Document:

Consent and First Amendment to the Revolving Credit Agreement

 Exhibit 10(ac)(1) 
  
 CONSENT AND FIRST AMENDMENT TO 
 AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT 
  
 This Consent and First Amendment to Amended and Restated Revolving Credit Agreement (this “Consent”) is entered into as of December 20, 2004 (the “Effective Date”) by and among (i)
Richardson Electronics, Ltd., a Delaware corporation (the “US-Borrower”), (ii) Burtek Systems, Inc., a Canadian corporation, Richardson Electronics Canada, Ltd., a Canadian corporation (each a “Canada-Borrower”, and
collectively, the “Canada-Borrowers”); (iii) Richardson Electronics Limited, an English limited liability company (the “UK-Borrower”); (iv) RESA, SNC, a French partnership, Richardson Electronique SNC, a French
partnership, Richardson Electronics Iberica, S.A., a Spanish corporation, Richardson Electronics GmbH, a German limited liability company, Richardson Electronics Benelux B.V., a Dutch private limited liability company, (each a
“Euro-Borrower” and collectively, the “Euro-Borrowers”), (v) Richardson Sweden Holding AB, a Swedish corporation (the “Krona-Borrower”) and (vi) Richardson Electronics KK, a company organized under
the laws of Japan (the “Japan-Borrower”) (the US-Borrower, the Canada-Borrowers, the UK-Borrower, the Euro-Borrowers, the Krona-Borrower and the Japan-Borrower are collectively referred to as the “Borrowers”), the
lenders party hereto (each, a “Lender” and collectively, the “Lenders”), JP Morgan Europe Limited (the “Eurocurrency Agent”), JPMorgan Chase Bank, N.A., Canada Branch as Canada Agent (the
“Canada Agent”), JPMorgan Chase Bank, N.A., Tokyo Branch as Japan Agent (the “Japan Agent”) and JPMorgan Chase Bank, N.A., successor by merger to Bank One, NA as administrative agent (in such capacity, the
“Administrative Agent”) (the Eurocurrency Agent, the Canada Agent, the Japan Agent and the Administrative Agent are collectively referred to as the “Funding Agents” and each individually a “Funding
Agent”). 
  
 RECITALS 
  
 WHEREAS, the Borrowers, the Lenders and the Funding Agents are parties to
that certain Amended and Restated Revolving Credit Agreement dated as of September 29, 2004 (as amended from time to time, the “Agreement”); 
  
 WHEREAS, the US-Borrower desires to retire up to the entire outstanding amount of the Identified Debentures defined below (the “Debenture
Retirement”) pursuant to the Debenture Exchange described below; 
  
 WHEREAS, the US-Borrower desires to repay and retire some or all of the Identified Debentures pursuant to an offer to exchange for the outstanding Identified Debentures, in one or more private transactions, the
US-Borrower’s debt securities described in Exhibit A attached hereto and made a part hereof (the “New Debt Securities”; such exchange being hereinafter referred to as the “Debenture Exchange”); 
  

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 WHEREAS, the Lenders and the Funding Agents wish to extend certain consents required under the Agreement
and amendments to the Agreement in order to permit the issuance of the New Debt Securities and the Debenture Retirement as set forth herein; 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties hereto agree as follows: 
  
 1. Defined Terms. Capitalized terms used herein but not defined herein shall
have the meanings ascribed thereto in the Agreement, as amended hereby. 
  
 2.
Consents. 
  
 (a) Each Lender hereby consents
pursuant to Section 6.10(iv) of the Agreement to the issuance of the New Debt Securities pursuant to the Debenture Exchange. 
  
 (b) Each Lender hereby consents pursuant to Section 6.23 of the Agreement to the Debenture Retirement. 
  
 3. Amendments. 
  
 (a) The definition of “Debentures” contained in Section 1.1 of the Agreement is hereby deleted in its
entirety and replaced as follows: 
  
 “Debentures” means the US-Borrower’s (i) 7 1/4% Convertible Subordinated
Debentures due December 15, 2006, (ii) 8 1/4% Convertible Senior Subordinated Debentures due June 15, 2006 and
(iii) 7 3/4% Convertible Senior Subordinated Notes, due 2011. 
  
 (b) A new definition of “Identified Debentures” is added to
Section 1.1 of the Agreement as follows: 
  
 “Identified Debentures” means such of the Debentures consisting of the US-Borrower’s (i) 7 1/4% Convertible Subordinated Debentures due December 15, 2006, and (ii) 8 1/4% Convertible Senior
Subordinated Debentures due June 15, 2006. 
  
 (c)
Section 6.23 is hereby deleted in its entirety and replaced as follows: 
  
 6.23
Repayment of Subordinated Debt. Until all Obligations have been irrevocably paid in full, the US-Borrower and its Subsidiaries shall not make any payment upon any principal of any Subordinated Debt, including by means of repurchasing
Debentures; provided that the US-Borrower shall be permitted to (a) make the required sinking fund payment of $3,850,000 on or before December 15, 2004 with regard to the Identified Debentures, (b) make the required sinking fund payment of
$6,225,000 on or before December 15, 2005 with regard to the Identified Debentures, and (c) repay or repurchase and retire, in each case at a price that is at or below the par value for such Identified Debenture (plus an amount equal to the accrued
and unpaid interest to date of repayment, repurchase or retirement), an aggregate amount of the Identified Debentures of up to the Repurchase Amount prior to February 28, 2006 pursuant to open-market transactions, in 
  

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 privately-negotiated transactions, by repayment or otherwise. Notwithstanding anything to the contrary in this Agreement,
no payment upon any principal of any Subordinated Debt, no sinking fund payment and no repurchase or retirement of Subordinated Debt may be made at any time when there exists any Default or Unmatured Default or when such payment, repurchase or
retirement would result in any Default or Unmatured Default (including pursuant to Section 6.24 or 6.25). The US-Lender shall ensure that at all times there remains availability under the Borrowing Base in an amount of at least the
Availability Hold Amount. 
  
 4. Covenants. The
Borrowers covenant and agree (a) that the Debenture Retirement and the Debenture Exchange will be conducted in full compliance with all applicable law, and (b) to promptly provide the Administrative Agent such documents (and, if requested by the
Administrative Agent, certified duplicates of executed copies thereof) or opinions as the Administrative Agent may reasonably request to evidence such Debenture Retirement and the compliance thereof with applicable law. Unless consented to by the
Administrative Agent, if the Borrowers shall fail to comply with any of the foregoing covenants, this Consent shall be null and void and of no further force and effect. 
  
 5. Effectiveness. This Consent shall become effective when the Administrative Agent has received all of the
following acknowledged to be satisfactory by the Administrative Agent: 
  
 (a) This Consent, executed by the requisite signatories; 
  
 (b) A certificate, signed by the chief financial officer of each Borrower, stating that on the Effective Time (after giving effect to this Consent) no Default or Unmatured Default has occurred and is continuing and further certifying that
the representations and warranties contained in Article 5 of the Agreement are true and correct on and as of the Effective Time and would be true assuming that the Debenture Retirement had been consummated on such date; and 
  
 (c) Such other documents, instruments, approvals (and, if requested by the
Administrative Agent, certified duplicates of executed copies thereof) or opinions as the Administrative Agent may reasonably request. 
  
 6. Representations and Warranties. Each Borrower represents and warrants to the Lenders and Funding Agents (which representations and warranties shall
become part of the representations and warranties made by such Borrower under the Agreement) that: 
  
 (a) The execution, delivery and performance of this Consent has been duly authorized by all necessary action and will not require any consent or approval
of any person or entity, violate in any material respect any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to it or constitute a default under any
indenture or loan or credit agreement or any other agreement, lease or instrument to which any Borrower is a party or by which it or its properties may be bound or affected; 
  

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 (b) No consent, approval or authorization of or declaration or filing with any governmental authority or
any non-governmental person or entity, including without limitation, any creditor or partner of any Borrower is required on the part of such Borrower in connection with the execution, delivery and performance of this Consent or the transactions
contemplated hereby and the execution, delivery and performance of this Consent will not violate the terms of any contract or agreement to which such Borrower is a party; 
  
 (c) The Agreement is the legal, valid and binding obligation of each Borrower, enforceable against it in accordance with the
terms thereof; 
  
 (d) The Debenture Retirement has been duly
authorized by all necessary action and will not require any consent or approval of any person or entity, violate in any material respect any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award
presently in effect having applicability to it or constitute a default under any indenture or loan or credit agreement or any other agreement, lease or instrument to which such Borrower is a party or by which it or its properties may be bound or
affected; 
  
 (e) No consent, approval or authorization of or
declaration or filing with any governmental authority or any non-governmental person or entity, including without limitation, any creditor or partner of any Borrower is required on the part of such Borrower in connection with the Debenture
Retirement or the transactions contemplated thereby; 
  
 (f) After
giving effect to the agreements and consent contained herein and effective pursuant hereto, and assuming the Debenture Retirement were made on such date, the representations and warranties contained in Article 5 of the Agreement are true and correct
on and as of the Effective Date hereof in the same force and effect as if made on and as of such Effective Date; 
  
 (g) The most recent financial statements of each Borrower delivered to the Lender are complete and accurate in all material respects and present fairly
the financial condition of such Borrowers as of such date in accordance with generally accepted accounting principles. There has been no adverse material change in the condition of the business, properties, operations or condition, financial or
otherwise, of any Borrower since the date of such financial statements. There are no material liabilities of any Borrower, fixed or contingent, which are material but not reflected on such financial statements or in the notes thereto; and

  
 (h) After giving effect to this Consent no Default or Event of
Default has occurred or exists under the Agreement as of the Effective Date hereof. 
  
 7. Acknowledgement and Reaffirmation. Each Borrower hereby ratifies and affirms all of the obligations and undertakings contained in the Agreement and the Agreement remains in full force and effect in accordance with its
terms. Each Borrower hereby acknowledges, agrees and affirms that each document and instrument securing or 
  

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 supporting the obligations and indebtedness owing to the Lenders and Funding Agents prior to the date of this Consent
remains in full force and effect in accordance with its terms, and that such security and support remains in full force effect as to all obligations under the Agreement. 
  
 8. Expenses. The Borrowers jointly and severally agree to pay and save the Lenders and Funding Agents harmless from liability
for the payment of all costs and expenses arising in connection with this Consent, including the reasonable fees and expenses of Baker & McKenzie, counsel to certain of the Lenders, in connection with the preparation and review of this Consent
and any related documents. 
  
 9. Governing Law. This Consent shall
be governed by, and shall be construed and enforced in accordance with, the laws of the State of Illinois. 
  
 10. Counterparts; Facsimile. This Consent may be executed in one or more counterparts, each of which together shall constitute the same agreement. One or more counterparts of this Consent may be
delivered by facsimile, with the intention that such delivery shall have the same effect as delivery of an original counterpart thereof. 
  
 [The remainder of this page has been left blank intentionally] 
  

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

			
	BORROWERS:
	
	RICHARDSON ELECTRONICS, LTD.
		
	BY:	 	  

	TITLE:	 	  

	
	BURTEK SYSTEMS, INC.
		
	BY:	 	  

	TITLE:	 	  

	
	RICHARDSON ELECTRONICS CANADA, LTD.
		
	BY:	 	  

	TITLE:	 	  

	
	RICHARDSON ELECTRONICS LIMITED
		
	BY:	 	  

	TITLE:	 	  

	
	RESA, SNC
		
	BY:	 	  

	TITLE:	 	  

	
	RICHARDSON ELECTRONIQUE SNC
		
	BY:	 	  

	TITLE:	 	  

  

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	RICHARDSON ELECTRONICS IBERICA, S.A.
		
	BY:	 	  

	TITLE:	 	  

	
	RICHARDSON ELECTRONICS GMBH
		
	BY:	 	  

	TITLE:	 	  

	
	RICHARDSON ELECTRONICS BENELUX B.V.
		
	BY:	 	  

	TITLE:	 	  

	
	RICHARDSON SWEDEN HOLDING AB
		
	BY:	 	  

	TITLE:	 	  

	
	RICHARDSON ELECTRONICS KK
		
	BY:	 	  

	TITLE:	 	  

	
	FUNDING AGENTS:
	
	JPMORGAN CHASE BANK, N.A.
		
	BY:	 	  

	TITLE:	 	  

  

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	JP MORGAN EUROPE LIMITED
		
	BY:	 	  

	TITLE:	 	  

	
	JPMORGAN CHASE BANK, N.A., Toronto Branch
		
	BY:	 	  

	TITLE:	 	  

	
	JPMORGAN CHASE BANK, N.A., through its Tokyo Branch
		
	BY:	 	  

	TITLE:	 	  

	
	LENDERS:
	
	HARRIS TRUST AND SAVINGS BANK
		
	BY:	 	  

	TITLE:	 	  

	
	BANK OF MONTREAL
		
	BY:	 	  

	TITLE:	 	  

	
	 NATIONAL CITY BANK,
 Canada
Branch

		
	BY:	 	  

	TITLE:	 	  

  

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	NATIONAL CITY BANK OF THE MIDWEST
		
	BY:	 	  

	TITLE:	 	  

	
	LASALLE BANK NATIONAL ASSOCIATION
		
	BY:	 	  

	TITLE:	 	  

	
	LASALLE BUSINESS CREDIT, a division of ABN AMRO Bank N.V., Canada Branch
		
	BY:	 	  

	TITLE:	 	  

	
	JPMORGAN CHASE BANK, N.A., London Branch
		
	BY:	 	  

	TITLE:	 	  

	
	JPMORGAN CHASE BANK, N.A., Canada Branch
		
	BY:	 	  

	TITLE:	 	  

	
	JPMORGAN CHASE BANK, N.A., through its Tokyo Branch
		
	BY:	 	  

	TITLE:	 	  

  

 - 9 - 

			
	JPMORGAN CHASE BANK, N.A.
		
	BY:	 	  

	TITLE:	 	  

	
	JP MORGAN EUROPE LIMITED
		
	BY:	 	  

	TITLE:	 	  

	

  

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 EXHIBIT A 
  

Summary Comparison of New Notes to 71⁄4% Debentures and 81⁄4% Debentures 
  
 The following comparison of the terms of the notes to the 71⁄4% debentures and the 81⁄4% debentures is
only a summary. 
  

							
	 	 	 New Notes

	 	 71⁄4% Debentures

	 	 81⁄4% Debentures

	Issuer	 	Richardson Electronics, Ltd.	 	Richardson Electronics, Ltd.	 	Richardson Electronics, Ltd.
				
	Securities	 	convertible senior subordinated notes	 	convertible subordinated debentures	 	convertible senior subordinated debentures
				
	CUSIP	 	 	 	763165AB3	 	763165AC1
				
	Amount	 	Up to $70,757,000	 	$30,757,000	 	$40,000,000
				
	Interest	 	7 3/4% per year	 	71⁄4% per year	 	81⁄4% per year
				
	Interest payment dates	 	June 15 and December 15	 	June 15 and December 15	 	June 15 and December 15
				
	Maturity date	 	December 15, 2011	 	December 15, 2006	 	June 15, 2006
				
	Ranking	 	The notes are our unsecured obligations, senior to the 71⁄4% debentures, the 81⁄4% debentures, and future indebtedness that is expressly made subordinate to the notes. The notes are
subordinate to amounts borrowed under our credit agreement and future indebtedness that is not expressly pari passu with or subordinate to the notes. In addition, the notes are structurally subordinate to any indebtedness of our
subsidiaries.	 	The 71⁄4% debentures are our unsecured obligations, senior to future indebtedness that is expressly made subordinate to the 71⁄4% debentures. The 71⁄4% debentures are subordinate to the
notes, the 81⁄4% debentures, amounts borrowed under our credit agreement and future indebtedness that is not expressly pari passu with or subordinate to the 71⁄4% debentures. In addition, the 71⁄4% debentures are structurally
subordinate to any indebtedness of our subsidiaries.	 	The 81⁄4% debentures are our unsecured obligations, senior to the 71⁄4% debentures and future indebtedness that is expressly made subordinate to the 81⁄4% debentures. The 81⁄4%
debentures are subordinate to the notes, amounts borrowed under our credit agreement and future indebtedness that is not expressly pari passu with or subordinate to the 81⁄4% debentures. In addition, the 81⁄4% debentures are
structurally subordinate to any indebtedness of our subsidiaries.
				
	Conversion	 	Convertible into our common stock at any time at the option of the holder at a conversion price equal to $18.00 per share, subject to adjustment if we pay cash dividends in excess of $0.04 per
share of common stock on a quarterly basis, and in certain other events.	 	Convertible into our common stock at any time at the option of the holder at a conversion price equal to $21.14 per share, subject to adjustment in certain events.	 	Convertible into our common stock at any time at the option of the holder at a conversion price equal to $18.00 per share, subject to adjustment in certain events.
				
	 Optional redemption
 (auto-conversion soft call
protection)
	 	We may redeem some or all of the notes on or after December 19, 2007 at par, plus accrued and unpaid interest. On or after December 19, 2006, we may elect to automatically convert the notes at
anytime prior to maturity if the closing price of our common stock has exceeded 125% of the conversion price for at least 20 trading days during any 30 trading day period, ending within five trading days prior to the notice of automatic
conversion.	 	We may redeem the 71⁄4% debentures at any time at 100% of the principal amount of the 71⁄4% debentures to be redeemed plus accrued and unpaid interest.	 	We may redeem the 81⁄4% debentures at any time at 100% of the principal amount of the 81⁄4% debentures to be redeemed plus accrued and unpaid interest.

  

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	Sinking fund	 	None.	 	We are obligated to make sinking fund payments on December 15, 2004 and December 15, 2005 of $3.85 million and $6.225 million, respectively.	 	None.
				
	Change of control	 	Upon a change of control, holders of notes have the right to require us to repurchase the notes at 101% of the principal amount thereof plus accrued and unpaid interest to the date of
redemption, if any.	 	None.	 	None.
				
	Transfer Restrictions	 	The notes and the stock issuable upon conversion of the notes have not been registered under the Securities Act of 1933 and are subject to certain restrictions on transfer.	 	None	 	None
				
	Registration Rights	 	We have agreed in a separate Registration Rights Agreement to file a registration statement with the SEC for the resale of the notes and the common stock issuable upon conversion of the notes
within 90 days following the issuance of the notes and to use our best efforts to cause the registration statement to become effective within 120 days following the issuance of the notes. We have agreed to use our best efforts to keep the
registration statement effective until the second anniversary of the issuance of the notes.	 	 	 	 
				
	Trading	 	We do not intend to list the notes on any securities exchange.	 	The 71⁄4% debentures are not listed on any securities exchange.	 	The 81⁄4% debentures are not listed on any securities exchange.
				
	Events of default	 	Failure to pay interest for 30 days, failure to pay principal when due, failure to perform a covenant for 30 days after notice, failure to convert the notes unless such failure is cured within 5
days after notice, failure to repurchase upon a change of control, failure to provide notice of a change of control, failure to redeem after exercise of the option to redeem, acceleration of any indebtedness in the aggregate in excess of
$10,000,000, and events of bankruptcy, insolvency or reorganization.	 	Failure to pay interest for 30 days, failure to pay principal when due, failure to perform a covenant for 30 days after notice, acceleration of any indebtedness in the aggregate in excess of
$5,000,000, and events of bankruptcy, insolvency or reorganization.	 	Failure to pay interest for 30 days, failure to pay principal when due, failure to perform a covenant for 30 days after notice, acceleration of any indebtedness in the aggregate in excess of
$5,000,000, and events of bankruptcy, insolvency or reorganization.

  

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	Limitations on dividends and stock purchases	 	 None.
  
 Provided, however, that we will make an adjustment to the conversion price to the extent that dividends exceed $0.04 per share of common stock on a quarterly basis.
	 	 Amount may not exceed the sum of:
  
 •      the aggregate consolidated net income (or net loss) earned on a cumulative basis after
May 31, 1996;
  
 •      the aggregate net proceeds from the issue or sale, other than to a subsidiary, after May 31, 1996 of our capital stock;
  
 •      the aggregate net proceeds from the issue or sale, other
than to a subsidiary, of our indebtedness which has been converted into our capital stock; and
  
 •      $20,000,000.
	 	 Amount may not exceed the sum of:
  
 •      the aggregate consolidated net income (or net loss) earned on a cumulative basis after
May 31, 1996;
  
 •      the aggregate net proceeds from the issue or sale, other than to a subsidiary, after May 31, 1996 of our capital stock;
  
 •      the aggregate net proceeds from the issue or sale, other
than to a subsidiary, of our indebtedness which has been converted into our capital stock; and
  
 •      $30,000,000.

				
	Limitations on mergers	 	None.	 	 We may not merge into, consolidate with or transfer all or substantially all our assets unless:
  
 •      the
corporation with which we are merging is a U.S. corporation which expressly assumes our outstanding obligations under the 71⁄4% indenture;
  
 •      the corporation with which we are merging has a consolidated tangible net worth at
least equal to ours; and
  
 •      after the merger we are not in default under our 71⁄4% indenture.
	 	 We may not merge into, consolidate with or transfer all or substantially all our assets unless:
  
 •      the
corporation with which we are merging is a U.S. corporation which expressly assumes our outstanding obligations under the 81⁄4% indenture;
  
 •      the corporation with which we are merging has a consolidated tangible net worth at
least equal to ours; and
  
 •      after the merger we are not in default under our 81⁄4% indenture.

  

 - 3 -Waiver and Second Amendment to Amended and Restated Revolving Credit Agreement

 Exhibit 10(ac)(2) 
  
 WAIVER AND SECOND AMENDMENT TO 
 AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT 
  
 This Waiver and Second Amendment to Amended and Restated Revolving Credit Agreement (this “Amendment”) is entered into as of August 24, 2005 (the “Effective Date”) by and among (i)
Richardson Electronics, Ltd., a Delaware corporation (the “US-Borrower”), (ii) Burtek Systems, Inc., a Canadian corporation, Richardson Electronics Canada, Ltd., a Canadian corporation (each a “Canada-Borrower”, and
collectively, the “Canada-Borrowers”); (iii) Richardson Electronics Limited, an English limited liability company (the “UK-Borrower”); (iv) RESA, SNC, a French partnership, Richardson Electronique SNC, a French
partnership, Richardson Electronics Iberica, S.A., a Spanish corporation, Richardson Electronics GmbH, a German limited liability company, Richardson Electronics Benelux B.V., a Dutch private limited liability company, (each a
“Euro-Borrower” and collectively, the “Euro-Borrowers”), (v) Richardson Sweden Holding AB, a Swedish corporation (the “Krona-Borrower”) and (vi) Richardson Electronics KK, a company organized under
the laws of Japan (the “Japan-Borrower”) (the US-Borrower, the Canada-Borrowers, the UK-Borrower, the Euro-Borrowers, the Krona-Borrower and the Japan-Borrower are collectively referred to as the “Borrowers”), the
lenders party hereto (each, a “Lender” and collectively, the “Lenders”), JP Morgan Bank, N.A., London Branch, as Eurocurrency Agent (the “Eurocurrency Agent”), JPMorgan Chase Bank, N.A., Canada
Branch as Canada Agent (the “Canada Agent”), JPMorgan Chase Bank, N.A., Tokyo Branch as Japan Agent (the “Japan Agent”) and JPMorgan Chase Bank, N.A., successor by merger to Bank One, NA as administrative agent (in
such capacity, the “Administrative Agent”) (the Eurocurrency Agent, the Canada Agent, the Japan Agent and the Administrative Agent are collectively referred to as the “Funding Agents” and each individually a
“Funding Agent”). 
  
 RECITALS

  
 WHEREAS, the Borrowers, the Lenders and the Funding Agents
are parties to that certain Amended and Restated Revolving Credit Agreement dated as of September 29, 2004 (as amended from time to time, the “Agreement”); 
  
 WHEREAS, the Borrowers, the Lenders and the Funding Agents desire to amend the Credit Agreement in order to revise certain
financial covenants, adjust pricing for loans and other financial accommodations and to provide certain requirements for the maintenance of excess Borrowing Base availability, in each case on the terms and conditions set forth herein; 
  
 WHEREAS, the Lenders wish to waive certain Events of Default arising from the
US-Borrower and its Subsidiaries’ failure to satisfy certain requirements in respect of their Fixed Charge Coverage ratio for the quarter ended May 31, 2005, on terms and conditions set forth herein; 
  

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 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties
hereto agree as follows: 
  
 1. Defined Terms. Capitalized terms
used herein but not defined herein shall have the meanings ascribed thereto in the Agreement, as amended hereby. 
  
 2. Waiver. 
  
 Each Lender hereby waives Events of Default under Section 7.3 of the Agreement arising solely from the failure of the US-Borrower and its Subsidiaries to
maintain the Fixed Charge Coverage ratio required by Section 6.35 of the Agreement solely in respect of the fiscal quarter ended May 31, 2005. 
  
 3. Amendments. 
  
 (a) The definitions of “Availability Hold” and “EBITDA” contained in Section 1.1 of the Agreement are hereby deleted in their
entirety and replaced as follows: 
  
 “‘Availability
Hold’ means the sum of Twenty Three Million Dollars ($23,000,000).” 
  
 “‘EBITDA’ means, as at any date of determination thereof, the sum of Net Income, Interest Expense, income taxes, depreciation and amortization in each case as calculated as at such date of
determination for the US-Borrower and its Subsidiaries on a consolidated basis in accordance with Agreement Accounting Principles. Neither cash nor non-cash charges reflecting extraordinary terms, unusual items, or one-time charges will be added
back for purposes of the EBITDA calculation. Cash and/or non-cash gains reflecting extraordinary terms, unusual items or one-time gains will be subtracted for purposes of the EBITDA calculation.” 
  
 (b) The first sentence of Section 6.2 is deleted in its entirety and replaced
as follows: 
  
 “Each Borrower will, and will cause each
Subsidiary to, use the proceeds of the Advances and Facility Letters of Credit for general corporate purposes.” 
  
 (c) Section 6.23 is hereby deleted in its entirety and replaced as follows: 
  
 6.23 Repayment of Subordinated Debt; Adjustment to Pricing. 
  
 6.23.1 Until all Obligations have been irrevocably paid in full, the US-Borrower and its Subsidiaries shall not make any
payment upon any principal of any Subordinated Debt, including by means of repurchasing Debentures; provided that the US-Borrower shall be permitted to repay or repurchase and retire, in each case at a price that is at or below the par value
for such Identified Debenture (plus an amount equal to 
  

 - 2 - 

 the accrued and unpaid interest to date of repayment, repurchase or retirement), an aggregate amount of the Identified
Debentures of up to the Repurchase Amount prior to June 10, 2006 pursuant to open-market transactions, in privately-negotiated transactions, by repayment or otherwise (the “Debenture Retirement”) provided further that the
Debenture Retirement shall be effected solely by either or both of an offer to exchange Identified Debentures for new debentures (“New Debt Securities”) or repayment or repurchase of the Identified Debentures by the issuance of New
Debt Securities, which New Debt Securities shall constitute Subordinated Debt and shall otherwise be issued on terms acceptable to the Administrative Agent and the Required Lenders. Notwithstanding anything to the contrary in this Agreement, no
payment upon any principal of any Subordinated Debt, no sinking fund payment and no repurchase or retirement of Subordinated Debt may be made at any time when there exists any Default or Unmatured Default or when such payment, repurchase or
retirement would result in any Default or Unmatured Default (including pursuant to Section 6.24 or 6.25). 
  
 6.23.2 In the event the US Borrower shall fail to repay, repurchase or retire the Identified Debentures in accordance with the terms of Section 6.23.1
hereof (and without limiting recovery of additional interest that may occur upon the occurrence of a Default), except for the Applicable Margin associated with the Floating Rate, each Level of the Pricing Schedule shall be increased by one quarter
percent (.25%) above the otherwise Applicable Margin effective on November 30, 2005 and by an additional one quarter percent (.25%) above the otherwise Applicable Margin effective February 28, 2006 in each case which adjustments shall continue until
the completion of the Debenture Retirement. 
  
 (d) Sections 6.24
and 6.25 are hereby deleted in their entirety and replaced as follows: 
  
 6.24 Leverage Ratio. The US-Borrower and its Subsidiaries will maintain, on each date listed below, a Leverage Ratio of less than the respective ratio specified for such date: 
  

			
	 Applicable Dates

	  	Maximum Ratio

	 August 31, 2005
	  	3.35 to 1.00
		
	 November 30, 2005
	  	3.75 to 1.00
		
	 February 28, 2006
	  	3.35 to 1.0
		
	 May 31, 2006 and each fiscal quarter end thereafter
	  	3.0 to 1.0

  

 - 3 - 

 6.25 Fixed Charge Coverage Ratio. The US-Borrower and its Subsidiaries will maintain, on each date
listed below, a Fixed Charge Coverage Ratio greater than the respective ratio specified for such date: 
  

			
	 Applicable Dates

	  	Minimum Ratio

	 August 31, 2005
	  	1.25 to 1.00
		
	 November 30, 2005
	  	1.00 to 1.00
		
	 February 28, 2006
	  	1.15 to 1.0
		
	 May 31, 2006 and each fiscal quarter end thereafter
	  	1.50 to 1.00

  
 (e) The date
“February 28, 2006” is hereby deleted from Section 6.27 and replaced with the date “June 10, 2006.” 
  
 (f) A new Section 6.29 is hereby added as follows: 
  
 “6.29 Excess Availability The Borrower will at all times through and including the later of (i) August 31, 2006 or (ii) the submission of
financial reports to the Agent required by this Agreement in respect of the Borrower’s fiscal year ended May 31, 2006, maintain Borrowing Base in excess of outstanding Loans and Facility Letters of Credit in an amount not less than the
Availability Hold, provided that this covenant shall remain in effect at all times after such dates if a Default or Event of Default shall exist on or before any such date.” 
  
 (g) Annex A (Pricing Schedule) is hereby deleted in its entirety and replaced in the form attached hereto and made a part
hereof. The undersigned parties hereby confirm that, based on the most recent financial reports submitted by the US Borrower to the Administrative Agent, as of the Effective Time, all Advances shall be priced at Level V Status within the meaning of
the Pricing Schedule. 
  
 4. Effectiveness. This
Amendment shall become effective when the Administrative Agent has received all of the following acknowledged to be satisfactory by the Administrative Agent: 
  

(a) This Amendment, executed by the requisite signatories; 
  
 (b) A certificate, signed by the chief financial officer of Richardson Electronics, Ltd. substantially in the form of Annex A attached hereto and made a
part hereof, stating that on the date on which this Amendment becomes effective (the “Effective Time”) (after giving effect to this Amendment) no Default or Unmatured Default has occurred and is continuing and further certifying
that the representations and warranties contained in Article 5 of the Agreement are true and correct on and as of the Effective Time; 
  
 (c) Payment to the Administrative Agent for the account of each Lender in proportion to its percentage of the Aggregate Commitment, an amendment fee equal
to .25% of the Dollar Amount of the Aggregate Commitment; and 
  

 - 4 - 

 (d) Such other documents, instruments, approvals (and, if requested by the Administrative Agent,
certified duplicates of executed copies thereof) or opinions as the Administrative Agent may reasonably request. 
  
 4A. Conditions Subsequent. As a condition subsequent hereto, the US Borrower shall furnish to the Administrative Agent a copy of its Annual Report as filed
on Form 10-K as of and for the year ended May 28, 2005, with the reports of its independent registered public accounting firm included therein. The form and content of the report with respect to the consolidated financial statements shall meet
the requirements of the Agreement and not contain any “going concern” qualification or other qualification unacceptable to the Administrative Agent. Such Annual Report on Form 10-K shall be furnished to the Administrative Agent not later
than August 26, 2005. 
  
 5. Representations and Warranties.
Each Borrower represents and warrants to the Lenders and Funding Agents (which representations and warranties shall become part of the representations and warranties made by such Borrower under the Agreement) that: 
  
 (a) The execution, delivery and performance of this Amendment has been duly
authorized by all necessary action and will not require any consent or approval of any person or entity, violate in any material respect any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award
presently in effect having applicability to it or constitute a default under any indenture or loan or credit agreement or any other agreement, lease or instrument to which any Borrower is a party or by which it or its properties may be bound or
affected; 
  
 (b) No consent, approval or authorization of or
declaration or filing with any governmental authority or any non-governmental person or entity, including without limitation, any creditor or partner of any Borrower is required on the part of such Borrower in connection with the execution, delivery
and performance of this Amendment or the transactions contemplated hereby and the execution, delivery and performance of this Amendment will not violate the terms of any contract or agreement to which such Borrower is a party; 
  
 (c) The Agreement is the legal, valid and binding obligation of each
Borrower, enforceable against it in accordance with the terms thereof; 
  
 (d) The most recent financial statements of each Borrower delivered to the Lender are complete and accurate in all material respects and present fairly the financial condition of such Borrowers as of such date in accordance with generally
accepted accounting principles. There has been no adverse material change in the condition of the business, properties, operations or condition, financial or otherwise, of any Borrower since the date of such financial statements. There are no
material liabilities of any Borrower, fixed or contingent, which are material but not reflected on such financial statements or in the notes thereto; and 
  
 (e) After giving effect to this Amendment no Default or Event of Default has occurred or exists under the Agreement as of the Effective Date hereof.

  
 6. Acknowledgement and Reaffirmation. Each Borrower hereby
ratifies and affirms all of the obligations and undertakings contained in the Agreement and the Agreement remains in full force and effect in accordance with its terms. Each Borrower hereby acknowledges, agrees and affirms that each document and
instrument securing or 
  

 - 5 - 

 supporting the obligations and indebtedness owing to the Lenders and Funding Agents prior to the date of this Amendment
remains in full force and effect in accordance with its terms, and that such security and support remains in full force effect as to all obligations under the Agreement. 
  
 7. Expenses. The Borrowers jointly and severally agree to pay and save the Lenders and Funding Agents harmless from liability
for the payment of all costs and expenses arising in connection with this Amendment, including the reasonable fees and expenses of Baker & McKenzie LLP, counsel to certain of the Lenders, in connection with the preparation and review of this
Amendment and any related documents. 
  
 8. Governing Law. This
Amendment shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of Illinois. 
  
 9. Counterparts; Facsimile. This Amendment may be executed in one or more counterparts, each of which together shall constitute the same agreement. One or
more counterparts of this Amendment may be delivered by facsimile, with the intention that such delivery shall have the same effect as delivery of an original counterpart thereof. 
  
 [The remainder of this page has been left blank intentionally] 
  

 - 6 - 

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

			
	BORROWERS:
	
	RICHARDSON ELECTRONICS, LTD.
		
	BY:	 	  

	TITLE:	 	  

	
	BURTEK SYSTEMS, INC.
		
	BY:	 	  

	TITLE:	 	  

	
	RICHARDSON ELECTRONICS CANADA, LTD.
		
	BY:	 	  

	TITLE:	 	  

	
	RICHARDSON ELECTRONICS LIMITED
		
	BY:	 	  

	TITLE:	 	  

	
	RESA, SNC
		
	BY:	 	  

	TITLE:	 	  

	
	RICHARDSON ELECTRONIQUE SNC
		
	BY:	 	  

	TITLE:	 	  

  

 - 7 - 

			
	
	 RICHARDSON ELECTRONICS IBERICA, S.A.

		
	BY:	 	  

	TITLE:	 	  

	
	 RICHARDSON ELECTRONICS GMBH

		
	BY:	 	  

	TITLE:	 	  

	
	 RICHARDSON ELECTRONICS BENELUX B.V.

		
	BY:	 	  

	TITLE:	 	  

	
	 RICHARDSON SWEDEN HOLDING AB

		
	BY:	 	  

	TITLE:	 	  

	
	 RICHARDSON ELECTRONICS KK

		
	BY:	 	  

	TITLE:	 	  

	
	 FUNDING AGENTS:

	
	 JPMORGAN CHASE BANK, N.A.

		
	BY:	 	  

	TITLE:	 	  

  

 - 8 - 

			
	
	JP MORGAN CHASE BANK, N.A., London Branch
		
	BY:	 	  

	TITLE:	 	  

	
	JPMORGAN CHASE BANK, N.A., Toronto Branch
		
	BY:	 	  

	TITLE:	 	  

	
	JPMORGAN CHASE BANK, N.A., through its Tokyo Branch
		
	BY:	 	  

	TITLE:	 	  

	
	 LENDERS:

	
	 HARRIS N.A. (f/k/a HARRIS TRUST AND SAVINGS BANK)

		
	BY:	 	  

	TITLE:	 	  

	
	 BANK OF MONTREAL

		
	BY:	 	  

	TITLE:	 	  

	
	 NATIONAL CITY BANK,
 Canada Branch

		
	BY:	 	  

	TITLE:	 	  

  

 - 9 - 

			
	
	 NATIONAL CITY BANK OF THE MIDWEST

		
	BY:	 	  

	TITLE:	 	  

	
	 LASALLE BANK NATIONAL ASSOCIATION

		
	BY:	 	  

	TITLE:	 	  

	
	LASALLE BUSINESS CREDIT, a division of ABN AMRO Bank N.V., Canada Branch
		
	BY:	 	  

	TITLE:	 	  

	
	JPMORGAN CHASE BANK, N.A., London Branch
		
	BY:	 	  

	TITLE:	 	  

	
	JPMORGAN CHASE BANK, N.A., Canada Branch
		
	BY:	 	  

	TITLE:	 	  

	
	JPMORGAN CHASE BANK, N.A., through its Tokyo Branch
		
	BY:	 	  

	TITLE:	 	  

  

 - 10 - 

			
	
	 JPMORGAN CHASE BANK, N.A.

		
	BY:	 	  

	TITLE:	 	  

	
	 JP MORGAN EUROPE LIMITED

		
	BY:	 	  

	TITLE:	 	  

  

 - 11 - 

 ANNEX A 
  
 PRICING SCHEDULE 
  

																
	 APPLICABLE MARGIN

	  	LEVEL I
STATUS

	 	 	LEVEL II
STATUS

	 	 	LEVEL III
STATUS

	 	 	LEVEL IV
STATUS

	 	 	LEVEL V
STATUS

	 
	 Eurocurrency Rate
	  	1.00	%	 	1.25	%	 	1.75	%	 	2.00	%	 	2.25	%
	 BA Rate
	  	1.00	%	 	1.25	%	 	1.75	%	 	2.00	%	 	2.25	%
	 Floating Rate
	  	0.00	%	 	0.00	%	 	0.00	%	 	0.00	%	 	0.00	%
	 TIBOR Rate
	  	1.00	%	 	1.25	%	 	1.75	%	 	2.00	%	 	2.25	%
	 Standby Letter of Credit Fee
	  	1.00	%	 	1.25	%	 	1.75	%	 	2.00	%	 	2.25	%

  
 For the purposes of
this Schedule, the following terms have the following meanings, subject to the final paragraph of this Schedule: 
  
 “Financials” means the annual or quarterly financial statements of the US-Borrower delivered by the US-Borrower pursuant to this
Agreement. 
  
 “Level I Status” exists at any
date if, as of the last day of the fiscal quarter of the US-Borrower referred to in the most recent Financials, the Leverage Ratio is less than 1.50 to 1.00. 
  
 “Level II Status” exists at any date if, as of the last day of the fiscal quarter of the US-Borrower referred to in the most recent
Financials, (i) the US-Borrower has not qualified for Level I Status and (ii) the Leverage Ratio is less than 2.00 to 1.00. 
  
 “Level III Status” exists at any date if, as of the last day of the fiscal quarter of the US-Borrower referred to in the most recent
Financials, (i) the US-Borrower has not qualified for Level I Status or Level II Status and (ii) the Leverage Ratio is less than 2.50 to 1.00. 
  
 “Level IV Status” exists at any date if, as of the last day of the fiscal quarter of the US-Borrower referred to in the most recent
Financials, (i) the US-Borrower has not qualified for Level I Status, Level II Status or Level III Status and (ii) the Leverage Ratio is less than 3.00 to 1.00. 
  

“Level V Status” exists at any date if, as of the last day of the fiscal quarter of the US-Borrower referred to in the most recent
Financials, the US-Borrower has not qualified for Level I Status, Level II Status, Level III Status or Level IV Status. 
  
 “Status” means, at any date of determination, whichever of Level I Status, Level II Status, Level III Status, Level IV Status or Level V
Status exists at such time. 
  

 - 1 - 

 The Applicable Margin set forth above shall be subject to adjustment (upwards or downwards, as
appropriate) based on the US-Borrower’s Status as at the end of each fiscal quarter in accordance with the table set forth above. The US-Borrower’s Status as at the last day of each fiscal quarter shall be determined from the then most
recent Financials. The adjustment, if any, shall be effective commencing five (5) Business Days after the delivery to the Lenders of such Financials. In the event that the US-Borrower shall at any time fail to furnish to the Lenders such Financials
(together with a Compliance Certificate) within the time limitations specified by this Agreement, then the maximum Applicable Margin shall apply from the date of such failure until the fifth (5th) Business Day after such Financials (and accompanying Compliance Certificate) are so delivered. 
  

 - 2 - 

 ANNEX A 
  
 OFFICER’S CERTIFICATE 
  
 This Certificate is delivered to JPMorgan Chase Bank, N.A., as Administrative Agent by Richardson Electronics, Ltd., pursuant to that certain Amended and
Restated Revolving Credit Agreement, dated as of October 29, 2004 among the Borrowers named therein, the Lenders set forth on the signature pages thereto and the Funding Agents identified therein (as amended or modified from time to time, the
“Credit Agreement”). All capitalized terms used herein but not defined shall have the respective meanings ascribed thereto in the Credit Agreement. The undersigned, in his capacity as chief financial officer of Richardson
Electronics, Ltd., hereby certifies to the Funding Agents and the Lenders that on the date hereof no Default or Unmatured Default has occurred and is continuing and that all the representations and warranties contained in Article V of the Credit
Agreement are true and correct on and as of the date hereof. 
  
 This Certificate is delivered as of August 24, 2005. 
  

			
	 By:
	 	  

	 Its:

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