Document:

exh10-3.htm

    Exhibit
10.3

    INTERNATIONAL
RECTIFIER CORPORATION

    2000
INCENTIVE PLAN

    RESTRICTED
STOCK UNIT AWARD AGREEMENT

     

    
      	
              Participant
      Name:

            	 
      	
              ___________

            
	 
      	 
      	 
      
	
              Number
      of Stock Units:

            	 
      	
              ______(1)

            
	 
      	 
      	 
      
	
              Vesting
      Schedule:

            	 
      	
              See
      vesting set forth in Exhibit A attached hereto(1)

            
	 
      	 
      	 
      
	
              Award
      Date:

            	 
      	
              ____________________________________________ _______________________________________________________________________________

            

    

     

    

    
      

    

    

    

    (1) All
share and unit numbers are subject to adjustment under the terms of the
Plan.  The Stock Units are subject to acceleration and termination prior to
vesting as provided herein.

     

    THIS AGREEMENT is among INTERNATIONAL RECTIFIER
CORPORATION, a Delaware corporation (the “Corporation”), and the employee
named above (the “Participant”), an employee of the Corporation or one of its
subsidiaries, and is delivered under the International Rectifier Corporation
2000 Incentive Plan (Amended and Restated as of November 22, 2004) (the
“Plan”).

     

    WITNESSETH

     

    WHEREAS, the Compensation and
Stock Option Committee of the Board of Directors has approved, and the
Corporation has granted, effective as of the Award Date, to the Participant with
reference to services rendered to the Company, a restricted stock unit award
under the Plan (the “Stock Unit Award” or “Award”), upon the terms and
conditions set forth herein and in the Plan.

     

    NOW THEREFORE, in
consideration of services rendered by the Participant and the mutual promises
made herein and the mutual benefits to be derived therefrom, the parties agree
as follows:

     

    1.       Defined
Terms.  Capitalized terms used herein and not otherwise defined
herein shall have the meaning assigned to such terms in the Plan.  For
purposes of this Agreement, a “Stock Unit” means a non-voting unit of
measurement which is deemed for bookkeeping purposes to be equivalent to one
outstanding share of Common Stock of the Corporation.

     

    2.       Grant. 
Subject to the terms of this Agreement and the Plan, the Corporation grants to
the Participant a Stock Unit Award with respect to an aggregate number of Stock
Units set forth above.  The Corporation acknowledges that the consideration
for the shares payable with respect to the Stock Units on the terms set forth in
this Agreement shall be the services rendered to the Company by the Participant
prior to the applicable vesting date, the fair value of which is not less than
the par value per share of the Corporation’s Common Stock.

     

    3.       Vesting. 
The Stock Units subject to the Award shall vest in installments as set forth in
the “Vesting Schedule” set forth in Exhibit A attached hereto, subject to
earlier termination or acceleration and subject to adjustment as provided
herein.

     

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    4.       Continuance
of Employment Required.  Except as otherwise provided herein, the
vesting schedule applicable to the Stock Units requires continued service
through each applicable vesting date as a condition to the vesting of the
applicable installment of the award and the rights and benefits under this
Agreement.  Service for only a portion of the vesting period, even if a
substantial portion, will not entitle the Participant to any proportionate
vesting or avoid or mitigate a termination of rights and benefits upon or
following a termination of employment or service.

     

    5.       Dividend
and Voting Rights.

     

    (a)      
Limitations
on Rights Associated with Units.  The Participant shall
have no rights as a stockholder of the Corporation, no dividend rights (except
as expressly provided in Section 5(b) hereof with respect to Dividend
Equivalents) and no voting rights with respect to the Stock Units or any shares
of Common Stock issuable in respect of such Stock Units, until shares of Common
Stock are actually issued to and held of record by the Participant.  No
adjustments will be made for dividends or other rights of a holder for which the
record date is prior to the date of issuance of the stock certificate evidencing
the shares.

     

    (b)      
Dividend
Equivalent Distributions.  No later than sixty
(60) days following each date that the Corporation pays an ordinary cash
dividend on its outstanding Common Stock (if any ordinary cash dividends are
paid), for which the related record date occurs after the Award Date and prior
to the date that this award either vests or terminates hereunder, the
Corporation shall make a cash payment to the Participant equal to, subject to
the tax withholding provisions of Section 11 hereof and Section 5.5 of
the Plan, the amount of the ordinary cash dividend paid by the Corporation on a
single share of Common Stock multiplied by the number of Stock Units subject to
this Agreement outstanding and unpaid as of such record date (“Dividend
Equivalents”).

     

    6.       Restrictions
on Transfer.  Prior to the time the
Stock Units are vested and paid, neither the Stock Units comprising the Award
nor any other rights of the Participant under this Agreement or the Plan may be
transferred, except as expressly provided in Section 1.9 of the Plan. 
No specific exception to the general transfer prohibitions set forth in
Section 1.9 of the Plan has been authorized by the Committee.

     

    7.       Timing
and Manner of Payment with Respect to Stock Units. Stock Units subject to
this Agreement will be paid in an equivalent number of shares of Common Stock
within 60 days after the vesting of such Stock Units in accordance with the
terms hereof, subject to adjustment as contemplated by Section 9 and
subject to earlier payment pursuant to Section 10.  The Participant or
other person entitled under the Plan to receive the shares shall deliver to the
Corporation any representations or other documents or assurances required
pursuant to Section 5.4 of the Plan.

     

    8.       Effect of
Termination of Employment or Change in Control.

     

    (a)      
Forfeiture
after Certain Events.  The Participant’s Stock Units shall be
extinguished to the extent such Stock Units have not become vested upon the date
the Participant is no longer employed by the Corporation or one of its
Subsidiaries, regardless of the reason for such termination of employment,
whether with or without cause, voluntarily or involuntarily; provided, however,
that if the Participant incurs a permanent and total disability or dies while
employed by the Corporation or a Subsidiary, or retires with the consent of the
Corporation or a Subsidiary from employment by the Corporation or a Subsidiary,
then if the Stock Units subject to the Award are not then otherwise fully vested
the next scheduled vesting installment of such Stock Units shall become vested
upon such termination of employment.  If the Participant is

     

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    employed
by an entity that is a Subsidiary and such entity ceases to be a Subsidiary,
such event shall be deemed to be a termination of employment of the Participant
unless the Participant otherwise continues following such event to be employed
by the Corporation or another Subsidiary that continues as such following the
event.  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 Corporation or a Subsidiary for purposes of
this Section 8.

     

    (b)      
Termination
of Stock Units.  If any Stock Units are extinguished hereunder, such
unvested, extinguished Stock Units, without payment of any consideration by the
Corporation or any Subsidiary, shall automatically terminate and be cancelled
without any other action by the Participant, or the Participant’s beneficiary,
as the case may be.

     

    (c)      
Acceleration
Upon Change in Control.  Upon the occurrence of (or, as the
circumstances may require, immediately prior to) a Change in Control (as defined
below), then any portion of the Stock Units subject to the Award that have not
previously vested or terminated shall thereupon vest, unless prior to the Change
in Control the Committee determines that benefits under this or other awards
will not accelerate upon occurrence of the Change in Control or determines that
only certain or limited benefits under some or all awards will be accelerated
and the extent to which they will be accelerated, and/or establishes a different
time in respect of the Change in Control for such acceleration.  The
Committee may accord the Participant a right to refuse any acceleration pursuant
to this Agreement, in such circumstances as the Committee may approve.  For
purposes of this Agreement, “Change in Control” means any of the
following:  (a) approval by the stockholders of the Corporation of the
dissolution or liquidation of the Corporation; (b) approval by the
stockholders of the Corporation of an agreement to merge or consolidate, or
otherwise reorganize, with or into one or more entities that are not
majority-owned subsidiaries of the Corporation, as a result of which 50% or less
of the outstanding voting securities of the surviving or resulting entity are,
or are to be, owned by former stockholders of the Corporation; (c) approval
by the stockholders of the Corporation of the sale or transfer of substantially
all of the Corporation’s business and/or assets to a person or entity that is
not a Subsidiary of the Corporation; or (d) the occurrence of any of the
following: (i) any “person,” alone or together with all “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 Corporation (the terms “person,” “affiliates,” “associates” and “beneficial
owner” are used as such terms are used in the Securities Exchange Act of 1934
and the General Rules and Regulations thereunder); provided, however, that
“Change in Control” shall not be deemed to have occurred if such “person” is the
Corporation, any Subsidiary or any employee benefit plan or employee stock plan
of the Corporation or of any Subsidiary, 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 (ii) 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
Corporation’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.

     

    9.       Adjustments
in Case of Changes in Common Stock.  The Committee may adjust the
number of Stock Units subject to this Agreement as provided under
Section 5.2 of the Plan.  Upon the occurrence of an Event (as defined
below), the Committee shall make adjustments as it deems appropriate in the
number and kind of securities or other consideration that may become payable
with respect to the Award.  If any adjustment shall be made under
Section 5.2 of the Plan or an Event shall occur and the Stock Unit Award
has not been fully

     

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    vested
and paid upon such Event or prior thereto, the Stock Unit Award may become
payable in securities or other consideration (the “Restricted Property”) rather
than in the Common Stock otherwise payable in respect of the Stock Unit
Award.  Such Restricted Property shall become payable at the times and in
such proportions set forth in Section 7 above or such earlier time as the
Committee may authorize pursuant to Section 10 below.  Notwithstanding
the foregoing, to the extent that the Restricted Property includes any cash, the
commitment hereunder shall become an unsecured promise to pay an amount equal to
such cash (with earnings attributable thereto as if such amount had been
invested, pursuant to policies established by the Committee, in interest
bearing, FDIC insured (subject to applicable insurance limits) deposits of a
depository institution selected by the Committee) at such times and in such
proportions as the Stock Unit Award becomes payable in accordance with
Section 7 above.  Notwithstanding the foregoing, the Stock Unit Award
and any Common Stock or other securities or property payable in respect of the
Stock Unit Award shall continue to be subject to proportionate and equitable
adjustments (if any) under Section 5.2 of the Plan consistent with the
effect of such events on stockholders generally, as the Committee determines to
be necessary or appropriate, and in the number, kind and/or character of shares
of Common Stock or other securities, property and/or rights payable in respect
of Stock Units granted under the Plan.  All rights of the Participant
hereunder are subject to those adjustments.  For purposes of this
Agreement, “Event” means a liquidation, dissolution, Change in Control, merger,
consolidation, or other combination or reorganization, or a recapitalization,
reclassification, extraordinary dividend or other distribution (including a
split up or a spin off of the Corporation or any significant Subsidiary), or a
sale or other distribution of substantially all the assets of the Corporation as
an entirety.

     

    10.     Possible
Early Settlement of Award.  The Committee retains the right to
accelerate the vesting and payment date of the outstanding and previously
unvested Stock Units subject to the Award in connection with an Event, a Change
in Control, or the termination of the Participant’s employment with the
Corporation or one of its Subsidiaries.  This Section 10 is not
intended to prevent vesting of the Award pursuant to
Section 8(c) above or an adjustment to the Award as provided in the
Plan or Section 9 above.

     

    11.     Tax
Withholding.  Upon payment of Dividend Equivalents and/or the
distribution of shares of Common Stock in respect of the Stock Units, the entity
within the Company last employing the Participant shall have the right at its
option to (a) require the Participant (or the Participant’s beneficiary, as
the case may be) to pay or provide for payment in cash of the amount of any
taxes which the Company may be required to withhold with respect to such payment
or distribution or (b) deduct from any amount payable to the Participant
the amount of any taxes which the Company may be required to withhold with
respect to such payment or distribution.  In any case where a tax is
required to be withheld in connection with the delivery of shares of Common
Stock under this Agreement, the Committee may, but is not required to, reduce
the number of shares to be delivered by (or otherwise reacquire) the appropriate
number of shares valued at their then Fair Market Value, to satisfy such
withholding obligation.

     

    12.     Notices. 
Any notice to be given under the terms of this Agreement shall be in writing and
addressed to the Corporation at its principal office located at 101 N. Sepulveda
Boulevard, El Segundo, California 90245, to the attention of the Secretary and
to the Participant at the address given beneath the Participant’s signature
hereto, or at such other address as either party may hereafter designate in
writing to the other.

     

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    13.     Plan and
Program.  The Award and all rights of the Participant with respect
thereto are subject to, and the Participant agrees to be bound by, all of the
terms and conditions of the provisions of the Plan, incorporated herein by
reference, to the extent such provisions are applicable to Awards granted to
employees.  The Participant 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 rights in the
Participant unless such rights are expressly set forth herein or are otherwise
in the sole discretion of the Committee so conferred by appropriate action of
the Committee under the Plan after the date hereof.  If there is any
conflict or inconsistency between the terms and conditions of this Agreement and
of the Plan, the terms and conditions of the Plan shall govern.

     

    14.     No
Service Commitment by Company.  Nothing contained in this Agreement
or the Plan constitutes an employment commitment by the Corporation or any of
its Subsidiaries, affects the Participant’s status as an employee at-will who is
subject to termination without cause, confers upon the Participant any right to
remain employed by the Corporation or any Subsidiary, interferes in any way with
the right of the Corporation or any Subsidiary at any time to terminate such
employment, or affects the right of the Corporation or any Subsidiary to
increase or decrease the Participant’s other compensation.

     

    15.     Limitation
on Participant’s Rights.  Participation in the
Plan confers no rights or interests other than as herein provided.  This
Agreement creates only a contractual obligation on the part of the Corporation
as to amounts payable and shall not be construed as creating a trust.  The
Plan, in and of itself, has no assets.  The Participant shall have only the
rights of a general unsecured creditor of the Corporation (or applicable
Subsidiary) with respect to amounts credited and benefits payable, if any, with
respect to the Stock Units, and rights no greater than the right to receive the
Common Stock (subject to adjustments) as a general unsecured creditor with
respect to Stock Units, as and when payable hereunder.

     

    IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first above written. 
By the Participant’s execution of this Agreement, the Participant agrees to the
terms and conditions hereof and of the Plan.

     

    
      	
              INTERNATIONAL
      RECTIFIER

            	 
      	
              PARTICIPANT

            	 
      
	
              CORPORATION, a Delaware
      corporation

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	 
      	 
      	 
      	 
      
	 
      	 
      	
              Signature

            	 
      
	
              Print
      Name:

            	 
      	 
      	 
      	 
      
	 
      	 
      	
              Address

            	 
      
	
              Its:

            	 
      	 
      	 
      	 
      
	 
      	 
      	
              City,
      State, Zip Code

            	 
      
	 
      	 
      	 
      	 
      	 
      

    

     

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    EXHIBIT
A

     

    PERFORMANCE GOALS -
VESTING

    

    

    100% of
the total number of Stock Units subject to the Award are eligible to become
vested on the third business day following the filing of the Corporation’s
unaudited financial statements with the Securities and Exchange
Commission  (“SEC”) for the Corporation’s first quarter  of
its fiscal year 2011 (“Vesting Date”), based on the Corporation’s achievement of
its “Corporate Performance Goal” (as defined below) and the participant’s
achievement of his or her “Individual Performance Goals” (as defined
below).

     

    If the
Individual Performance Goals are achieved, then the Stock Units subject to the
Award and set forth in the table below as “Applicable Stock Units” for the
respective Individual Performance Goals that are achieved shall vest upon the
Vesting Date, and no vesting shall take place as a result of any achievement of
the Corporate Performance Goal.

    

    If the
Corporate Performance Goal is achieved but no Individual Performance Goals are
achieved, then 50% of the total Stock Units subject to the Award shall vest upon
the Vesting Date.

    

    Notwithstanding
the foregoing, if neither the Corporate Performance Goal nor the Individual
Performance Goal is achieved, then no Stock Units subject to the Award shall
become vested.

    

    Any Stock Units that are not vested on
the Vesting Date shall terminate and be forfeited.

    

               Individual Performance
Goals:

    

    _____________________________________________________________   Applicable Stock Units:
_________.

    

    

    Corporate
Performance Goal: The Corporation’s
achievement of a level of earnings before interest and taxes (“EBIT”), exclusive
of any extraordinary and one-time items as so identified and designated by the
Committee, reported in the Corporation’s financial statements filed with the
SEC, greater than _______  in each of two consecutive quarters during
the period between the beginning of the Corporation’s second quarter of its
fiscal year 2010 and the end of the Corporation’s first quarter of its fiscal
year 2011.

    

    Whether
and the extent to which any “Corporate Performance Goal” or “Individual
Performance Goal” has been achieved will be determined by the Committee (or, to
the extent consistent with Section 162(m) of the Code, its delegate),
and no vesting shall be deemed to have occurred absent such a determination by
the Committee (or such a delegate as the case may be). The “Corporate
Performance Goal” and “Individual Performance Goal” set forth above shall be
proportionally adjusted by the Committee (in its sole discretion) as may be
necessary to mitigate the unbudgeted impact of material, unusual or nonrecurring
gains and losses, and to make equitable adjustments for other extraordinary
events not foreseen at the time the “Corporate Performance Goal” or “Individual
Performance Goal” were established.  Notwithstanding the foregoing,
any vesting of Stock Units subject to the Award is conditioned upon the
participant being an employee of the Corporation, or one of its directly or
indirectly owned subsidiaries, on the Vesting Date.exh10-4.htm

    Exhibit
10.4

    INTERNATIONAL
RECTIFIER CORPORATION

    2000
INCENTIVE PLAN

    RESTRICTED
STOCK UNIT AWARD AGREEMENT

     

    
      	
              Participant
      Name:

            	 
      	 
      
	 
      	 
      	 
      
	
              Number
      of Stock Units:

            	 
      	
              (1)

            
	 
      	 
      	 
      
	
              Vesting
      Schedule:

            	 
      	
              See
      vesting set forth in Exhibit A attached hereto(1)

            
	 
      	 
      	 
      
	
              Award
      Date:

            	 
      	 
      

    

     

    

    
      

    

    

    

    (1) All
share and unit numbers are subject to adjustment under the terms of the
Plan.  The Stock Units are subject to acceleration and termination prior to
vesting as provided herein.

     

    THIS AGREEMENT is among INTERNATIONAL RECTIFIER
CORPORATION, a Delaware corporation (the “Corporation”), and the employee
named above (the “Participant”), an employee of the Corporation or one of its
subsidiaries, and is delivered under the International Rectifier Corporation
2000 Incentive Plan (Amended and Restated as of November 22, 2004) (the
“Plan”).

     

    WITNESSETH

     

    WHEREAS, the Compensation and
Stock Option Committee of the Board of Directors has approved, and the
Corporation has granted, effective as of the Award Date, to the Participant with
reference to services rendered to the Company, a restricted stock unit award
under the Plan (the “Stock Unit Award” or “Award”), upon the terms and
conditions set forth herein and in the Plan.

     

    NOW THEREFORE, in
consideration of services rendered by the Participant and the mutual promises
made herein and the mutual benefits to be derived therefrom, the parties agree
as follows:

     

    1.       Defined
Terms.  Capitalized terms used herein and not otherwise defined
herein shall have the meaning assigned to such terms in the Plan.  For
purposes of this Agreement, a “Stock Unit” means a non-voting unit of
measurement which is deemed for bookkeeping purposes to be equivalent to one
outstanding share of Common Stock of the Corporation.

     

    2.       Grant. 
Subject to the terms of this Agreement and the Plan, the Corporation grants to
the Participant a Stock Unit Award with respect to an aggregate number of Stock
Units set forth above.  The Corporation acknowledges that the consideration
for the shares payable with respect to the Stock Units on the terms set forth in
this Agreement shall be the services rendered to the Company by the Participant
prior to the applicable vesting date, the fair value of which is not less than
the par value per share of the Corporation’s Common Stock.

     

    3.       Vesting. 
The Stock Units subject to the Award shall vest in installments as set forth in
the “Vesting Schedule” set forth in Exhibit A attached hereto, subject to
earlier termination or acceleration and subject to adjustment as provided
herein.

     

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    4.       Continuance
of Employment Required.  Except as otherwise provided herein, the
vesting schedule applicable to the Stock Units requires continued service
through each applicable vesting date as a condition to the vesting of the
applicable installment of the award and the rights and benefits under this
Agreement.  Service for only a portion of the vesting period, even if a
substantial portion, will not entitle the Participant to any proportionate
vesting or avoid or mitigate a termination of rights and benefits upon or
following a termination of employment or service.

     

    5.       Dividend
and Voting Rights.

     

    (a)      
Limitations
on Rights Associated with Units.  The Participant shall
have no rights as a stockholder of the Corporation, no dividend rights (except
as expressly provided in Section 5(b) hereof with respect to Dividend
Equivalents) and no voting rights with respect to the Stock Units or any shares
of Common Stock issuable in respect of such Stock Units, until shares of Common
Stock are actually issued to and held of record by the Participant.  No
adjustments will be made for dividends or other rights of a holder for which the
record date is prior to the date of issuance of the stock certificate evidencing
the shares.

     

    (b)      
Dividend
Equivalent Distributions.  No later than sixty
(60) days following each date that the Corporation pays an ordinary cash
dividend on its outstanding Common Stock (if any ordinary cash dividends are
paid), for which the related record date occurs after the Award Date and prior
to the date that this award either vests or terminates hereunder, the
Corporation shall make a cash payment to the Participant equal to, subject to
the tax withholding provisions of Section 11 hereof and Section 5.5 of
the Plan, the amount of the ordinary cash dividend paid by the Corporation on a
single share of Common Stock multiplied by the number of Stock Units subject to
this Agreement outstanding and unpaid as of such record date (“Dividend
Equivalents”).

     

    6.       Restrictions
on Transfer.  Prior to the time the
Stock Units are vested and paid, neither the Stock Units comprising the Award
nor any other rights of the Participant under this Agreement or the Plan may be
transferred, except as expressly provided in Section 1.9 of the Plan. 
No specific exception to the general transfer prohibitions set forth in
Section 1.9 of the Plan has been authorized by the Committee.

     

    7.       Timing
and Manner of Payment with Respect to Stock Units. Stock Units subject to
this Agreement will be paid in an equivalent number of shares of Common Stock
within 60 days after the vesting of such Stock Units in accordance with the
terms hereof, subject to adjustment as contemplated by Section 9 and
subject to earlier payment pursuant to Section 10.  The Participant or
other person entitled under the Plan to receive the shares shall deliver to the
Corporation any representations or other documents or assurances required
pursuant to Section 5.4 of the Plan.

     

    8.       Effect of
Termination of Employment or Change in Control.

     

    (a)      
Forfeiture
after Certain Events.  The Participant’s Stock Units shall be
extinguished to the extent such Stock Units have not become vested upon the date
the Participant is no longer employed by the Corporation or one of its
Subsidiaries, regardless of the reason for such termination of employment,
whether with or without cause, voluntarily or involuntarily; provided, however,
that if the Participant incurs a permanent and total disability or dies while
employed by the Corporation or a Subsidiary, or retires with the consent of the
Corporation or a Subsidiary from employment by the Corporation or a Subsidiary,
then if the Stock Units subject to the Award are not then otherwise fully vested
the next scheduled vesting installment of such Stock Units shall become vested
upon such termination of employment.  If the Participant is

     

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    employed
by an entity that is a Subsidiary and such entity ceases to be a Subsidiary,
such event shall be deemed to be a termination of employment of the Participant
unless the Participant otherwise continues following such event to be employed
by the Corporation or another Subsidiary that continues as such following the
event.  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 Corporation or a Subsidiary for purposes of
this Section 8.

     

    (b)      
Termination
of Stock Units.  If any Stock Units are extinguished hereunder, such
unvested, extinguished Stock Units, without payment of any consideration by the
Corporation or any Subsidiary, shall automatically terminate and be cancelled
without any other action by the Participant, or the Participant’s beneficiary,
as the case may be.

     

    (c)      
Acceleration
Upon Change in Control.  Upon the occurrence of (or, as the
circumstances may require, immediately prior to) a Change in Control (as defined
below), then any portion of the Stock Units subject to the Award that have not
previously vested or terminated shall thereupon vest, unless prior to the Change
in Control the Committee determines that benefits under this or other awards
will not accelerate upon occurrence of the Change in Control or determines that
only certain or limited benefits under some or all awards will be accelerated
and the extent to which they will be accelerated, and/or establishes a different
time in respect of the Change in Control for such acceleration.  The
Committee may accord the Participant a right to refuse any acceleration pursuant
to this Agreement, in such circumstances as the Committee may approve.  For
purposes of this Agreement, “Change in Control” means any of the
following:  (a) approval by the stockholders of the Corporation of the
dissolution or liquidation of the Corporation; (b) approval by the
stockholders of the Corporation of an agreement to merge or consolidate, or
otherwise reorganize, with or into one or more entities that are not
majority-owned subsidiaries of the Corporation, as a result of which 50% or less
of the outstanding voting securities of the surviving or resulting entity are,
or are to be, owned by former stockholders of the Corporation; (c) approval
by the stockholders of the Corporation of the sale or transfer of substantially
all of the Corporation’s business and/or assets to a person or entity that is
not a Subsidiary of the Corporation; or (d) the occurrence of any of the
following: (i) any “person,” alone or together with all “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 Corporation (the terms “person,” “affiliates,” “associates” and “beneficial
owner” are used as such terms are used in the Securities Exchange Act of 1934
and the General Rules and Regulations thereunder); provided, however, that
“Change in Control” shall not be deemed to have occurred if such “person” is the
Corporation, any Subsidiary or any employee benefit plan or employee stock plan
of the Corporation or of any Subsidiary, 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 (ii) 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
Corporation’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.

     

    9.       Adjustments
in Case of Changes in Common Stock.  The Committee may adjust the
number of Stock Units subject to this Agreement as provided under
Section 5.2 of the Plan.  Upon the occurrence of an Event (as defined
below), the Committee shall make adjustments as it deems appropriate in the
number and kind of securities or other consideration that may become payable
with respect to the Award.  If any adjustment shall be made under
Section 5.2 of the Plan or an Event shall occur and the Stock Unit Award
has not been fully

     

    3

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

     

    vested
and paid upon such Event or prior thereto, the Stock Unit Award may become
payable in securities or other consideration (the “Restricted Property”) rather
than in the Common Stock otherwise payable in respect of the Stock Unit
Award.  Such Restricted Property shall become payable at the times and in
such proportions set forth in Section 7 above or such earlier time as the
Committee may authorize pursuant to Section 10 below.  Notwithstanding
the foregoing, to the extent that the Restricted Property includes any cash, the
commitment hereunder shall become an unsecured promise to pay an amount equal to
such cash (with earnings attributable thereto as if such amount had been
invested, pursuant to policies established by the Committee, in interest
bearing, FDIC insured (subject to applicable insurance limits) deposits of a
depository institution selected by the Committee) at such times and in such
proportions as the Stock Unit Award becomes payable in accordance with
Section 7 above.  Notwithstanding the foregoing, the Stock Unit Award
and any Common Stock or other securities or property payable in respect of the
Stock Unit Award shall continue to be subject to proportionate and equitable
adjustments (if any) under Section 5.2 of the Plan consistent with the
effect of such events on stockholders generally, as the Committee determines to
be necessary or appropriate, and in the number, kind and/or character of shares
of Common Stock or other securities, property and/or rights payable in respect
of Stock Units granted under the Plan.  All rights of the Participant
hereunder are subject to those adjustments.  For purposes of this
Agreement, “Event” means a liquidation, dissolution, Change in Control, merger,
consolidation, or other combination or reorganization, or a recapitalization,
reclassification, extraordinary dividend or other distribution (including a
split up or a spin off of the Corporation or any significant Subsidiary), or a
sale or other distribution of substantially all the assets of the Corporation as
an entirety.

     

    10.     Possible
Early Settlement of Award.  The Committee retains the right to
accelerate the vesting and payment date of the outstanding and previously
unvested Stock Units subject to the Award in connection with an Event, a Change
in Control, or the termination of the Participant’s employment with the
Corporation or one of its Subsidiaries.  This Section 10 is not
intended to prevent vesting of the Award pursuant to
Section 8(c) above or an adjustment to the Award as provided in the
Plan or Section 9 above.

     

    11.     Tax
Withholding.  Upon payment of Dividend Equivalents and/or the
distribution of shares of Common Stock in respect of the Stock Units, the entity
within the Company last employing the Participant shall have the right at its
option to (a) require the Participant (or the Participant’s beneficiary, as
the case may be) to pay or provide for payment in cash of the amount of any
taxes which the Company may be required to withhold with respect to such payment
or distribution or (b) deduct from any amount payable to the Participant
the amount of any taxes which the Company may be required to withhold with
respect to such payment or distribution.  In any case where a tax is
required to be withheld in connection with the delivery of shares of Common
Stock under this Agreement, the Committee may, but is not required to, reduce
the number of shares to be delivered by (or otherwise reacquire) the appropriate
number of shares valued at their then Fair Market Value, to satisfy such
withholding obligation.

     

    12.     Notices. 
Any notice to be given under the terms of this Agreement shall be in writing and
addressed to the Corporation at its principal office located at 101 N. Sepulveda
Boulevard, El Segundo, California 90245, to the attention of the Secretary and
to the Participant at the address given beneath the Participant’s signature
hereto, or at such other address as either party may hereafter designate in
writing to the other.

     

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    13.     Plan and
Program.  The Award and all rights of the Participant with respect
thereto are subject to, and the Participant agrees to be bound by, all of the
terms and conditions of the provisions of the Plan, incorporated herein by
reference, to the extent such provisions are applicable to Awards granted to
employees.  The Participant 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 rights in the
Participant unless such rights are expressly set forth herein or are otherwise
in the sole discretion of the Committee so conferred by appropriate action of
the Committee under the Plan after the date hereof.  If there is any
conflict or inconsistency between the terms and conditions of this Agreement and
of the Plan, the terms and conditions of the Plan shall govern.

     

    14.     No
Service Commitment by Company.  Nothing contained in this Agreement
or the Plan constitutes an employment commitment by the Corporation or any of
its Subsidiaries, affects the Participant’s status as an employee at-will who is
subject to termination without cause, confers upon the Participant any right to
remain employed by the Corporation or any Subsidiary, interferes in any way with
the right of the Corporation or any Subsidiary at any time to terminate such
employment, or affects the right of the Corporation or any Subsidiary to
increase or decrease the Participant’s other compensation.

     

    15.     Limitation
on Participant’s Rights.  Participation in the
Plan confers no rights or interests other than as herein provided.  This
Agreement creates only a contractual obligation on the part of the Corporation
as to amounts payable and shall not be construed as creating a trust.  The
Plan, in and of itself, has no assets.  The Participant shall have only the
rights of a general unsecured creditor of the Corporation (or applicable
Subsidiary) with respect to amounts credited and benefits payable, if any, with
respect to the Stock Units, and rights no greater than the right to receive the
Common Stock (subject to adjustments) as a general unsecured creditor with
respect to Stock Units, as and when payable hereunder.

     

    IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first above written. 
By the Participant’s execution of this Agreement, the Participant agrees to the
terms and conditions hereof and of the Plan.

     

    
      	
              INTERNATIONAL
      RECTIFIER

            	 
      	
              PARTICIPANT

            
	
              CORPORATION, a Delaware
      corporation

            	 
      	 
      
	 
      	 
      	 
      
	
              By:

            	 
      	 
      	 
      
	 
      	 
      	
              Signature

            
	
              Print
      Name:

            	 
      	 
      	 
      
	 
      	 
      	
              Address

            
	
              Its:

            	 
      	 
      	 
      
	 
      	 
      	
              City,
      State, Zip Code

            
	 
      	 
      	 
      	 
      	 
      

    

     

    5

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

     

    EXHIBIT
A

     

    PERFORMANCE GOALS -
VESTING

     

    100% of
the total number of Stock Units subject to the Award are eligible to become
vested on the third business day following the filing of the Corporation’s
unaudited financial statements with the Securities and Exchange Commission 
(“SEC”) for the Corporation’s first quarter of its fiscal year 2011 (“Vesting
Date”), based on the Corporation’s achievement of its “Corporate Performance
Goal” (as defined below) and the participant’s achievement of his “Individual
Performance Goals” (as defined below).

     

    In order
for any of the Stock Units to be become vested, the Corporation must achieve the
goal (the “Corporate Performance Goal”) of a level of earnings before interest
and taxes (“EBIT”), exclusive of any extraordinary and one-time items, as so
identified and designated by the Committee, reported in the Corporation’s
financial statements filed with the SEC, greater than                         in
each of two consecutive quarters during the period between the beginning of the
Corporation’s second quarter of its fiscal year 2010 and the end of  the
Corporation’s first quarter of its fiscal year 2011.

     

    If the
Corporate Performance Goal is achieved, then the number of shares of Stock Units
subject to the Award that shall become vested shall depend on the achievement of
the participant’s individual performance goal(s) (“Individual Performance
Goals”) listed in the table below.

     

    If the
Corporate Performance Goal is achieved but no Individual Performance Goals are
achieved, then 50% of the Stock Units subject to the Award shall vest upon the
Vesting Date.

     

    If both
the Corporate Performance Goal and one or more Individual Performance Goals are
achieved, then in addition to the Stock Units that shall vest as a result of the
achievement of the Corporate Performance Goal, the Stock Units subject to the
Award and set forth in the table below as “Applicable Stock Units” for the
Individual Performance Goals that have been achieved shall vest upon the Vesting
Date.

     

    Notwithstanding
the foregoing, if the Corporate Performance Goal is not achieved, then no shares
of Stock units subject to the Award shall become vested.

     

    Any Stock
Units that are not vested on the Vesting Date shall terminate and be
forfeited.

     

    Individual Performance
Goals:

     

    
      	 
      	 
      	
              Applicable
      Stock Units:

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
              Applicable
      Stock Units:

            	 
      	 
      

    

     

    Whether
and the extent to which any “Corporate Performance Goal” or “Individual
Performance Goal” has been achieved will be determined by the Committee (or, to
the extent consistent with Section 162(m) of the Code, its delegate),
and no vesting shall be deemed to have occurred absent such a determination by
the Committee (or such a delegate as the case may be). The “Corporate
Performance Goal” and “Individual Performance Goal” set forth above shall be
proportionally adjusted by the Committee (in its sole discretion) as may be
necessary to mitigate the unbudgeted impact of material, unusual or nonrecurring
gains and losses, and to make equitable adjustments for other extraordinary
events not foreseen at the time the “Corporate Performance Goal” or “Individual
Performance Goal” were established.  Notwithstanding the foregoing, any
vesting of Stock Units subject to the Award is conditioned upon the participant
being an employee of the Corporation, or one of its directly or indirectly owned
subsidiaries, on the Vesting Date.

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