EXHIBIT 10(r)(3)
CNA INSURANCE COMPANIES
CNA Plaza.
Chicago, IL 60685
DECLARATIONS EXCESS INSURANCE POLICY
NOTICE
THIS IS A "CLAIMS-MADE" POLICY AND, SUBJECT TO ITS PROVISIONS,
APPLIES ONLY TO ANY CLAIM FIRST MADE AGAINST THE INSUREDS DURING
THE POLICY PERIOD. NO COVERAGE EXISTS FOR ANY CLAIM FIRST MADE
AFTER THE END OF THE POLICY PERIOD UNLESS, AND TO THE EXTENT, THE
EXTENDED REPORTING PERIOD APPLIES. THE LIMIT OF LIABILITY SHALL BE
REDUCED BY AMOUNTS INCURRED AS DEFENSE COSTS.
ACCOUNT NUMBER 45386
COVERAGE PROVIDED BY CONTINENTAL CASUALTY COMPANY
POLICY NUMBER DOX 600028634
AGENCY 910 701425
NAMED ENTITY AND PRINCIPAL ADDRESS
Item 1.
RICHARDSON ELECTRONICS, LTD.
40W267 KESLINGER RD.
LAFOX, IL 60147
Attn: LEONARD R. PRANGE
AGENT
NORTHBROOK RISK MANAGERS INC
ROBINA K. FISHER
3100 DUNDEE RD. STE. 205
P.O. BOX 4410 NORTHBROOK, IL 62624
(708) 564-4350
Item 2. Policy Period:
May 31, 1994 to May 31, 1995
12:01 a.m. Standard Time at the Principal Address stated in Item 1.
Item 3. Limit of Liability (Inclusive of Defense Costs):
$5,000,000 Maximum aggregate Limit of Liability for the Policy
Period.
Item 4. Schedule of Underlying Insurance:
A. Primary Policy:
Name of Carrier Federal Insurance Company
Policy No. 8125-64-60C
Limits $15,000,000
Deductible/Retention Amount 0/0/$1,000,000
B. Underlying Excess Policy(ies):
Name of Carrier Federal Insurance Company
Policy No. 443 01 66
Limits $15,000,000
Deductible/Retention Amount
Item 5. Policy Premium:
$26,300
Item 6. Forms and Endorsements forming a part of this policy at
inception: G-15920-A12, G-39543-B, G-39543-B
These Declarations along with the completed and signed Application
and the Excess Insurance Policy, shall constitute the contract
between the Insureds, the Named Entity, and the Insurer.
Authorized Representative Selwyn S. Marcus
Date: 8-23-94
CANCELLATION/NON-RENEWAL PROVISIONS
STATE OF ILLINOIS
Any cancellation or non-renewal provisions contained in the policy
to which this endorsement is attached are deleted and replaced by
the following:
I. Cancellation
A. This policy can be cancelled by either the entity named in
Item 1. of the Declarations or the Insurer.
1. The entity named in Item 1. of the Declarations can
cancel this policy at any time by mailing advance written
notice to the Insurer stating when the cancellation is to
be effective.
2. The Insurer can cancel this policy by giving written
notice to the entity named in Item 1. of the Declarations
at least:
a. 10 days before the effective date of cancellation
if cancellation is for non-payment of premium.
However, the entity named in Item 1. of the
Declarations may continue the coverage by payment
in full at any time prior to the effective date of
cancellation;
b. 30 days before the effective date of cancellation
if cancellation is for any other reason provided
that the policy has been in effect for 60 days or
less; or
c. 60 days before the effective date of cancellation
if the policy has been in effect for more than 60
days and cancellation is for any other reason as
set forth below.
B. The Insurer will mail notice to the entity named in Item
1. of the Declarations at the last mailing address known
to the Insurer, and a copy shall also be mailed to the
agent of the entity named in Item 1. of the Declarations.
C. Notice of cancellation will state the effective date of
cancellation. The policy will end on that date. The
specific reason for such cancellation shall also be
stated.
D. Proof of mailing will be sufficient proof of notice.
E. If this policy is cancelled, the Insurer will send the
entity named in Item 1. of the Declarations any premium
refund due. If the Insurer cancels, the refund will be
pro-rata. If the entity named in Item 1. of the
Declarations cancels, the refund may be less than
pro-rata.
The cancellation will be effective even if the Insurer
has not made or offered a refund.
If this policy has been in effect for more than 60 days,
the Insurer shall not cancel this policy except for one
or more of the following conditions:
1. non-payment of premium;
2. material misrepresentation;
3. a material increase in the hazard insured against;
4. violation of any terms or conditions of the policy
by the entity named in Item 1. of the Declarations;
5. substantial loss of reinsurance by the Insurer
affecting this particular type of insurance,
certified to the insurance regulatory authority;
6. a determination by the insurance regulatory
authority that continuation of the policy will
place the Insurer in violation of the insurance
laws of the state.
II. Non-Renewal
If the Insurer decides not to renew this policy, 60 days advance
written notice shall be mailed to the entity named in Item 1. of
the Declarations at the last known address.
The notice shall include the specific reason for such non-renewal.
If the Insurer offers to renew this policy at terms which involve
an increase in premium of 30% or more or changes in deductibles or
coverage that materially alter the policy, such terms will take
effect on the renewal date if the Insurer has notified the entity
named in Item 1. of the Declarations of the terms at lest 60 days
prior to the expiration date of this policy.
This endorsement, which forms a part of and is for attachment to
the following described Policy issued by the designated Insurer
takes effect on the effective date of said Policy, unless another
effective date is shown below, at the hour stated in said Policy
and expires concurrently with said Policy.
Must Be Completed
ENDT. NO. 1 POLICY NO. 600028634
PRIOR OR PENDING LITIGATION
IN CONSIDERATION OF THE PREMIUM CHARGED, IT IS HEREBY UNDERSTOOD
AND AGREED THAT THE INSURER SHALL NOT BE LIABLE TO MAKE ANY PAYMENT
FOR LOSS IN CONNECTION WITH ANY CLAIM MADE AGAINST THE DIRECTORS OR
OFFICERS BASED UPON OR ATTRIBUTABLE TO LITIGATION PRIOR TO OR
PENDING AS OF 5/31/91 INVOLVING THE COMPANY NOTED IN ITEM A OF THE
DECLARATIONS PAGE (HEREINAFTER CALLED THE COMPANY) AND/OR ITS
SUBSIDIARY(IES) AND/OR DIRECTORS OR OFFICERS OF THE COMPANY AND/OR
ITS SUBSIDIARY(IES) OR ARISING OUT OF THE FACTS OR CIRCUMSTANCES
UNDERLYING OR ALLEGED IN ANY SUCH PRIOR OR PENDING LITIGATION.
ALL OTHER PROVISIONS OF THE POLICY REMAIN UNCHANGED.
This endorsement is a part of your policy and takes effect on the
effective date of your policy, unless another effective date is
shown below.
Must Be Completed
ENDT. NO 2 POLICY NO. 600028634
PRIOR NOTICE EXCLUSION ENDORSEMENT
IT IS UNDERSTOOD AND AGREED THAT THE INSURER SHALL NOT BE LIABLE TO
MAKE ANY PAYMENT FOR LOSS IN CONNECTION WITH ANY CLAIM MADE AGAINST
THE DIRECTORS OR OFFICERS BASED UPON, ARISING OUT OF, RELATING TO,
DIRECTLY OR INDIRECTLY RESULTING FROM OR IN CONSEQUENCE OF, OR IN
ANY WAY INVOLVING:
1. ANY WRONGFUL ACT OR ANY MATTER, FACT, CIRCUMSTANCE, SITUATION,
TRANSACTION, CASUALTY, OR EVENT WHICH HAS BEEN THE SUBJECT OF
ANY NOTICE GIVEN PRIOR TO THE EFFECTIVE DATE OF THIS POLICY
UNDER ANY OTHER POLICY, OR
2. ANY OTHER WRONGFUL ACT WHICH, TOGETHER WITH A WRONGFUL ACT
WHICH HAS BEEN THE SUBJECT OF SUCH NOTICE DESCRIBED IN THE
PRECEDING CLAUSE, WOULD CONSTITUTE INTERRELATED WRONGFUL ACTS.
IT IS FURTHER UNDERSTOOD AND AGREED THAT THE TERM "INTERRELATED
WRONGFUL ACTS" IS DEFINED AS FOLLOWS:
WRONGFUL ACTS WHICH HAVE IN COMMON ANY MATTER, FACT, CIRCUMSTANCE,
SITUATION, TRANSACTION, CASUALTY OR EVENT, OR ONE OR MORE SERIES
THEREOF.
ALL OTHER PROVISIONS OF THE POLICY REMAIN UNCHANGED.
This endorsement is a part of your policy and takes effect on the
effective date of your policy, unless another effective date is
shown below.
Must Be Completed
ENDT. NO. 3 Policy No. 600028634
EXCESS INSURANCE POLICY
In consideration of the payment of the premium and in reliance on
all statements made and information furnished to Continental
Casualty Company (hereinafter called the "Insurer"), and/or to the
insurers of the Underlying Insurance, including the statements made
in the Application made a part hereof and subject to all of the
provisions of this Policy, the Insurer and the Insureds agree as
follows:
I. INSURING AGREEMENT
The Insurer shall provide the Insureds with excess coverage
over the Underlying Insurance as set forth in Item 4 of the
Declarations during the Policy Period set forth in Item 2 of
the Declarations. Coverage hereunder shall attach only after
all such Underlying Insurance has been exhausted by payments
for losses and shall then apply in conformance with the same
provisions of the Primary Policy at its inception, except for
premium, limit of liability and as otherwise specifically set
forth in the provisions of this Policy.
II. POLICY DEFINITIONS
Application shall mean the written application for this
Policy, including any materials submitted therewith, which
together shall be on file with the Insurer and deemed a part
of and attached hereto as if physically attached to this
Policy.
Named Entity means the organization named in Item 1 of the
Declarations.
Insureds means those persons or organization(s) insured under
the Primary Policy, at its inception.
Policy Period means the period from the effective date and
hour of this Policy as set forth in Item 2. of the
Declarations, to the Policy expiration date and hour set forth
in Item 2. of the Declarations, or its earlier cancellation
date or termination date, if any.
Primary Policy means the Policy scheduled in Item 4(a) of the
Declarations.
Underlying Insurance means all those Policies scheduled in
Item 4 of the Declarations and any Policies replacing them.
III. MAINTENANCE OF UNDERLYING INSURANCE
All of the Underlying Insurance scheduled in Item 4 of the
Declarations shall be maintained during the Policy Period in
full effect, except for any reduction of the aggregate
limit(s) of liability available under the Underlying Insurance
solely by reason of payment of losses thereunder. Failure to
comply with the foregoing shall not invalidate this Policy but
the Insurer shall not be liable to a greater extent than if
this condition had been complied with. To the extent that any
Underlying Insurance is not maintained in full effect during
the currency of this Policy Period, then the Insureds shall be
deemed to have retained any loss for the amount of the limit
of liability of any Underlying Insurance which is not
maintained as set forth above.
In the event of any actual or alleged (a) failure by the
Insureds to give notice or to exercise any extensions under
any Underlying Insurance or (b) misrepresentation or breach of
warranties by any of the Insureds with respect to any
Underlying Insurance, the Insurer shall not be liable
hereunder to a greater extent than it would have been in the
absence of such actual or alleged failure, misrepresentation
or breach.
It is further a condition of this Policy that the Insurer
shall be notified in writing, as soon as practicable of
cancellation and/or alteration of any provisions of any of the
policies of Underlying Insurance.
IV. LIMIT OF LIABILITY
The amount set forth in Item 3 of the Declarations shall be
the maximum aggregate Limit of Liability of the Insurer for
the Policy Period.
Costs of defense shall be part of and not in addition to the
Limit of Liability in Item 3 of the Declarations, and such
costs of defense shall reduce the Limit of Liability stated in
Item 3 of the Declarations.
V. DEPLETION OF UNDERLYING LIMIT(S)
In the event of the depletion of the limit(s) of liability of
the Underlying Insurance solely as the result of actual
payment of losses thereunder by the applicable insurers, this
Policy shall, subject to the Insurer's Limit of Liability and
to the other terms of this Policy, continue to apply to losses
as Excess Insurance over the amount of insurance remaining
under such Underlying Insurance. In the event of the
exhaustion of all of the limit(s) of liability of such
Underlying Insurance solely as a result of payment of losses
thereunder, the remaining limits available under this Policy
shall, subject to the Insurer's Limit of Liability and to the
other provisions of this Policy, continue for subsequent
losses as primary insurance and any retention specified in the
Primary Policy shall be imposed under this Policy as to each
claim made; otherwise no retention shall be imposed under this
Policy.
This Policy only provides coverage excess of the Underlying
Insurance. This Policy does not provide coverage for any loss
not covered by the Underlying Insurance except and to the
extent that such loss is not paid under the Underlying
Insurance solely by reason of the reduction or exhaustion of
the available Underlying Insurance through payments of loss
thereunder. In the event the insurer of one or more of the
Underlying Insurance policies fails to pay loss in connection
with any claim covered under the Underlying Insurance as a
result of the insolvency, bankruptcy, or liquidation of said
insurer, then the Insureds hereunder shall be deemed to have
retained any loss for the amount of the limit of liability of
said insurer which is not paid as a result of such insolvency,
bankruptcy or liquidation.
If any Underlying Insurance bears an effective date which is
prior to the effective date of this Policy and if any such
insurance becomes exhausted or impaired by payment of loss
with respect to any claim which, shall be deemed to be made
prior to the effective date of this Policy, then with respect
to any claim made after the effective date of this Policy, the
Insureds shall be deemed to have retained any loss for the
amount of any such Underlying Insurance which is exhausted or
impaired by payment of loss with respect to such claim made
prior to the effective date of this Policy.
VI. CLAIM PARTICIPATION
The Insured shall not admit liability, consent to any judgment
against them, or agree to any settlement which is reasonably
likely to involve the Limit of Liability of this Policy
without the Insurer's consent, such consent not to be
unreasonably withheld.
The Insurer may, at its sole discretion, elect to participate
in the investigation, settlement or defense of any claim
against any of the Insureds for matters covered by this Policy
even if the Underlying Insurance has not been exhausted.
All provisions of the Underlying Insurance are considered as
part of this Policy except that it shall be the duty of the
Insureds and not the duty of the Insurer to defend any claims
against any of the Insureds.
VII. SUBROGATION - RECOVERIES
In that this Policy is "Excess Coverage", the Insureds and the
Insurer's right of recovery against any person or other entity
may not be exclusively subrogated. Despite the foregoing, in
the event of any payment under this Policy, the Insurer shall
be subrogated to all the Insured's rights of recovery against
any person or organization, and the Insureds shall execute and
deliver instruments and papers and do whatever else is
necessary to secure such rights.
Any amounts recovered after payment of loss hereunder shall be
apportioned in the inverse order of payment to the extent of
actual payment. The expenses of all such recovery proceedings
shall be apportioned in the ratio of respective recoveries.
VIII. NOTICE
The Insurer shall be given notice in writing as soon as is
practicable in the event of (a) the cancellation of any
Underlying Insurance and (b) any additional or return premiums
charged or allowed in connection with any Underlying
Insurance. Notice regarding (a) and (b) above shall be given
to Manager, Directors and Officers Liability Underwriting, CNA
Insurance Companies, CNA Plaza, Chicago, Illinois 60685.
The Insurer shall be given notice as soon as practicable of
any notice of claim or any situation that could give rise to
a claim under any Underlying Insurance. Notice of any claim
to the Insurer shall be given in writing to Manager,
Professional Liability Claims, CNA Insurance Companies, CNA
Plaza, Chicago, Illinois 60685.
IX. COMPANY AUTHORIZATION CLAUSE
By acceptance of this Policy, the Named Entity named in Item
1 of the Declarations agrees to act on behalf of all the
Insureds with respect to the giving and receiving of notice of
claim or cancellations, the payment of premiums and the
receiving of any return premiums that may become due under
this Policy and the Insureds agree that the Named Entity shall
in all cases be authorized to act on their behalf.
X. ALTERATION
No change in or modification of this Policy shall be effective
except when made by endorsement signed by an authorized
employee of the Insurer or any of its agents relating to this
Policy.
XI. POLICY CANCELLATION
This Policy may be cancelled by the Named Entity at any time
by written notice or by surrender of this Policy to the
Insurer. This Policy may also be cancelled by or on behalf of
the Insurer by delivery to the Named Entity or by mailing to
the Named Entity, by registered, certified or other first
class mail, at the address shown in Item 1 of the
Declarations, written notice stating when, not less than
thirty (30) days thereafter, the cancellation shall become
effective. The mailing of such notice as aforesaid shall be
sufficient proof of notice and this Policy shall cancel at the
date and hour specified in such notice.
If the period of limitation relating to the giving of notice
is prohibited or made void by any law controlling the
construction thereof, such period shall be deemed to be
amended so as to be equal to the minimum period of limitation
permitted by such law.
The Insurer shall refund the unearned premium computed at less
than pro-rata if the Policy is cancelled in its entirety by
the Named Entity. Under any other circumstances the refund
shall be computed pro rata.
XII. EXCLUSIONS
Notwithstanding any provisions of the Underlying Insurance,
the Insurer shall not be liable to make payment for loss in
connection with any claim based upon, arising out of, relating
to, directly or indirectly resulting from, or in consequence
of, or in any way involving:
1. nuclear reaction, radiation or contamination regardless
of causes;
2. pollutants, including but not limited to loss arising out
of any:
a. request, demand or order that any of the Insureds
or others test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize, or in any
way respond to, or assess the effects of
pollutants, or
b. claim by or on behalf of a governmental authority
for damages because of testing for, monitoring,
cleaning up, removing, containing, treating,
detoxifying or neutralizing or in any way
responding to or assessing the effects of
pollutants;
Pollutants means any solid, liquid, gaseous or thermal
irritant or contaminant, including smoke, vapor, soot,
fumes, acids, alkalis, chemicals and waste. Waste
includes materials to be recycled, reconditioned or
reclaimed .
XIII. CONDITIONS
No action shall be taken against the Insurer unless, as a
condition precedent, there shall have been full compliance
with all the provisions of this Policy, nor until the amount
of the Insureds obligation to pay shall have been finally
determined either by final and nonappealable judgement against
the Insureds after trial, or by written agreement of the
Insureds, the claimant and the Insurer.
RENEWAL APPLICATION FOR
DIRECTORS AND OFFICERS LIABILITY INSURANCE
NOTICE
THIS IS AN APPLICATION FOR A CLAIMS-MADE POLICY WHICH, SUBJECT TO
ITS PROVISIONS, APPLIES ONLY TO ANY CLAIM FIRST MADE AGAINST THE
DIRECTORS AND OFFICERS DURING THE POLICY PERIOD. NO COVERAGE
EXISTS FOR CLAIMS FIRST MADE AFTER THE END OF THE POLICY PERIOD
UNLESS, AND TO THE EXTENT, THE EXTENDED REPORTING PERIOD APPLIES.
THE LIMIT OF LIABILITY SHALL BE REDUCED BY AMOUNTS INCURRED AS
DEFENSE COSTS. DEFENSE COSTS SHALL BE SUBJECT TO THE RETENTION
AMOUNTS. PLEASE REVIEW THE POLICY CAREFULLY AND DISCUSS THE
COVERAGE WITH YOUR INSURANCE AGENT OR BROKER.
INSTRUCTIONS FOR COMPLETING THIS APPLICATION
Please read the instructions carefully, and complete and submit all
requested Information and required attachments. Please note that
terms appearing in bold face in the above Notice and in any
Application Question below are defined in the Policy and shall have
the same meaning in this Application as in the Policy. This
Application and all materials submitted or required shall be held
in confidence. Questions 3 and 4 need not be answered if the
information requested is contained in any required attachments.
REQUIRED ATTACHMENTS:
1. All proxy statements and Notices of Annual Meeting to
Stockholders within the last twelve months
2. Audited financial statements for the most recent three
fiscal years
3. The latest interim financial statements
4. The indemnification provisions of the charter and bylaws
5. Any filings made to the SEC within the last 12 months
Please submit this Application to:
CNA INSURANCE COMPANIES
FINANCIAL INSURANCE DIVISION - 20 SOUTH
CNA PLAZA
CHICAGO, ILLINOIS 60685
(312)
ANY PERSON WHO, WITH INTENT TO DEFRAUD OR KNOWING THAT (S)HE IS
FACILITATING A FRAUD AGAINST AN INSURER, SUBMITS AN APPLICATION OR
FILES A CLAIM CONTAINING A FALSE OR DECEPTIVE STATEMENT MAY BE
GUILTY OF INSURANCE FRAUD.
1. Named Entity: Richardson Electronics, Ltd.
Street Address: 40W267 Keslinger Road
City: LaFox State: IL Zip Code: 60147
Telephone: (708) 208-2200
2. The Officer designated by the Entity to receive notices from
the Insurer concerning this Insurance is:
Leonard R. Prange, Vice President & CFO
Questions 3 and 4 Need Not be Answered if the Information Requested
is Contained in the Required Attachments
3. Has there been any material change in the nature of the
operations within the last 12 months? No
If "Yes", provide details;
4. Stock Ownership of Named Entity
Class B Common
a.Total number of common shares outstanding: 8,039,727 3,247,543
b.Total number of common shareholders: 732 47
c.Total number of common shares owned directly
or beneficially by Directors: 6,556,591 3,273,877
d.Total number of common shares owned directly
or beneficially by Officers who are not
Directors 282,866 1,174
e.Does any shareholder own directly or beneficially
five percent or more of the common shares? Yes
If "Yes", designate name and percentage of holdings:
See attached
Include by attachment the information above (item.a-e) for any
additional classes of voting stock.
f.Are there any other securities convertible
to voting stock? Yes
If "Yes", provide details: 7-1/4% Convertible Subordinated
Debentures due Dec. 15, 2006 convertible into 3,583,161 shares of
common stock at a conversion price of $21.14 per share.
5. Have there been any changes in senior management (Board
Chairman, President, Executive Vice President, etc.) in the
last 12 months? No
If "Yes", provide details: Attached is list of officers and
directors
6. By attachment to this Application, provide the following
information for any Subsidiary acquired or created after the
effective date of the current Policy:
a. Name d. Nature of business
b. Date of acquisition e. Domestic or foreign
c. Percent of ownership f. Name of parent entity
See attached subsidiary list
7. During the last 12 months, has the Entity been involved in, or
is it presently
considering, any merger, consolidation, acquisition, tender offer,
or divestment or sale of its stock in excess of 10% of the total
stock outstanding? Yes
If "Yes" provide details: See attached press releases
8. Has the Entity filed, or contemplated filing, a registration
statement with the Securities and Exchange Commission:
a. within the past 12 months? No
b. within the next 12 months? No
If "Yes", to either of the above, provide details and furnish a
copy of such registration statement if available.
9.a. Within the last 12 months has the Named Entity or any
Subsidiary made or joined in a Schedule 13-D filing with the
Securities and Exchange Commission with respect to ownership
of the securities of another corporation? Yes
If "Yes", provide details. See Attached Schedule 13D
b. Within the last 12 months, has the Named Entity or any
Subsidiary become aware that any person, corporation or other
entity has made a Schedule 13-D filing with respect to the
ownership of the securities of the Named Entity or any
Subsidiary? Yes
If "Yes", provide details. See attached schedules
10. Please provide the following insurance information: Per your
files.
a. Pension/Fiduciary Liability Limit Carrier Expir Date
b. Commercial Crime/Fidelity Limit Carrier Expir Date
c. General Liability Limit Carrier Expir Date
11. During the last 12 months has the Entity or any of the
Directors and Officers been involved in any of the following:
a. any anti-trust, copyright or patent
litigation? Yes
b. any civil or criminal action or
administrative proceeding charging a violation of
any federal or state security law or regulation? No
c. any representative actions, class actions
or derivative suits? Yes
d. other material litigation? No
If "Yes", to any of the above, please attach full details. Per
your files
12. The undersigned declares that to the best of his/her knowledge
the statements set forth herein are true and correct and that
reasonable efforts have been made to obtain sufficient
information from all of the Directors and officers to
facilitate the proper and accurate completion of this
Application for the proposed Policy. Signing of this
Application does not bind the undersigned to complete the
insurance, but it is agreed that this Application shall be the
basis of the contract should a Policy be issued, and this
Application will be attached to and become part of such
Policy. The undersigned agrees that if after the date of this
Application and prior to the effective date of the Policy, any
occurrence, event or other circumstance should render any of
the information contained in this Application inaccurate or
incomplete, then the undersigned shall notify the Insurer of
such occurrence, event or circumstance and shall provide the
Insurer with information that would complete, update or
correct the information contained in this Application. Any
outstanding quotations may be modified or withdrawn at the
sole discretion of the Insurer.
13. It is agreed that this Renewal Application and all
Application(s) for all policies issued by the Insurer of which
the proposed Policy would be a direct or indirect renewal or
replacement, copies of which will be attached to the proposed
Policy, and any materials submitted or required (which shall
be maintained on file by the Insurer and be deemed attached as
if physically attached to the proposed Policy), are true and
are the basis of the proposed Policy and are to be considered
as incorporated into and constituting a part of the proposed
Policy.
14. The information requested in this Application is for
underwriting purposes only and does not constitute notice to
the Insurer under any Policy of a Claim or potential claim.
All such notices must be submitted to the Insurer pursuant to
Section VII of the Policy.
The undersigned acknowledges that he or she is aware that Defense
Costs reduce and may exhaust the Limit of Liability. The Insurer
is not liable for any Loss (which includes Defense Costs) in excess
of the Limit of Liability.
This Application must be signed by the Chairman of the Board or
President.
Signed Edward J. Richardson
Title Chairman and President
Corporation Richardson Electronics, Ltd.
Date March 8, 1994
A POLICY CANNOT BE ISSUED UNLESS THE APPLICATION IS PROPERLY SIGNED
AND DATED