Document:

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                                                                     EXHIBIT 4.2

                           CERTIFICATE OF CANCELLATION
                            OF LIMITED PARTNERSHIP OF
                      DATRONIC FINANCE INCOME FUND I, L.P.

         The undersigned, desiring to cancel the Certificate of Limited
Partnership of DATRONIC FINANCE INCOME FUND I, L.P., pursuant to the provisions
of Section 17-203 of the Delaware Revised Uniform Limited Partnership Act, does
hereby certify as follows:

         1. The Certificate of Limited Partnership was filed in the Office of
the Secretary of State of the State of Delaware on December 26, 1990.

         2. The reason for cancellation is as follows: The General Partner,
having wound up the affairs, distributed the assets and made provisions for
claims and obligations, dissolution of the limited partnership was effective as
of December 31, 2001.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate of
Cancellation of Limited Partnership on May 6, 2002.

                                        LEASE RESOLUTION CORPORATION
                                        General Partner

                                        By /s/ Donald D. Torisky
                                          --------------------------------------
                                               Donald D. Torisky, President<PAGE>

                                                                    EXHIBIT 10.1

                              CONSULTANT AGREEMENT

                                     BETWEEN

                  IMAGE SENSING SYSTEMS, INC. AND ART BOURGEOIS

================================================================================

POSITION: Consultant

RESPONSIBILITIES WILL INCLUDE:

Financial Reporting (internal and external)

Management information system

Ensure accurate and prompt reporting

Supervise all accounting activities including approving expenditures and signing
checks

Manage cash and liquid assets, and available credit facilities to ensure a
secure financial base for the company

Corporate finance (manage cash & investment portfolio)

SEC reporting and compliance

Proxy filing

Annual report to shareholders

Annual meeting planning

Annual Insurance review

Liaison with outside attorneys, auditors, investment bankers and, commercial
banker

Prepare Press releases

Budget preparation to tie to company's strategic and operation direction

Corporate tax planning and compliance

Prepare regular report to the Board of Directors summarizing key financial
elements (orders, billings, profitability, cash priority, etc.)

Other duties as assigned by the President/CEO

TITLE: Chief Financial Officer

MONTHLY RETAINER: $6,500 payable the first week of each month.
HOURS: Up to 1000 hours per year - Start date: 1 May 2002.

THIS AGREEMENT WILL RUN: Month to month.
TERMINATION: One month notice required.  May be terminated by either party.

ISS agrees to provide you with an office, phone, fax, parking and all necessary
tools and support.

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If ISS requires services associated with mergers or acquisitions, ISS agrees to
negotiate terms of such additional services separate from this agreement.

CONSULTANT

AGREED:  By  /s/ Arthur J. Bourgeois
             -----------------------
                 Arthur J. Bourgeois

DATED:   May 7, 2002

IMAGE SENSING SYSTEMS, INC.

AGREED:  By /s/ James Murdakes
         ---------------------
         James Murdakes

DATED:   May 7, 2002

                                       2<PAGE>
                                                               EXHIBIT 10(c)(ii)

                              MANAGEMENT AGREEMENT

                  THIS AGREEMENT is made as of the 25th day of March, 2002 by
and between Digi International Inc., a Delaware corporation, with its principal
executive office in Minnetonka, Minnesota ("Company") and Douglas J. Glader, a
resident of California (the "Executive").

                  WHEREAS, the Executive is employed as Executive Vice President
of the Company and General Manager of MiLAN Technology, a division of the
Company ("MiLAN"); and

                  WHEREAS, the Executive and the Company are parties to an
Employment Agreement dated February 6, 1995, as amended (the "Employment
Agreement"); and

                  WHEREAS, the Company recognizes that the possibility of a Sale
of Business of MiLAN may occur and that such possibility, and the uncertainty
and questions which it may raise among management, may result in the departure
or distraction of the Executive in the performance of the Executive's duties to
the detriment of the Company and its shareholders; and

                  WHEREAS, it is desirable and in the best interests of the
Company and its shareholders to provide inducement to Executive to remain in the
service of the Company in the event of a Sale of Business of MiLAN without
regard to the possibility that Executive's employment may be terminated in
connection with such Sale of Business; and

                  WHEREAS, the Executive and the Company have agreed to
compensation for Executive in the event of a Sale of Business of MiLAN, in
accordance with the terms and conditions of this Agreement;

                  THEREFORE, in consideration of the foregoing and other
respective covenants and agreements of the parties herein contained, the parties
hereto agree as follows:

                  1. Term of Agreement. This Agreement shall commence on the
date hereof and shall continue in effect until a "Sale of Business" (as
hereinafter defined) of MiLAN; provided, however, that if a Sale of Business
occurs as the result of a sale of substantially all, but not all, the assets of
MiLAN, then this Agreement shall continue in effect with respect to any
subsequent sale during Executive's active employment with the Company of the
remaining portion of MiLAN as a going concern (the "Term"), and such subsequent
sale shall be considered part of the same Sale of Business. Except as set forth
in Section 2(b) of this Agreement, nothing stated herein shall limit the right
of the Executive or the Company to terminate the employment of the Executive
with the Company at any time prior to, at, or after the expiration of the Term
of this Agreement, with or without cause and for any reason whatsoever, subject
to the right of the Executive to receive any payment and

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other benefits that may be due pursuant to the terms and conditions of Section 4
of this Agreement or of the Employment Agreement, as applicable.

                  2. Sale of Business. No amounts shall be payable hereunder
unless a Sale of Business of MiLAN, as set forth below, shall occur.

                           (a) For purposes of this Agreement, a "Sale of
                  Business" of MiLAN shall be deemed to occur upon the sale or
                  other disposition of all or substantially all of the assets of
                  MiLAN (in one transaction or a series of transactions).
                  Notwithstanding the foregoing, no Sale of Business shall be
                  deemed to have occurred (i) if a majority of the voting stock
                  (or the voting equity interest) of any corporation (or other
                  entity) acquiring all or substantially all of the assets of
                  MiLAN is, immediately following the disposition of assets,
                  beneficially owned by the Executive or a group of persons,
                  including the Executive, acting in concert, or (ii) as a
                  result of a reorganization in which all or substantially all
                  of the assets of MiLAN are owned by an entity that is wholly
                  owned or majority owned, directly or indirectly, by the
                  Company.

                           (b) The Executive agrees that in the event of a Sale
                  of Business of MiLAN during the Term, the Executive, if
                  employed by the Company immediately prior to such a Sale of
                  Business, will remain as an employee of the Company and will
                  make himself available to provide services to any buyer of the
                  assets of MiLAN for a period of time, if any, agreed upon by
                  the Company and such buyer, not to exceed 60 days after the
                  occurrence of such a Sale of Business of MiLAN (such period
                  referred to as the "Transition Period").

                           (c) If Executive and the Company are unable to reach
                  agreement on the terms and conditions of continued employment
                  of Executive with the Company, then the Company will terminate
                  Executive's active employment upon completion of any
                  Transition Period, subject to any right of continued
                  employment during a Severance Period pursuant to Section 4
                  hereof.

                  3. Incentive Compensation for Sale of Business. If a Sale of
Business of MiLAN occurs and (i) Executive is employed by the Company
immediately prior to such Sale of Business or (ii) Executive's employment was
terminated by the Company without "cause" (as defined in the Employment
Agreement) within one (1) year prior to such Sale of Business, the Company will
pay Executive incentive compensation calculated as a percentage of the purchase
price received by the Company as a result of such Sale of Business, in
accordance with the attached Exhibit A. Any incentive compensation payable to
Executive under this Section 3 shall be due and payable to Executive only when,
as and if the Company receives the purchase payment (or payments) for such Sale
of Business. The Company and Executive agree that the Housing Normalization
Payments (as defined and provided in the

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Employment Agreement) shall continue to be paid by the Company during
Executive's employment until May 31, 2002, after which time the Company's
obligation to make such Housing Normalization Payments shall cease.

                  4.       Termination Following Sale of Business.

                           (a) If a Sale of Business of MiLAN occurs and (i)
                  Executive is employed by the Company immediately prior to such
                  Sale of Business and for the duration of any Transition
                  Period, (ii) the Company terminates Executive's active
                  employment at or after completion of any Transition Period for
                  reasons other than for "cause" (as defined in the Employment
                  Agreement), and (iii) Executive does not accept in his sole
                  discretion employment after the Transition Period with any
                  buyer of the assets of MiLAN, then Executive shall be entitled
                  to the following payments and other benefits:

                                    (i) the Company shall continue to employ
                           Executive and to pay to the Executive an amount equal
                           to Executive's base salary, which shall not be less
                           than Executive's base salary on the date hereof, for
                           a period of one year after any Transition Period, in
                           accordance with the Company's normal payroll
                           practices (the "Severance Period");

                                    (ii) the Company shall pay the Executive an
                           amount equal to the annual cash bonus award Executive
                           would have earned for the fiscal year in which the
                           Sale of Business occurs, based on the average
                           percentage achievement levels of other senior
                           managers of the Company, such payment to be made in
                           the same manner and at the same time as other senior
                           managers of the Company receive their annual cash
                           bonus awards; provided, however, that the cash bonus
                           award payable to Executive under this subsection
                           shall be prorated based on the number of calendar
                           days that Executive was actively employed by the
                           Company during the fiscal year in which the Sale of
                           Business occurs (not including as active employment
                           any days that Executive is employed by the Company
                           during the Severance Period); and

                                    (iii) the Company shall continue to allow
                           Executive to participate in the Company's group
                           insurance and retirement benefit plans during the
                           Severance Period, in accordance with the terms and
                           conditions of such plans as then in effect.

                           (b) During the Severance Period, Executive will
                  continue to be an employee of the Company (including without
                  limitation for purposes of the Company's stock option plan)
                  and shall assist the Company with transition matters as
                  reasonably requested. The salary continuation and other
                  benefits

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                  payable during the Severance Period pursuant to Section 4(a)
                  shall be in lieu of, and not in addition to, any severance pay
                  or benefits that the Executive may be entitled to receive from
                  the Company under the Employment Agreement or any other policy
                  or agreement of the Company. Executive shall not be entitled
                  to receive bonus, Housing Normalization Payments, or any other
                  compensation or benefits from the Company during the Severance
                  Period except as expressly provided in Section 3 or Section
                  4(a).

                           (c) If Executive's employment has not been earlier
                  terminated by the Company for "cause" (as defined in the
                  Employment Agreement), upon completion of the Severance Period
                  the Company will terminate Executive's employment with the
                  Company without cause and without additional obligation to
                  Executive for severance pay or other compensation (other than
                  any acceleration of vesting of stock options of the Executive
                  to which Executive is entitled pursuant to the terms of any
                  written stock option agreement between Executive and the
                  Company).

                           (d) If Executive in his sole discretion accepts
                  employment with any buyer of the assets of MiLAN after the
                  Transition Period, then Executive's employment with the
                  Company shall end effective the last day of the Transition
                  Period. Thereafter and for a period of six (6) months after
                  the Transition Period (the "Consulting Period"), Executive
                  will become a consultant to the Company and will make himself
                  available to provide consulting services to the Company up to
                  a maximum of two (2) hours in any calendar month. The Company
                  will compensate Executive during the Consulting Period at the
                  rate of $200 per month. During the Consulting Period,
                  Executive shall be an independent contractor of the Company
                  and shall not be eligible for any employee benefits or
                  programs of the Company, except for his continued
                  participation in the Digi International Inc. Stock Option Plan
                  and Digi International Inc. 2000 Omnibus Stock Plan in
                  accordance with the terms of those plans and as set forth in
                  Section 6 of this Agreement.

                  5. Repayment of Loan and Right of Offset. In the event that
the full amount of any loans from the Company to Executive has not been repaid
by Executive as of the Sale of Business of MiLAN, then the Company may offset
the loan balance from any amounts payable to Executive under Section 3 or
Section 4(a).

                  6. Stock Options. The Company agrees with Executive (i) that
Executive will continue to be an eligible participant in the Digi International
Inc. Stock Option Plan and Digi International Inc. 2000 Omnibus Stock Plan,
during any Transition Period, Severance Period and/or Consulting Period, and
that his unvested options will continue to vest during any Transition Period,
Severance Period and/or Consulting Period, and (ii) that any options that are
vested as of the end of the Severance Period or Consulting Period, as
applicable, would continue to be exercisable for a three (3) month period
thereafter, provided that in no

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event shall any option be exercisable more than ten (10) years from its date of
grant. The Company agrees with Executive that any unvested stock options issued
to Executive that vest by their terms upon a Sale of Business would so vest.

                  7. Notice. For the purpose of this Agreement, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered or mailed by United
States registered or certified mail, return receipt requested, postage pre-paid,
addressed to the last known residence address of the Executive or in the case of
the Company, to its principal executive office to the attention of the Chief
Executive Officer, with a copy to the Chief Financial Officer, or to such other
address as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon
receipt.

                  8. Successors and Assigns. This Agreement is binding on and
inures to the benefit of the Executive and Executive's heirs and legal
representatives, and on the Company and its successors and assigns. No rights or
obligations of the Executive or the Company hereunder may be assigned, pledged,
disposed of or transferred by such party to any other person or entity without
the prior written consent of the other party.

                  9. Governing Law. This Agreement shall be construed under and
governed by the laws of the State of Minnesota.

                  10. Entire Agreement. This Agreement constitutes the entire
agreement between Executive and the Company regarding the subject matters
contained herein and supersedes all prior agreements relating to such subject
matters.

                  11. Amendments and Waivers. No provision hereof may be
altered, amended, modified, waived or discharged in any way whatsoever except by
written agreement executed by both parties. No delay or failure of either party
to insist, in any one or more instances, upon performance of any of the terms
and conditions of this Agreement or to exercise any rights or remedies hereunder
shall constitute a waiver or a relinquishment of such rights or remedies or any
other rights or remedies hereunder.

                  12. Counterparts. This Agreement may be executed in
counterparts, each of which when so executed shall be deemed to be an original,
and such counterparts shall together constitute one and the same instrument.

DIGI INTERNATIONAL INC.                       EXECUTIVE

By /s/ Subramanian Krishnan                   /s/ Douglas J. Glader
   ----------------------------------         ----------------------------------
  Its Senior Vice President and CFO           DOUGLAS J. GLADER
      -------------------------------

                                       5

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                                    EXHIBIT A
                             TO MANAGEMENT AGREEMENT

                             INCENTIVE COMPENSATION

Incentive compensation pursuant to Section 3 of the Agreement shall be
determined by the following matrix:
<TABLE>
<CAPTION>
---------------------------------------------------- -----------------------------------
      INCENTIVE COMPENSATION AS                                SALE OF BUSINESS
 PERCENTAGE OF SALE OF BUSINESS VALUE                              VALUE
---------------------------------------------------- -----------------------------------
<S>                                                  <C>
---------------------------------------------------- -----------------------------------
                         2%                                  $5,000,000 or less
---------------------------------------------------- -----------------------------------
           $100,000 plus 5% of the Value                  $5,000,000 to $7,499,999
         between $5,000,000 and $7,500,000
---------------------------------------------------- -----------------------------------
                         3%                                      $7,500,000
---------------------------------------------------- -----------------------------------
           $225,000 plus 7% of the Value                  $7,500,000 to $9,999,999
         between $7,500,000 and $10,000,000
---------------------------------------------------- -----------------------------------
                        4.5%                                $10,000,000 or more
---------------------------------------------------- -----------------------------------

---------------------------------------------------- -----------------------------------
</TABLE>

"Sale of Business Value" shall mean the total fair market value of all cash,
equity securities, property, debt or other obligations and any other form of
consideration paid directly or indirectly (including, in the case of an
acquisition of assets, the current value of any long-term liabilities assumed,
directly or indirectly, by any acquiring party in connection with the Sale of
Business) by any acquiring party to the Company in connection with the Sale of
Business of MiLAN. If such Sale of Business occurs in a series of transactions,
the Sale of Business Value shall be the aggregate fair market value of the
consideration for each transaction, and the incentive compensation payable on
later transactions comprising the Sale of Business shall be incremental based on
the Sale of Business Value.

The fair market value, in the case of publicly traded equity securities, shall
be based on the last closing sale price in the primary public market for such
securities on the last trading day prior to the date the acquisition is first
publicly announced. The Sale of Business Value shall be calculated without
deducting any of the Company's transaction expenses, including without
limitation, any brokerage fees, any fees and expenses of attorneys, accountants
or other advisors.

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