Document:

Exhibit 10.1

 

[Company Letterhead]

 

August     , 2014

 

[Name]

 

Dear [    ],

 

As you know, International Rectifier Corporation (the “Company”) is proposing to enter into an Agreement and Plan of Merger with Infineon Technologies AG (“Parent”) and a wholly-owned subsidiary of Parent (the “Merger Sub”) (as amended, modified, and supplemented from time to time, the “Merger Agreement”) for the purpose of effecting a merger of the Company and the Merger Sub, with the Company as the surviving corporation in the merger (the “Merger”).

 

You hereby confirm that a “Change in Control” (as defined in your [Severance]/[Change-in-Control Severance]/[Employment] Agreement dated as of [    ] (the “Severance Agreement”)) shall not be deemed to have occurred until the consummation of a Transaction, notwithstanding the definition of “Change in Control” in your Severance Agreement. Your execution of this letter where indicated below constitutes such confirmation.  For purposes hereof, “Transaction” means the Merger or any transaction pursuant to a definitive agreement entered into by and between the Company and another party in respect of a Superior Proposal (as defined in the Merger Agreement).

 

In the event the Merger Agreement is terminated without the Merger being consummated (other than in connection with the Company entering into a definitive agreement for a Superior Proposal) or, if the Company enters into a definitive agreement for a Superior Proposal and such agreement is terminated without a Transaction being consummated, this letter shall become null and void and be of no further force and effect.

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
International   Rectifier Corporation
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Accepted   and Agreed:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
[Name]Exhibit 10.2

 

AMENDMENT NO. 1

TO

THE CHANGE-IN-CONTROL SEVERANCE AGREEMENT

 

THIS AMENDMENT NO. 1 (this “Amendment”) to the Change-In-Control Severance Agreement (the “Agreement”), dated as of January 2, 2013 by and between International Rectifier Corporation, a Delaware corporation (the “Company”), and Gary Tanner (the “Employee”), is entered into as of August 19, 2014, by and between the Company and the Employee. Capitalized terms used but not defined herein have the meanings set forth in the Agreement.

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, the Company and the Employee have previously entered into the Agreement, pursuant to which the Company desired to assure itself of both present and future continuity of management and desired to establish certain severance benefits for the Employee, applicable in the event of a Change in Control;

 

WHEREAS, pursuant to Section 8 of the Agreement, a provision of the Agreement may be modified, waived or discharged if such waiver, modification or discharge is agreed to in writing signed by the Employee and the Company; and

 

WHEREAS, the Company and the Employee desire to enter into this Amendment for the purpose of amending the Agreement as provided herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.                                      Amendment to the Agreement.  Section 2(f) of the Agreement is hereby amended by deleting it in its entirety and replacing it with the following:

 

“(f) In the event that it is determined that any payment or distribution of any type to or for the benefit of the Employee made by the Company, by any of its affiliates, by any person who acquires ownership or effective control of the Company or ownership of a substantial portion of the Company’s assets (within the meaning of section 280G of the Code, and the regulations thereunder) or by any affiliate of such person, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Total Payments”), would be subject to the excise tax imposed by section 4999 of the Code or any interest or penalties with respect to such excise tax (such excise tax, together with any such interest or penalties, are collectively referred to as the “Excise Tax”), then such Total Payments shall be reduced (but not below zero) if and to the extent that a reduction in the Total Payments would result in the Employee retaining a larger amount, on an after-tax basis (taking into account federal, state and local income taxes and the Excise Tax), than if the Employee received all of the Total Payments.  If a reduction in the Total Payments is made pursuant to the

 

Page 1 of 3

 

preceding sentence and unless the Employee shall have given prior written notice specifying a different order to the Company, any such notice consistent with the requirements of section 409A of the Code to avoid the imputation of any tax, penalty or interest thereunder, the Company shall reduce or eliminate the Total Payments by first reducing or eliminating those payments or benefits which are not payable in cash (excluding payments in equity), and then by reducing or eliminating cash payments, and then by reducing or eliminating equity payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the applicable determination made by the Accountants under this Section 2(f).  Any notice given by the Employee pursuant to the preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement governing the Employee’s rights and entitlements to any benefits or compensation.

 

All mathematical determinations and all determinations of whether any of the Total Payments are “parachute payments” (within the meaning of section 280G of the Code) that are required to be made under this Section 2(f), shall be made by a nationally recognized independent registered public accounting firm not currently retained by the Company immediately prior to the Change in Control (the “Accountants”), who shall provide their determination, together with detailed supporting calculations regarding the amount of any relevant matters, both to the Company and to the Employee within seven (7) business days of the Change in Control or Termination Date, as applicable, or such earlier time as is requested by the Company.  Such determination shall be made by the Accountants using reasonable good faith interpretations of the Code.  Any determination by the Accountants shall be binding upon the Company and the Employee, absent manifest error.  The Company shall pay the fees and costs of the Accountants which are incurred in connection with this Section 2(f).”

 

2.                                      Representations and Warranties.  Each of the Company and the Employee represent and warrant that it has the requisite power and authority to execute, deliver and perform this Amendment, that the execution, delivery and performance of this Amendment has been duly and validly authorized and approved by all necessary action, and no other action on its part is necessary to authorize the execution, delivery and performance of this Amendment.

 

3.                                      Amendment.  This Amendment may only be terminated, amended, supplemented, modified or waived in the same manner as the Agreement may be terminated, amended, supplemented, modified or waived pursuant to its terms.

 

4.                                      Successor or Assigns.  This Amendment shall be binding upon, and inure to the benefit of, the parties hereto and their respective legal representatives, successors and permitted assigns as set forth in the Agreement.

 

5.                                      Agreement Affirmed.  Except as expressly modified and superseded by this Amendment, all terms and provisions of the Agreement shall remain unchanged and in full force and effect without modification, and nothing herein shall operate as a waiver of any party’s rights, powers or privileges under the Agreement.

 

Page 2 of 3

 

6.                                      Governing Law.  The validity, interpretation, construction and performance of this Amendment shall be governed by the laws of the State of California without regard to the conflicts of laws principles thereof.

 

7.                                      Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same agreement.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first above written.

 

 

International Rectifier Corporation

 

 

	
By:
    	
/s/   Tim Bixler
    	
 
    
	
 
    	
Name:   Tim Bixler
    	
 
    
	
 
    	
Title:   Vice President, General Counsel and Secretary
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Gary Tanner
    	
 
    
	
 
    	
Name:   Gary Tanner
    	
 
    

 

Page 3 of 3Exhibit 10.3

 

[Company Letterhead]

 

August 19, 2014

 

Ilan Daskal

c/o International Rectifier Corporation

101 N. Sepulveda Blvd.

El Segundo, CA 90245

 

Dear Ilan,

 

As you know, International Rectifier Corporation (the “Company”) plans on entering into an Agreement and Plan of Merger with Infineon Technologies AG (“Parent”) and a wholly-owned subsidiary of Parent (the “Merger Sub”) (as amended, modified, and supplemented from time to time, the “Merger Agreement”) for the purpose of effecting a merger of the Company and the Merger Sub, with the Company as the surviving corporation in the merger (the “Merger”).

 

Consistent with the terms of the Merger Agreement and the related Company Disclosure Schedule, you and the Company agree that, prior to the Effective Time, you acknowledge and agree that your Severance Agreement dated as of September 19, 2008, as amended (your “Existing Agreement”), will be amended to reflect the changes set forth below.  Any capitalized terms not defined in this letter shall have the meaning ascribed to them in your Existing Agreement.

 

You and the Company acknowledge and agree that your Existing Agreement will be amended as follows:

 

1.              The amounts that would become payable to you upon a Qualifying Termination pursuant to Sections 2(b), 2(c) and 2(d) of your Existing Agreement will be determined in good faith (based on the amounts disclosed on Schedule 6.9(e) to the Merger Agreement) by and between the Company and Parent as of the Closing Date (including the value of the benefits and pro-rata bonus to be provided pursuant to Sections 2(c) and 2(d), which pro-rata bonus shall be fixed assuming a termination of your employment as of the Closing Date) (the “Payment Amount”) and such Payment Amount will be paid, subject to your execution and nonrevocation of a Release Agreement in the manner contemplated by Section 2(h) (unless your employment is terminated as a result of death), on the earliest of (i) the six month anniversary of the Closing Date (the “Retention Date”), (ii) within ten days after effectiveness of the Release Agreement if your employment is terminated by the Company without Cause, by you for Good Reason or due to Disability or (iii) the date of the termination of your employment due to death.  If your employment with the Company terminates prior to the Retention Date for any reason other than those set forth in clauses (ii) and (iii) above, you will forfeit the Payment Amount.  To the extent that you receive or forfeit the Payment Amount, you will not be eligible for any additional payments or benefits with respect to Sections 2(b), 2(c) and 2(d) of your Existing Agreement.

 

2.              Section 2(f) of your Existing Agreement will be amended to clarify that the terms and protections of such section (subject to the limitations in your Existing Agreement) will apply regardless of whether your employment with the Company is terminated.

 

Except as explicitly set forth in this letter, all other terms and conditions of your employment with the Company remain unchanged.  This letter will be governed by, and construed in accordance with, the laws of the State of California.

 

 

In the event the Merger Agreement is terminated without the Merger being consummated, this letter shall become null and void and be of no further force and effect.

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
International   Rectifier Corporation
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Tim Bixler
    	
 
    
	
Name:
    	
Tim   Bixler
    	
 
    
	
Title:
    	
Vice   President, General Counsel and Secretary
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Accepted   and Agreed:
    	
 
    
	
 
    	
 
    
	
/s/   Ilan Daskal
    	
 
    
	
Ilan   Daskal

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