agreement (as
defined below) (“Seller Subordination Agreement”). The terms of this Note are, where expressly provided for, subject to the terms of the Seller Subordination Agreement. 
  

	 	1.	Purchase Agreement 

  
 This is the Note referred to in the Master Sale and Purchase Agreement dated 14 April, 2005 as varied by letter agreements dated 28 July, 2005
and 16 September 2005 and further amended by a Supplemental Agreement dated 29 September, 2005 (“SPA”) between the Seller and Merix Corporation as the Buyer. Capitalised terms used, but not defined, herein shall have the meaning
given to them in the SPA. 
  

	 	2.	Subordination to Credit Agreement 

  
 (a) The Company is a party to a US$30,000,000 credit agreement dated on or about the date of this Note between (amongst others) the Company and Standard

 Chartered Bank (Hong Kong) Limited as the security agent (“Credit Agreement”). “Senior
Obligations” means all of the liabilities and payment obligations of the Company and its subsidiaries under the Credit Agreement and, subject to paragraph 2(b), all complete and partial refinancings of such liabilities and payment
obligations. Notwithstanding any other provision in this Note, all payments hereunder shall be deferred until all the Senior Obligations (actual or contingent) have been paid and discharged in full unless expressly permitted under Clause 4
(Permitted Payments) of the Seller Subordination Agreement. 
  
 (b) If the Senior Obligations are refinanced on an arm’s length basis, the parties agree to enter into a subordination agreement with the parties advancing funds for the refinancing on terms similar to those in the Seller Subordination
Agreement in respect of and to the extent that the new advances do not exceed the Senior Obligations then outstanding. 
  

	 	3.	Payment 

  
 (a) Accrued interest shall be payable in arrears on the first business day of each March, June, September and December beginning 1 December 2006
(each a “Quarterly Payment”) and on the Maturity Date; provided that if the prevailing rate of interest under the Credit Agreement (“Lender Rate”) during the relevant interest period, is less than the Fixed
Interest Rate, the interest payment for such period shall be the amount calculated at the Lender Rate and the difference between the accrued interest calculated by reference to the Fixed Interest Rate and the Lender Rate for such period
(“Interest Rate Difference”) shall be paid on the Maturity Date. Interest shall accrue on the Interest Rate Difference at the Fixed Interest Rate and the amount of such interest shall be paid on the Maturity Date. 
  
 (b) Regardless of the date EBITDA Earnout Consideration is determined, it
shall be deemed to have been outstanding from the date of this Note for all interest calculation purposes. Once the EBITDA Earnout Consideration is determined, all accrued and unpaid interest thereon, subject to the interest payment limitations in
Section 3(a), shall be paid on the first Quarterly Payment after such determination. 
  
 (c) Principal shall be paid in four equal installments of 25% of the Principal each on 1 March 2007, 1 December 2007, 1 December 2008 and 15 March 2009 (each a “Principal
Payment”). Each Principal Payment shall be made or deemed satisfied as follows: (i) first, by reduction of the amount due by the amount of the Post-Cash Working Capital Shortfall determined pursuant to Clause 6.8 of the SPA not
previously applied to satisfaction of Principal; (ii) second, by reduction of the amount due by the amount of settled Relevant Claims not previously applied to the satisfaction of Principal; 

 (iii) third, by suspension of the payment obligation by the amount of asserted, but unsettled, Relevant Claims in
the manner provided in Section 4 hereof to the extent that such unsettled Relevant Claims have not previously been applied to the suspension of Principal Payments; and (iv) fourth, by payment in immediately available funds. 
  
 (d) If the Company fails to make any Quarterly Payment or Principal
Payment or pay any part thereof on its due date, interest on the unpaid amount shall accrue on a day to day basis at the relevant Fixed Interest Rate from but excluding the due date to and including the date of actual payment. 
  
 (e) All payments shall be applied to accrued interest and thereafter to
principal. 
  
 (f) All amounts due hereunder are payable in lawful
money of the United States of America. 
  
 (g) Principal plus
accrued interest may be prepaid at any time without penalty by the Company. 
  
 (h) Notwithstanding anything to the contrary contained herein or in the SPA, in no event shall any amount payable by the Company as interest or other charges on this Note exceed the highest lawful rate permissible
under any law applicable hereto. 
  

	 	4.	Relevant Claims 

  
 If, in accordance with Schedule 4 of the SPA, the Buyer gives the Seller notice of a Relevant Claim, and such Relevant Claim is not settled or otherwise determined by the
date of a Principal Payment, the Principal Payment shall be suspended in the manner described in Section 3(c) by an amount equal to such unsettled Relevant Claim (“Amount Claimed”). Upon the settlement or determination of such
Relevant Claim, the Principal Payment shall be deemed satisfied to the extent of the amount settled or otherwise determined in respect of such Relevant Claim (the “Settled Amount”), and an amount equal to the Amount Claimed less the
Settled Amount, if any, shall be paid to the Seller within ten (10) Business Days of the settlement or determination of such Relevant Claim. 
  

	 	5.	Acceleration 

  
 (a) The amounts payable hereunder may be declared immediately due and payable by the Seller if: (a) the Company fails to make any Quarterly Payment
when due and such failure to pay continues for five (5) days, (b) the Company fails to make any Principal Payment when due, or (c) the Company or any of its subsidiaries or the 

 Company’s shareholder raises financing other than the Facility (as defined in the Credit Agreement), which in a
single transaction or a series of related transactions delivers proceeds in excess of US$50,000,000, or (d) the Company shall have made an assignment for the benefit of creditors or shall have admitted in writing its inability to pay its debts
as they become due or consented to the appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of all or of substantially all of its property; or by order of a court of competent jurisdiction a receiver or
liquidator or trustee of the Company or any of its property shall have been appointed and shall not have been discharged within 60 days, or by decree of such a court the Company shall have been adjudicated insolvent and such decree shall have
continued undischarged and unstayed for 60 days after the entry thereof; or a petition to reorganize the Company, pursuant to any bankruptcy or similar statute applicable to the Company, shall have been filed against the Company and shall not have
been dismissed within 60 days after such filing, or the Company shall have been adjudicated a bankrupt, or shall have filed a petition in voluntary bankruptcy under any provision of any bankruptcy law, or shall have consented to the filing of any
bankruptcy or reorganization petition against it under any such law, or shall have filed a petition to reorganize the Company pursuant to any applicable law, provided that the foregoing acceleration right may not be exercised in a manner that causes
the outstanding Principal at any time to be less than the prevailing liability cap, as determined in accordance with Part 1 of Schedule 9 of the SPA (the “Retained Amount”). Thereafter, on each date on which the liability cap falls
in accordance with Part 1 of Schedule 9 of the SPA, and if Seller has exercised the foregoing acceleration right, the Company shall forthwith pay to the Seller the difference between the Retained Amount and the prevailing liability cap. 

 
 (b) Notwithstanding any other provision in this Note, the Seller’s
rights under paragraph (a) above may only be exercised in accordance with the Seller Subordination Agreement. 
  

	 	6.	Amendments to the Credit Agreement 

  
 (a) Subject to paragraph (b) below, the Company shall not, without the written consent of the Seller agree to any amendment of any term of the
Credit Agreement, except for an amendment which: 
  
 (i) is
procedural or administrative in nature; or 
  
 (ii) does
not result in the Company being subjected to more onerous obligations than those existing at the date hereof or which would otherwise prejudice the Seller’s rights under this Note. 

	 	(b)	If: 

  

	 	(i)	an Event of Default has been declared (other than in respect of a matter referred to in Clause 20.3(b) (Breach of other obligations) under the Credit Agreement) and is outstanding
under the Credit Agreement; or 

  

	 	(ii)	an Event of Default has been declared in respect of a matter referred to in Clause 20.3(b) (Breach of other obligations) under the Credit Agreement and the Facility Agent has taken
action to accelerate the Senior Obligations in respect of such an Event of Default, 

  
 the Company may agree to any amendment of any term of the Credit Agreement without the consent of the Seller. 
  

	 	7.	No set-off, counterclaim, deduction or withholding 

  
 All sums payable under this Note shall be paid in full without set-off or counterclaiming for any reason and without deduction of or withholding for any
taxes, duties levies, imposts or charges of any nature other than as contemplated in paragraphs 3(c), 4 and 5 hereof. 
  

	 	8.	Waiver 

  
 The Company hereby waives demand, protest and notice of demand, protest and nonpayment and consent to any and all renewals and extensions of the time of
payment under this Note. 
  

	 	9.	Assignability 

  
 Neither the Seller nor the Company may assign, transfer, endorse or in any other way alienate any of its rights under this Note whether in whole or in
part. 
  

	 	10.	Governing Law and Dispute Resolution 

  
 This Note is governed by the laws of the Hong Kong Special Administrative Region of the People’s Republic of China. Any dispute arising under this
Note shall be resolved in accordance with Clause 29 of the SPA. 
  

			
	MERIX CAYMANS TRADING COMPANY LIMITED
	
	 /s/ Mark R. Hollinger

	 Name:
	 	Mark R. Hollinger
		
	 Title:
	 	ChairmanExecutive Severance and Noncompetition Agreement

 Exhibit 10.5 
  
 EXECUTIVE SEVERANCE AND NONCOMPETITION AGREEMENT 
  
 Stephen Going 
 16725 SW Blackberry Lane 

	Beaverton,	Oregon 97007 

  
 September 21, 2005 
  
 Merix Corporation 
 an Oregon corporation 
 PO Box 3000 
 Forest Grove, Oregon 97116 
  
 Merix Corporation
(“Merix”) considers the establishment and maintenance of a sound and vital management to be essential to protecting and enhancing the best interests of Merix and its shareholders. In this connection, Merix recognizes that, as is the case
with many publicly held corporations, the possibility of a change of control may exist and that such possibility, and the uncertainty and questions that it may raise among management, may result in the departure or distraction of management
personnel to the detriment of Merix and its shareholders. In order to induce Stephen Going (“Executive”) to remain employed by Merix in the face of uncertainties about the long-term strategies of Merix and possible change of control of
Merix and their potential impact on Executive’s position with Merix, this Agreement, which has been approved by the Board of Directors of Merix, sets forth the severance benefits that Merix will provide to Executive in the event
Executive’s employment by Merix is terminated under the circumstances described in this Agreement. To induce Merix to enter into this Agreement, Executive agrees to the covenants set forth in Section 6 of this Agreement. 
  

	1.	Employment Relationship. 

  
 Executive is currently employed by Merix as Vice President and General Counsel. Executive and Merix acknowledge that either party may terminate this
employment relationship at any time and for any or no reason, subject to the obligation of Merix to provide the severance benefits specified in this Agreement in accordance with the terms hereof. 
  

	2.	Release of Claims. 

  
 In consideration for and as a condition precedent to receiving the severance benefits outlined in this Agreement, Executive agrees to execute and deliver
to Merix a Release of Claims in the form attached as Exhibit A (“Release of Claims”) that will be delivered to Executive on the date of Termination of Executive’s Employment (as defined in Section 9.1). 
  

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	3.	Additional Compensation Upon Termination. 

  
 In addition to unpaid salary and other wages, if any, payable to Executive through the date of Termination of Executive’s Employment, in the event of
a Termination of Executive’s Employment at any time other than for Cause (as defined in Section 9.2 of this Agreement), death or Disability (as defined in Section 9.4 of this Agreement), and contingent upon Executive’s execution
of the Release of Claims and compliance with Section 11 of this Agreement, Executive shall be entitled to the following benefits: 
  
 3.1 As severance pay and in lieu of any other compensation for periods subsequent to the date of Termination of Executive’s Employment, Merix shall
pay Executive, in a single payment after employment has ended and eight days have passed following execution of the Release of Claims without revocation, an amount in cash equal to one year of Executive’s annual base pay at the rate in effect
immediately prior to the date of Termination of Executive’s Employment. 
  
 3.2 Executive is entitled to extend coverage under any group health plan in which Executive and Executive’s dependents are enrolled at the time of Termination of Executive’s Employment under the COBRA
continuation laws for the 18-month statutory period, or for as long as Executive remains eligible under COBRA. Merix will pay Executive a lump sum payment in an amount equivalent to the reasonably estimated cost Executive may incur to extend for a
period of 18 months under the COBRA continuation laws Executive’s group health and dental plan coverage in effect at the time of Termination of Executive’s Employment. Executive may use this payment, as well as any payment made under
Section 3.1, for such COBRA continuation coverage or for any other purpose. 
  
 3.3 Executive shall be entitled to a portion of the benefits under any annual cash incentive plans in effect at the time of Termination of Executive’s Employment equal to the greater of (a) 50 percent of
Executive’s target benefit under such plan for the year or (b) a prorated amount representing the portion of the plan year during which Executive was a participant. For purposes of this Agreement, Executive’s participation in any such
plan will be considered to have ended on Executive’s last day of active employment. In making the proration calculation, the amount of Executive’s award if Executive had been a participant for the full incentive period shall be divided by
the total number of days in the incentive period, and the result multiplied by the actual number of days Executive participated in the plan. The payment amount shall be calculated at the end of the incentive period and the amount shall not be due
and payable by Merix to Executive until the date that all awards are payable to other eligible employees after the close of the incentive period, except that Executive may elect at any time after Termination of Executive’s Employment, by
written notice to Merix, to receive 50 percent of Executive’s target benefit instead of the prorated amount, in which case the payment shall be made within 20 days of such election. If the applicable plan provides for a greater payment for

  

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a participant whose employment terminates prior to the end of an incentive period, the applicable plan payment shall be made. Executive acknowledges that
this Section 3.3 modifies and supersedes any payment provisions under any existing or future bonus plan. 
  
 3.4 Merix will pay up to $12,500 to a third-party outplacement firm selected by Executive to provide career counseling assistance to Executive for a
period of one year following the date of Termination of Executive’s Employment. Executive may elect to receive the $12,500 in cash in lieu of payment to a third-party outplacement firm. 
  
 3.5 All outstanding stock options, restricted stock, stock bonuses or other
stock awards shall be governed by the terms of the applicable agreement or plan. 
  

	4.	Additional Compensation Upon Termination Following a Change of Control. 

  
 In the event of a Termination of Executive’s Employment other than for Cause, death or Disability within 24 months
following a Change of Control (as defined in Section 9.3), or prior to a Change of Control at the direction of a person who has entered into an agreement with Merix, the consummation of which will constitute a Change of Control, and contingent
upon Executive’s execution of the Release of Claims and compliance with Sections 5 and 11, Executive shall be entitled to the following benefits, which benefits shall be in addition to the benefits provided in Section 3: 
  
 4.1 Merix shall pay Executive, in a single payment within the later of
(a) eight days after the last day of employment, including employment during the up-to-six-months-employment period referred to in Section 5 if Merix or the surviving company has requested Executive to continue employment during such
period and (b) eight days after execution of the Release of Claims without revocation, an amount in cash equal to one year of Executive’s annual base pay at the rate in effect immediately prior to the date of Termination of
Executive’s Employment. 
  
 4.2 Executive shall be entitled
to receive an amount such that the amount payable pursuant to Section 3.3 plus the amount payable pursuant to this Section 4.2 equals 100 percent of the Executive’s target benefit for the year under annual cash incentive plans in
effect at the time of Termination of Executive’s Employment. The amount payable pursuant to Section 4.2 shall be paid on the same date that the Section 4.1 payment is payable. 
  
 4.3 Merix shall maintain in full force and effect, at its sole cost and
expense, for Executive’s continued benefit for a period terminating 18 months after the date of Termination of Executive’s Employment, a life insurance policy insuring Executive’s life with coverage equal to two times Executive’s
annual base pay in effect immediately prior to Termination of Executive’s Employment, provided that Executive’s continued participation is possible under the general terms and provisions of such policy. At 

  

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Executive’s election, or if Executive’s continued participation in such policy is barred, Merix shall make a lump-sum payment to Executive equal to
the total premiums that would have been paid by Merix for such 18-month period. The maximum amount that Merix shall be obligated to pay pursuant to this Section 4.3 in premiums and payments to Executive shall be $5,000. 
  
 4.4 The possibility of forfeiture to Merix of all stock issued to Executive
under all Executive Stock Bonus Agreements shall immediately lapse. 
  
 4.5 All outstanding stock options held by Executive under all stock option and stock incentive plans of Merix shall become immediately exercisable in full and shall remain exercisable until the earlier of (a) two years after
Termination of Executive’s Employment or (b) the option expiration date as set forth in the applicable option agreement. 
  
 4.6 Notwithstanding any provision in this Agreement, in the event that Executive would receive a greater after-tax benefit from the Capped Benefit (as
defined in the next sentence) than from the payments pursuant to this Agreement (the “Specified Benefits”), the Capped Benefit shall be paid to Executive and the Specified Benefits shall not be paid. The Capped Benefit is the Specified
Benefits, reduced by the amount necessary to prevent any portion of the Specified Benefits from being “parachute payments” as defined in Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (“IRC”), or any
successor provision. For purposes of determining whether Executive would receive a greater after-tax benefit from the Capped Benefit than from the Specified Benefits, there shall be taken into account all payments and benefits Executive will receive
upon a Change in Control of Merix (collectively, excluding the Specified Benefits, the “Change of Control Payments”). To determine whether Executive’s after-tax benefit from the Capped Benefit would be greater than Executive’s
after-tax benefit from the Specified Benefits, there shall be subtracted from the sum of the before-tax Specified Benefits and the Change of Control Payments (including the monetary value of any non-cash benefits) any excise tax that would be
imposed under IRC § 4999 and all federal, state and local taxes required to be paid by Executive in respect of the receipt of such payments, assuming that such payments would be taxed at the highest marginal rate applicable to individuals in
the year in which the Specified Benefits are to be paid or such lower rate as Executive advises Merix in writing is applicable to Executive. 
  
 4.7 If Executive’s employment with Merix terminates for any reason prior to a Change of Control, other than at the direction of a person who has
entered into an agreement with Merix, the consummation of which will constitute a Change of Control, Executive shall not be entitled to benefits under Section 4 of this Agreement. 
  

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	5.	Additional Service. 

  
 Executive agrees that, if requested by Merix or the surviving company following a Change of Control, Executive will continue his or her employment with
Merix or the surviving company for a period of up to six months following the Change of Control in any capacity requested by Merix or the surviving company consistent with Executive’s areas of professional expertise. During this period
Executive shall receive the same salary and substantially the same benefits as in effect prior to the Change of Control. Executive shall not be entitled to any benefits provided by Section 4 if Executive fails to perform in accordance with this
Section 5. 
  

	6.	Noncompetition 

  
 6.1 Executive acknowledges that as part of Executive’s employment with Merix, Executive will have access to confidential information related to
Merix’s products, services, customers, processes, business strategy and other confidential information that will be inevitably disclosed to a Competing Business if Executive engages in, is employed by, performs services for, participates in the
ownership, management, control or operation of, or is otherwise connected with, either directly or indirectly, any Competing Business. 
  
 6.2 During the Term, Executive will not, directly or indirectly, engage in, be employed by, perform services for or otherwise participate in any Competing
Business (as defined in Section 9.5 of this Agreement) or any other activity which conflicts with the interests of Merix. 
  
 6.3 Executive’s execution, delivery and performance of this Agreement and the performance of Executive’s other obligations and duties to Merix
will not cause any breach, default or violation of any other employment, nondisclosure, confidentiality, consulting or other agreement to which Executive is a party or by which Executive may be bound. 
  
 6.4 During Executive’s employment with Merix and for two years after
Termination of Executive’s Employment, Executive will not induce, or attempt to induce, any employee or independent contractor of Merix to cease such employment or relationship to engage in, be employed by, perform services for, participate in
the ownership, management, control or operation of, or otherwise be connected with, either directly or indirectly, any Competing Business. 
  
 6.5 During Executive’s employment with Merix and for two years after Termination of Executive’s Employment, Executive will not (except on behalf
of or with the prior written consent of Merix) directly or indirectly (a) solicit, divert, appropriate to or accept on behalf of any Competing Business, or (b) attempt to solicit, divert, appropriate to or accept on behalf of any Competing
Business, any business from any 

  

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customer or actively sought prospective customer of Merix with whom Executive has dealt, whose dealings with Merix have been supervised by Executive or about
whom Executive has acquired confidential information in the course of Executive’s employment. 
  
 6.6 During Executive’s employment with Merix and for two years after Termination of Executive’s Employment, Executive will not engage in, be
employed by, perform services for, participate in the ownership, management, control or operation of, or otherwise be connected with, either directly or indirectly, any Competing Business. For purposes of this Section 6, Executive will not be
considered to be connected with any Competing Business solely on account of: Executive’s ownership of less than five percent of the outstanding capital stock or other equity interests in any person or entity carrying on the Competing Business.
Executive agrees that this restriction is reasonable, but further agrees that should a court exercising jurisdiction with respect to this Agreement find any such restriction invalid or unenforceable due to unreasonableness, either in period of time,
geographical area, or otherwise, then in that event, such restriction is to be interpreted and enforced to the maximum extent that such court deems reasonable. 
  

6.7 Executive acknowledges that Executive’s obligations under this Section 6 are important to Merix, and that Merix would not employ or
continue to employ Executive without Executive’s agreement to such obligations. Executive also acknowledges that if Executive does not abide by Executive’s obligations in this Section 6, Merix will suffer immediate and irreparable
harm, and that the damage to Merix will be difficult to measure and financial relief will be incomplete. Accordingly, and notwithstanding Section 12 hereof, Merix will be entitled to injunctive relief and other equitable remedies in an
arbitration or in a court of competent jurisdiction in the event of a breach by Executive of any obligation under this Agreement. The rights and remedies of Merix under this Section 6.7 are in addition to all other remedies. 
  
 6.8 Executive has carefully read all of the provisions of this Section 6
and agrees that (a) the same are necessary for the reasonable and proper protection of Merix’s business, (b) Merix has been induced to enter into its relationship with Executive in reliance upon Executive’s compliance with the
provisions of this Section 6, (c) every provision of this Section 6 is reasonable with respect to its scope and duration, (d) Executive has executed this Agreement without duress or coercion from any source, and
(e) Executive has received a copy of this Agreement. 
  

	7.	Tax Withholding; Subsequent Employment. 

  
 7.1 All payments provided for in this Agreement are subject to applicable tax withholding obligations imposed by federal, state and local laws and
regulations. 
  

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 7.2 The amount of any payment provided for in this Agreement shall not be reduced, offset or subject to
recovery by Merix by reason of any compensation earned by Executive as the result of employment by another employer after Termination of Executive’s Employment. 
  

	8.	Other Agreements. 

  
 This Agreement replaces and supersedes any severance agreement or other similar agreement between Executive and Merix entered into prior to the date of
this Agreement. In the event that severance benefits are payable to Executive under any other agreement with Merix in effect at the time of Termination of Executive’s Employment (including but not limited to any employment agreement, but
excluding for this purpose any stock option agreement or stock bonus agreement or stock appreciation right agreement that may provide for accelerated vesting or related benefits upon the occurrence of a Change in Control), the benefits provided in
this Agreement shall not be payable to Executive. Executive may, however, elect to receive all of the benefits provided for in this Agreement in lieu of all of the benefits provided in all such other agreements. Any such election shall be made with
respect to the agreements as a whole, and Executive cannot select some benefits from one agreement and other benefits from this Agreement. 
  

	9.	Definitions. 

  

	 	9.1	Termination of Executive’s Employment. 

  
 “Termination of Executive’s Employment” means that Merix has terminated Executive’s employment with Merix (including any subsidiary of
Merix). For purposes of Section 3, if Executive is assigned additional or different titles, tasks or responsibilities from those currently held or assigned, consistent with Executive’s areas of professional expertise and with no decrease
in annual base compensation, whether at Merix or any subsidiary of Merix, such circumstances shall not constitute a Termination of Executive’s Employment. For purposes of Section 4, Termination of Executive’s Employment shall include
termination by Executive, within 24 months of a Change of Control, by written notice to Merix referring to the applicable paragraph of Section 9.1, for “Good Reason” based on: 
  
 (a) the assignment to Executive of a different title, job or
responsibilities that results in a decrease in the level of responsibility of Executive with respect to the surviving company after the Change of Control when compared to Executive’s level of responsibility for Merix’ operations prior to
the Change of Control; provided that Good Reason shall not exist if Executive continues to have the same or a greater general level of responsibility for the former Merix operations after the Change of Control as Executive had prior to the Change of
Control even if the former Merix operations are a subsidiary or division of the surviving company; 
  

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 (b) a reduction by Merix or the surviving company in Executive’s annual base pay as in effect
immediately prior to the Change of Control; 
  
 (c) a significant
reduction by Merix or the surviving company in total benefits available to Executive under cash incentive, stock incentive and other employee benefit plans after the Change of Control compared to the total package of such benefits as in effect prior
to the Change of Control; 
  
 (d) a requirement by Merix or the
surviving company that Executive be based more than 50 miles from where Executive’s office is located immediately prior to the Change of Control, except for required travel on company business to an extent substantially consistent with the
business travel obligations that Executive undertook on behalf of Merix prior to the Change of Control; or 
  
 (e) the failure by Merix to obtain from any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of Merix (“Successor”) the assent to this Agreement contemplated by Section 10 hereof. 
  

	 	9.2	Cause. 

  
 Termination of Executive’s Employment for “Cause” shall mean termination upon (a) the willful and continued failure by Executive to
perform substantially Executive’s reasonably assigned duties with Merix (other than any such failure resulting from Executive’s incapacity due to physical or mental illness) after a demand for substantial performance is delivered to
Executive by the Board, the Chief Executive Officer or the President of Merix that specifically identifies the manner in which the Board or Merix believes that Executive has not substantially performed Executive’s duties or (b) the willful
engaging by Executive in illegal conduct that is materially and demonstrably injurious to Merix. No act, or failure to act, on Executive’s part shall be considered “willful” unless done, or omitted to be done, by Executive without
reasonable belief that Executive’s action or omission was in, or not opposed to, the best interests of Merix. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of
counsel for Merix shall be conclusively presumed to be done, or omitted to be done, by Executive in the best interests of Merix. 
  

	 	9.3	Change of Control. 

  
 A Change of Control shall mean that one of the following events has taken place: 
  
 (a) The shareholders of Merix approve one of the following (“Approved Transactions”): 
  

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 (i) Any merger or statutory plan of exchange involving Merix (“Merger”) in which Merix is not
the continuing or surviving corporation or pursuant to which shares of Merix’s common stock would be converted into cash, securities or other property, other than a Merger involving Merix in which the holders of shares of Merix’s common
stock immediately prior to the Merger have the same proportionate ownership of common stock of the surviving corporation after the Merger; or 
  
 (ii) Any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of
Merix or the adoption of any plan or proposal for the liquidation or dissolution; 
  
 (b) A tender or exchange offer, other than one made by Merix, is made for shares of Merix’s common stock (or securities convertible into shares of Merix’s common stock ), and such offer results in a portion
of those securities being purchased and the offeror after the consummation of the offer is the beneficial owner (as determined pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)),
directly or indirectly, of securities representing at least 20 percent of the voting power of outstanding securities of Merix; 
  
 (c) Merix receives a report on Schedule 13D of the Exchange Act reporting the beneficial ownership by any person of securities representing 20 percent or
more of the voting power of outstanding securities of Merix, except that if such receipt shall occur during a tender offer or exchange offer described in (b) above, a Change of Control shall not take place until the conclusion of such offer; or

  
 (d) During any period of 12 months or less, individuals who at
the beginning of such period constituted a majority of the Board of Directors cease for any reason to constitute a majority thereof, unless the nomination or election of such new directors was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such period. 
  
 Notwithstanding anything in the foregoing to the contrary, no Change of Control shall be deemed to have occurred for purposes of this Agreement by virtue of any transaction that results in Executive, or a group of
persons that includes Executive, acquiring, directly or indirectly, securities representing 20 percent or more of the voting power of outstanding securities of Merix. 
  

	 	9.4	Disability. 

  
 Termination of Executive’s Employment based on “Disability” shall mean termination without further compensation under this Agreement, due
to a mental or physical impairment of Executive that is expected to result in death or that has lasted or is expected to last for a continuous period of 12 months or more and that causes Executive to be unable, with reasonable accommodation in the
opinion of the Committee, to perform his or her duties for Merix and to be engaged in any substantial gainful activity. 
  

 PAGE 9 

	 	9.5	Competing Business 

  
 Competing Business means any business whose efforts are in competition with the efforts of Merix. A Competing Business includes any business whose efforts
involve any research and development, products or services in competition with products or services which are, during Executive’s employment with Merix and/or upon Termination of Executive’s Employment, either (a) produced, marketed
or otherwise commercially exploited by Merix or (b) in actual or demonstrably anticipated research or development by Merix. 
  

	10.	Successors; Binding Agreement. 

  
 10.1 This Agreement shall be binding on and inure to the benefit of Merix and its Successors and assigns. Upon Executive’s written request, Merix
will seek to have any Successor, by agreement, assent to the fulfillment by Merix of its obligations under this Agreement. If such a request is made, failure of Merix to obtain such assent prior to or at the time a company becomes a Successor shall
constitute Good Reason for termination by Executive of his or her employment and, if a Change of Control of Merix has occurred, shall entitle Executive to the benefits pursuant to Section 4. 
  
 10.2 This Agreement shall inure to the benefit of and be enforceable by
Executive and Executive’s legal representatives, executors, administrators and heirs. 
  

	11.	Resignation of Corporate Offices. 

  
 Executive will resign Executive’s office, if any, as a director, officer or trustee of Merix, its subsidiaries or affiliates and of any other
corporation or trust of which Executive serves as such at the request of Merix, effective as of the date of Termination of Executive’s Employment. Executive agrees to provide Merix such written resignation(s) upon request and that no severance
will be paid until after such resignation(s) are provided. 
  

	12.	Governing Law; Arbitration. 

  
 This Agreement shall be construed in accordance with and governed by the laws of the State of Oregon. Any dispute or controversy arising under or in
connection with this Agreement, or the breach thereof, shall be settled exclusively by arbitration under the Mutual Agreement to Arbitrate Claims signed by the Executive, and judgment upon the award rendered by the Arbitrator may be entered in any
Court having jurisdiction thereof. Notwithstanding any provision in the Mutual Agreement to Arbitrate Claims, Merix shall pay all arbitration fees and reasonable attorney’s fees and expenses (including at trial and 

  

 PAGE 10 

 
on appeal) of Executive in enforcing its rights under this Agreement in the event of a Termination of Executive’s Employment within 24 months following
a Change of Control. Notwithstanding the foregoing, any dispute or controversy arising under or in connection with Section 6 of this Agreement or a breach thereof shall be settled in accordance with the terms of Section 6.7 of this
Agreement. 
  

	13.	Amendment. 

  
 No provision of this Agreement may be modified unless such modification is agreed to in writing signed by Executive and Merix. 
  

	14.	Severability. 

  
 If any of the provisions or terms of this Agreement shall for any reason be held invalid or unenforceable, such invalidity or unenforceability shall not
affect any other terms of this Agreement, and such provision shall be interpreted, construed or reformed to the extent reasonably required to render the same valid, enforceable and consistent with the original intent underlying such provision of
this Agreement. 
  

			
	MERIX CORPORATION
	
	 /s/ Mark R. Hollinger

	Name	 	Mark R. Hollinger
	Title:	 	Chairman, Chief Executive Officer and President
	
	 /s/ Stephen M. Going

	Stephen M. Going

  

 PAGE 11

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