<SEC-DOCUMENT>0001387131-18-004779.txt : 20180917
<SEC-HEADER>0001387131-18-004779.hdr.sgml : 20180917
<ACCEPTANCE-DATETIME>20180917171311
ACCESSION NUMBER:		0001387131-18-004779
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20180917
DATE AS OF CHANGE:		20180917
EFFECTIVENESS DATE:		20180917

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:			0602

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-12906
		FILM NUMBER:		181074110

	BUSINESS ADDRESS:	
		STREET 1:		40W267 KESLINGER RD
		STREET 2:		PO BOX 393
		CITY:			LAFOX
		STATE:			IL
		ZIP:			60147
		BUSINESS PHONE:		630 208-2200

	MAIL ADDRESS:	
		STREET 1:		40W267 KESLINGER ROAD
		STREET 2:		P.O. BOX 393
		CITY:			LAFOX
		STATE:			IL
		ZIP:			60147
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>rell-defa14a_100918.htm
<DESCRIPTION>ADDITIONAL MATERIAL
<TEXT>
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<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin: 0"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin: 0">&nbsp;</P>

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<p style="margin: 0; text-align: center; text-indent: 0; font: 18pt Times New Roman, Times, Serif;"><b></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION </B></FONT><BR>
<FONT STYLE="font-size: 11.5pt"><B>Washington, D.C. 20549</B></FONT></P>

<P STYLE="font: 17pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>SCHEDULE 14A</B></P>



<P STYLE="margin: 0; text-align: center; text-indent: 0; font: 18pt Times New Roman, Times, Serif"><B></b></p>
    <p style="margin: 0.3pt 0 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <p style="margin: 0; text-align: center; text-indent: 0; font: bold 12pt Times New Roman, Times, Serif;">Proxy Statement Pursuant to Section 14(a)<BR>
of the Securities Exchange Act of 1934</p>
    <p style="margin: 0.3pt 0 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <p style="margin: 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <p style="margin: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif;">
        <font style="font-family: Times New Roman, Times, Serif;">Filed by the Registrant</font> &#x2612;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        <font style="font-family: Times New Roman, Times, Serif;">Filed by a Party other than the Registrant</font> &#x2610;</p>
    <p style="margin: 0 157.05pt 0 5pt; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <p style="margin-bottom: 0; margin-left: 0in; margin-top: 0; text-indent: 0in; font: 10pt Times New Roman, Times, Serif;">
        <font style="font-family: Times New Roman, Times, Serif;">Check the appropriate box:</font>
    </p>
    <p style="margin: 0.35pt 0 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <table style="margin-bottom: 0; margin-top: 0; width: 100%; font: 10pt Times New Roman, Times, Serif;" cellpadding="0" cellspacing="0">
        <tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in; text-align: left;">&#x2610;</td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;">Preliminary Proxy Statement</font>
            </td>
        </tr>
    </table>
    <p style="margin: 0.65pt 0 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <table style="margin-bottom: 0; margin-top: 0; width: 100%; font: 10pt Times New Roman, Times, Serif;" cellpadding="0" cellspacing="0">
        <tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in; text-align: left;">&#x2610;</td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;"><b>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</b></font>
            </td>
        </tr>
    </table>
    <p style="margin: 0.85pt 0 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <table style="margin-bottom: 0; margin-top: 0; width: 100%; font: 10pt Times New Roman, Times, Serif;" cellpadding="0" cellspacing="0">
        <tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in; text-align: left;">&#x2610;</td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;">Definitive Proxy Statement</font>
            </td>
        </tr>
    </table>
    <p style="margin: 0.85pt 0 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <table style="margin-bottom: 0; margin-top: 0; width: 100%; font: 10pt Times New Roman, Times, Serif;" cellpadding="0" cellspacing="0">
        <tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in; text-align: left;">&#x2612;</td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;">Definitive Additional Materials</font>
            </td>
        </tr>
    </table>
    <p style="margin: 0.75pt 0 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <table style="margin-bottom: 0; margin-top: 0; width: 100%; font: 10pt Times New Roman, Times, Serif;" cellpadding="0" cellspacing="0">
        <tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in; text-align: left;">&#x2610;</td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;">Soliciting Material under Rule 14a-12</font>
            </td>
        </tr>
    </table>
    <p style="margin: 0.25pt 0 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <table style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;" cellpadding="0" cellspacing="0">
        <tr style="vertical-align: top; text-align: left;">
            <TD STYLE="border-bottom: Black 1pt solid; font: bold 18pt Times New Roman, Times, Serif; width: 100%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt"><B>RICHARDSON
            ELECTRONICS, LTD.</B></FONT></td>
        </tr>
    </table>
    <p style="margin: 0pt 0 0; text-align: center; font: bold 10pt Times New Roman, Times, Serif;"><b>(Name of Registrant as Specified In Its Charter)</b></p>
    <table style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;" cellpadding="0" cellspacing="0">
        <tr style="vertical-align: top; text-align: left;">
            <td style="border-bottom: Black 1pt solid; width: 100%; text-align: center;"><b>&nbsp;</b></td>
        </tr>
    </table>
    <p style="margin-bottom: 0; margin-top: 0.05pt; text-align: center; font: 10pt Times New Roman, Times, Serif;"><b>(Name of Person(s) Filing Proxy Statement, if other than Registrant)</b></p>
    <p style="margin: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <p style="margin: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif;">Payment of Filing Fee (Check the appropriate box):</p>
    <p style="margin: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <table style="margin-bottom: 0; margin-top: 0; width: 100%; font: 10pt Times New Roman, Times, Serif;" cellpadding="0" cellspacing="0">
        <tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in; text-align: left;">&#x2612;</td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;">No fee required.</font>
            </td>
        </tr>
    </table>
    <p style="margin: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <table style="margin-bottom: 0; margin-top: 0; width: 100%; font: 10pt Times New Roman, Times, Serif;" cellpadding="0" cellspacing="0">
        <tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in; text-align: left;">&#x2610;</td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;">Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</font>
            </td>
        </tr>
    </table>
    <p style="margin: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif;">&nbsp;</p>
    <table style="margin-bottom: 0; margin-top: 0; width: 100%; font: 10pt Times New Roman, Times, Serif;" cellpadding="0" cellspacing="0">
        <tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in;">1)</td>
            <td>Title of each class of securities to which transaction applies:</td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD></TR>
<tr style="vertical-align: top;">
            <TD STYLE="width: 0in"></td>
            <TD STYLE="width: 0.5in">
                <font style="font-family: Times New Roman, Times, Serif;">2)</font>
            </td>
            <TD>
                <font style="font-family: Times New Roman, Times, Serif;">Aggregate number of securities to which transaction applies:</font>
            </td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD></TR>
<tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in;">3)</td>
            <td style="padding-right: 23.4pt;">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11: (set forth the amount on which the filing fee is calculated and state how it was determined.)</td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD>
            <TD STYLE="padding-right: 23.4pt">&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="padding-right: 23.4pt; border-top: Black 1pt solid">&nbsp;</TD></TR>
<tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in;">4)</td>
            <td>Proposed maximum aggregate value of transaction:</td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD></TR>
<tr style="vertical-align: top;">
            <TD STYLE="width: 0in"></td>
            <TD STYLE="width: 0.5in">
                <font style="font-family: Times New Roman, Times, Serif;">5)</font>
            </td>
            <TD>
                <font style="font-family: Times New Roman, Times, Serif;">Total fee paid:</font>
            </td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD></TR>
<tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in; text-align: left;">&#x2610;</td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;">Fee paid previously with preliminary materials.</font>
            </td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD STYLE="text-align: left">&nbsp;</TD>
            <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD STYLE="text-align: left">&nbsp;</TD>
            <TD>&nbsp;</TD></TR>
<tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in; text-align: left;">&#x2610;</td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.</font>
            </td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD STYLE="text-align: left">&nbsp;</TD>
            <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD STYLE="text-align: left">&nbsp;</TD>
            <TD>&nbsp;</TD></TR>
<tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in;">1)</td>
            <td>Amount Previously Paid:</td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD></TR>
<tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in;">
                <font style="font-family: Times New Roman, Times, Serif;">2)</font>
            </td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;">Form, Schedule or Registration Statement No.</font>
            </td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD></TR>
<tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in;">
                <font style="font-family: Times New Roman, Times, Serif;">3)</font>
            </td>
            <td>
                <font style="font-family: Times New Roman, Times, Serif;">Filing Party:</font>
            </td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD></TR>
<tr style="vertical-align: top;">
            <td style="width: 0in;"></td>
            <td style="width: 0.5in;">
                <font style="font-family: Times New Roman, Times, Serif;">4)</font>
            </td>
            <td>Date Filed:</td>
        </tr>
        <TR STYLE="vertical-align: top">
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD>
            <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
            <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD></TR>
</table>
    <p style="margin: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif;"></p>
    <p style="margin: 0; text-indent: 0; font: bold 10pt Times New Roman, Times, Serif;">&nbsp;</p>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>EXPLANATORY
NOTE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Proxy Statement&nbsp;Supplement, dated September 17, 2018 (the &#8220;Supplement&#8221;),&nbsp;supplements&nbsp;the&nbsp;definitive
proxy&nbsp;statement of Richardson Electronics, Ltd. (the &#8220;Company&#8221;), which was filed with the Securities and Exchange
Commission on August 24, 2018, relating to the Company&#8217;s Annual Meeting of Shareholders (the &#8220;Meeting&#8221;) to be
held on October 9, 2018. This Supplement supplements the disclosure included in the proxy statement relating to Proposal No. 4
to provide additional information regarding the eligible participants in the Company&#8217;s Stock Plan and the basis for participation
in the Stock Plan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
other changes have been made to the proxy statement or to the matters to be considered by the Company&#8217;s stockholders at
the Annual Meeting. All other items of the proxy statement are incorporated herein by reference without change. Capitalized terms
used but not otherwise defined in this&nbsp;Supplement&nbsp;shall have the meanings assigned to such terms in the proxy statement.
This&nbsp;Supplement&nbsp;should be read in conjunction with the proxy statement. From and after the date of this&nbsp;Supplement,
any references to the &#8220;proxy statement&#8221; are to the proxy statement as&nbsp;supplemented&nbsp;hereby.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SUPPLEMENT
TO PROXY STATEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
information set forth under the heading &#8220;PROPOSAL 4 &#8211; APPROVAL OF AN AMENDMENT TO THE 2011 LONG-TERM INCENTIVE PLAN<B>&#8221;
</B>is supplemented by the addition of the following information immediately following the section titled &#8220;Summary of Stock
Plan&#8221; on page 23 of the Proxy Statement:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Eligibility
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
officers, employees, non-employee directors, consultants and other service providers may be granted awards under the Stock Plan.
However, Incentive Stock Options (as defined below) may only be granted to employees of the Company or any Parents or Subsidiary.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
disclosed elsewhere in the Proxy Statement, the Company has approximately 421 employees, including 7 executive officers, and 5
non-employee directors, each of whom is eligible to receive awards under the Stock Plan. In addition, we estimate that 2 or fewer
consultants and no other service providers of the Company and its Affiliates may be eligible to receive awards under the Stock
Plan. Therefore, as of September 17, 2018, a total of approximately 428 persons in the classes described above are eligible to
participate under the Plan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
basis for participation in the Stock Plan is the Committee&#8217;s decision, in its sole discretion, that an award to an eligible
participant will further the Stock Plan&#8217;s purposes. In exercising its discretion, the Committee will consider the recommendations
of management and the purpose of the Stock Plan, which is to provide stock-based compensation to officers, employees, non-employee
directors, consultants and other service providers to promote close alignment among the interests of officers, employees, non-employee
directors, consultants and other service providers with shareholders. Under the Stock Plan, in most cases, awards have been structured
to vest solely over time in order to help retain the recipients of Stock Plan awards. In addition, the Committee may also make
performance-based awards that will vest over time but only upon achievement of one or more performance criteria established by
the Committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
market value of the securities underlying stock-based awards under the Stock Plan as of September 14, 2018 was $8.94 per
share.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*
* * * * *</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>



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