Employee Stock Purchase Plan (ESPP)

The Company has a compensatory employee stock purchase plan ("ESPP"). Employee voluntary contributions can range from two percent (2%) to ten percent (10%) of the employee's base compensation. Applications for enrollment are accepted semi-annually in January and July. IR stock is purchased at the end of a six (6) month subscription period at 85% of the lowest of two (2) market prices during the subscription period.

Stock Option Program

Employees may be eligible to receive options based on their performance and anticipated future contributions. Options are issued with an exercise price at least equal to the fair value of the Company's common stock at the date of grant ("at market"). Option grants become exercisable in annual installments at 25% beginning on the first anniversary date, and expire after seven years.

Onsite Credit Union

Employees as well as their immediate families may become members of the International Rectifier Federal Credit Union. In addition to the standard services offered through Credit Unions, IRFCU offers the following:

• Group Legal Service
• Notary Service by appointment
• Mechanical Breakdown Insurance (MBI)
• Loan protection insurance
• Single and joint credit life insurance
• Credit Disability insurance is available on all loans to protect against missed payments due to accident or sickness.
• American Express Traveler Checques are available at no cost to members.
• Travel and entertainment brochures
• Kelly Blue Book information on new and used automobiles, trucks and RVs
• GAP auto loan deficiency insurance

International Rectifier 401(k) Plan

Participation is open to all employees of International Rectifier. Participants may defer between 2% and 40% (in whole percents) of earnings on a pre-tax basis, subject to the IRS maximum. Additionally, employees may defer between 2% and 40% on an after tax basis up to a maximum of $11,000. Currently, IR matches 150% of your first $200 in contributions and 50% of the next $5,400 in contributions, subject to an annual maximum of $3,000.

Flexible Spending Accounts

This program allows the employee to pay for certain types of un-reimbursed health care and dependent care expenses with pre-tax dollars, thereby reducing taxes and increasing disposable income.

Group Legal Services / Auto / Home Insurance

Provides employees with the ability to purchase Auto, Home and/or Group Legal Services insurance plans through payroll deductions. Cost of the plan for each line of coverage differs depending on each individual's circumstances, including state of residence. Eligibility, enrollment and product information are Web based.

Employee Referral Program

International Rectifier recognizes the need for qualified and experienced candidates. The Employee Referral Program will reward employees with generous fees for any qualified candidates that are hired based on an employee referral.