Document:

Exhibit 10.8

 

INTERNATIONAL RECTIFIER
CORPORATION

2000 INCENTIVE PLAN

(Amended and Restated as of November 22,
2004)

NONQUALIFIED STOCK OPTION AGREEMENT

 

THIS
OPTION AGREEMENT is between INTERNATIONAL
RECTIFIER CORPORATION, a Delaware corporation (the “Company”), and
Oleg Khaykin (the “Optionee”).  Pursuant
to the International Rectifier Corporation 2000 Incentive Plan (Amended and
Restated as of November 22, 2004) (the “Plan”), the Company grants a
nonqualified stock option to purchase authorized but unissued or treasury
shares of Common Stock, $1.00 par value, of the Company on the Terms and
Conditions attached and in the Plan:

 

	
  Grant Date:

  	
   

  	
  August 6, 2008

  
	
   

  	
   

  	
   

  
	
  Number of Shares:

  	
   

  	
  750,000(1)

  
	
   

  	
   

  	
   

  
	
  Exercise Price per Share:

  	
   

  	
  $18.55(1)

  
	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
   

  	
  20% per year on each of the
  first five anniversary dates of March 1, 2008(2)

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  The day before the fifth
  anniversary of August 6, 2008(2)

  

 

(1) Subject
to adjustment under Section 5.2 of the Plan.

 

(2) Subject
to early termination under Section 2.5 or 5.2 of the Plan and Section 4
of the Terms and Conditions.

 

 

	
  INTERNATIONAL RECTIFIER
  CORPORATION

  	
   

  	
  OPTIONEE

  
	
  (a Delaware
  Corporation)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
  (Address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City, State, Zip Code)

  
				

 

 

TERMS AND CONDITIONS

 

1.                                                 Exercisability of Option.  The Option shall vest and become exercisable
in installments of 20% of the aggregate number of shares set forth on the
facing page (subject to adjustment). 
Subject to earlier termination of the Option as provided in this
Agreement or the Plan and changes and adjustments contemplated by the Plan, the
first installment shall vest on the 1st anniversary of March 1, 2008, and
thereafter, installments of 20% of the shares shall vest on each of the 2nd, 3rd, 4th and 5th anniversaries of March 1, 2008.  The Option may be exercised only to the
extent the Option is exercisable.

 

	
  ·

  	
  Cumulative
  Exercisability.

  	
   

  	
  To the extent the
  Optionee does not in any year purchase all the shares that the Optionee may
  then exercise, the Optionee has the right cumulatively thereafter to purchase
  any shares not so purchased until the Option terminates or expires.

  
	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
  No Fractional Shares.

  	
   

  	
  Fractional share
  interests shall be disregarded, but may be cumulated.

  
	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
  Minimum Exercise.

  	
   

  	
  No fewer than 100
  shares may be purchased at any one time, unless the number purchased is the
  total number at the time exercisable under the Option.

  

 

2.                                                 Method of Exercise of Option.  To the extent exercisable, the Option may be
exercised by the delivery to the Company of a written notice stating the number
of shares to be purchased pursuant to the Option and payment made in cash or by
check payable to the order of the Company in the full amount of the purchase
price of the shares and amounts required to satisfy applicable withholding
taxes.  Other payment methods may be
permitted only if expressly authorized by the Administrator with respect to
this Option or all options under the Plan.

 

3.                                                 Continuance
of Employment Required.  The vesting
schedule requires continued service through each applicable vesting date as a
condition to the vesting of the applicable installment and rights and benefits
under this Agreement.  Partial service,
even if substantial, during any vesting period will not entitle the Optionee to
any proportionate vesting or avoid or mitigate a termination of rights and
benefits upon or following a termination of employment or service as provided
in Section 4 below or under the Plan.

 

4.                                                 Effect of Termination of Employment or Death;
Change in Subsidiary Status.  If the
Optionee’s employment with the Company or any Subsidiary terminates, the Option
and all other rights and benefits under this Agreement terminate, except that
the Optionee may at any time within the following periods after termination
exercise the Option to the extent the Option was exercisable at the date of
termination of employment and has not otherwise expired.  If the termination was the result of:

 

·                                          Total
Disability — one year

 

2

 

·                                          Retirement —
one year

 

·                                          termination
by the Company or a subsidiary other than pursuant to a Dismissal for Cause —
30 days

 

·                                          voluntary
resignation (other than in response to a Dismissal for Cause or in anticipation
of a Dismissal for Cause, or in connection with Retirement) — 30 days

 

·                                          death of
Optionee — one year

 

·                                          Dismissal for
Cause (1) — Option shall terminate immediately (whether vested or not).

 

In each case, the
Option remains subject to earlier termination on the first to occur of the
Expiration Date of the Option or the termination of the Option pursuant to Section 5.2
of the Plan.

 

5.                                                 Change
in Subsidiary’s Status; Leaves of Absence. 
If the Optionee is employed by an entity that ceases to be a Subsidiary
and does not remain employed by the Company or another Subsidiary, this event
is deemed for purposes of this Agreement to be a termination of the Optionee’s
employment by the Company other than pursuant to a Dismissal for Cause.  Absence from work caused by military service,
authorized sick leave or other leave approved in writing by the Committee shall
not be considered a termination of employment by the Company for purposes of Section 4,
subject to such conditions as may be imposed in connection with the approval of
the leave of absence.

 

6.                                                 Notices.  Any notice to be given under the terms of
this Agreement shall be in writing and addressed to the Company at its
principal office, to the attention of the Corporate Secretary and to the
Optionee at the address given beneath the Optionee’s signature, or at such
other address as either party may hereafter designate in writing to the other.

 

7.                                                 Optionee
not a Stockholder.  Neither the
Optionee nor any other person entitled to exercise the Option shall have any of
the rights or privileges of a stockholder of the Company as to any shares of
Common Stock not actually issued and delivered to Optionee prior to delivery of
the exercise price and satisfaction of all other conditions precedent to the
due exercise of the Option and delivery of shares.

 

8.                                                 No
Employment Commitment by Company. 
Nothing contained in this Agreement or the Plan constitutes an
employment commitment by the Company, affects Optionee’s status as an employee
at will who is subject to termination without cause, confers upon Optionee any
right to remain employed by the Company or any subsidiary, interferes in any
way with the right of the Company or any subsidiary at any time to terminate
such employment, 

 

(1) In
addition to the definition set forth in Section 6.1(o) of the Plan,
for purposes of this Agreement, “Dismissal for Cause” shall include the
termination of Optionee’s employment or services by the Company or a Subsidiary
as a result of Optionee’s material violation of a policy or rule of the
Company.

 

3

 

or affects the
right of the Company or any subsidiary to increase or decrease Optionee’s other
compensation.

 

9.                                                 Effect
of Award Agreement.  This Agreement
shall be binding upon and inure to the benefit of any successor or successors
of the Company except to the extent the Committee determines otherwise.

 

10.                                           Choice
of Law.  The constructive
interpretation, performance and enforcement of the Option and this Agreement
shall be governed by the laws of the State of California.

 

11.                                           Defined Terms.  Capitalized terms used herein and not
otherwise defined herein shall have the meaning assigned to such terms in the
Plan.

 

12.                                           Plan.  The Option and all rights of Optionee
thereunder are subject to, and the Optionee agrees to be bound by, all of the
terms and conditions of the provisions of the Plan, including, but not limited
to Section 5.2 (Adjustments; Acceleration) and Section 5.10
(Governing Law/Construction/Severability). 
The Optionee acknowledges receipt of a copy of the Plan, which is made a
part hereof by this reference, and agrees to be bound by the terms thereof.  Unless otherwise expressly provided in other
Sections of this Agreement, provisions of the Plan that confer discretionary
authority on the Committee do not (and shall not be deemed to) create any
additional rights in the Optionee not expressly set forth above.
Notwithstanding the foregoing, this document is subject to and does not
supersede any rights the Participant may have to accelerated vesting, exercise
rights and other rights upon the termination of his employment as set forth in
his employment agreement dated February 6, 2008, including without
limitation Section 5 thereof, which terms shall supersede this Agreement
to the extent in conflict herewith.

 

4Exhibit
10.9

 

 

December 26, 2008

 

Ilan
Daskal

1498
Saskatchewan Drive

Sunnyvale,
California 94087

 

Dear
Ilan:

 

Reference
is made to the letter dated September 19, 2008 from International
Rectifier Corporation (the “Company”) to you regarding your terms of
employment (the “Offer Letter”).

 

The
purpose of this letter is to supplement the terms of the Offer Letter to
include terms and conditions designed to make any payments pursuant to the
Offer Letter compliant with Section 409A of the Internal Revenue Code of
1986, as amended (including the Treasury Regulations and other published
guidance related thereto) (“Section 409A”).

 

Your
Offer Letter is hereby modified as follows:

 

1.                                       Severance.  Subject to the following
paragraph relating to specified employees, any severance payable to you under
the “Other Severance” provision of your Offer Letter shall be paid in a cash
lump sum on the 60th day
following your “separation from service,” provided you have promptly executed
and delivered (and not revoked) a release agreement (in the form contemplated
in your Offer Letter) within 50 days of your termination; provided, however,
that if you fail to execute and deliver such release, or you revoke such
release, you shall not be paid any severance pursuant to the Offer Letter.  For this purpose, a “separation from service”
shall be defined within the meaning of Treasury Regulation Section 1.409A-1(h)(1),
without regard to the optional alternative definitions available thereunder.

 

Furthermore,
if you are a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as
of the date of your separation from service, you shall not be entitled to any
severance payment until the earlier of (i) the date which is six (6) months
after your separation from service for any reason other than death, or (ii) the
date of your death.  The provisions of
this paragraph shall only apply if, and to the extent, required to avoid the
imputation of any tax, penalty or interest pursuant to Section  409A.  Any amounts otherwise payable to you upon or
in the six (6) month period following your separation from service that
are not so paid by reason of this paragraph shall be paid (without interest) as
soon as practicable (and in all events within thirty (30) days) after the date
that is six (6) months after your separation from service (or, if earlier,
as soon as practicable, and in all events within thirty (30) days, after the
date of your death).

 

2.                                       Executive Relocation Package. 
Notwithstanding anything to the contrary in your Offer Letter, in order
to be eligible for reimbursement of any relocation expenses, including closing
assistance on the sale of your current residence and closing assistance on the
purchase of a home in the Los Angeles/Southern California area, you must be
employed by the Company on the date any reimbursements for eligible expenses
are paid.

 

 

3.                                       Reimbursements / Tax Relief. 
Except as otherwise provided above, to the extent that any reimbursement
pursuant to the Offer Letter is taxable to you, you shall provide the Company
with documentation of the related expenses promptly so as to facilitate the
timing of the reimbursement payment contemplated by this paragraph, and any
reimbursement payment due to you pursuant to such provision shall be paid to
you on or before the last day of your taxable year following the taxable year
in which the related expense was incurred. 
Such reimbursement obligations are not subject to liquidation or
exchange for another benefit and the amount of such benefits that you receive
in one taxable year shall not affect the amount of such benefits that you
receive in any other taxable year.  Any
gross-up payment due to you shall be made by the end of the taxable year
following the taxable year in which you remitted the taxes to which the
gross-up relates.

 

Except
as modified hereby, your Offer Letter remains unmodified.

 

Please
indicate your agreement with the foregoing by signing where indicated below.

 

	
  Regards,

  	
   

  
	
   

  	
   

  
	
  INTERNATIONAL
  RECTIFIER CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
  Its:
  Assistant Secretary

  	
   

  
	
   

  	
   

  
	
  Acknowledged
  and agreed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Ilan
  Daskal

  	
   

  
	
  Date:

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