Document:

Exhibit
10.1

 

CONSULTING AGREEMENT

 

This
Consulting Agreement (the “Agreement”) is entered into by Dr. Jack O.
Vance (“Consultant”) and International Rectifier Corporation (the “Company”),
effective as of August 18, 2010.

 

Recitals

 

WHEREAS,
Consultant is currently a member of the Board of Directors of the Company;

 

WHEREAS,
Consultant’s term as a Director of the Company is set to expire at the Company’s
2010 annual meeting;

 

WHEREAS,
Consultant does not intend to seek reelection as a Director of the Company;

 

WHEREAS,
Company desires to retain Consultant as an independent contractor consultant,
and Consultant desires to act in such capacity, to advise, consult with, and
assist the Company on an as-needed basis; and

 

WHEREAS,
the parties intend that the relationship created and communications covered by
this Agreement, and the work product created from both, be protected to the
fullest extent permitted by law, including, but not limited to, California Code
of Civil Procedure Sections 2018.010, et seq., the work
product doctrine, and case law relating to both.

 

NOW, THEREFORE, in consideration of the
promises, and of the mutual terms, conditions and covenants set forth below,
Consultant and the Company agree as follows:

 

1

 

Agreement

 

1.             Consultant will not seek reelection as a Director of the
Company at the Company’s 2010 annual meeting.

 

2.             The Company will continue to provide Consultant with his
existing rights to indemnification under that certain Indemnification Agreement
between Company and Consultant, dated as of September 15, 2008, the
Company’s bylaws, and applicable Delaware law.

 

3.             Consultant agrees that he will provide the Company with
consulting services.  Consulting services
will be performed under the supervision of an attorney representing the Company
or the Board of Directors of the Company to the extent such services involve or
are related to any current or future actions, lawsuits, or other proceedings
that have been or may be filed based on events that occurred while Consultant
served as a Director of the Company (collectively, “Litigation”).

 

4.             The Company agrees that it will provide updates
regarding the status of Litigation to Consultant upon request, but not to
exceed once per month, unless the attorney representing the Company or the
Board of Directors of the Company deems it necessary or appropriate to update
Consultant more frequently.  The Company
also agrees that it will provide Consultant with at least three days’ written
or emailed notice of all meetings involving one or more Directors of the
Company that involve discussion of Litigation, including, but not limited to,
meetings of the Board of Directors of the Company where the status of
Litigation is scheduled to be discussed. 
The purpose of such notice is to keep Consultant informed about the
status of Litigation and to give 

 

2

 

Consultant the opportunity to raise with the Company prior to the
meeting any matter that he believes should be addressed during the
meeting.  Nothing in this Paragraph 4
will obligate the Company to disclose to Consultant information that the
Company reasonably believes to be material, non-public information.

 

5.             Except for time spent by Consultant providing deposition
or trial testimony, the Company will pay Consultant a fee of $2400 per day
(comprising at least three hours) for time spent by Consultant performing
services as described in Paragraphs 3 and 4 of this Agreement.  Consultant will waive the fee for time spent
up to three days per quarter during the first year of the Agreement, which will
be cumulative.  One year after the
effective date of this Agreement, all days that have accumulated over the past
year will expire, and Consultant will not waive any fee for time spent on
consulting services.  The Company will
also reimburse Consultant for travel, lodging, and other out-of-pocket expenses
reasonably and necessarily incurred in connection with the performance by Consultant
of all services under this Agreement, including, but not limited to, deposition
and trial testimony.  The Company will
pay Consultant’s fees and expenses on at least a quarterly basis, subject to
receipt of an invoice and, if applicable, appropriate supporting documentation.

 

6.             The Company will use its reasonable best efforts to
limit Consultant’s deposition testimony in any one action or proceeding to no
more than three days.

 

7.             In order for Consultant to carry out his
responsibilities under this Agreement, Consultant may receive (and may have
already received) communications regarding or access to legal theories,
privileged information, attorney work product, 

 

3

 

confidential information, or matters subject to a protective
order.  Consultant agrees that he will
not disclose any such information, work product, opinions, facts, data, or
other confidential information to any person or entity, including persons,
businesses, or instrumentalities of any government, to whom disclosure has not
been authorized in writing by the Company. 
Nothing in this Agreement, however, shall be construed as prohibiting
disclosure pursuant to a valid court order or subpoena provided, however, that
upon receipt of any subpoena or court order requiring the giving of testimony
or the production of documents covered by this Agreement, that Consultant shall
promptly give notice of receipt of that subpoena or court order and provide a
copy of it to the General Counsel for the Company sufficiently in advance of
the time for the giving of testimony to allow the Company to seek to quash or
modify the subpoena or court order, as appropriate.

 

8.             This Agreement shall be governed by the laws of the
State of California as to all matters, including, but not limited to, matters
of its validity, construction, effect, and performance, except that no effect
shall be given to California’s choice-of-law principles.  Any disputes arising out of, relating to, or
in connection with this Agreement or any subsequent claimed breach of this
Agreement shall be resolved in a final, binding arbitration in Los Angeles
County, California, pursuant to the version of the JAMS Streamlined Arbitration
Rules and Procedures effective July 15, 2009 or the Comprehensive
Arbitration Rules and Procedures effective July 15, 2009, whichever
is deemed more appropriate by the assigned arbitrator, and without giving
effect to Rule 3 of either set of those Rules (relating to the “Amendment
of the Rules”).

 

4

 

11.           This Agreement may not be amended or
supplemented except in a writing signed by Consultant and the Company.  Consultant and the Company each agree to
execute such additional documents or to provide such additional information as
may be reasonably requested by the other to carry out the provisions of this
Agreement.

 

12.           This Agreement may be executed in
counterparts.  A fax copy of a signature
on this Agreement shall be conclusive evidence of a signature hereto.

 

Agreed
and understood:

 

	
   

  	
   

  	
  International
  Rectifier Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dr. Jack
  O. Vance

  	
   

  	
  By:

  
	
   

  	
   

  	
  Title:

  

 

5Exhibit
10.2

 

INTERNATIONAL
RECTIFIER CORPORATION

2000 INCENTIVE PLAN

NON-EMPLOYEE
DIRECTOR RESTRICTED STOCK UNIT AWARD AGREEMENT

 

	
  Participant Name:

  	
   

  
	
   

  	
   

  
	
  Number of Stock Units:

  	
  (1)

  
	
   

  	
   

  
	
  Vesting Schedule:

  	
  100% of the Stock Units subject to the Award will vest on
  the first anniversary of Award Date(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 non-employee member of the
Board of Directors (“Non-Employee Director”) of the Corporation named above
(the “Participant”), and is delivered under the International Rectifier
Corporation 2000 Incentive Plan (Amended and Restated as of November 22,
2004) (the “Plan”).

 

W I T N E S S E T H

 

WHEREAS,
the Compensation Committee of the Board has approved, the Board has ratified,
and the Corporation has granted, effective as of the Award Date, to the
Participant with reference to services rendered to the Corporation, in the
capacity of a Non-Employee Director, 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 Corporation 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 above, subject to
earlier termination or acceleration and subject to adjustment as provided
herein.

 

1

 

4.            Continuance
of Services as a Non-Employee Director Required.  Except as otherwise provided herein, the vesting
schedule applicable to the Stock Units requires continued service as a
Non-Employee Director through the applicable vesting date as a condition to the
vesting 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 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 first anniversary of the Award Date, 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 Services as a Non-Employee Director or Change in Control.

 

(a)          Forfeiture
after Certain Events/Acceleration. 
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
providing services to the Corporation as a Non-Employee Director, regardless of
the reason for such termination of services, whether with or without cause,
voluntarily or involuntarily; provided, however, that if (i) the
Participant incurs a permanent and total disability or dies while providing
services as a Non-Employee Director(each event, a “Disability Event”), or (ii) retires
with the consent of the Board as determined by a resolution of the Board (or
with or without the consent of the Board upon written notice delivered by the
Participant to the Board if the sum of the Participant’s years of service to
the Board as a Non-Employee Director and age of the Participant is seventy-five
years or more) (each, a “Retirement Event”), then if the Stock Units subject to
the Award are not then otherwise fully vested, such Stock Units shall become
vested upon the date of such Disability Event or Retirement Event, as the case
may be.

 

2

 

Absence
from service caused by military service or other leave approved in writing by
the Committee (and approved or ratified by the Board) shall not be considered a
termination of services by the Corporation 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, 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 services as a Non-Employee Director.  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 Corporation 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 Corporation 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 Corporation 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, and hereby
delegates the right to the Corporation to, 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.

 

4

 

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 persons providing similar
services to the Corporation.  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.  The actions of the Committee taken pursuant to this Agreement shall be
subject to the approval or ratification of the Board.

 

14.         No Service Commitment by Corporation. 
Nothing contained in this Agreement or the Plan constitutes a service
commitment by the Corporation, affects the Participant’s status as a
Non-Employee Director, confers upon the Participant any right to continue to be
retained by the Corporation in any capacity, or interferes in any way with the
rights of the Board or its shareholders to remove Participant from service
under the terms and conditions of the Corporation’s Bylaws and applicable law.

 

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 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

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