RICHARDSON ELECTRONICS LTD/DE
DIRECTORS AND OFFICERS INSURANCE POLICY BY STPAUL
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>6
<FILENAME>exhibit10v2.htm
<DESCRIPTION>DIRECTORS AND OFFICERS INSURANCE POLICY BY STPAUL
<TEXT>
<html>
<head>
<title>AMENDMENT OF PRIMARY POLICY DEFINITION TO FOLLOW CHUBB D&amp;O COVERAGE</title>
</head>
<body>
<div>
Exhibit 10(v)(2)

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CNA INSURANCE COMPANIES&nbsp;&nbsp; CNA Plaza &nbsp;&nbsp;&nbsp;Chicago, IL 60685</p>

<p></p>

<p>DECLARATIONS EXCESS INSURANCE POLICY</p>

<p></p>

<p></p>

<p></p>

<p>NOTICE</p>

<p></p>

<p>THIS IS A "CLAIMS MADE" POLICY AND, SUBJECT TO ITS PROVISIONS, APPLIES ONLY</p>

<p>TO ANY CLAIM</p>

<p>FIRST MADE AGAINST THE INSUREDS DURING THE POLICY PERIOD. NO COVERAGE</p>

<p>EXISTS FOR ANY</p>

<p>CLAIM FIRST MADE AFTER THE END OF THE POLICY PERIOD UNLESS, AND TO THE</p>

<p>EXTENT, THE</p>

<p>EXTENDED REPORTING PERIOD APPLIES. THE LIMIT OF LIABILITY SHALL BE REDUCED</p>

<p>BY</p>

<p>AMOUNTS INCURRED AS DEFENSE COSTS.</p>

<p></p>

<p></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COVERAGE PROVIDED BY</p>

<p>Continental Casualty Company</p>

<p></p>

<p>ACCOUNT NUMBER</p>

<p>45386</p>

<p></p>

<p>POLICY NUMBER&nbsp;&nbsp;&nbsp;&nbsp; DOX 600028634&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

<p></p>

<p>AGENCY 910 701862</p>

<p></p>

<p>AGENT Mesirow Insurance Services, IBC.</p>

<p>610 Central Ave.</p>

<p>Suite 200</p>

<p>Highland Park, IL 60035</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Robina Fisher</p>

<p></p>

<p>NAMED ENTITY AND PRINCIPAL ADDRESS</p>

<p>Item 1. Richardson Electronics Ltd</p>

<p>&nbsp; 40W267 Keslinger Road</p>

<p>P.O. Box 393&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

<p>Lafox, IL 60147&nbsp;&nbsp; Attn. Dario Sacomani</p>

<p></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy Period:</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5/31 /02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To&nbsp;&nbsp;&nbsp; 5/31
/03</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12:01 A.M. Standard Time at the Principal Address stated in Item 1.</p>

<p></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item&nbsp; 3.</p>

<p>Limit of Liability (Inclusive of Defense Costs):</p>

<p>$ 5,000,000 Maximum aggregate Limit of Liability each Policy Period.</p>

<p></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item&nbsp; 4.&nbsp;&nbsp;&nbsp; Schedule of Underlying Insurance:</p>

<p>A. Primary Policy</p>

<p></p>

<p>Name of Carrier&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policy No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limits&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ded/Ret. Amount</p>

<p>Federal Insurance Company&nbsp;&nbsp;&nbsp;&nbsp; 8125-64-60J ILL&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$15,000,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0/0/$100,000</p>

<p></p>

<p>B. Underlying Excess Policy(ies):</p>

<p></p>

<p>*** SEE ATTACHED SCHEDULE ***</p>

<p>Item 5. &nbsp;&nbsp;&nbsp; Policy Premium &nbsp;&nbsp;&nbsp;$ 30,900</p>

<p></p>

<p></p>

<p>Item 6.&nbsp;&nbsp;&nbsp;&nbsp; Forms and Endorsements forming a part of this policy at inception:</p>

<p>G-11713-A12, FIG-1005-A, FIG-1006-A, FIG-1014-A, FIG-0787-A</p>

<p></p>

<p>These Declarations along with the completed and signed Application and the</p>

<p>Excess Insurance Policy, shall constitute the contract</p>

<p>between the Insureds, the Named Entity, and the Insurer. ,</p>

<p></p>

<p>Authorized Representative: /signature/</p>

<p></p>

<p></p>

<p>Chairman /signature/&nbsp;&nbsp;&nbsp;</p>

<p></p>

<p>Secretary /signature/</p>

<p></p>

<p>Date: 10/30/02</p>

<p></p>

<p>G-17728-A</p>

<div>
<p></p>

<p>(ED 04/92)</p>

<p></p>

<p></p>

<p></p>
</div>

<p></p>

<p></p>

<p>-------------------------------------------------------------------------</p>

<p>UDERLYING EXCESS POLICY SCHEDVLE</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors' &amp; Officers'</p>

<p>Name of Carrier&nbsp;&nbsp; St. Paul Fire and Marine Insurance Company&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

<p>Policy No.&nbsp; 512CM0138&nbsp;&nbsp;</p>

<p>Limits</p>

<p>$15,000,000 Excess of</p>

<p>Underlying Limit $15,000,000</p>

<p></p>

<p>G-17728-A</p>

<p>(ED 04/92)</p>

<p></p>

<p>-------------------------------------------------------------------------</p>

<p>CNA</p>

<p>For All the Commitments You Make</p>

<p></p>

<p>EXCESS INSURANCE POLICY</p>

<p></p>

<p>In consideration of the payment of the premium and in reliance on all</p>

<p>statements made and information furnished to Continental</p>

<p>Casualty Company (hereinafter called the "Insurer'), and/or to the insurers</p>

<p>of the Underlying Insurance, including the statements</p>

<p>made in the Application made a part hereof and subject to all of the</p>

<p>provisions of this Policy, the Insurer and the Insureds agree</p>

<p>as follows:</p>

<p></p>

<p>1.&nbsp;&nbsp;&nbsp; INSURING AGREEMENT</p>

<p></p>

<p>The Insurer shall provide the Insureds with excess coverage over the</p>

<p>Underlying Insurance as set forth in Item 4 of the</p>

<p>Declarations during the Policy Period set forth in Item 2 of the</p>

<p>Declarations. Coverage hereunder shall attach only after</p>

<p>all such Underlying Insurance has been exhausted by payments for losses and</p>

<p>shall then apply in conformance with the</p>

<p>same provisions of the Primary Policy at its inception, except for premium,</p>

<p>limit of liability and as otherwise specifically</p>

<p>set forth in the provisions of this Policy.</p>

<p></p>

<p>II.&nbsp;&nbsp; POLICY DEFINITIONS</p>

<p></p>

<p>Application shall mean the written application for this Policy, including</p>

<p>any materials submitted therewith, which together</p>

<p>shall be on file with the Insurer and deemed a part of and attached hereto</p>

<p>as if physically attached to this Policy.</p>

<p></p>

<p>Named Entity means the organization named in Item 1 of the Declarations.</p>

<p></p>

<p>Insureds means those persons or organization(s) insured under the Primary</p>

<p>Policy, at its inception.</p>

<p></p>

<p>Policy Period means the period from the effective date and hour of this</p>

<p>Policy as set forth in Item 2 of the Declarations, to</p>

<p>the Policy expiration date and hour set forth in Item 2 of the</p>

<p>Declarations, or its earlier cancellation date or termination</p>

<p>date, if any.</p>

<p></p>

<p>Primary Policy means the Policy scheduled in Item 4 (a) of the Declarations.</p>

<p></p>

<p>Underlying Insurance means all those Policies scheduled in Item 4 of the</p>

<p>Declarations and any Policies replacing them.</p>

<p></p>

<p>III.&nbsp; MAINTENANCE OF UNDERLYING INSURANCE</p>

<p></p>

<p>All of the Underlying Insurance scheduled in Item 4 of the Declarations</p>

<p>shall be maintained during the Policy Period in</p>

<p>full effect, except for any reduction of the aggregate limit(s) of</p>

<p>liability available under the Underlying Insurance solely by</p>

<p>reason of payment of losses thereunder, Failure to comply with the</p>

<p>foregoing shall not invalidate this Policy but the</p>

<p>Insurer shall not be liable to a greater extent than if this condition had</p>

<p>been complied with. To the extent that any</p>

<p>Underlying Insurance is not maintained in full effect during the currency</p>

<p>of this Policy Period, then the Insureds shall</p>

<p>be deemed to have retained any loss for the amount of the limit of</p>

<p>liability of any Underlying Insurance which is not</p>

<p>maintained as set forth above.</p>

<p></p>

<p>In the event of any actual or alleged (a) failure by the Insureds to give</p>

<p>notice or to exercise any extensions under any</p>

<p>Underlying Insurance or (b) misrepresentation or breach of warranties by</p>

<p>any of the Insureds with respect to any</p>

<p>Underlying Insurance, the Insurer shall not be liable hereunder to a</p>

<p>greater extent than it would have been in the</p>

<p>absence of such actual or alleged failure, misrepresentation or breach.</p>

<p></p>

<p>It is further a condition of this Policy that the Insurer shall be notified</p>

<p>in writing, as soon as practicable of cancellation</p>

<p>and/or alteration of any provisions of any of the policies of Underlying</p>

<p>Insurance.</p>

<p></p>

<p>IV.&nbsp;&nbsp; LIMIT OF LIABILITY</p>

<p></p>

<p>The amount set forth in Item 3 of the Declarations shall be the maximum</p>

<p>aggregate Limit of Liability of the Insurer for the</p>

<p>Policy Period.</p>

<p></p>

<p>Costs of defense shall be part of and not in addition to the Limit of</p>

<p>Liability in Item 3 of the Declarations, and such costs of</p>

<p>defense shall reduce the Limit of Liability stated in Item 3 of the</p>

<p>Declarations.</p>

<p></p>

<p>G-17729-A(ED.04/92)&nbsp;&nbsp;&nbsp;&nbsp; Page1of4</p>

<p></p>

<p>-------------------------------------------------------------------------</p>

<p>V.&nbsp;&nbsp;&nbsp; DEPLETION OF UNDERLYING LIMIT(S)</p>

<p></p>

<p>In the event of the depletion of the limit(s) of liability of the</p>

<p>Underlying Insurance solely as the result of actual payment of</p>

<p>losses thereunder by the applicable insurers, this Policy shall, subject to</p>

<p>the Insurer's Limit of Liability and to the other</p>

<p>terms of this Policy, continue to apply to losses as Excess Insurance over</p>

<p>the amount of insurance remaining under such</p>

<p>Underlying Insurance. In the event of the exhaustion of all of the limits)</p>

<p>of liability of such Underlying Insurance solely</p>

<p>as a result of payment of losses thereunder, the remaining limits available</p>

<p>under this Policy shall, subject to the Insurer's</p>

<p>Limit of Liability and to the other provisions of this Policy, continue for</p>

<p>subsequent losses as primary insurance and any</p>

<p>retention specified in the Primary Policy shall be imposed under this</p>

<p>Policy as to each claim made; otherwise no</p>

<p>retention shall be imposed under this Policy.</p>

<p></p>

<p>This Policy only provides coverage excess of the Underlying Insurance. This</p>

<p>Policy does not provide coverage for any</p>

<p>loss not covered by the Underlying Insurance except and to the extent that</p>

<p>such loss is not paid under the Underlying</p>

<p>Insurance solely by reason of the reduction or exhaustion of the available</p>

<p>Underlying Insurance through payments of</p>

<p>loss thereunder. In the event the insurer of one or more of the Underlying</p>

<p>Insurance policies fails to pay loss in</p>

<p>connection with any claim covered under the Underlying Insurance as a</p>

<p>result of the insolvency, bankruptcy, or</p>

<p>liquidation of said insurer, then the Insureds hereunder shall be deemed to</p>

<p>have retained any loss for the amount of the</p>

<p>limit of liability of said insurer which is not paid as a result of such</p>

<p>insolvency, bankruptcy or liquidation.</p>

<p></p>

<p>If any Underlying Insurance bears an effective date which is prior to the</p>

<p>effective date of this Policy and if any such</p>

<p>insurance becomes exhausted or impaired by payment of loss with respect to</p>

<p>any claim which, shall be deemed to be</p>

<p>made prior to the effective date of this Policy, then with respect to any</p>

<p>claim made after the effective date of this Policy,</p>

<p>the Insureds shall be deemed to have retained any loss for the amount of</p>

<p>any such Underlying Insurance which is</p>

<p>exhausted or impaired by payment of loss with respect to such claim made</p>

<p>prior to the effective date of this Policy.</p>

<p></p>

<p>VI.&nbsp;&nbsp; CLAIM PARTICIPATION</p>

<p></p>

<p>The Insured shall not admit liability, consent to any judgment against</p>

<p>them, or agree to any settlement which is</p>

<p>reasonably likely to involve the Limit of Liability of this Policy without</p>

<p>the Insurer's consent, such consent not to be</p>

<p>unreasonably withheld.</p>

<p></p>

<p>The Insurer may, at its sole discretion, elect to participate in the</p>

<p>investigation, settlement or defense of any claim against</p>

<p>any of the Insureds for matters covered by this Policy even if the</p>

<p>Underlying Insurance has not been exhausted.</p>

<p></p>

<p>All provisions of the Underlying Insurance are considered as part of this</p>

<p>Policy except that it shall be the duty of the</p>

<p>Insureds and not the duty of the Insurer to defend any claims against any</p>

<p>of the Insureds.</p>

<p></p>

<p>VII.&nbsp; SUBROGATION - RECOVERIES</p>

<p></p>

<p>In that this Policy is "Excess Coverage", the Insureds and the Insurer's</p>

<p>right of recovery against any person or other</p>

<p>entity may not be exclusively subrogated. Despite the foregoing, in the</p>

<p>event of any payment under this Policy, the</p>

<p>Insurer shall be subrogated to all the Insured's rights of recovery against</p>

<p>any person or organization, and the Insureds</p>

<p>shall execute and deliver instruments and papers and do whatever else is</p>

<p>necessary to secure such rights.</p>

<p></p>

<p>Any amounts recovered after payment of loss hereunder shall be apportioned</p>

<p>in the inverse order of payment to the</p>

<p>extent of actual payment. The expenses of all such recovery proceedings</p>

<p>shall be apportioned in the ratio of respective</p>

<p>recoveries.</p>

<p></p>

<p>VIII. NOTICE</p>

<p></p>

<p>The Insurer shall be given notice in writing as soon as is practicable in</p>

<p>the event of (a) the cancellation of any Underlying</p>

<p>insurance and (b) any additional or return premiums charged or allowed in</p>

<p>connection with any Underlying Insurance.</p>

<p>Notice regarding (a) and (b) above shall be given to Manager, Directors and</p>

<p>Officers Liability Underwriting, CNA</p>

<p>Insurance Companies, CNA Plaza, Chicago, Illinois 60685.</p>

<p></p>

<p>G-17729-A(ED.04/92)&nbsp;&nbsp;&nbsp;&nbsp; Page2of4</p>

<p></p>

<p>-------------------------------------------------------------------------</p>

<p>The Insurer shall be given notice as soon as practicable of any notice of</p>

<p>claim or any situation that could give rise to a</p>

<p>claim under any Underlying Insurance. Notice of any claim to the Insurer</p>

<p>shall be given in writing to Manager,</p>

<p>Professional Liability Claims, CND, Insurance Companies, CNA Plaza,</p>

<p>Chicago, Illinois 60685.</p>

<p></p>

<p>IX.&nbsp;&nbsp; COMPANY AUTHORIZATION CLAUSE</p>

<p></p>

<p>By acceptance of this Policy, the Named Entity named in Item 1 of the</p>

<p>Declarations agrees to act on behalf of all the</p>

<p>Insureds with respect to the giving and receiving of notice of claim or</p>

<p>cancellations, the payment of premiums and the</p>

<p>receiving of any return premiums that may become due under this Policy; and</p>

<p>the Insureds agree that the Named Entity</p>

<p>shall in all cases be authorized to act on their behalf.</p>

<p></p>

<p>X.&nbsp;&nbsp;&nbsp; ALTERATION</p>

<p></p>

<p>No change in or modification of this Policy shall be effective except when</p>

<p>made by endorsement signed by an authorized</p>

<p>employee of the Insurer or any of its agents relating to this Policy.</p>

<p></p>

<p>XI.&nbsp;&nbsp; POLICY CANCELLATION</p>

<p></p>

<p>This Policy may be cancelled by the Named Entity at any time by written</p>

<p>notice or by surrender of this Policy to the</p>

<p>Insurer. This Policy may also be cancelled by or on behalf of the Insurer</p>

<p>by delivery to the Named Entity or by mailing</p>

<p>to the Named Entity, by registered, certified or other first class mail, at</p>

<p>the address shown in Item 1 of the Declarations,</p>

<p>written notice stating when, not less than thirty (30) days thereafter, the</p>

<p>cancellation shall become effective. The mailing</p>

<p>of such notice as aforesaid shall be sufficient proof of notice and this</p>

<p>Policy shall cancel at the date and hour specified in</p>

<p>such notice.</p>

<p></p>

<p>If the period of limitation relating to the giving of notice is prohibited</p>

<p>or made void by any law controlling the construction</p>

<p>thereof, such period shall be deemed to be amended so as to be equal to the</p>

<p>minimum period of limitation permitted by</p>

<p>such law.</p>

<p></p>

<p>The Insurer shall refund the unearned premium computed at less than</p>

<p>pro-rata if the Policy is cancelled in its entirety by</p>

<p>the Named Entity. Under any other circumstances the refund shall be</p>

<p>computed pro-rata.</p>

<p></p>

<p>XI1.&nbsp; EXCLUSIONS</p>

<p></p>

<p>Notwithstanding any provisions of the Underlying Insurance, the Insurer</p>

<p>shall not be liable to make payment for loss in</p>

<p>connection with any claim based upon, arising out of, relating to, directly</p>

<p>or indirectly resulting from, or in consequence of,</p>

<p>or in any way involving:</p>

<p>1.&nbsp;&nbsp;&nbsp; nuclear reaction, radiation, or contamination regardless of causes;</p>

<p>2.&nbsp;&nbsp;&nbsp; pollutants, including but not limited to loss arising out of any: ,</p>

<p></p>

<p>a.&nbsp;&nbsp;&nbsp; request, demand or order that any of the Insureds or others test for,</p>

<p>monitor, clean up, remove, contain,</p>

<p>treat, detoxify or neutralize, or in any way respond to, or assess the</p>

<p>effects of pollutants, or</p>

<p></p>

<p>b.&nbsp;&nbsp;&nbsp; claim by or on behalf of a governmental authority for damages because of</p>

<p>testing for, monitoring, cleaning up,</p>

<p>removing, containing, treating, detoxifying or neutralizing or in any way</p>

<p>responding to or assessing the effects</p>

<p>of pollutants.</p>

<p></p>

<p>Pollutants means any solid, liquid, gaseous or thermal irritant or</p>

<p>contaminant, including smoke, vapor, soot, fumes, acids,</p>

<p>alkalis, chemicals and waste. Waste includes materials to be recycled,</p>

<p>reconditioned or reclaimed.</p>

<p></p>

<p>G-17729-A (ED. 04/92)&nbsp;&nbsp; Page 3 of 4</p>

<p></p>

<p>-------------------------------------------------------------------------</p>

<p>XIII. CONDITIONS</p>

<p></p>

<p>No action shall be taken against the Insurer unless, as a condition</p>

<p>precedent, there shall have. been full compliance with</p>

<p>all the provisions of this Policy, nor until the amount of the Insureds</p>

<p>obligation to pay shall have been finally determined</p>

<p>either by final and nonappealable judgement against the Insureds after</p>

<p>trial, or by written agreement of the Insureds, the</p>

<p>claimant and the Insurer.</p>

<p></p>

<p>/signature/</p>

<p>Chairman of the Board&nbsp;&nbsp;</p>

<p></p>

<p>/signature/</p>

<p>Secretary</p>

<p></p>

<p>G-17729-A (ED. 04192)&nbsp;&nbsp; Page 4 of 4</p>

<p>-------------------------------------------------------------------------</p>

<p>STATE PROVISIONS - ILLINOIS</p>

<p></p>

<p>Any cancellation or non-renewal provisions contained in the policy to which</p>

<p>this endorsement is attached are deleted and replaced</p>

<p>by the following:</p>

<p></p>

<p>I.&nbsp;&nbsp;&nbsp; Cancellation</p>

<p></p>

<p>A.&nbsp;&nbsp;&nbsp; This policy can be cancelled by either the first named insured or the</p>

<p>insurer.</p>

<p></p>

<p>1.&nbsp;&nbsp;&nbsp; The named insured can cancel this policy at any time by mailing advance</p>

<p>written notice to the insurer</p>

<p>stating when the cancellation is to be effective.</p>

<p></p>

<p>2.&nbsp;&nbsp;&nbsp; The insurer can cancel this policy by giving written notice to the named</p>

<p>insured at least:</p>

<p></p>

<p>a.&nbsp;&nbsp;&nbsp; 10 days, if cancellation is for non-payment of premium. However, the</p>

<p>named insured may</p>

<p>continue the coverage by payment in full at any time prior to the effective</p>

<p>date of cancellation;</p>

<p></p>

<p>b.&nbsp;&nbsp;&nbsp; 30 days, if cancellation is for any other reason provided that the policy</p>

<p>has been in effect for 60</p>

<p>days or less; or</p>

<p></p>

<p>c.&nbsp;&nbsp;&nbsp; 60 days, if the policy has been in effect for more than 60 days and</p>

<p>cancellation is for any other</p>

<p>reason as set forth below;</p>

<p></p>

<p>before the effective date of cancellation..</p>

<p></p>

<p>B.&nbsp;&nbsp;&nbsp; The insurer will mail notice to the named insured at the last mailing</p>

<p>address known to the insurer, and a copy</p>

<p>shall also be mailed to the named insured's agent.</p>

<p></p>

<p>C.&nbsp;&nbsp;&nbsp; Notice of cancellation will state the effective date of cancellation. The</p>

<p>policy will end on that date. The specific</p>

<p>reason for such cancellation shall also be stated.</p>

<p>D.&nbsp;&nbsp;&nbsp; Proof of mailing will be sufficient proof of notice.</p>

<p>E.&nbsp;&nbsp;&nbsp; If this policy is cancelled, the insurer will send the first named</p>

<p>insured any premium refund due. If the insurer</p>

<p>cancels, the refund will be pro-rata. If the named insured cancels, the</p>

<p>refund may be less than pro-rata.</p>

<p></p>

<p>This endorsement, which forms a part of and is for attachment to the</p>

<p>following described Policy issued by the designated .</p>

<p>Insurers takes effect on the effective date of said Policy, unless another</p>

<p>effective date is shown below, at the hour stated in</p>

<p>said Policy and expires concurrently with said Policy.</p>

<p></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 1 of 3</p>

<p></p>

<p>CNA INSURANCE COMPANIES</p>

<p>G-11713-A12</p>

<p>(ED. 10/87)</p>

<p></p>

<p></p>

<p>-------------------------------------------------------------------------</p>

<p>The cancellation will be effective even if the insurer has not made or</p>

<p>offered a refund.</p>

<p></p>

<p>If this policy has been in effect for more than 60 days, the insurer shall</p>

<p>not terminate this policy except for one or</p>

<p>more of the following conditions:</p>

<p></p>

<p>1.&nbsp;&nbsp;&nbsp; non-payment of premium;</p>

<p></p>

<p>2. material misrepresentation;</p>

<p></p>

<p>3. material increase in the hazard insured against;</p>

<p></p>

<p>4. violation of any terms or conditions of the policy by the named insured;</p>

<p>5. substantial loss of reinsurance by the insurer affecting this particular</p>

<p>type of insurance, certified to the insurance regulatory authority;</p>

<p></p>

<p>6. a determination by the insurance regulatory authority that continuation</p>

<p>of the policy will place the insurer</p>

<p>in violation of the insurance laws of the state.</p>

<p></p>

<p>II.&nbsp;&nbsp; Non-Renewal</p>

<p></p>

<p>If the insurer decides not to renew this policy, 60 days advance written</p>

<p>notice shall be mailed to the named insured as the</p>

<p>last known address. &nbsp;&nbsp;&nbsp; -</p>

<p></p>

<p>The notice shall include the specific reason for such non-renewal.</p>

<p></p>

<p>If the insurer offers to renew this policy at terms which involve an</p>

<p>increase in premium of 30 % or more or changes in</p>

<p>deductibles or coverage that materially alter the policy, such terms will</p>

<p>take effect on the renewal date if the insurer has</p>

<p>notified. the named insured of the terms at least 60 days prior to the</p>

<p>expiration date of this policy.</p>

<p></p>

<p>This endorsement, which forms a part of and is for attachment to the</p>

<p>following described Policy issued by the designated</p>

<p>Insurers takes effect on the effective date of said Policy, unless another</p>

<p>effective date is shown below, at the hour stated in</p>

<p>said Policy and expires concurrently with said Policy.</p>

<p></p>

<p></p>

<p>Page 2 of 3</p>

<p></p>

<p>CNA INSURANCE COMPANIES</p>

<p>G-11713-A12</p>

<p>(ED. 10/87)</p>

<p>-------------------------------------------------------------------------</p>

<p>This notice is to advise the named insured that should any complaints arise</p>

<p>regarding this insurance, the named insured may</p>

<p>contact the following:</p>

<p></p>

<p>CNA Insurance Companies&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

<p>Attn: Consumer Affairs Department - 13S</p>

<p>CNA Plaza&nbsp;&nbsp; Chicago, IL 60685</p>

<p></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and/or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

<p></p>

<p>Illinois Department of Insurance</p>

<p>Consumer Division or Public Service Section</p>

<p>Springfield, II, 62767</p>

<p></p>

<p></p>

<p>Page 3 of 3</p>

<p></p>

<p>G-11713-A12</p>

<p>(ED. 10/87)</p>

<p></p>

<p>-------------------------------------------------------------------------</p>

<p>PRIOR NOTICE EXCLUSION</p>

<p></p>

<p>In consideration of the premium paid for this policy, it is agreed that</p>

<p>SectionXII. EXCLUSIONS, is amended with the addition of the</p>

<p>following:</p>

<p></p>

<p>Any fact, circumstance, situation, transaction or event which constitutes</p>

<p>the basis of notice of claim to the Insurer or any insurance</p>

<p>carriers designated in Item 4. of the Declarations, prior to the inception</p>

<p>date of this policy.</p>

<p></p>

<p>All other provisions of the policy remain unchanged</p>

<p></p>

<p></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 1 of 1</p>

<p></p>

<p>FIG-1005-A</p>

<p>(Ed. 07/94)</p>

<p></p>

<p>-------------------------------------------------------------------------</p>

<p>PRIOR OR PENDING LITIGATION EXCLUSION</p>

<p></p>

<p>In consideration of the premium paid for this policy, it is agreed that</p>

<p>Section XII is amended with the addition of the following:</p>

<p></p>

<p>3.&nbsp;&nbsp;&nbsp; Any fact, circumstance, situation, transaction or event underlying or</p>

<p>alleged in any prior and/or</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pending litigation as of 5/31/91, regardless of the legal theory upon which</p>

<p>such</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; litigation is predicated.</p>

<p></p>

<p>All other provisions of the policy remain unchanged.</p>

<p></p>

<p></p>

<p></p>

<p>Page 1 of 1</p>

<p></p>

<p>FIG-1006-A</p>

<p>(ED. 07/94)</p>

<p>-------------------------------------------------------------------------</p>

<p>INAPPLICABILITY OF PRIMARY POLICY ENDORSEMENT</p>

<p></p>

<p>In consideration of the premium paid for this policy, it is agreed that for</p>

<p>the coverage afforded under this policy endorsement number</p>

<p>8. to the Primary Policy shall not apply to this Policy.</p>

<p></p>

<p>All other provisions of the Policy remain unchanged.</p>

<p></p>

<p>Page 1 of 1</p>

<p></p>

<p>FIG-1014-A</p>

<p>07/94</p>

<p></p>

<p>-------------------------------------------------------------------------</p>

<p></p>

<p>AMENDMENT OF PRIMARY POLICY DEFINITION TO FOLLOW CHUBB D&amp;O COVERAGE</p>

<p></p>

<p>In consideration of the premium paid for this Policy, it is agreed that:</p>

<p>I.&nbsp;&nbsp;&nbsp; Item 4.A. of the Declarations is deleted and the following is substituted:</p>

<p>"A.&nbsp;&nbsp; Primary Policy</p>

<p></p>

<p>Name of Carrier: Federal Insurance Company</p>

<p>Policy No.8125-64-60J ILL</p>

<p>Applicable Coverage Section:</p>

<p></p>

<p>Executive Liability and Indemnification Coverage Section (Form 14-02-0943)</p>

<p>and any applicable</p>

<p>endorsements and General Terms and Conditions (Form 14-02-0941) pertaining</p>

<p>thereto</p>

<p>Limit of Liability of Primary Policy Applicable to Executive Liability and</p>

<p>Indemnification Coverage</p>

<p>Section</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) each Loss: $15,000,000</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) each Policy Period: $15,000,000</p>

<p>Deductible of Primary Policy Applicable to Executive Liability and</p>

<p>Indemnification Coverage</p>

<p>Section:</p>

<p>$100,000</p>

<p></p>

<p>2.&nbsp;&nbsp;&nbsp; II. POLICY DEFINITIONS is amended by deleting "Primary Policy means the</p>

<p>Policy scheduled in Item 4.A.</p>

<p>of the Declarations" and substituting the following:</p>

<p></p>

<p>"Primary Policy" means only the Executive Liability and Indemnification</p>

<p>Coverage Section (Form 14-02-</p>

<p>0943), and any applicable endorsements and General Terms and Conditions</p>

<p>(Form 14-02-0941) pertaining</p>

<p>thereto of the Executive Protection Policy issued by Federal Insurance</p>

<p>Company, as such policy is identified in</p>

<p>Item 4.A. of the Declarations, and shall not include any other coverage</p>

<p>section contained in such policy."</p>

<p></p>

<p>All other provisions of the Policy remain unchanged.</p>

<p></p>

<p></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 1 of 1</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIG-0787-A</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ED. 12/93)</p>

<p>-------------------------------------------------------------------------</p>
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