MULTI-FINELINE ELECTRONIX, INC. 2004 STOCK INCENTIVE PLAN

Name of Participant:

Total Number of SARs Granted:

Base Appreciation Amount per Share:

Grant Date:

Vesting Commencement Date:

Vesting Schedule:

Expiration Date:

[          ]. This SAR expires earlier if your

Service terminates earlier, as described in the

SAR Agreement.

Title:

Regular

Termination

For purposes of this SAR, your Service does not terminate when you go on a military leave, a sick leave or another bona fide leave of absence, if the leave was approved by the Company in writing and if continued crediting of Service is required by the terms of the leave or by applicable law. But your Service terminates when the approved leave ends, unless you immediately return to active work.

If you go on a leave of absence, then the vesting schedule specified in the Notice may be adjusted in accordance with the Company’s leave of absence policy or the terms of your leave. If you commence working on a part-time basis, then the vesting schedule specified in the Notice may be adjusted in accordance with the Company’s part-time work policy or the terms of an agreement between you and the Company pertaining to your part-time schedule.

The Company will not permit you to exercise this SAR if the issuance of shares at that time would violate any law or regulation. The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance and sale of the Company stock pursuant to this SAR shall relieve the Company of any liability with respect to the non-issuance or sale of the Company stock as to which such approval shall not have been obtained. However, the Company shall use its best efforts to obtain such approval.

If the exercise of the SAR within the applicable time periods set forth herein is prevented by this section, the SAR will remain exercisable until one (1) month after the date you are notified by the Company that the SAR is exercisable, but in any event no later than the Expiration Date set forth in the Notice.

Notwithstanding any provision of this SAR Agreement to the contrary, if a sale, within the applicable time periods for a regular termination or termination due to death or disability as described above, of shares acquired upon the exercise of the SAR would subject you to suit under Section 16(b) of the Exchange Act, the SAR shall remain exercisable until the earliest to occur of (i) the tenth (10th) day following the date on which a sale of such shares by you would no longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day after your termination of Service, or (iii) the Expiration Date set forth in the Notice.

Method of

Exercise

•     Share Withholding. If permissible under applicable law, you authorize the Company to, upon the exercise of its sole discretion, withhold from those shares otherwise issuable to you the whole number of shares sufficient to satisfy the minimum applicable Tax Withholding Obligation. You acknowledge that the withheld shares may not be sufficient to satisfy your minimum Tax Withholding Obligation. Accordingly, you agree to pay to the Company as soon as practicable, including through additional payroll withholding, any amount of the Tax Withholding Obligation that is not satisfied by the withholding of shares described above.

•     By Sale of Shares. Unless you determine to satisfy the Tax Withholding Obligation by some other means in accordance with the bullet point below, your acceptance of this SAR constitutes your instruction and authorization to the Company and any brokerage firm determined acceptable to the Company for such purpose to, upon the exercise of the Company’s sole discretion, sell on your behalf a whole number of shares from those shares issuable to you as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy the minimum applicable Tax Withholding Obligation. Such shares will be sold on the day such Tax Withholding Obligation arises (e.g., an exercise date) or as soon thereafter as practicable. You will be responsible for all broker’s fees and other costs of sale, and you agree to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any such sale. To the extent the proceeds of such sale exceed your minimum Tax Withholding Obligation, the Company agrees to pay such excess in cash to you. You acknowledge that the Company or its designee is under no obligation to arrange for

such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy your minimum Tax Withholding Obligation. Accordingly, you agree to pay to the Company as soon as practicable, including through additional payroll withholding, any amount of the Tax Withholding Obligation that is not satisfied by the sale of shares described above.

•     By Check, Wire Transfer or Other Means. At any time not less than five (5) business days (or such fewer number of business days as determined by the Board of Directors) before any Tax Withholding Obligation arises, you may elect to satisfy your Tax Withholding Obligation by delivering to the Company an amount that the Company determines is sufficient to satisfy the Tax Withholding Obligation by (x) wire transfer to such account as the Company may direct, (y) delivery of a certified check payable to the Company, or (z) such other means as specified from time to time by the Board.

Restrictions on

Resale

In general, only you can exercise this SAR prior to your death. You may in any event dispose of this SAR in your will. Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your former spouse, nor is the Company obligated to recognize your former spouse’s interest in your SAR in any other way.

However, the “Committee” (as defined in the Plan) may, in its sole discretion, allow you to transfer this SAR as a gift to one or more family members. For purposes of this Agreement, “family member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse,

former spouse, sibling, niece, nephew, mother-in-law, father-in-law or sister-in-law (including adoptive relationships), any individual sharing your household (other than a tenant or employee), a trust in which one or more of these individuals have more than 50% of the beneficial interest, a foundation in which you or one or more of these persons control the management of assets, and any entity in which you or one or more of these persons own more than 50% of the voting interest.

In addition, the Committee may, in its sole discretion, allow you to transfer this option to your spouse or former spouse pursuant to a domestic relations order in settlement of marital property rights.

The Committee will allow you to transfer this SAR only if both you and the transferee(s) execute the forms prescribed by the Committee, which include the consent of the transferee(s) to be bound by this Agreement.

Stockholder

Rights

Entire Agreement;

Applicable Law

Administration

and Interpretation