MULTI-FINELINE ELECTRONIX, INC.

EXHIBIT 10.2

MULTI-FINELINE ELECTRONIX, INC.

1994 Stock Plan

(Amended December 14, 1996)

(Amended June 30, 1997)

Incentive and nonqualified stock options shall hereinafter be referred to individually as an “Option” and collectively as “Options” in the Plan.

The Board shall maintain records showing the cumulative number of shares of Common Stock underlying outstanding Options, the number of shares of Restricted Common Stock and the applicable restricted periods under the Plan, and the number of shares of Common Stock delivered in settlement of any other Award under the Plan.

If an Option granted hereunder shall expire or terminate for any reason without having been fully exercised, if any shares of Common Stock to be issued pursuant to an Award are not issued for any reason, of if any shares of Restricted Common Stock granted under the Plan are forfeited to M-Flex, then the shares of Common Stock underlying the unexercised portion of such expired or terminated Option and by the unissued portion of such Award and the shares of forfeited Restricted Common Stock shall again become available for the purposes of the Plan. In addition, any shares of Common Stock that are used as full or partial payment by a Participant of the exercise price of an Option shall be available for Awards under the Plan as shall any shares of Common Stock that are

withheld in payment of tax withholding obligations of a Participant (as provided in Section 9(E)).

Options may be allotted to Participants in such amounts, subject to the limitations specified in this Section, as the Board, in its sole discretion, may from time to time determine. Notwithstanding the foregoing, a non-employee advisor, consultant, or director shall not be eligible to be granted an incentive stock option pursuant to the Plan, but shall be eligible to be granted any other form of Award available under the Plan.

If the Common Stock listed on a national securities exchange or the high and low selling prices thereof are reported on NASDAQ at the time an Option is granted, then the fair market value of one share of Common Stock shall be the average of the highest and lowest selling prices of the Common stock as reported by such exchange or as reported on NASDAQ on the date such Option is granted or, if there were no sales of Common Stock on said date, then on the next prior business day on which there were sales of Common Stock. If the Common Stock is traded other than on a national securities exchange or the high and low selling prices thereof are not reported on NASDAQ at the time an Option is granted, then the fair market value of one share of Common Stock shall be the average between the bid and asked price of a share of Common Stock on the date the Option is granted as reported on NASDAQ or, if there is no bid and asked price on said date, then on the next prior business day on which there was a bid and asked price. If no such bid and asked price is available, then the Board shall make a good faith determination of the fair market value of one share of Common Stock using any reasonable method of valuation. Notwithstanding the above, the exercise price of any Option shall not be less than the net book value of the Common Stock on the

date of grant of an Award. Unless another date is specified by the Board, the date on which the Board approves the granting of an Option shall be deemed the date on which the Option is granted.

Notwithstanding the above, an Option will become exercisable in full at the earlier to occur of (a) the closing of a business combination transaction, wherein M-Flex is not the survivor or (b) the closing of a business combination transaction, wherein M-Flex is the survivor, provided that a class of equity securities of such acquired party is then publicly traded and, accordingly, such party is then subject to the reporting obligations of Section 13 or 15(d) of the Exchange Act or then provides current public information through its market makers pursuant to Rule 15c2-11 promulgated under the Exchange Act.

A Participant who has been continuously employed by M-Flex or a subsidiary or in continuous service as a non-employee advisor, consultant, or director since the date of Option grant is eligible to exercise all Options that become exercisable, as provided in the immediately preceding paragraph, up to the Termination Date of such Options and within the guidelines established by Section 6(F). The Board will decide in each case, subject to the limitations set forth in Section 422 of the Code applicable to incentive stock options, to what extent leaves of absence for government or military service, illness, temporary disability, or other reasons shall not, for this purpose, be deemed interruptions of continuous employment or service as a non-employee advisor, consultant, or director.

Participants who terminate employment with M-Flex or cease their services as a non-employee advisor or consultant of M-Flex or its subsidiaries for reasons other than retirement, permanent, and total

disability or death, must exercise all Options previously awarded, provided that such Options are fully exercisable as provided in Section (D)(1) above, within three (3) months after such termination and within the guidelines established by Section 6(F) (but no later than the Termination Date of the Options); provided, however, that for participants who cease their services as a non-employee director of M-Flex or its subsidiaries for any reason (other than removal as a director pursuant to California Corporations Code Section 304, in which event the Options may be exercised only until such removal has become effective), the period in which their Options may be exercised shall be extended until three (3) months after their Options become exercisable in accordance with the provisions of Section (D)(1) above (but no later than the Termination Date of the Options). An Option may be exercised only for the number of Shares for which it could have been exercised at the time the Participant terminated employment or ceased service as a non-employee advisor, consultant, or director with M-Flex or a subsidiary. Failure to exercise all Options within the designated time period will result in their termination.

Upon retirement (as hereafter defined), the non-qualified stock options of a Participant must be exercised within one (1) year of such retirement and the incentive stock Options must be exercised within three (3) months of such retirement and within the guidelines established by Section 6(F) (but no later than the Termination Date of such Option) and, provided that such Options are fully exercisable as provided in Section (D)(1) above. For purposes of the Plan, “retirement” shall mean that the Participant on the date of termination of employment, cessation in the performance of services in the case of a non-employee advisor or consultant, or cessation in service on the Board in the case of a non-employee director has attained age 65 with five years of continuous employment with M-Flex and its subsidiaries or five years of service in the case of a non-employee advisor or director or five years of service on the Board in the case of a non-employee director. If the Participant should die within the one (1) year or three (3) month period following retirement, as applicable, the provisions contained in Section 6(D)(5) shall apply.

If a Participant who was granted an Option terminates employment with M-Flex and its subsidiaries, ceases performance of services in the case of a non-employer advisor or consultant, or ceases service on the Board in the case of a non-employee director because of permanent and total disability provided that such Options are fully exercisable as provided in Section (D)(1) above, all nonqualified stock options previously awarded must be exercised within one (1) year of such termination or cessation and

all incentive stock options must be exercised within one (1) year of such termination, subject to the guidelines established by Section 6(F) (but no later than the Termination Date of such Option). If the Participant should die during such one (1) year period, as applicable, the provisions contained in Section 6(D)(5) shall apply.

If a Participant who was granted an Option dies while employed by M Flex or a subsidiary, while providing services in the case of a non-employee advisor or consultant, or while serving on the Board in the case of a non-employee director, or during the one (1) year or three (3) month period following retirement or during the one (1) year period following termination of employment, cessation in the performance of services in the case of a non-employee advisor or consultant, or cessation in service as a member of the Board in the case of a non-employee director due to permanent and total disability, provided that such Options are fully exercisable as provided in Section (D)(1) above, shall be exercisable, all Options previously awarded must be exercised no later than the Termination Date of such Option by the Participant’s estate, or by a person who acquired the right to exercise the Option by bequest or inheritance and within the guidelines established by Section 6(F).

An Option granted under the Plan shall be considered terminated in whole or in part, to the extent that, in accordance with the provisions of the Plan, it can no longer be exercised for the Common Stock originally subject to the Option.

Each option granted under the Plan shall be deemed exercised to the extent that the Participant shall deliver to M-Flex written notice of the number of full shares of Common Stock underlying the whole or that portion of the Option then being exercised. The Participant shall at the same time tender to M-Flex payment in full for such shares, which payment may be in cash or, subject to Section 6(E)(2), in previously issued shares of Common Stock or partly in cash and partly in previously issued shares of Common Stock, and shall comply with such other reasonable requirements as the Board may establish, pursuant to Section 9(C). These provisions shall not preclude exercise of an Option, or payment of the exercise price thereunder, by any other proper legal method specifically approved by the Board.

Subject to California law, no person, estate, or other entity shall have any of the rights of a shareholder with reference to Shares subject to an Option until a certificate representing the shares of Common Stock has been delivered.

An Option granted under the Plan may be exercised for any lesser number of whole Shares than the full amount for which it could then be exercised; provided, however, that the Board may require, in the agreement evidencing an Option, any partial exercise to be with respect to a specified minimum number of shares of Common Stock. Such a partial exercise of an Option shall not affect the right to exercise the Option from time to time in accordance with the Plan for the remaining shares of Common Stock underlying the Option.

The value of shares of Common Stock delivered for payment of the exercise price of an Option shall be the fair market value of the Common Stock determined as provided in Section 6(B) on the date the Option is exercised. If certificates representing shares of Common Stock are used to pay all or part of the exercise price of an Option, separate certificates shall be delivered to M Flex representing the number of shares of Common Stock so used, and an additional certificate or certificates shall be delivered to the Participant representing the additional shares of Common Stock to which the Participant is entitled as a result of exercise of the Option. Notwithstanding the foregoing and the provisions of Section 6(E)(1), the Board, in its sole discretion, may refuse to accept shares of Common Stock delivered for payment of the exercise price, in which event any certificates representing such shares of Common Stock that were actually received by M-Flex with the written notice of exercise shall be returned to the exercising Participant, together with notice by M-Flex of the refusal of M-Flex to accept such shares of Common Stock as partial or full payment of the exercise price.

In the event Shares are delivered for payment of the exercise price of such Option as herein provided, then, at the discretion of the Board, the Participant may be granted an Option to purchase that quantity of Common Stock equal to the quantity of Common Stock delivered in partial or full payment of the exercise price, with an exercise price equal to the current fair market value of such Common Stock, and with a term of such Option extending to the expiration date of the Option for which partial or full payment of the exercise price thereof was accomplished by delivery of previously issued shares of Common Stock.

M-Flex may make loans to Participants or their respective lawful successors as the Board, in its discretion, may determine (including a grantee who is a director or officer of M-Flex) in connection with the exercise of Options granted under the Plan; provided, however, that the Board shall not authorize the making of any loan where the possession of such discretion or the making of such loan would result in a “modification” (as defined in Section 424 of the Code) of any incentive stock option. Such loans shall be subject to the following terms and conditions and such other terms and conditions as the Board shall determine at the time the loan is made as are not inconsistent with the Plan. Such loans shall bear interest at such rates as the Board shall determine from time to time, which rates may be below then current market rates (except in the case of incentive stock options). In no event may any such loan exceed the fair market value, at the date of exercise, of the shares of Common Stock underlying the Option, or portion thereof, exercised by the Participant. No loan shall have an initial term exceeding five (5) years, but any such loan may be renewable at the discretion of the Board. At the time a loan is made, Common stock having a fair market value at least equal to the principal amount of the loan shall be pledged by the Holder to M-Flex as security for payment of the unpaid balance of the loan. Every loan shall comply with all applicable laws, regulations, and rules of the Board of Governors of the Federal Reserve System and any other governmental agency having jurisdiction.

The Board may elect, in lieu of accepting payment of the exercise price of an Option and delivering any or all shares of Common Stock as to which an Option has been exercised, to pay the Participant an amount in cash or shares of Common Stock, or a combination of cash and shares of Common Stock, equal to the amount by which the fair market value (determined as provided in Section 6(B)) on the date of exercise of the Option the exercise price that would otherwise be payable by the Participant for such shares of Common Stock. Subject to any then-current agreements with any third parties, the Board may also permit a Participant simultaneously to exercise an Option and sell the shares of Common Stock acquired upon exercise, pursuant to a brokerage arrangement, approved in advance by the Board, and use the proceeds from such a sale as payment of the exercise price of such Option.

Participants who are subject to Section 16 of the Exchange Act are hereby advised that reliance on Rule 16b-3 may require that any equity security of M-Flex acquired upon exercise of an Option by such person be held at least until the date six months after the date of grant of the Option.

Nonqualified stock options may be exercised by a Participant without regard to the foregoing limitation, but subject to the requirement of Section 6(D).

Unless another date is specified, the date on which the Board approves the grant of Restricted Common Stock shall be deemed the date on which the Restricted Common Stock is granted.

In order for Participant to exercise his right to purchase shares of Restricted Common Stock under a grant (unless that payment date is further extended by the Board), within thirty (30) days after the date of grant, such Participant shall execute, retroactive to the date of such grant, an agreement reflecting the number of shares the Participant is purchasing and the conditions imposed upon the purchase of such shares as determined by the Board.

As payment for the purchase price of the Restricted Common Stock, the Participant may tender to M-Flex payment in cash, in previously issued shares of Common Stock (taken at their fair market value on the date the Restricted

Common Stock is granted determined as provided in Section 6(B)) or partly in cash and partly in previously issued shares of Common Stock and shall comply with such other reasonable requirements as the Board may establish, pursuant to this Section 8(C). Notwithstanding the foregoing, the Board, in its sole discretion, may refuse to accept shares of Common Stock in payment of the purchase price, in which event any certificates representing such shares of Common Stock that were actually received by M-Flex as attempted payment for the Restricted Common Stock shall be returned to the Participant, together with notice by M-Flex of the refusal of M-Flex to accept such shares of Common Stock as partial or full payment for the Restricted Common Stock.

A stock certificate representing the number of shares of Restricted Common Stock granted to and purchased by a Participant shall be registered in the Participant’s name but shall be held in custody by M-Flex for the Participant’s account. The Participant shall have the rights and privileges of a shareholder as to such shares of Restricted Common Stock, including the right to vote such shares, except that (i) the Participant shall not be entitled to delivery of such certificate until the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Board, (ii) none of the Shares may be sold, transferred, assigned, pledged, or otherwise encumbered or disposed of during the Restricted Period and until the satisfaction of any other conditions prescribed by the Board, and (iii) all of the Restricted Common Stock shall be forfeited and all rights of the Participant to such Restricted Common Stock shall terminate without further obligation on the part of M-Flex (except for the obligation of M-Flex to purchase the Restricted Common Stock from the Participant at the Initial Price Per Share) in the event the Participant has not remained in the continuous employment of M-Flex or a subsidiary or in continuous service as a non-employee advisor, consultant, or a director until the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Board applicable to such Restricted Common Stock. The Board shall decide in each case to what extent leaves of absence for government or military service, illness, temporary disability or other reasons shall not, for this purpose, be deemed interruption of continuous employment or service as a non-employee advisor, consultant, or director. If the Participant’s continuous employment or service as a non-employee advisor, consultant, or director should be terminated or cease because of death, permanent, and total disability or retirement, the provisions contained in Section 8(D) shall apply.

At the discretion of the Board, cash and stock dividends may be either currently paid or withheld by M-Flex for the Participant’s account, and interest may be paid on the amount of cash dividends withheld at a rate and subject to such terms as determined by the Board.

Each certificate evidencing shares of Restricted Common Stock shall be inscribed with a legend substantially as follows:

“The shares of common stock of Multi-Fineline Electronix, Inc., evidenced by this certificate are subject to the terms and restrictions of the Multi-Fineline Electronix, Inc., 1994 Stock Plan. Such shares are subject to forfeiture or cancellation under the terms of said Plan and shall not be sold, transferred, assigned, pledged, encumbered, or otherwise alienated or hypothecated except pursuant to the provisions of said Plan, a copy of which is available from Multi-Fineline Electronix, Inc., upon request.”

Upon the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Board or at such earlier time as provided for in Section 9(D), the restrictions applicable to the shares of Restricted Common Stock shall lapse and a stock certificate for the number of shares of Restricted Common Stock with respect to which the restrictions have lapsed shall be delivered, free of all such restrictions, except any that may be imposed by law, to the Participant or the Participant’s beneficiary or estate, as the case may be. M-Flex shall not be required to deliver any fractional shares but will pay, in lieu thereof, the fair market value (determined in accordance with Section 6(B) as of the date the restrictions lapse) of such fractional shares to the Participant.

If a Participant who has been in the continuous employ of M-Flex or a subsidiary since the date on which the Restricted Common Stock was granted dies, becomes permanently and totally disabled, or retires while in such employment and prior to the lapse of the restrictions on the Restricted Common Stock, all such restrictions shall lapse and cease to be effective as of the end of the month in which the Participant’s employment terminates due to death, permanent and total disability, or retirement.

In the case of the exercise of an Award by a person or estate acquiring the right to exercise such Award by bequest or inheritance or in the case of a person or estate acquiring by bequest or inheritance the right to receive Restricted Common Stock because of the lapse of the restrictions, the Board may require reasonable evidence as to the ownership of the Award, may require such consents and releases of taxing authorities as it may deem advisable.

In addition to Board approval of an amendment, if the amendment would: (i) materially increase the benefits accruing to Participants; (ii) increase the number of shares of Common Stock deliverable under the Plan (other than in accordance

with the provisions of Section 9(A); or (iii) materially modify the requirements as to eligibility for participation in the Plan, then such amendment shall be approved by the holders of a majority of M-Flex’s outstanding capital stock represented and entitled to vote at a meeting held for the purpose of approving such amendment to the extent required by Rule 16b-3 of the Exchange Act.