-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, aaIeCtxe+eXS32k0/tUsKrlRoz7ZM/f/1HMN8u1p5zdBcEef6eLCXQIETyhSetiO 6DH2MTscDJw3Qd1J5T+rrA== 0000355948-95-000008.txt : 19950608 0000355948-95-000008.hdr.sgml : 19950608 ACCESSION NUMBER: 0000355948-95-000008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950531 ITEM INFORMATION: Acquisition or disposition of assets FILED AS OF DATE: 19950607 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: RICHARDSON ELECTRONICS LTD/DE CENTRAL INDEX KEY: 0000355948 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-ELECTRONIC PARTS & EQUIPMENT, NEC [5065] IRS NUMBER: 362096643 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-12906 FILM NUMBER: 95545417 BUSINESS ADDRESS: STREET 1: 40W267 KESLINGER RD CITY: LAFOX STATE: IL ZIP: 60147 BUSINESS PHONE: 7082082200 MAIL ADDRESS: STREET 1: 40W267 KESLINGER ROAD CITY: LAFOX STATE: IL ZIP: 60147 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report(Date of earliest event reported)May 31, 1995 RICHARDSON ELECTRONICS, LTD. (Exact name of registrant as specified in its charter) Delaware 0-12906 36-2096643 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification incorporation) No.) 40W267 Keslinger Road LaFox, IL 60147 (Address of principal executive offices) Registrant's telephone number, including area code 708-208-2200 Not applicable (Former name or former address, if changed since last report.) Exhibit Index is located at page 3 This Current Report on Form 8-K contains a total of 9 pages. Item 5 Other Events On May 31, 1995 the Registrant entered into and consummated a Settlement Agreement with the United States of America resolving monetary claims, publicly reported by the Registrant in March 1994, asserted to be in excess of $11 million by the United States under the False Claims Act and the Lanham Act for conduct of the Registrant in connection with a Department of Defense contract for night-vision tubes that was completed by the Registrant in 1989. Pursuant to the Settlement Agreement the Registrant, without admitting any liability or wrongdoing and in order to avoid extended and costly litigation, paid $4.7 million to the United States in return for a release of monetary claims in connection with the contract. The Registrant expects the charge for the settlement, net of the tax effect, will be approximately $2.5 million. Item 7 Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits 10(a) Settlement Agreement by and between the United States of America and Richardson Electronics, Ltd. dated May 31, 1995. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RICHARDSON ELECTRONICS, LTD. By: /s/ William G. Seils William G. Seils Senior Vice President and Secretary Date: June 6, 1995 EX-10.A 2 SETTLEMENT AGREEMENT This Settlement Agreement ("Settlement Agreement") is made by and between the United States of America ("United States"), by its undersigned attorney, and Richardson Electronics, Ltd. ("Richardson"). A. Recitals 1. Richardson is a corporation incorporated in Delaware with its corporate headquarters in La Fox, Illinois. 2. On or about October 1, 1987, the Defense Electronics Supply Center ("DESC"), in Dayton, Ohio, a component of the Department of Defense, awarded Contract No. DLA90087-C-3380 ("the Contract") in the amount of $3,197,096 to Richardson. The Contract called for the production by Richardson and delivery of 10,801 Type 6914 night vision image converter tubes. 3. The United States has investigated and contends that it has civil claims and causes of action against Richardson under the False Claims Act, 31 U.S.C. Sec. 3729 et seq., the Lanham Act, 15 U.S.C. Sec. 1114 et seq., and at common law, to wit, claims for breach of contract or warranty, negligent or fraudulent misrepresentation, unjust enrichment or payment by mistake, arising from the following actions which the United States contends Richardson took: (a) substituting ten First Article tubes produced by a different company, mislabeling those tubes and falsely and fraudulently certifying in the First Article report that it (Richardson) had manufactured those First Article tubes when, in fact, it had not; (b) furnishing production tubes that were defective and/or non-conforming to performance specifications under the contract in that they failed to meet the requirements of MIL-E-1/1049E (10 April 1984) or were mislabeled and falsely and fraudulently submitting claims for payment for those production tubes, while knowing them to be so non-conforming, defective and/or mislabeled. 4. Richardson denies that the United States has any civil claims or causes of action arising from the Contract, denies that it manufactured or delivered tubes that were defective and non-conforming and denies that it made false or fraudulent certifications or that it submitted false and fraudulent claims. 5. The United States and Richardson desire to reach a full and final compromise of the civil claims or causes of action arising from the Contract without resort to litigation. NOW THEREFORE, in consideration of the mutual promises, covenants, and obligations set forth in this Settlement Agreement, and for good and valuable consideration, the receipt and sufficiency of which both parties hereby acknowledge, it is agreed as follows: B. Terms of Agreement 6. Richardson agrees to pay to the United States a total of $4,700,000 ("Settlement Amount") in order to settle any civil claims or causes of action against Richardson, its affiliates, subsidiaries or its current and former directors, officers, agents or employees described in paragraph 3, above. The Settlement Amount shall be paid by wire transfer to the United States Attorney for the Northern District of Illinois. 7. Except as otherwise provided in paragraph 8, below, upon execution of this Settlement Agreement and payment of the Settlement Amount pursuant to paragraph 6, above, the United States releases, waives, and discharges Richardson, its affiliates, subsidiaries and its current and former directors, officers, agents and employees from any civil or administrative monetary claims or causes of action described in paragraph 3, above. Upon the execution of this Settlement Agreement, Richardson releases, waives, and discharges any civil or administrative claims or causes of action it may have against the United States arising out of, from or relating to the Contract. 8. It is expressly agreed that the release set forth in the preceding paragraph 7, above, shall not include (a) claims arising under Title 26 of the United States Code (Internal Revenue Code), or any other claims for federal, state or local taxes, or under securities law; (b) suspension or debarment rights of any federal agency; (c) any claims based on such obligations as are created by this Settlement Agreement; or (d) claims for personal injury or property damage arising from the manufacture and delivery of the Type 6914 tubes under the Contract. 9. Richardson agrees that all costs (as defined in Federal Acquisition Regulation Sec. 31.205-47) incurred by or on behalf of Richardson or its current or former officers, directors, agents or employees in connection with (1) the matters covered by this Settlement Agreement; (2) the Government's audit and investigation of the matters covered by this Settlement Agreement; (3) Richardson's investigation, defense and corrective actions with respect to the matters specifically covered by this Settlement Agreement; (4) the negotiation of this Settlement Agreement; and (5) the Settlement Amount to be paid to the United States pursuant to this Settlement Agreement, shall be unallowable costs for government contract accounting purposes. These amounts shall be separately accounted for by Richardson. 10. Pursuant to a letter dated May 23, 1995 from the U.S. Attorney for the Northern District of Illinois, the United States has agreed that it will not bring any criminal charges against Richardson or its current or former directors, officers, agents or employees arising out of, from or relating to the Contract. A copy of that letter is attached hereto as Exhibit A, and is incorporated herein and made a part hereof by reference. 11. As soon as practicable after the execution of this Settlement Agreement by all parties, the United States and Richardson shall make reasonable efforts to destroy all of the Type 6914 Type tubes made by Richardson pursuant to the Contract which are in the possession of either of them, and shall notify each other in writing upon completion of such destruction. C. Miscellaneous Provisions 12. The provisions of this Settlement Agreement shall be binding upon the parties hereto, and their successors and assigns. 13. The parties acknowledge that the individuals executing this Settlement Agreement have authority to do so; that such individuals have reviewed the terms and provisions of this Settlement Agreement; that they have consulted legal counsel as to the meaning and legal effect of this Settlement Agreement; and that this Settlement Agreement contains the entire agreement between them and may not be modified, amended, or terminated except by written agreement signed by the parties and specifically referring to this Settlement Agreement. 14. This Settlement Agreement may be executed in counterparts, all of which will constitute one and the same agreement. IN WITNESS WHEREOF, the parties hereto affix their signatures. RICHARDSON ELECTRONICS, LTD. UNITED STATES OF AMERICA By: /s/ Edward J. Richardson By: /s/ John A. Kolar EDWARD J. RICHARDSON JOHN A. KOLAR, Esq. Chairman and Chief Executive Officer Commercial Litigation Branch Richardson Electronics, Ltd. U.S. Department of Justice 40W267 Keslinger Road 10th Street and Constitution LaFox, Illinois 60147 Ave., N.W. Washington, D.C. 20530 Dated: 5/31/95 Dated: 5/31/95 U.S. Department of Justice United States Attorney Northern District of Illinois May 23, 1995 Richard J. Rappaport Ross & Hardies 150 North Michigan Avenue Chicago, Illinois 60601-7567 Re: Richardson Electronics, Ltd. and Department of Defense Contract number DLA900-87-C-3380 Dear Mr. Rappaport: Richardson Electronics, Ltd., ("Richardson") as part of an executed settlement agreement between the United States and Richardson seeks assurance that no criminal charges will be brought against Richardson Electronics, Ltd., or its current or former officers, directors, agents, or employees, including but not limited to, George Snyder, Peter Johnston, Frank Putz, John Neilson, Donald Rice, Carl Davidson, Anton Shulski and David Doud, for any violation of federal criminal statutes arising from the awarding of Department of Defense Contract number DLA900-87-C-3380 and the production and delivery by Richardson of the "Type 6914" converter tubes. I state that the United States will not bring criminal charges against Richardson or its current or former officers, directors, agents, or employees, including but not limited to, George Snyder, Peter Johnston, Frank Putz, John Neilson, Donald Rice, Carl Davidson, Anton Shulski and David Doud for any violation of federal criminal statutes arising from the awarding of Department of Defense contract number DLA900-87-C-3380 and the production and delivery of the "Type 6914" converter tubes. It is understood that this letter will be attached to and be incorporated into the executed settlement agreement between the United States and Richardson. It is also understood that the settlement agreement between the parties is contingent upon the issuance of this letter to Richardson and its incorporation into the settlement agreement. Respectfully submitted, By: /s/ James B. Burns JAMES B. BURNS United States Attorney EXHIBIT A -----END PRIVACY-ENHANCED MESSAGE-----