Document:

Exhibit
10.2

International Rectifier
Corporation

Deferred Compensation Plan

Master Trust Agreement

 

MASTER
TRUST AGREEMENT

 

Table Of
Contents

 

	
   

  	
   

  
	
  ARTICLE 1

  	
  NAME, INTENTIONS,
  IRREVOCABILITY, DEPOSIT AND DEFINITIONS

  
	
   

  	
   

  
	
  1.1

  	
  Name

  
	
  1.2

  	
  Intentions

  
	
  1.3

  	
  Irrevocability;
  Creditor Claims

  
	
  1.4

  	
  Initial Deposit

  
	
  1.5

  	
  Additional
  Definitions

  
	
  1.6

  	
  Grantor Trust

  
	
   

  	
   

  
	
  ARTICLE 2

  	
  GENERAL ADMINISTRATION

  
	
   

  	
   

  
	
  2.1

  	
  Committee
  Directions and Administration

  
	
  2.2

  	
  Company
  Securities

  
	
  2.3

  	
  Contributions

  
	
  2.4

  	
  Trust Fund

  
	
  2.5

  	
  Distribution
  of Excess Trust Fund to Employers

  
	
   

  	
   

  
	
  ARTICLE 3

  	
  POWERS AND DUTIES
  OF TRUSTEE

  
	
   

  	
   

  
	
  3.1

  	
  Investment
  Directions

  
	
  3.2

  	
  Investment Upon
  Change in Control

  
	
  3.3

  	
  Management of Investments

  
	
  3.4

  	
  Securities

  
	
  3.5

  	
  Substitution

  
	
  3.6

  	
  Distributions

  
	
  3.7

  	
  Trustee
  Responsibility Regarding Payments on Insolvency

  
	
  3.8

  	
  Costs
  of Administration

  
	
  3.9

  	
  Trustee Compensation
  and Expenses

  
	
  3.10

  	
  Professional
  Advice

  
	
  3.11

  	
  Payment
  on Court Order

  
	
  3.12

  	
  Protective
  Provisions

  
	
  3.13

  	
  Indemnifications

  
	
   

  	
   

  
	
  ARTICLE 4

  	
  INSURANCE CONTRACTS

  
	
   

  	
   

  
	
  4.1

  	
  Types of
  Contracts

  
	
  4.2

  	
  Ownership

  
	
  4.3

  	
  Restrictions on
  Trustee’s Rights

  
	
   

  	
   

  
	
  ARTICLE 5

  	
  TRUSTEE’S ACCOUNTS

  
	
   

  	
   

  
	
  5.1

  	
  Records

  
	
  5.2

  	
  Annual Accounting;
  Final Accounting

  
	
  5.3

  	
  Valuation

  
	
  5.4

  	
  Delegation
  of Duties

  

 

i

 

	
  ARTICLE 6

  	
  RESIGNATION OR
  REMOVAL OF TRUSTEE

  
	
   

  	
   

  
	
  6.1

  	
  Resignation;
  Removal

  
	
  6.2

  	
  Successor
  Trustee

  
	
  6.3

  	
  Settlement
  of Accounts

  
	
   

  	
   

  
	
  ARTICLE 7

  	
  CONTROVERSIES,
  LEGAL ACTIONS AND COUNSEL

  
	
   

  	
   

  
	
  7.1

  	
  Controversy

  
	
  7.2

  	
  Joinder of
  Parties

  
	
  7.3

  	
  Employment
  of Counsel

  
	
   

  	
   

  
	
  ARTICLE 8

  	
  INSURERS

  
	
   

  	
   

  
	
  8.1

  	
  Insurer
  Not a Party

  
	
  8.2

  	
  Authority
  of Trustee

  
	
  8.3

  	
  Contract
  Ownership

  
	
  8.4

  	
  Limitation
  of Liability

  
	
  8.5

  	
  Change of
  Trustee

  
	
   

  	
   

  
	
  ARTICLE 9

  	
  AMENDMENT AND
  TERMINATION

  
	
   

  	
   

  
	
  9.1

  	
  Amendment

  
	
  9.2

  	
  Final
  Termination

  
	
   

  	
   

  
	
  ARTICLE 10

  	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  10.1

  	
  Directions
  Following Change in Control

  
	
  10.2

  	
  Taxes

  
	
  10.3

  	
  Third Persons

  
	
  10.4

  	
  Nonassignability;
  Nonalienation

  
	
  10.5

  	
  The Plan

  
	
  10.6

  	
  Applicable Law

  
	
  10.7

  	
  Notices
  and Directions

  
	
  10.8

  	
  Successors
  and Assigns

  
	
  10.9

  	
  Gender and
  Number

  
	
  10.10

  	
  Headings

  
	
  10.11

  	
  Counterparts

  
	
  10.12

  	
  Beneficial
  Interest

  
	
  10.13

  	
  The Trust
  and Plan

  
	
  10.14

  	
  No Legal, Tax or
  Accounting Services

  
	
  10.15

  	
  Trustee
  Not an Advisor

  

 

ii

 

MASTER TRUST AGREEMENT

FOR

INTERNATIONAL RECTIFIER CORPORATION

DEFERRED COMPENSATION
PLAN

 

 

THIS MASTER TRUST AGREEMENT (“Master Trust Agreement”)
is made and entered into as of July 5, 2004 (the “Effective Date”), between
International Rectifier Corporation, a Delaware corporation (the “Company”),
and Wilmington Trust Company, a Delaware corporation, as trustee (the “Trustee”),
to evidence the master trust (the “Trust”) to be established pursuant to the
International Rectifier Corporation Deferred Compensation Plan (the “Plan”) for
the benefit of directors of the Company (“Directors”) and/or a select group of
management or highly compensated employees who contribute materially to the
continued growth, development and business success of the Company and those
subsidiaries of the Company, if any, that participate in the Plan
(collectively, “Subsidiaries,” or singularly, “Subsidiary”).

ARTICLE 1

Name, Intentions, Irrevocability,

Deposit and Definitions

1.1                               Name.  The name of the Trust created by this
Agreement (the “Trust”) shall be:

MASTER TRUST AGREEMENT FOR

INTERNATIONAL RECTIFIER CORPORATION

DEFERRED COMPENSATION PLAN

 

1.2                               Intentions.  The Company wishes to establish the Trust and
to contribute to the Trust assets that shall be held therein, subject to the
claims of the Company’s and the Subsidiaries’ creditors in the event of their
Insolvency (as defined below) until paid to Participants and their
Beneficiaries in such manner and at such times as specified in the Plan.  It is the intention of the parties that this
Trust shall constitute an unfunded arrangement and shall not affect the status
of the Plan as an unfunded plan maintained for the purpose of providing
supplemental compensation for a select group of management, highly compensated
employees and/or Directors for purposes of Title I of ERISA (as defined
below).  In addition, it is the intention
of the Company and the Subsidiaries to make contributions to the Trust to
provide themselves with a source of funds to assist them in the meeting of
their liabilities under the Plan.

1.3                               Irrevocability; Creditor  Claims.  The Trust hereby established shall be
irrevocable.  Except as otherwise
provided in Sections 2.5 and 9.2, the principal of the Trust, and any earnings
thereon, shall be held separate and apart from other funds of the Company and
the Subsidiaries and shall be used exclusively for the uses and purposes of the
Participants and the general creditors of the Company and the Subsidiaries as
herein set forth.  The Participants and
their Beneficiaries shall have no preferred claim on, or any beneficial
ownership interest in, any assets of the Trust. 
Any rights created under the 

1

                                                Plan and this Master Trust Agreement
shall be mere unsecured contractual rights of the Participants and their
Beneficiaries against the Company and the Subsidiaries.  Any assets held by the Trust will be subject
to the claims of the Company’s and the Subsidiaries’ general creditors under
federal and state law in the event of Insolvency.

1.4                               Initial Deposit.  The Company hereby deposits with the Trustee
an amount, which shall become the principal of the Trust to be held,
administered and disposed of by the Trustee as provided in this Master Trust
Agreement.

1.5                               Additional Definitions.  Unless otherwise provided in this Master
Trust Agreement, the capitalized terms in this Master Trust Agreement shall
have the same meaning as under the Plan. 
In addition to the definitions set forth above, for purposes hereof,
unless otherwise clearly apparent from the context, the following terms have
the following indicated meanings:

(a)                                  “Beneficiary” shall mean one or more
persons, trusts, estates or other entities, designated or determined, as the
case may be, in accordance with the Plan, that are entitled to receive benefits
under the Plan upon the death of a Participant.

(b)                                 “Board” shall mean the board of directors
of the Company.

(c)                                  “Code” shall mean the United States
Internal Revenue Code of 1986, as it may be amended from time to time.

(d)                                 “Change in Control” shall mean the first
to occur of any of the following events:

(i)                                     Approval by the stockholders of the
Company of the dissolution or liquidation of the Company, except to the extent
the dissolution is in connection with a transaction which would not constitute
a Change in Control under clause (ii) below.

(ii)                                  A merger, consolidatation or other
reorganization of the Company, with or into, or a sale or transfer of all or
substantially all of the Company’s business and/or assets as an entirety to one
or more entities that are not Subsidiaries, as a result of which 50% or less of
the outstanding voting securities of the surviving or resulting entities
immediately after the reorganization are, or are to be, owned by former
stockholders of the Company immediately before such reorganization (assuming
for purposes of such determination that there is no change in the record
ownership of the Company’s securities from the record date for such approval
until such reorganization, but including in such determination any securities
of the other parties to such reorganization held by such affiliates of the
Company).

(iii)                               Any “person,” alone or with “affiliates”
and “associates” of such person, without the prior approval of the Board,
becomes the “beneficial owner” of more than 50% of the outstanding voting
securities of the Company (the 

 

2

                                                terms “person,” “affiliates,” “associates”
and “beneficial owner” are used as such terms are used in the United States
Securities and Exchange Act of 1934 and the General Rules and Regulations
thereunder, as each may be amended from time to time); provided, however, that
a Change in Control shall not be deemed to have occurred if such “person” is (A)
the Company, (B) any Subsidiary, (C) any employee benefit plan or employee
stock plan of the Company, or any trust or other entity organized, established
or holding shares of such voting securities by, for, or pursuant to the terms
of any such plan, or (D) any member of or entity or group affiliated with the
Lidow family; or

(iv)                              Individuals who at the beginning of any
period of two consecutive calendar years constitute a majority of the Board
cease for any reason, during such period, to constitute at least a majority
thereof, unless the election, or the nomination for election by the Company’s
stockholders, of each new Board member was approved by a vote of at least
two-thirds of the Board members then still in office who were Board members at
the beginning of such period.

(e)                                  “Committee” shall mean the administrative
committee appointed by the Board to administer this Trust, which shall be the
same body as the “Committee” appointed to administer the Plan in accordance
with Section 13.1 of the Plan.

(f)                                    “ERISA” shall mean the United States
Employee Retirement Income Security Act of 1974, as it may be amended from time
to time.

(g)                                 “Insolvent” shall have the meaning set
forth in Section 3.7(a) below.

(h)                                 “Insolvent Entity” shall have the meaning
set forth in Section 3.7(a) below.

(i)                                     “IRS” shall mean the United States
Internal Revenue Service.

(j)                                     “Participant” shall mean a person who is
a participant in the Plan in accordance with its terms and conditions.

(k)                                  “Payment Schedule” shall have the meaning
set forth in Section 3.6(b) below.

(l)                                     “Plan Year” shall mean the period
beginning on July 5, 2004 and ending December 31, 2004, and thereafter each
calendar year unless the Trustee is notified that a different Plan Year has
been chosen for this Master Trust Agreement by the Committee.

(m)                               “Trust Fund” shall mean the assets held
by the Trustee pursuant to the terms of this Master Trust Agreement and for the
purposes of the Plan.

3

1.6                               Grantor Trust.  The Trust is intended to be a “grantor trust,”
of which the Company and the Subsidiaries are the grantors, within the meaning
of subpart E, part I, subchapter J, chapter 1,
subtitle A of the Code and the Trust shall be construed accordingly.

ARTICLE 2

General Administration

2.1                               Committee Directions and Administration.  Except as may
otherwise be provided in this Master Trust Agreement, the Committee shall
direct the Trustee as to the administration of the Trust in accordance with the
following provisions:

(a)                                  The Committee shall be identified to the
Trustee by a copy of the resolution of the Board appointing the Committee.  In the absence thereof, the Board shall be
the Committee.  Persons authorized to
give directions to the Trustee on behalf of the Committee shall be identified
to the Trustee by written notice from the Committee, and such notice shall
contain specimens of the authorized signatures. 
The Trustee shall be entitled to rely on such written notice as evidence
of the identity and authority of the persons appointed until a written
cancellation of the appointment, or the written appointment of a successor, is
received by the Trustee.

(b)                                 Directions by the Committee, or its
delegate, to the Trustee shall be in writing and signed by the Committee or
persons authorized by the Committee, or may be made by such other method as is
acceptable to the Trustee.

(c)                                  The Trustee may conclusively rely upon
directions from the Committee in taking any action with respect to this Master
Trust Agreement, including the making of payments from the Trust Fund and the
investment of the Trust Fund pursuant to this Master Trust Agreement.  The Trustee shall have no liability for
actions taken, or for failure to act, on the direction of the Committee.  The Trustee shall have no liability for
failure to act in the absence of proper written directions.

(d)                                 The Trustee may request instructions from
the Committee and shall have no duty to act or liability for failure to act if
such instructions are not forthcoming from the Committee.  If requested instructions are not received
within a reasonable time, the Trustee may, but is under no duty to, act on its
own discretion to carry out the provisions of this Master Trust Agreement in
accordance with this Master Trust Agreement and the Plan.

For purposes of clarity,
Sections 2.1(c) and (d) above shall not apply upon or following the occurrence
of a Change in Control with respect to any action or determination that is,
under one or more of the other provisions of this Master Trust Agreement, within
the purview of the Trustee upon or following the occurrence of a Change in
Control.

2.2                               Company
Securities. 
Unless this Master Trust Agreement is amended by the Trustee and the
Company to provide otherwise, the Company and the Subsidiaries shall not make
any deposit in trust with the Trustee of equity securities of the Company or
any 

4

                                                Subsidiary.  For purposes of clarity, the foregoing
sentence shall not limit the ability of the Trust Fund to include equity
securities of the Company which are owned through a mutual fund, insurance
company separate account, index fund, or similar investment.

2.3                               Contributions.  Except as provided in the Plan, the Company
and the Subsidiaries, in their sole discretion, may at any time, or from time
to time, make additional deposits of cash or other property in trust with the
Trustee to augment the principal to be held, administered and disposed of by
the Trustee as provided in this Master Trust Agreement.  Neither the Trustee nor any Participant or
Beneficiary shall have any right to compel such additional deposits.  The Trustee shall have no duty to collect or
enforce payment to it of any contributions or to require that any contributions
be made, and shall have no duty to compute any amount to be paid to it nor to
determine whether amounts paid comply with the terms of the Plan; provided,
however, that following a Change in Control, the Trustee shall have the right,
in its sole and absolute discretion, to compel a contribution to the Trust from
the Company to make-up for any shortfall between (i) the anticipated benefit
obligations and administrative expenses that are to be paid under the Plan and
Trust and (ii) the assets of the Trust Fund.

2.4                               Trust Fund.  The
contributions received by the Trustee from the Company and the Subsidiaries
shall be held and administered pursuant to the terms of this Master Trust
Agreement as a single fund without distinction between income and principal and
without liability for the payment of interest thereon except as expressly
provided in this Master Trust Agreement. 
During the term of this Trust, all income received by the Trust, net of
expenses and taxes, shall be accumulated and reinvested.  Notwithstanding anything to the contrary
contained herein, and unless otherwise provided in a separate written agreement
to which the Trustee is a party, the Company or its designees, and not the
Trustee, shall be solely responsible for maintaining records evidencing the
respective interests of the Company and the Subsidiaries in the Trust Fund and
for maintaining records evidencing the respective interests of the Participants
and Beneficiaries in the Trust Fund and making those records available to the
Trustee and/or the Committee designated pursuant to the applicable provisions
of the Plan as described in Section 3.6(h).

2.5                               Distribution of  Excess  Trust  Fund  to  Employers.  In the event that the Committee, prior to a
Change in Control, or the Trustee in its sole and absolute discretion following
a request by the Company after a Change in Control, determines that the Trust
Fund exceeds one-hundred and twenty-five percent (125%) of the anticipated
benefit obligations and administrative expenses that are to be paid under the
Plan, the Trustee, at the direction of the Committee prior to a Change in
Control, or in its sole and absolute discretion after a Change in Control,
shall distribute to the Company and the Subsidiaries such excess portion of the
Trust Fund.  The Trustee shall be
entitled to obtain, following a Change in Control and at the reasonable expense
of the Company or the Trust, and rely on a verification from an independent
professional advisor with respect to the calculation of the excess, if any, of
the Trust Fund to be distributed to the Company and the Subsidiaries.

5

ARTICLE 3

Powers and Duties of Trustee

3.1                               Investment Directions.  Except as provided in Section 3.2 and
Section 3.3 below, the Committee shall provide the Trustee with all investment
and investment-related instructions.  The
Trustee shall neither affect nor change investments of the Trust Fund, except
as directed in writing by the Committee, and shall have no right, duty or
responsibility to recommend investments or investment changes; provided, that
the Trustee may (i) deposit cash on hand from time to time in any bank
savings account, certificate of deposit, or other instrument creating a deposit
liability for a bank, including the Trustee’s own banking department, if the
Trustee is a bank, without such prior direction, or (ii) if the Trustee
undertakes in writing to do so, invest in government securities, bonds with
specific ratings, equities, or mutual funds composed of such investments, all
within broad investment guidelines established by the Committee from time to
time. 
Further, prior to a Change in Control, the Trustee shall have no duty or
responsibility with respect to: (i) the truth or accuracy of any representation
or warranty made in any application or related document provided to the insurer
in connection with the issuance or renewal of any insurance policies or
insurance contracts, including the representation that the person on whose life
an application is being made is eligible to have a contract issued on his or her
life; (ii) the selection or monitoring (ongoing or periodic) of any insurance
or annuity policies or contracts held in the Trust or the insurers issuing such
policies or contracts; (iii) the payment of any premiums with respect to such
policies or contracts except as directed in writing by the Company; or (iv) the
exercise of any rights relating to any such policies or contracts except as
directed in writing by the Company.  Upon
and after a Change in Control, the Trustee shall have no duty or responsibility
with respect to: (i) the truth or accuracy of any representation or warranty
made in any application or related document provided to the insurer in
connection with the issuance or renewal of any insurance policies or insurance
contracts, including the representation that the person on whose life an
application is being made is eligible to have a contract issued on his or her
life; or (ii) the selection of any insurance or annuity policies or contracts
held in the Trust or the insurers issuing such policies or contracts.

3.2                               Investment Upon  Change  in  Control.  In the event of a Change in Control, the
authority of the Committee to direct investments of the Trust Fund shall cease
and the Trustee shall have complete authority to direct investments of the Trust
Fund.  The president of the Company shall
notify the Trustee in writing when a Change in Control has occurred.  The Trustee has no duty to inquire whether a
Change in Control has occurred and may rely on notification by the president of
the Company of a Change in Control; provided, however, that if any officer,
former officer, director or former director of the Company or any Subsidiary
(other than the president of the Company), or any Participant notifies the
Trustee that there has been or there may be a Change in Control, the Trustee
shall have the duty to satisfy itself as to whether a Change in Control has in
fact occurred.  The Company and the
Subsidiaries shall indemnify and hold harmless the Trustee for any damages or
costs (including attorneys’ fees) that may be incurred because of reliance on
the president’s notice or lack thereof.

6

3.3                               Management of  Investments.  Subject to Section 3.1 above, the Trustee
shall have, without exclusion, all powers conferred on the Trustee by
applicable law, unless expressly provided otherwise herein, and all rights
associated with assets of the Trust shall be exercised by the Trustee or the
person designated by the Trustee, and shall in no event be exercisable by or rest
with Participants or their Beneficiaries. 
Subject to Section 3.1 above, the Trustee shall have full power and
authority to invest and reinvest the Trust Fund in any investment permitted by
law, exercising the judgment and care that persons of prudence, discretion and
intelligence would exercise under the circumstances then prevailing,
considering the probable income and safety of their capital, including, without
limiting the generality of the foregoing, the power:

(a)                                  To invest and reinvest the Trust Fund,
together with the income therefrom, in common stock, preferred stock,
convertible preferred stock, mutual funds, bonds, debentures, convertible
debentures and bonds, mortgages, notes, time certificates of deposit,
commercial paper and other evidences of indebtedness (including those issued by
the Trustee or any of its affiliates), other securities, policies of life
insurance, annuity contracts, options to buy or sell securities or other
assets, and other property of any kind (personal, real, or mixed, and tangible
or intangible); provided, however, that in no event may the Trustee invest in
securities (including stock or rights to acquire stock) or obligations issued
by the Company or the Subsidiaries, other than a de minimis amount held in
common investment vehicles in which the Trustee invests;

(b)                                 To deposit or invest all or any part of
the assets of the Trust Fund in savings accounts or certificates of deposit or
other deposits which bear a reasonable interest rate in a bank, including the
commercial department of the Trustee, if such bank is supervised by the United
States or any State;

(c)                                  To hold, manage, improve, repair and
control all property, real or personal, forming part of the Trust Fund and to
sell, convey, transfer, exchange, partition, lease for any term, even extending
beyond the duration of this Trust, and otherwise dispose of the same from time
to time in such manner, for such consideration, and upon such terms and
conditions as the Trustee shall determine;

(d)                                 To have, respecting securities, all the
rights, powers and privileges of an owner, including the power to give proxies,
pay assessments and other sums deemed by the Trustee to be  necessary for the protection of the Trust
Fund, to vote any corporate stock either in person or by proxy, with or without
power of substitution, for any purpose; to participate in voting trusts,
pooling agreements, foreclosures, reorganizations, consolidations, mergers and
liquidations, and in connection therewith to deposit securities with and transfer
title to any protective or other committee under such terms as the Trustee may
deem advisable; to exercise or sell stock subscriptions or conversion rights;
and, regardless of any limitation elsewhere in this instrument relative to
investment by the Trustee, to accept and retain as an investment any securities
or other property received through the exercise of any of the foregoing powers;

7

(e)                                  To hold in cash, without liability for
interest, such portion of the Trust Fund which, in its discretion, shall be
reasonable under the circumstances, pending investments, or payment of
expenses, or the distribution of benefits;

(f)                                    To take such actions as may be necessary
or desirable to protect the Trust Fund from loss due to the default on
mortgages held in the Trust including the appointment of agents or trustees in
such other jurisdictions as may seem desirable, to transfer property to such
agents or trustees, to grant such powers as are necessary or desirable to protect
the Trust or its assets, to direct such agents or trustees, or to delegate such
power to direct, and to remove such agents or trustees;

(g)                                 To employ such agents including
custodians and counsel as may be reasonably necessary and to pay them reasonable
compensation, which shall be paid pursuant to Section 3.8; to settle,
compromise or abandon all claims and demands in favor of or against the Trust
assets;

(h)                                 To cause title to property of the Trust
to be issued, held or registered in the individual name of the Trustee, or in
the name of its nominee(s) or agents, or in such form that title will pass by
delivery;

(i)                                     To exercise all of the further rights,
powers, options and privileges granted, provided for, or vested in trustees
generally under the laws of the State whose laws are applicable to this Master
Trust Agreement, as provided in Section 10.6 below, so that the powers
conferred upon the Trustee herein shall not be in limitation of any authority
conferred by law, but shall be in addition thereto;

(j)                                     To borrow money from any source
(including the Trustee) and to execute promissory notes, mortgages or other
obligations and to pledge or mortgage any Trust assets as security;

(k)                                  To lend certificates representing stocks,
bonds, or other securities to any brokerage or other firm selected by the
Trustee;

(l)                                     To institute, compromise and defend
actions and proceedings; to pay or contest any claim; to settle a claim by or
against the Trustee by compromise, arbitration, or otherwise; to release, in
whole or in part, any claim belonging to the Trust to the extent that the claim
is uncollectible;

(m)                               To use securities depositories or
custodians and to allow such securities as may be held by a depository or
custodian to be registered in the name of such depository or its nominee or in
the name of such custodian or its nominee;

(n)                                 To invest the Trust Fund from time to
time in one or more investment funds, which funds shall be registered under the
Investment Company Act of 1940; and

8

(o)                                 To do all other acts necessary or
desirable for the proper administration of the Trust Fund, as if the Trustee
were the absolute owner thereof.

However, nothing in this section shall be construed to
mean the Trustee assumes any responsibility for the performance of any
investment made by the Trustee in its capacity as trustee under the operations
of this Master Trust Agreement. 
Notwithstanding any powers granted to the Trustee pursuant to this
Master Trust Agreement or to applicable law, the Trustee shall not have any
power that could give this Trust the objective of carrying on a business and
dividing the gains therefrom, within the meaning of section 301.7701-2
of the Procedure and Administrative Regulations promulgated pursuant to the
Code.

3.4                               Securities.  Voting or other rights in securities shall be
exercised by the person or entity responsible for directing such investments,
and the Trustee shall have no duty to exercise voting or proxy or other rights
relating to any investment managed or directed by the Committee.  If any foreign securities are purchased
pursuant to the direction of the Committee, it shall be the responsibility of
the person or entity responsible for directing such investments to advise the
Trustee in writing of any laws or regulations, either foreign or domestic, that
apply to such foreign securities or to the receipt of dividends or interest on
such securities.

3.5                               Substitution.  Notwithstanding any provision of the Plan or
the Trust to the contrary, the Company and/or any Subsidiary shall at all times
have the power to reacquire the Trust Fund by substituting readily marketable
securities (other than stock, a debt obligation or other security issued by the
Company or any Subsidiary) and/or cash of an equivalent value and such other
property shall, following such substitution, constitute the Trust Fund.  Notwithstanding the foregoing, after a Change
in Control, any such substitution shall be subject to the approval of the
Trustee.

3.6                               Distributions.

(a)                                  The establishment of the Trust and the
payment or delivery to the Trustee of money or other property shall not vest in
any Participant or Beneficiary any right, title, or interest in and to any
assets of the Trust.  To the extent that
any Participant or Beneficiary acquires the right to receive payments under the
Plan, such right shall be no greater than the right of an unsecured general
creditor of the Company and the Subsidiaries and such Participant or
Beneficiary shall have only the unsecured promise of the Company and the
Subsidiaries that such payments shall be made.

(b)                                 Concurrent with the establishment of this
Trust, the Company shall deliver to the Trustee a schedule (the “Payment
Schedule”) that indicates the amounts payable in respect of each Participant
(and his or her Beneficiaries) under the Plan, provides a formula or formulas
or other instructions acceptable to the Trustee for determining the amounts so
payable, specifies the form in which such amount is to be paid (as provided for
or available under the Plan), and the time of commencement for payment of such
amounts.  The Payment Schedule shall be 

9

                                                updated annually and upon a Change in
Control and from time to time as is necessary thereafter.  Subject to Section 3.6(h), the Trustee shall
make payments to the Participants and their Beneficiaries in accordance with
such Payment Schedule.  The Trustee, at
the direction of the Committee or, after a Change in Control, on its own
volition, may make any distribution required to be made by it hereunder by
delivering:

(i)                                     Its check payable to the person to whom
such distribution is to be made, to the person, or, if prior to a Change in
Control, to the Company for redelivery to such person; provided that before a
Change in Control, the Committee may direct the Trustee to deliver one or more
lump sum checks payable to the Company, and the Company shall prepare and
deliver individual checks for each Participant or Beneficiary; or

(ii)                                  Its check payable to an insurer for the
benefit of such person, to the insurer, or, if prior to a Change in Control, to
the Company for redelivery to the insurer; or

(iii)                               Contracts held on the life of the
Participant to whom or with respect to whom the distribution is being made, to
the Participant or Beneficiary, or, if prior to a Change in Control, to the
Company for redelivery to the person to whom such distribution is to be made;
or

(iv)                              If a distribution is being made, in whole
or in part, of other assets, assignments or other appropriate documents or
certificates necessary to effect a transfer of title, to the Participant or
Beneficiary, or, if prior to a Change in Control, to the Company for redelivery
to such person.

(c)                                  If the principal of the Trust, and any
earnings thereon, are not sufficient to make payments of benefits in accordance
with the terms of the Plan, the Company and the Subsidiaries shall make the
balance of each such payment as it falls due. 
The Trustee shall notify the Company and the Subsidiaries when principal
and earnings are not sufficient. To the extent that the total Trust assets
available to make benefit payments to Participants or Beneficiaries who are
currently entitled to payment are less than the liabilities of the Plan, the
Trustee shall make benefit payments proportionate to the ratio of assets
available to pay benefits to the total values of the liabilities.

(d)                                 The Company and the Subsidiaries may make
payment of benefits directly to Participants or their Beneficiaries as they
become due under the terms of the Plan. 
The Company and the Subsidiaries shall notify the Trustee of their
decisions to make payment of benefits directly prior to the time amounts are
payable to Participants or their Beneficiaries.

(e)                                  Notwithstanding anything contained in
this Master Trust Agreement to the contrary, if at any time the Trust is
finally determined by the IRS not to be a 

10

                                                “grantor trust” with the result that the
income of the Trust Fund is not treated as income of the Company or the
Subsidiaries pursuant to Sections 671 through 679 of the Code or if a tax
is finally determined by the IRS to be payable by one or more Participants or
Beneficiaries with respect to any interest in the Plan or the Trust Fund prior
to payment of such interest to any such Participant or Beneficiary, the Trustee
shall immediately determine each Participant’s share of the Trust Fund in
accordance with the Plan, and the Trustee shall immediately distribute such
share in a lump sum to each Participant or Beneficiary entitled thereto,
regardless of whether such Participant’s employment has terminated (provided
such Participant has a vested interest in his or her accrued benefits under the
Plan) and regardless of form and time of payments specified in or pursuant to
the Plan.  Any remaining assets (less any
expenses or costs due under Sections 3.8 and 3.9 of this Master Trust
Agreement) shall then be paid by the Trustee to the Company and the
Subsidiaries in such amounts, and in the manner instructed by the
Committee.  If the value of the Trust
Fund is less than the benefit obligations under the Plan, the foregoing
described distributions will be limited to a Participant’s share of the Trust
Fund, determined by allocating assets to the Participant based on the ratio of
the Participant’s benefit obligations under the Plan to the total benefit
obligations under the Plan.  Subject to
Section 3.6(h), the Trustee shall rely solely on the directions of the
Committee with respect to the occurrence of the foregoing events and the
resulting distributions to be made, and the Trustee shall not be responsible
for any failure to act in the absence of such direction.

(f)                                    The Trustee shall make provision for the
reporting and withholding of any federal, state or local taxes that may be
required to be withheld with respect to the payment of benefits that are made
by the Trustee under this Master Trust Agreement and shall pay amounts withheld
to the appropriate taxing authorities or determine that such amounts have been
reported, withheld and paid by the Company or one of the Subsidiaries.

(g)                                 Prior to a Change in Control, payments by
the Trustee shall be delivered or mailed to addresses supplied by the Committee
and the Trustee’s obligation to make such payments shall be satisfied upon such
delivery or mailing.  Prior to a Change
in Control, the Trustee shall have no obligation to determine the identity of
persons entitled to benefits or their mailing addresses.  After a Change in Control, the Trustee shall
be entitled to rely on the last mailing address supplied by the Company unless
the Trustee has been notified by a Participant of a change in the Participant’s
address.

(h)                                 The entitlement of a Participant or his
or her Beneficiaries to benefits under the Plan shall be determined by the
Committee or an arbitrator, as applicable, in accordance with the claims
procedures set forth in the Plan. 
Following a Change in Control, in the event that a final decision as to
a Plan benefit claim rendered by the Committee or an arbitrator, as applicable,
in accordance with the Plan differs from the Payment Schedule, the Trustee
shall modify the Payment Schedule as 

11

                                                necessary to give effect to any decision
of which the Trustee has notice.  In no
event shall the Trustee be obligated to serve as or select the Committee or be
responsible for the performance of the Committee.

3.7                               Trustee Responsibility Regarding Payments on Insolvency.

(a)                                  The Trustee shall cease payment of
benefits to Participants and their Beneficiaries if the Company, or any
Subsidiary, is Insolvent (the “Insolvent Entity”).  The Insolvent Entity shall be considered “Insolvent”
for purposes of this Master Trust Agreement if:

(i)                                     the Insolvent Entity is unable to pay its
debts as they become due, or

(ii)                                  the Insolvent Entity is subject to a
pending proceeding as a debtor under the United States Bankruptcy Code.

For purposes of this
Section 3.7, if an entity is determined to be Insolvent, each Subsidiary
in which such entity has an equity interest shall also be deemed to be an
Insolvent Entity.  However, the
insolvency of a Subsidiary will not cause a parent corporation to be deemed
Insolvent.

(b)                                 At all times during the continuance of
this Trust, as provided in Section 1.3 above, the principal and income of the
Trust shall be subject to claims of the general creditors of the Company and
its Subsidiaries under federal and state law as set forth below:

(i)                                     The Board and the president of the
Company shall have the duty to inform the Trustee in writing of the Company’s
or any Subsidiary’s Insolvency.  If a
person claiming to be a creditor of the Company or any Subsidiary alleges in
writing to the Trustee that the Company or any Subsidiary has become Insolvent,
the Trustee shall determine whether the Company or any Subsidiary is Insolvent
and, pending such determination, the Trustee shall discontinue payment of
benefits to the Insolvent Entity’s Participants or their Beneficiaries.  Prior to a Change in Control, the Trustee may
conclusively rely on any determination it receives from the Board or the
president of the Company with respect to the Insolvency of the Company or any
Subsidiary.

(ii)                                  Unless the Trustee has actual knowledge
of the Company’s or a Subsidiary’s Insolvency, or has received notice from the
Company, a Subsidiary, or a person claiming to be a creditor alleging that the
Company or a Subsidiary is Insolvent, the Trustee shall have no duty to inquire
whether the Company or any Subsidiary is Insolvent.  The Trustee may in all events rely on such
evidence concerning the Company’s or any Subsidiary’s solvency as may be
furnished to the Trustee and that provides the Trustee with a reasonable basis
for making a determination concerning the Company’s or any Subsidiary’s
solvency.  In this regard, the Trustee 

12

                                                may rely upon a letter from the Company’s
or a Subsidiary’s independent auditors as to the Company’s or any Subsidiary’s
financial status.

(iii)                               If at any time the Trustee has determined
that the Company or any Subsidiary is Insolvent, the Trustee shall discontinue
payments to the Insolvent Entity’s Participants or their Beneficiaries, and
shall hold the portion of the assets of the Trust allocable to the Insolvent
Entity for the benefit of the Insolvent Entity’s general creditors.  Nothing in this Master Trust Agreement shall
in any way diminish any rights of Participants or their Beneficiaries to pursue
their rights as general creditors of the Insolvent Entity with respect to
benefits due under the Plan or otherwise.

(iv)                              The Trustee shall resume the payment of
benefits to Participants or their Beneficiaries in accordance with this Article
3 of this Master Trust Agreement only after the Trustee has determined that the
alleged Insolvent Entity is not Insolvent (or is no longer Insolvent).

(c)                                  Provided that there are sufficient
assets, if the Trustee discontinues the payment of benefits from the Trust
pursuant to Section 3.7(b) hereof and subsequently resumes such payments,
the first payment following such discontinuance shall include the aggregate
amount of all payments due to Participants or their Beneficiaries under the
terms of the Plan for the period of such discontinuance, less the aggregate
amount of any payments made to Participants or their Beneficiaries by the
Company or any Subsidiary in lieu of the payments provided for hereunder during
any such period of discontinuance.  The
Committee shall instruct the Trustee as to such amounts.

3.8                               Costs of  Administration.  The Trustee is authorized to incur reasonable
obligations in connection with the administration of the Trust, including
attorneys’ fees, other administrative fees and appraisal fees.  Such obligations shall be paid by the Company
and the Subsidiaries.  The Trustee is
authorized to pay such amounts from the Trust Fund if the Company or the
Subsidiaries fail to pay them within 60 days of presentation of a statement of
the amounts due.

3.9                               Trustee Compensation  and  Expenses.  The Trustee shall be entitled to reasonable
compensation for its services as from time to time agreed upon between the
Trustee and the Company.  The Trustee
shall be entitled to additional reasonable compensation for the performance of
extraordinary services, including services rendered in the event of Insolvency
of the Company or a Subsidiary or in the event of a Change in Control.  If the Trustee and the Company fail to agree
upon a compensation, or following a Change in Control, the Trustee shall be
entitled to compensation at a rate equal to the rate charged by the Trustee for
similar services rendered by it during the current fiscal year for other trusts
similar to this Trust.  The Trustee shall
be entitled to reimbursement for expenses incurred by it in the performance of
its duties as the Trustee, including reasonable fees for legal counsel.  The Trustee’s compensation and expenses shall
be paid by the Company and the Subsidiaries. 
The Trustee is authorized to withdraw such amounts from the Trust

13

                                                Fund if the Company or the Subsidiaries
fail to pay them within 60 days of presentation of a statement of the
amounts due.

3.10                        Professional Advice.  The Company and the Subsidiaries specifically
acknowledge that the Trustee and/or the Committee may find it desirable or
expedient to retain legal counsel (who may also be legal counsel for the
Company generally) or other professional advisors to advise it in connection
with the exercise of any duty under this Master Trust Agreement, including, but
not limited to, any matter relating to or following a Change in Control or the
Insolvency of the Company or any Subsidiary. 
The Trustee and/or Committee shall be fully protected in acting upon the
advice of such legal counsel or advisors in good faith except as otherwise
prohibited or limited by applicable law.

3.11                        Payment on  Court  Order.  To the extent permitted by law, the Trustee
is authorized to make any payments directed by court order in any action in
which the Trustee has been named as a party. 
The Trustee is not obligated to defend actions in which the Trustee is
named, but shall notify the Company or Committee of any such action and may
tender defense of the action to the Company, Committee, Participant or
Beneficiary whose interest is affected. 
The Trustee may in its discretion defend any action in which the Trustee
is named, and any expenses incurred by the Trustee shall be paid by the Company
and the Subsidiaries.  The Trustee is
authorized to pay such amounts from the Trust Fund if the Company or the
Subsidiaries fail to pay them within sixty (60) days of presentation of a
statement of the amounts due.

3.12                        Protective Provisions.  Notwithstanding any other provision contained
in this Master Trust Agreement to the contrary, the Trustee shall have no
obligation to (i) determine the existence of any conversion, redemption,
exchange, subscription or other right relating to any securities purchased of
which notice was given prior to the purchase of such securities and shall have
no obligation to exercise any such right unless the Trustee is advised in
writing by the Committee both of the existence of the right and the desired
exercise thereof within a reasonable time prior to the expiration of the right
to exercise, or (ii) advance any funds to the Trust.  Furthermore, the Trustee is not a party to
the Plan.

3.13                        Indemnifications.

(a)                                  The Company and the Subsidiaries shall
indemnify and hold the Trustee harmless from and against all loss or liability
(including expenses and reasonable attorneys’ fees and disbursements) to which
it may be subject by reason of its execution of its duties under this Trust, or
by reason of any acts taken in good faith in accordance with any directions, or
acts omitted in good faith due to absence of directions, from the Company, the
Committee or a Participant, unless such loss or liability is due to the Trustee’s
gross negligence or willful misconduct. 
The indemnity described herein shall be provided by the Company and the
Subsidiaries.

(b)                                 In the event that the Trustee is named as
a defendant in a lawsuit or proceeding involving the Plan or the Trust Fund,
the Trustee shall be entitled to receive on a 

14

                                                current basis the indemnity payments
provided for in this Section, provided however that if the final judgment
entered in the lawsuit or proceeding holds that the Trustee is guilty of gross
negligence or willful misconduct with respect to the Trust Fund, the Trustee
shall be required to refund the indemnity payments that it has received.

(c)                                  The Company and the Subsidiaries shall
indemnify and hold the Committee harmless from and against all loss or
liability (including expenses and reasonable attorneys’ fees and disbursements)
to which it may be subject by reason of its execution of its duties under this
Trust, or by reason of any acts taken in good faith in accordance with any
directions, or acts omitted in good faith due to absence of directions, from
the Company, the Committee or a Participant, unless such loss or liability is
due to the Committee’s gross negligence or willful misconduct.  The indemnity described herein shall be
provided by the Company and the Subsidiaries.

(d)                                 In the event that the Committee is named
as a defendant in a lawsuit or proceeding involving the Plan or the Trust Fund,
the Committee shall be entitled to receive on a current basis the indemnity
payments provided for in this Section, provided however that if the final
judgment entered in the lawsuit or proceeding holds that the Committee is
guilty of gross negligence or willful misconduct with respect to its duties
under the Plan or the Trust, the Committee shall be required to refund the
indemnity payments that it has received.

(e)                                  All releases and indemnities provided in
this Master Trust Agreement shall survive the termination of this Master Trust
Agreement.

ARTICLE 4

Insurance Contracts

4.1                               Types of  Contracts.  To the extent that the Trustee is directed by
the Committee prior to a Change in Control to invest part or all of the Trust
Fund in insurance contracts, the type and amount thereof shall be specified by
the Committee.  The Trustee shall be
under no duty to make inquiry as to the propriety of the type or amount so
specified.

4.2                               Ownership.  Each insurance contract issued shall provide
that the Trustee shall be the owner thereof with the power to exercise all
rights, privileges, options and elections granted by or permitted under such
contract or under the rules of the insurer. 
The exercise by the Trustee of any incidents of ownership under any
contract shall, prior to a Change in Control, be subject to the direction of
the Committee.

4.3                               Restrictions on  Trustee’s  Rights.  The Trustee shall have no power to name a
beneficiary of the policy other than the Trust, to assign the policy (as
distinct from conversion of the policy to a different form) other than to a
successor Trustee, or to loan to any person the proceeds of any borrowing 

15

                                                against such policy.  Despite the foregoing, the Trustee may
(i) loan to the Company or any Subsidiary the proceeds of any borrowing
against an insurance policy held in the Trust Fund or (ii) assign all, or
any portion, of a policy to the Company or any Subsidiary if under other provisions
of this Master Trust Agreement the Company or any Subsidiary is entitled to
receive assets from the Trust.

ARTICLE 5

Trustee’s Accounts

5.1                               Records.  The Trustee shall maintain accurate records
and detailed accounts of all investments, receipts, disbursements and other
transactions hereunder.  Such records
shall be available at all reasonable times for inspection by the Company and
Subsidiaries or their authorized representative.  The Trustee, at the direction of the
Committee, shall submit to the Committee and to any insurer such valuations,
reports or other information as the Committee may reasonably require and, in
the absence of fraud or bad faith, the valuation of the Trust Fund by the
Trustee shall be conclusive.

5.2                               Annual Accounting; Final Accounting.

(a)                                  Within 60 days following the end of
each Plan Year and within 60 days after the removal or resignation of the
Trustee or the termination of the Trust, the Trustee shall file with the
Committee a written account setting forth a description of all properties purchased
and sold, all receipts, disbursements and other transactions effected by it
during the Plan Year or, in the case of removal, resignation or termination,
since the close of the previous Plan Year, and listing the properties held in
the Trust Fund as of the last day of the Plan Year or other period and
indicating their values.  Such values
shall be either cost or market as directed by the Committee in accordance with
the terms of the Plan.

(b)                                 The Committee may approve such account
either by written notice of approval delivered to the Trustee or by its failure
to express written objection to such account delivered to the Trustee within
60 days after the date of which such account was delivered to the
Committee.

(c)                                  The approval by the Committee of an
accounting shall be binding as to all matters embraced in such accounting on
all parties to this Master Trust Agreement and on all Participants and
Beneficiaries, to the same extent as if such accounting had been settled by a
judgment or decree of a court of competent jurisdiction in which the Trustee,
the Committee, the Company, the Subsidiaries and all persons having or claiming
any interest in the Plan or the Trust Fund were made parties.

(d)                                 Despite the foregoing, nothing contained
in this Master Trust Agreement shall deprive the Trustee of the right to have
an accounting judicially settled, if the Trustee, in the Trustee’s sole
discretion, desires such a settlement.

5.3                               Valuation.  The assets of the Trust Fund shall be valued
at their respective fair market values on the date of valuation, as determined
by the Trustee based upon such sources of information as it may deem reliable,
including, but not limited to, stock market 

16

                                                quotations, statistical valuation
services, newspapers of general circulation, financial publications, advice
from investment counselors, brokerage firms or insurance companies, or any
combination of sources.  Prior to a
Change in Control, the Committee shall instruct the Trustee as to the value of
assets for which market values are not readily obtainable by the Trustee.  If the Committee fails to provide such
values, the Trustee may take whatever action it deems reasonable, including
employment of attorneys, appraisers, life insurance companies or other
professionals, the expense of which shall be an expense of administration of
the Trust Fund and payable by the Company and the Subsidiaries.  The Trustee may rely upon information from
the Company and the Subsidiaries, the Committee, appraisers or other sources
and shall not incur any liability for an inaccurate valuation based in good
faith upon such information.

5.4                               Delegation of  Duties.  The Company or the Committee, or both, may at
any time employ the Trustee as their agent to perform any act, keep any records
or accounts and make any computations that are required of the Company, any
Subsidiary or the Committee by this Master Trust Agreement or the Plan.  The Trustee may be compensated for such
employment and such employment shall not be deemed to be contrary to the
Trust.  Nothing done by the Trustee as
such agent shall change or increase its responsibility or liability as Trustee
hereunder.

ARTICLE 6

Resignation or Removal of Trustee

6.1                               Resignation; Removal.  The Trustee may resign at any time by written
notice to the Company, which shall be effective 60 days after receipt of such
notice unless the Company and the Trustee agree otherwise.  Prior to a Change in Control, the Trustee may
be removed by the Company on 60 days notice or upon shorter notice accepted by
the Trustee.  After a Change in Control,
the Trustee may be removed by a majority vote of the Participants, and if a
Participant is dead, his or her Beneficiaries (who collectively shall have one
vote among them and shall vote in place of such deceased Participant), on 60
days notice or upon shorter notice accepted by the Trustee.

6.2                               Successor Trustee.  If the Trustee resigns or is removed, a
successor shall be appointed by the Company, in accordance with this
Section, by the effective date of the resignation or removal under Section
6.1 above.  The successor shall be a
bank, trust company, or similar independent third party that is granted
corporate trustee powers under state or federal law.  After the occurrence of a Change in Control,
a successor Trustee may not be appointed without the consent of a majority of
the Participants.  If no such appointment
has been made within six months, the Trustee may apply to a court of competent
jurisdiction for appointment of a successor or for instructions.  All expenses of the Trustee in connection
with the proceeding shall be allowed as administrative expenses of the Trust.

6.3                               Settlement of  Accounts.  Upon resignation or removal of the Trustee
and appointment of a successor Trustee, all assets shall subsequently be
transferred to the successor Trustee. 
The transfer shall be completed within 90 days after receipt of notice
of resignation, 

17

                                                removal or transfer, unless the Company
extends the time limit.  Upon the
transfer of the assets, the successor Trustee shall succeed to all of the
powers and duties given to the Trustee in this Master Trust Agreement.  The resigning or removed Trustee shall render
to the Committee an account in the form and manner and at the time prescribed
in Section 5.2.  The approval of
such accounting and discharge of the Trustee shall be as provided in such
Section.

ARTICLE 7

Controversies, Legal Actions and Counsel

7.1                               Controversy.  If any controversy arises with respect to the
Trust, the Trustee shall take action as directed by the Committee or, in the
absence of such direction or after a Change in Control, as it deems advisable,
whether by legal proceedings, compromise or otherwise.  The Trustee may retain the funds or property
involved without liability pending settlement of the controversy.  The Trustee shall be under no obligation to
take any legal action of whatever nature unless there shall be sufficient
property in the Trust to indemnify the Trustee with respect to any expenses or
losses to which it may be subjected.

7.2                               Joinder of  Parties.  In any action or other judicial proceedings
affecting the Trust, it shall be necessary to join as parties the Trustee, the
Committee, the Company and the Subsidiaries. 
No Participant or other person shall be entitled to any notice or
service of process.  Any judgment entered
in such a proceeding or action shall be binding on all persons claiming under
the Trust.  Nothing in this Master Trust
Agreement shall be construed as to deprive a Participant or Beneficiary of his
or her right to seek adjudication of his or her rights by administrative
process or by a court of competent jurisdiction.

7.3                               Employment of  Counsel.  The Trustee may consult with legal counsel
(who, prior to a Change in Control, but not after a Change in Control, may be
counsel for the Company or any Subsidiary) and shall be fully protected with
respect to any action taken or omitted by it in good faith pursuant to the
advice of counsel.

ARTICLE 8

Insurers

8.1                               Insurer
Not a Party.  No insurer
shall be deemed to be a party to the Trust and an insurer’s obligations shall
be measured and determined solely by the terms of contracts and other
agreements executed by it.

8.2                               Authority of  Trustee.  An insurer shall accept the signature of the
Trustee to any documents or papers executed in connection with such
contracts.  The signature of the Trustee
shall be conclusive proof to the insurer that the person on whose life an application
is being made is eligible to have a contract issued on his or her life and is
eligible for a contract of the type and amount requested.

18

8.3                               Contract Ownership.  An insurer shall deal with the Trustee as the
sole and absolute owner of any insurance contracts and shall have no obligation
to inquire whether any action or failure to act on the part of the Trustee is
in accordance with or authorized by the terms of the Plan or this Master Trust
Agreement.

8.4                               Limitation of  Liability.  An insurer shall be fully discharged from any
and all liability for any action taken or any amount paid in accordance with
the direction of the Trustee and shall have no obligation to see to the proper
application of the amounts so paid.  An
insurer shall have no liability for the operation of the Trust or the Plan,
whether or not in accordance with their terms and provisions.

8.5                               Change of  Trustee.  An insurer shall be fully discharged from any
and all liability for dealing with a party or parties indicated on its records
to be the Trustee until such time as it shall receive at its home office
written notice of the appointment and qualification of a successor Trustee.

ARTICLE 9

Amendment and Termination

9.1                               Amendment.  Subject to the limitations set forth in this
Section 9.1, this Master Trust Agreement may be amended by a written instrument
executed by the Trustee and the Company. 
Notwithstanding the foregoing, no such amendment shall conflict with the
terms of the Plan or shall make the Trust revocable after it has become
irrevocable in accordance with Section 1.3 above.  Any amendment, change or modification shall
be subject to the following rules:

(a)                                  General Rule. 
Subject to Sections 9.1(b), (c) and (d) below, this Master
Trust Agreement may be amended:

(i)                                     By the Company and the Trustee, provided,
however, that if an amendment would in any way adversely affect the rights
accrued under the Plan in the Trust Fund by any Participant or Beneficiary,
each and every Participant and Beneficiary whose rights in the Trust Fund would
be adversely affected must consent to the amendment before this Master Trust
Agreement may be so amended; and

(ii)                                  By the Company and the Trustee as may be
necessary to comply with laws which would otherwise render the Trust void,
voidable or invalid in whole or in part.

(b)                                 Limitation. 
Notwithstanding that an amendment may be permissible under Section 9.1(a)
above, this Master Trust Agreement shall not be amended by an amendment that
would:

(i)                                     Cause any of the assets of the Trust to
be used for or diverted to purposes other than for the exclusive benefit of
Participants and Beneficiaries as set forth in the Plan, or payment of expenses
of the Trust, except as is required 

19

                                                to satisfy the claims of the Company’s or
a Subsidiary’s general creditors; or

(ii)                                  Be inconsistent with the terms of the
Plan, including the terms of the Plan regarding termination, amendment or
modification of the Plan.

(c)                                  Writing and Consent. 
Any amendment to this Master Trust Agreement shall be set forth in
writing and signed by the Company and the Trustee and, if consent of any
Participant or Beneficiary is required under Section 9.1(a), the
Participant or Beneficiary whose consent is required.  Any amendment may be current, retroactive or
prospective, in each case as provided therein.

(d)                                 The Company and Trustee. 
In connection with the exercise of the rights under this Section 9.1:

(i)                                     prior to a Change in Control, the Trustee
shall have no responsibility to determine whether any proposed amendment
complies with the terms and conditions set forth in Sections 9.1(a)
and (b) above and may conclusively rely on the directions of the Committee
with respect thereto, unless the Trustee has actual knowledge of a proposed
transaction or transactions that would result in a Change in Control; and

(ii)                                  after a Change in Control, the power of
the Company to amend this Master Trust Agreement shall cease, and the power to
amend that was previously held by the Company shall, instead, be exercised by a
majority of the Participants and, if a Participant is dead, his or her
Beneficiaries (who collectively shall have one vote among them and shall vote
in place of such deceased Participant), with the consent of the Trustee,
provided that such amendment otherwise complies with the requirements of
Sections 9.1(a), (b) and (c) above.

(e)                                  Taxation.  This Master
Trust Agreement shall not be amended, altered, changed or modified in a manner
that would cause the Participants and/or Beneficiaries under the Plan to be
taxed on the benefits under the Plan in a year other than the year of actual
receipt of benefits.

9.2                               Final Termination.  The Trust shall not terminate until the date
on which Participants and their Beneficiaries are no longer entitled to
benefits pursuant to the terms of the Plan and all of the expenses of the Trust
have been paid, and on such date the Trust shall terminate.  Upon termination of the Trust, any assets
remaining in the Trust shall be returned to the Company and the
Subsidiaries.  Such remaining assets
shall be paid by the Trustee to the Company and the Subsidiaries in such
amounts and in the manner instructed by the Company, whereupon the Trustee
shall be released and discharged from all obligations hereunder.  From and after the date of termination and
until final distribution of the Trust Fund, the Trustee shall continue to have
all of the powers 

20

                                                provided herein as are necessary or
expedient for the orderly liquidation and distribution of the Trust Fund.

ARTICLE
10

Miscellaneous

10.1                        Directions Following  Change  in  Control.  Despite any other provision of this Master
Trust Agreement that may be construed to the contrary, following a Change in
Control, all powers of the Committee, the Company and the Board to direct the
Trustee under this Master Trust Agreement shall terminate, and the Trustee
shall act on its own discretion to carry out the terms of this Master Trust
Agreement in accordance with the Plan and this Master Trust Agreement.

10.2                        Taxes.  The Company and the Subsidiaries shall from
time to time pay taxes of any and all kinds whatsoever that at any time are
lawfully levied or assessed upon or become payable in respect of the Trust
Fund, the income or any property forming a part thereof, or any security
transaction pertaining thereto.  To the
extent that any taxes lawfully levied or assessed upon the Trust Fund are not
paid by the Company and the Subsidiaries, the Trustee shall have the power to
pay such taxes out of the Trust Fund and shall seek reimbursement from the
Company and the Subsidiaries.  Prior to
making any payment, the Trustee may require such releases or other documents
from any lawful taxing authority as it shall deem necessary.  The Trustee shall contest the validity of
taxes in any manner deemed appropriate by the Company or its counsel, but at
the Company’s and the Subsidiaries’ expense, and only if it has received an
indemnity bond or other security satisfactory to it to pay any such
expenses.  Prior to a Change in Control,
the Trustee (i) shall not be liable for any nonpayment of tax when it
distributes an interest hereunder on directions from the Committee, and (ii)
shall have no obligation to prepare or file any tax return on behalf of the
Trust Fund, any such return being the sole responsibility of the
Committee.  The Trustee shall cooperate
with the Committee in connection with the preparation and filing of any such
return.  After a Change in Control, the
Trustee shall have such duties and obligations.

10.3                        Third Persons.  All persons dealing with the Trustee are
released from inquiring into the decisions or authority of the Trustee and from
seeing to the application of any moneys, securities or other property paid or
delivered to the Trustee.

10.4                        Nonassignability;
Nonalienation.  Benefits payable to Participants and their
Beneficiaries under this Master Trust Agreement may not be anticipated,
assigned (either at law or in equity), alienated, pledged, encumbered or
subjected to attachment, garnishment, levy, execution or other legal or
equitable process.

10.5                        The Plan.  The Trust and
the Plan are parts of a single, integrated employee benefit plan system and
shall be construed together.  In the
event of any conflict between the terms of this Master Trust Agreement and the
agreements that constitute the Plan, such conflict shall be resolved in favor
of this Master Trust Agreement.

21

10.6                        Applicable Law.  Except to the extent, if any, preempted by
ERISA, this Master Trust Agreement shall be governed by and construed in
accordance with the internal laws of the State of Delaware.  Any provision of this Master Trust Agreement
prohibited by law shall be ineffective to the extent of any such prohibition,
without invalidating the remaining provisions hereof.

10.7                        Notices and  Directions.  Whenever a notice or direction is given by
the Committee to the Trustee, it shall be in the form required by Section 2.1.  Actions by the Company shall be by the Board
or a duly authorized officer, with such actions certified to the Trustee by an
appropriately certified copy of the action taken.  The Trustee shall be protected in acting upon
any such notice, resolution, order, certificate or other communication believed
by it to be genuine and to have been signed by the proper party or parties.

10.8                        Successors and  Assigns.  This Master Trust Agreement shall be binding
upon and inure to the benefit of the Company, the Subsidiaries and the Trustee
and their respective successors and assigns. 
The term “Company” as used herein shall, as the context may require,
also refer to any successor to International Rectifier Corporation.

10.9                        Gender and  Number.  Words used in the masculine shall apply to
the feminine where applicable, and when the context requires, the plural shall
be read as the singular and the singular as the plural.

10.10                 Headings.  Headings in this Master Trust Agreement are
inserted for convenience of reference only and any conflict between such
headings and the text shall be resolved in favor of the text.

10.11                 Counterparts.  This Master Trust Agreement may be executed
in an original and any number of counterparts, each of which shall be deemed to
be an original of one and the same instrument.

10.12                 Beneficial Interest.  The Company and the Subsidiaries are the true
beneficiaries hereunder in that the payment of benefits, directly or indirectly
to or for a Participant or Beneficiary by the Trustee, is in satisfaction of
the Company’s and the Subsidiaries’ liability therefor under the Plan.  Nothing in this Master Trust Agreement shall
establish any beneficial interest in any person other than the Company and the
Subsidiaries.

10.13                 The Trust  and
Plan.  This Trust, the Plan and each Participant’s
Plan Agreement are part of and constitute a single, integrated employee benefit
plan and trust, shall be construed together as the entire agreement between the
Company, the Trustee, the Participants and the Beneficiaries with regard to the
subject matter thereof, and shall supersede all previous negotiations,
agreements and commitments with respect thereto; provided, however, that the
Trustee’s duties and responsibilities shall be determined solely by reference
to this Master Trust Agreement.

10.14                 No Legal, Tax or Accounting Services.  In no event will the Trustee have any
obligation to provide, and in no event will the Trustee provide, any legal,
tax, accounting, audit or 

22

                                                other advice to the Company with respect
to the Plan or this Trust.  The Company
acknowledges that it will rely exclusively on the advice of its accountants
and/or attorneys with respect to all legal, tax, accounting, audit and other
advice required or desired by the Company with respect to the Plan or this
Trust.  The Company acknowledges that the
Trustee has not made any representations of any kind, and will not make any
representations of any kind, concerning the legal, tax, accounting, audit or
other treatment of the Plan or this Trust.

10.15                 Trustee Not an Advisor.  The Company acknowledges that the Trustee is
not an advisor concerning or a promoter with respect to the Plan or this Trust,
but merely is a service provider offering the Trust services expressly set
forth in this Agreement.  In particular,
the Company acknowledges that the Trustee is not a joint venturer or partner
with the Company’s accountants, auditors, consultants or with any other party,
with respect to the Plan or this Trust, and that the Trustee and the Company’s
accountants, auditors and consultants at all times remain independent parties
dealing at arm’s length, and independently, with each other and with the
Company.

IN WITNESS WHEREOF
the Company and the Trustee have signed this Master Trust Agreement as of the
Effective Date.

 

	
  TRUSTEE:

  	
   

  	
   

  	
  THE
  COMPANY:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WILMINGTON TRUST COMPANY,

  	
   

  	
  INTERNATIONAL RECTIFIER
  CORPORATION,

  
	
  As Trustee 

  	
   

  	
   

  	
  a Delaware corporation 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
  By:

  	
   

  
	
  Title: 

  	
   

  	
   

  	
  Title:

  	
   

  

 

23Exhibit 10.3

 

HUMAN RESOURCES POLICY

 

Code
of Ethics

US-107

 

Inventions
& Confidential Information form

 

General

 

It is the Company’s
belief that our high ethical standards will be more effectively carried out in
practice if there is a clear expression and understanding of the kind of
conduct that is expected of all employees. The Company’s Code sets forth
established standards and procedures, which all employees are expected to
follow. It is essential that all employees read, understand and adhere to the Code.

 

While the Code outlines
many responsibilities applicable to IR employees, it is not all-inclusive and
is not designed to provide an answer to every question that may arise. If
employees have specific questions concerning activities relative to the matters
set forth in this policy or any corporate action, they should discuss their
concerns with their supervisor, senior management, the Legal staff or an HR
representative.

 

While this Code assigns
basic responsibilities to all employees for implementing the Company’s ethics
policies, all supervisors are responsible for taking actions to assure that
employees under their supervision are familiar with and understand the
standards or conduct expected of all employees.

 

Basic
Policies Applicable to All IR Employees

 

I.                                         Comply with All
Applicable Laws and Regulations

 

All employees must
comply with all applicable laws and government regulations in the United States
and in other countries where IR conducts business. Without limitation,
attention should particularly be paid to statutes and regulations in the
following areas : antitrust, anti-money laundering and export control.

 

Determining which acts
may raise legal issues may sometimes be unclear. Whenever doubt or ambiguity
exists, advice of the Legal Department should be obtained.

 

II. Fair Dealings with
Customers, Suppliers and Other Third Parties

 

Employees are expected
to be truthful, accurate and complete in all representations to customers and
suppliers. The submission of a proposal, quotation or other document or any
written statement that is false, incomplete or misleading could result in
liability for the Company, the employee and the supervisors who condone such
practices.

 

Employees are also
expected to do business only with reputable and qualified suppliers and
representatives and should follow appropriate business procedures to assure
such parties’ qualifications.

 

 

 

 

•                  Improper Payments

 

The Company does not
permit nor condone bribes, kickbacks, or any other illegal or improper
payments, transfers or receipts to any third party or any IR employee.

 

II.                                     Deal Honestly with
Governments and Governmental Officials

 

Company employees are
required to comply with U.S. and foreign laws concerning dealings with foreign
officials. In general, employees may not promise, offer or make any payments in
money, products, or services to any foreign official in exchange for, or in
order to bring about, favorable business treatment or to affect any government
decision.

 

The Foreign Corrupt
Practices Act (FCPA) specifically prohibits bribery of foreign officials
and requires all domestic companies to maintain reasonably complete and
accurate books and records which satisfy FCPA requirements. The anti-bribery
provisions of the FCPA make it a criminal offense to offer a bribe to a foreign
official, foreign political party, party official or candidate for foreign
political office in order to obtain, retain, or direct business to any person.
No Company employee shall engage in any activity, which violates the FCPA or is
likely to circumvent the Company’s systems, procedures and controls for
internal accounting. Company employees are required to seek advice from the
Legal Operation if any issues arise concerning the FCPA.

 

In addition, there are
extensive regulations and procedures that may be applicable when IR is
conducting business with a governmental entity. Employees are expected to
consult with the Legal Department when dealing directly with any government
entity.

 

IV. Deal Honestly as an
IR Employee

 

•                  Maintain Accurate
Books and Accounts

 

All Company payments and
other transactions must be properly authorized by management and be accurately
and completely recorded on the Company’s books and records in accordance with
generally accepted accounting principles and established corporate accounting
policies. It is a violation of Company policy to make false, incomplete or
misleading entries or statements. No undisclosed or unrecorded Company funds
shall be established for any purpose and no Company funds shall be placed in
any personal or non-corporate account.

 

Time records must be
filled out in a complete, accurate and timely manner. Employees are to ensure
that hours worked and costs are applied to the account for which they were in
fact incurred.

 

The employee’s signature
on a time record is his/her representation that the time recorded accurately
reflects the number of hours worked on the specified project or job order.

 

The supervisor’s
signature is a representation that the time record has been reviewed and that
steps have been taken to verify the validity of the hours reported and the
correct allocation of those hours.

 

 

 

•                  Avoid Conflicts of
Interests or Outside Interests Which Could Reflect Unfavorably On IR

 

The Company expects its
employees to devote their full working time and efforts to the Company’s
interests and to avoid any activity that might detract from or conflict with
the Company’s interests or unfavorably reflect on the Company or its
reputation. In particular, employees may not have any employment, consulting or
other business relationship with a competitor, customer or supplier of the
Company or invest in any competitor, customer, or supplier of the Company
(except for moderate holdings of publicly traded securities) unless the
employee has the advance written permission of the appropriate Company officer
after consultation with the Legal Operations.

 

In addition employees
should not (a) take for themselves personally opportunities that are discovered
through the use of corporate property, information or position; (b) use
corporate property, information, or position for personal gain; and (c) compete
with the company.  Employees, officers
and directors owe a duty to the company to advance its legitimate interests
when the opportunity to do so arises.

 

It is imperative that
any actual or potential conflicts be disclosed immediately to Company
management. Failure to disclose this conflict of interest is a violation of
Company policy and may result in disciplinary action, including termination.

 

•                  Protect Confidential
Company Information

 

Employees may not
disclose to any outside party, unless specifically authorized in writing by
management and pursuant to established policies and procedures, any non-public
business, financial, personnel, or technological information, plans or data
which they have acquired or otherwise have access to during employment at the
Company.

 

Upon termination of
employment, employees may not copy, take, or retain any documents containing
Company restricted information.

 

The prohibition against
disclosing Company restricted information extends indefinitely beyond any
period of employment. Each employee’s agreement to protect the confidentiality
of such information is considered an important condition of his or her
employment at the Company.

 

V. Follow All Published
IR Policies

 

In addition to this
policy, IR periodically issues other policies relating to specific legal or
integrity areas. These policies may focus more extensively on specific issue
areas and may include additional procedures or programs relating to such
policies. Such policies are also included within this Code and employees are
expected to fully comply with those policies as well. Other published policies
include those on Equal Employment Opportunity/Sexual Harassment, Insider
Trading, Internet Use, Environment, Health and Safety, Export/Import Compliance
and Financial Reporting.

 

Reporting
Violations and Discipline

Strict adherence to this
Code of Ethics is vital. Supervisors are responsible for taking actions to
ensure that employees adhere to the provisions of the Code and are periodically
educated about the 

 

 

provisions of this Code.

 

For clarification or
guidance on any point in the Code, please consult your supervisor, a Human
Resources representative or the Company’s Legal Department.

 

Employees are expected
to report any suspected violations of the Code or other irregularities to their
supervisor, the Human Resources Department or the Legal Department.

 

No adverse action or
retribution of any kind will be taken against an employee for reporting a
suspected violation of this Code or other suspected irregularity.

 

Violations of the Code
may result in discipline, up to and including immediate termination.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]