Document:

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Exhibit 10(a)

Digi International Inc.

2000 Omnibus Stock Plan

as Amended and Restated as of

November 27, 2006

     1. Purpose. The purpose of the Digi International Inc. 2000 Omnibus Stock Plan (the
“Plan”) is to promote the interests of the Company and its stockholders by providing key personnel
of the Company and its Affiliates and Outside Directors with an opportunity to acquire a
proprietary interest in the Company and reward them for achieving a high level of corporate
performance and thereby develop a stronger incentive to put forth maximum effort for the continued
success and growth of the Company and its Affiliates. In addition, the opportunity to acquire a
proprietary interest in the Company will aid in attracting and retaining key personnel and Outside
Directors of outstanding ability.

     2. Definitions.

     2.1 The capitalized terms used elsewhere in the Plan have the meanings set forth below.

     (a) “Affiliate” means any corporation that is a “parent corporation” or
“subsidiary corporation” of the Company, as those terms are defined in Code Sections
424(e) and (f), or any successor provisions, and, for purposes other than the grant
of Incentive Stock Options, any joint venture in which the Company or any such
“parent corporation” or “subsidiary corporation” owns an equity interest.

     (b) “Agreement” means a written contract (i) consistent with the terms of the
Plan entered into between the Company or an Affiliate and a Participant and (ii)
containing the terms and conditions of an Award in such form and not inconsistent
with the Plan as the Committee shall approve from time to time, together with all
amendments thereto, which amendments may be unilaterally made by the Company (with
the approval of the Committee) unless such amendments are deemed by the Committee to
be materially adverse to the Participant and not required as a matter of law.

     (c) “Award” or “Awards” means a grant made under the Plan in the form of
Restricted Stock, Options, Stock Appreciation Rights, Performance Units, Stock or
any other stock-based award.

     (d) “Board” means the Board of Directors of the Company.

     (e) “Code” means the Internal Revenue Code of 1986, as amended and in effect
from time to time or any successor statute.

     (f) “Committee” means two or more Non-Employee Directors designated by the
Board to administer the Plan under Plan Section 3.1 and
constituted so as to permit grants thereby to comply with Exchange Act Rule
16b-3 and Code Section 162(m).

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     (g) “Company” means Digi International Inc., a Delaware corporation, or any
successor to all or substantially all of its businesses by merger, consolidation,
purchase of assets or otherwise.

     (h) “Effective Date” means the date specified in Plan Section 12.1.

     (i) “Employee” means an employee (including an officer or director who is also
an employee) of the Company or an Affiliate.

     (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended and in
effect from time to time or any successor statute.

     (k) “Exchange Act Rule 16b-3” means Rule 16b-3 promulgated by the Securities
and Exchange Commission under the Exchange Act, as now in force and in effect from
time to time or any successor regulation.

     (l) “Fair Market Value” as of any date means, unless otherwise expressly
provided in the Plan:

     (i) the closing sale price of a Share on such date, or, if no sale of
Shares shall have occurred on that date, on the next preceding day on which
a sale of Shares occurred

     (A) on the composite tape for NASDAQ-listed shares, or

     (B) if the Shares are not quoted on the composite tape for
NASDAQ-listed shares, on the principal United States Securities
Exchange registered under the Exchange Act on which the Shares are
listed, or

     (ii) if clause (i) is inapplicable, the mean between the closing “bid”
and the closing “asked” quotation of a Share on that date, or, if no closing
bid or asked quotation is made on that date, on the next preceding day on
which a closing bid and asked quotation is made, on the National Association
of Securities Dealers, Inc. Automated Quotations System or any system then
in use, or

     (iii) if clauses (i) and (ii) are inapplicable, what the Committee
determines in good faith to be 100% of the fair market value of a Share on
that date, using such criteria as it shall determine, in its sole
discretion, to be appropriate for valuation.

     In the case of an Incentive Stock Option, if this determination of Fair Market
Value is not consistent with the then current regulations of the Secretary
of the Treasury, Fair Market Value shall be determined in accordance with those
regulations. The determination of Fair Market Value shall be subject to adjustment
as provided in Plan Section 16.

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     (m) “Fundamental Change” means a dissolution or liquidation of the Company, a
sale of substantially all of the assets of the Company, a merger or consolidation of
the Company with or into any other corporation, regardless of whether the Company is
the surviving corporation, or a statutory share exchange involving capital stock of
the Company.

     (n) “Incentive Stock Option” means any Option designated as such and granted in
accordance with the requirements of Code Section 422 or any successor provision.

     (o) “Insider” as of a particular date means any person who, as of that date is
an officer of the Company as defined under Exchange Act Rule 16a-1(f) or its
successor provision.

     (p) “Non-Employee Director” means a member of the Board who is considered a
non-employee director within the meaning of Exchange Act Rule 16b-3(b)(3) or its
successor provision and an outside director for purposes of Code Section 162(m).

     (q) “Non-Statutory Stock Option” means an Option other than an Incentive Stock
Option.

     (r) “Option” means a right to purchase Stock, including both Non-Statutory
Stock Options and Incentive Stock Options.

     (s) “Outside Director” means a director who is not an Employee.

     (t) “Participant” means a person or entity to whom an Award is or has been made
in accordance with the Plan.

     (u) “Performance Cycle” means the period of time as specified in an Agreement
over which Performance Units are to be earned.

     (v) “Performance Units” means an Award made pursuant to Plan Section 11.

     (w) “Plan” means this Digi International Inc. 2000 Omnibus Stock Plan, as may
be amended and in effect from time to time.

     (x) “Restricted Stock” means Stock granted under Plan Section 7 so long as such
Stock remains subject to one or more restrictions.

     (y) “Section 16” or “Section 16(b)” means Section 16 or Section 16(b),
respectively, of the Exchange Act or any successor statute and the rules and
regulations promulgated thereunder as in effect and as amended from time to
time.

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     (z) “Share” means a share of Stock.

     (aa) “Stock” means the common stock, par value $.01 per share, of the Company.

     (bb) “Stock Appreciation Right” means a right, the value of which is determined
in relation to the appreciation in value of Shares pursuant to an Award granted
under Plan Section 10.

     (cc) “Subsidiary” means a “subsidiary corporation,” as that term is defined in
Code Section 424(f) or any successor provision.

     (dd) “Successor” with respect to a Participant means the legal representative
of an incompetent Participant, and if the Participant is deceased the estate of the
Participant or the person or persons who may, by bequest or inheritance, or pursuant
to the terms of an Award, acquire the right to exercise an Option or Stock
Appreciation Right or to receive cash and/or Shares issuable in satisfaction of an
Award in the event of the Participant’s death.

     (ee) “Term” means the period during which an Option or Stock Appreciation Right
may be exercised or the period during which the restrictions or terms and conditions
placed on Restricted Stock or any other Award are in effect.

     (ff) “Transferee” means any member of the Participant’s immediate family (i.e.,
his or her children, step-children, grandchildren and spouse) or one or more trusts
for the benefit of such family members or partnerships in which such family members
are the only partners.

     2.2 Gender and Number. Except when otherwise indicated by the context,
reference to the masculine gender shall include, when used, the feminine gender and any term
used in the singular shall also include the plural.

     3. Administration and Indemnification.

     3.1 Administration.

     (a) The Committee shall administer the Plan. The Committee shall have
exclusive power to (i) make Awards, (ii) determine when and to whom Awards will be
granted, the form of each Award, the amount of each Award, and any other terms or
conditions of each Award consistent with the Plan, and (iii) determine whether, to
what extent and under what circumstances, Awards may be settled, paid or exercised
in cash, Shares or other Awards, or other property or canceled, forfeited or
suspended. Each Award shall be subject to an Agreement authorized by the Committee.
A majority of the members of the Committee shall
constitute a quorum for any meeting of the Committee, and acts of a majority of
the members present at any meeting at which a quorum is present or the acts
unanimously approved in writing by all members of the Committee shall be the acts of
the Committee. Notwithstanding the foregoing, the Board shall have the sole and
exclusive power to administer the Plan with respect to Awards granted to Outside
Directors.

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     (b) Solely for purposes of determining and administering Awards to Participants
who are not Insiders, the Committee may delegate all or any portion of its authority
under the Plan to one or more persons who are not Non-Employee Directors.

     (c) To the extent within its discretion and subject to Plan Sections 15 and 16,
other than price, the Committee may amend the terms and conditions of any
outstanding Award.

     (d) It is the intent that the Plan and all Awards granted pursuant to it shall
be administered by the Committee so as to permit the Plan and Awards to comply with
Exchange Act Rule 16b-3, except in such instances as the Committee, in its
discretion, may so provide. If any provision of the Plan or of any Award would
otherwise frustrate or conflict with the intent expressed in this Section 3.1(d),
that provision to the extent possible shall be interpreted and deemed amended in the
manner determined by the Committee so as to avoid the conflict. To the extent of
any remaining irreconcilable conflict with this intent, the provision shall be
deemed void as applicable to Insiders to the extent permitted by law and in the
manner deemed advisable by the Committee.

     (e) The Committee’s interpretation of the Plan and of any Award or Agreement
made under the Plan and all related decisions or resolutions of the Board or
Committee shall be final and binding on all parties with an interest therein.
Consistent with its terms, the Committee shall have the power to establish, amend or
waive regulations to administer the Plan. In carrying out any of its
responsibilities, the Committee shall have discretionary authority to construe the
terms of the Plan and any Award or Agreement made under the Plan.

     3.2 Indemnification. Each person who is or shall have been a member of the
Committee, or of the Board, and any other person to whom the Committee delegates authority
under the Plan, shall be indemnified and held harmless by the Company, to the extent
permitted by law, against and from any loss, cost, liability or expense that may be imposed
upon or reasonably incurred by such person in connection with or resulting from any claim,
action, suit or proceeding to which such person may be a party or in which such person may
be involved by reason of any action taken or failure to act, made in good faith, under the
Plan and against and from any and all amounts paid by such person in settlement thereof,
with the Company’s approval, or paid by such person in satisfaction of any judgment in any
such action, suit or proceeding against such person, provided such person shall give the
Company an opportunity, at the Company’s expense, to handle and defend the same before such
person undertakes to handle and defend it on such person’s
own behalf. The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such person or persons may be entitled under the
Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any
power that the Company may have to indemnify them or hold them harmless.

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     4. Shares Available Under the Plan.

     (a) The number of Shares available for distribution under the Plan shall not
exceed 3,250,000 (subject to adjustment pursuant to Plan Section 16).

     (b) Any Shares subject to the terms and conditions of an Award under the Plan
that are not used because the terms and conditions of the Award are not met may
again be used for an Award under the Plan; provided however, that Shares with
respect to which a Stock Appreciation Right has been exercised whether paid in cash
and/or in Shares may not again be awarded under the Plan.

     (c) Any unexercised or undistributed portion of any terminated, expired,
exchanged, or forfeited Award, or any Award settled in cash in lieu of Shares
(except as provided in Plan Section 4(b)) shall be available for further Awards.

     (d) For the purposes of computing the total number of Shares granted under the
Plan, the following rules shall apply to Awards payable in Shares where appropriate:

     (i) each Option shall be deemed to be the equivalent of the maximum
number of Shares that may be issued upon exercise of the particular Option;

     (ii) an Award (other than an Option) payable in some other security
shall be deemed to be equal to the number of Shares to which it relates;

     (iii) where the number of Shares available under the Award is variable
on the date it is granted, the number of Shares shall be deemed to be the
maximum number of Shares that could be received under that particular Award;
and

     (iv) where two or more types of Awards (all of which are payable in
Shares) are granted to a Participant in tandem with each other, such that
the exercise of one type of Award with respect to a number of Shares cancels
at least an equal number of Shares of the other, each such joint Award shall
be deemed to be the equivalent of the maximum number of Shares available
under the largest single Award.

     Additional rules for determining the number of Shares granted under the Plan
may be made by the Committee as it deems necessary or desirable.

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     (e) No fractional Shares may be issued under the Plan; however, cash shall be
paid in lieu of any fractional Share in settlement of an Award.

     (f) The maximum number of Shares that may be awarded to a Participant in any
calendar year in the form of Options is 250,000, the maximum number of Shares that
may be awarded to a Participant in any calendar year in the form of Restricted Stock
is 100,000, and the maximum number of Shares that may be awarded to a Participant in
any calendar year in the form of Stock Appreciation Rights is 100,000.

     5. Eligibility. Participation in the Plan shall be limited to Employees and to
individuals or entities who are not Employees but who provide services to the Company or an
Affiliate, including services provided in the capacity of a consultant, advisor or director. The
granting of Awards is solely at the discretion of the Committee, except that Incentive Stock
Options may only be granted to Employees. References herein to “employed,” “employment” or similar
terms (except “Employee”) shall include the providing of services in any capacity or as a director.
Neither the transfer of employment of a Participant between any of the Company or its Affiliates,
nor a leave of absence granted to such Participant and approved by the Committee, shall be deemed a
termination of employment for purposes of the Plan.

     6. General Terms of Awards.

     6.1 Amount of Award. Each Agreement shall set forth the number of Shares of
Restricted Stock, Stock or Performance Units subject to the Agreement, or the number of
Shares to which the Option subject to the Agreement applies or with respect to which payment
upon the exercise of the Stock Appreciation Right subject to the Agreement is to be
determined, as the case may be, together with such other terms and conditions applicable to
the Award as determined by the Committee acting in its sole discretion.

     6.2 Term. Each Agreement, other than those relating solely to Awards of Shares
without restrictions, shall set forth the Term of the Option, Stock Appreciation Right,
Restricted Stock or other Award or the Performance Cycle for the Performance Units, as the
case may be. Acceleration of the expiration of the applicable Term is permitted, upon such
terms and conditions as shall be set forth in the Agreement, which may, but need not,
include, without limitation, acceleration in the event of the Participant’s death or
retirement. Acceleration of the Performance Cycle of Performance Units shall be subject to
Plan Section 11.2.

     6.3 Transferability. Except as provided in this Section, during the lifetime
of a Participant to whom an Award is granted, only that Participant (or that Participant’s
legal representative) may exercise an Option or Stock Appreciation Right, or receive payment
with respect to Performance Units or any other Award. No Award of Restricted Stock (before
the expiration of the restrictions), Options, Stock Appreciation Rights or Performance Units
or other Award may be sold, assigned, transferred, exchanged or otherwise encumbered other
than to a Successor in the event of a Participant’s death or pursuant to a qualified
domestic relations order as defined in the Code or Title 1 of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), or the rules
thereunder; any attempted transfer in violation of this Section 6.3 shall be of no effect.
Notwithstanding the immediately preceding sentence, the Committee, in an Agreement or
otherwise at its discretion, may provide that the Award (other than Incentive Stock Options)
may be transferable to a Transferee if the Participant does not receive any consideration
for the transfer. Any Award held by a Transferee shall continue to be subject to the same
terms and conditions that were applicable to that Award immediately before the transfer
thereof to the Transferee. For purposes of any provision of the Plan relating to notice to
a Participant or to acceleration or termination of an Award upon the death, disability or
termination of employment of a Participant the references to “Participant” shall mean the
original grantee of an Award and not any Transferee.

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     6.4 Termination of Employment. Except as otherwise determined by the Committee
or provided by the Committee in an Agreement, in case of a Participant’s termination of
employment, the following provisions shall apply:

     (a) Options and Stock Appreciation Rights.

	 	(i)	 	If a Participant’s employment or other
relationship with the Company and its Affiliates terminates because of
the Participant’s death, then any Option or Stock Appreciation Right
that has not expired or been terminated shall become exercisable in
full if the Participant’s employment or other relationship with the
Company and its Affiliates has been continuous between the date the
Option or Stock Appreciation Right was granted and a date not more than
three months prior to such death, and may be exercised by the
Participant’s Successor at any time, or from time to time, within one
year after the date of the Participant’s death.
	 
	 	(ii)	 	If a Participant’s employment or other
relationship with the Company and its Affiliates terminates because the
Participant is disabled (within the meaning of Section 22(e)(3) of the
Code), then any Option or Stock Appreciation Right that has not expired
or been terminated shall become exercisable in full if the
Participant’s employment or other relationship with the Company and its
Affiliates has been continuous between the date the Option or Stock
Appreciation Right was granted and the date of such disability, and the
Participant or the Participant’s Successor may exercise such Option or
Stock Appreciation Right at any time, or from time to time, within one
year after the date of the Participant’s disability.
	 
	 	(iii)	 	If a Participant’s employment terminates for
any reason other than death or disability, then any Option or Stock
Appreciation Right that has not expired or been terminated shall remain
exercisable for three months after termination of the Participant’s
employment, but, unless otherwise provided in the Agreement, only to
the extent that such Option or Stock Appreciation Right was exercisable
immediately prior to such Participant’s termination of employment;
provided,
however, that if the Participant is an Outside Director, the Option
or Stock Appreciation Right shall remain exercisable until the
expiration of the Term after such Outside Director ceases to be a
director of the Company but, unless otherwise provided in the
Agreement, only to the extent that such Option or Stock Appreciation
Right was exercisable immediately prior to such Outside Director
ceasing to be a director.

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	 	(iv)	 	Notwithstanding the foregoing Plan Sections
6.4(a)(i), (ii) and (iii), in no event shall an Option or a Stock
Appreciation Right be exercisable after the expiration of the Term of
such Award. Any Option or Stock Appreciation Right that is not
exercised within the periods set forth in Plan Sections 6.4 (i), (ii)
and (iii), except as otherwise provided by the Committee in the
Agreement, shall terminate as of the end of the periods described in
such Sections.

     (b) Performance Units. If a Participant’s employment or other
relationship with the Company and its Affiliates terminates during a Performance
Cycle because of death or disability, or under other circumstances provided by the
Committee in its discretion in the Agreement or otherwise, the Participant, unless
the Committee shall otherwise provide in the Agreement, shall be entitled to a
payment with respect to Performance Units at the end of the Performance Cycle based
upon the extent to which achievement of performance targets was satisfied at the end
of such period (as determined at the end of the Performance Cycle) and prorated for
the portion of the Performance Cycle during which the Participant was employed by
the Company or its Affiliates. Except as provided in this Section 6.4(b) or in the
Agreement, if a Participant’s employment or other relationship with the Company and
its Affiliates terminates during a Performance Cycle, then such Participant shall
not be entitled to any payment with respect to that Performance Cycle.

     (c) Restricted Stock Awards. Unless otherwise provided in the
Agreement, in case of a Participant’s death or disability, the Participant shall be
entitled to receive a number of Shares of Restricted Stock under outstanding Awards
that has been prorated for the portion of the Term of the Awards during which the
Participant was employed by the Company and its Affiliates, and, with respect to
such Shares, all restrictions shall lapse. Any Shares of Restricted Stock as to
which restrictions do not lapse under the preceding sentence shall terminate at the
date of the Participant’s termination of employment and such Shares of Restricted
Stock shall be forfeited to the Company.

     6.5 Rights as Stockholder. Each Agreement shall provide that a Participant
shall have no rights as a stockholder with respect to any securities covered by an Award
unless and until the date the Participant becomes the holder of record of the Stock, if any,
to which the Award relates.

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     7. Restricted Stock Awards.

     (a) An Award of Restricted Stock under the Plan shall consist of Shares subject
to restrictions on transfer and conditions of forfeiture, which restrictions and
conditions shall be included in the applicable Agreement. The Committee may provide
for the lapse or waiver of any such restriction or condition based on such factors
or criteria as the Committee, in its sole discretion, may determine.

     (b) Except as otherwise provided in the applicable Agreement, each Stock
certificate issued with respect to an Award of Restricted Stock shall either be
deposited with the Company or its designee, together with an assignment separate
from the certificate, in blank, signed by the Participant, or bear such legends with
respect to the restricted nature of the Restricted Stock evidenced thereby as shall
be provided for in the applicable Agreement.

     (c) The Agreement shall describe the terms and conditions by which the
restrictions and conditions of forfeiture upon awarded Restricted Stock shall lapse.
Upon the lapse of the restrictions and conditions, Shares free of restrictive
legends, if any, relating to such restrictions shall be issued to the Participant or
a Successor or Transferee.

     (d) A Participant or a Transferee with a Restricted Stock Award shall have all
the other rights of a stockholder including, but not limited to, the right to
receive dividends and the right to vote the Shares of Restricted Stock.

     (e) No more than 1,000,000 of the total number of Shares available for Awards
under the Plan shall be issued during the term of the Plan as Restricted Stock.
This limitation shall be calculated pursuant to the applicable provisions of Plan
Sections 4 and 16.

     8. Other Awards. The Committee may from time to time grant Stock and other Awards
under the Plan including, without limitation, those Awards pursuant to which Shares are or may in
the future be acquired, Awards denominated in Stock units, securities convertible into Stock and
phantom securities. The Committee, in its sole discretion, shall determine the terms and
conditions of such Awards provided that such Awards shall not be inconsistent with the terms and
purposes of the Plan. The Committee may, at its sole discretion, direct the Company to issue
Shares subject to restrictive legends and/or stop transfer instructions that are consistent with
the terms and conditions of the Award to which the Shares relate. No more than 50,000 of the total
number of Shares available for Awards under the Plan shall be issued during the term of the Plan in
the form of Stock without restrictions.

     9. Stock Options.

     9.1 Terms of All Options.

     (a) An Option shall be granted pursuant to an Agreement as either an Incentive
Stock Option or a Non-Statutory Stock Option. The purchase price of
each Share subject to an Option shall be determined by the Committee and set
forth in the Agreement, but shall not be less than the Fair Market Value of a Share
as of the date the Option is granted (except as provided in Plan Sections 9.2 and
19).

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     (b) The purchase price of the Shares with respect to which an Option is
exercised shall be payable in full at the time of exercise, provided that to the
extent permitted by law, the Agreement may permit some or all Participants to
simultaneously exercise Options and sell the Shares thereby acquired pursuant to a
brokerage or similar relationship and use the proceeds from the sale as payment of
the purchase price of the Shares. The purchase price may be payable in cash, by
delivery or tender of Shares having a Fair Market Value as of the date the Option is
exercised equal to the purchase price of the Shares being purchased pursuant to the
Option, or a combination thereof, as determined by the Committee, but no fractional
Shares will be issued or accepted. Provided, however, that a Participant exercising
a stock option shall not be permitted to pay any portion of the purchase price with
Shares if, in the opinion of the Committee, payment in such manner could have
adverse financial accounting consequences for the Company.

     (c) Each Option shall be exercisable in whole or in part on the terms provided
in the Agreement. In no event shall any Option be exercisable at any time after the
expiration of its Term. When an Option is no longer exercisable, it shall be deemed
to have lapsed or terminated.

     9.2 Incentive Stock Options. In addition to the other terms and conditions
applicable to all Options:

     (i) the purchase price of each Share subject to an Incentive Stock Option shall
not be less than 100% of the Fair Market Value of a Share as of the date the
Incentive Stock Option is granted if this limitation is necessary to qualify the
Option as an Incentive Stock Option (except as provided in Plan Section 20);

     (ii) the aggregate Fair Market Value (determined as of the date the Option is
granted) of the Shares with respect to which Incentive Stock Options held by an
individual first become exercisable in any calendar year (under the Plan and all
other incentive stock option plans of the Company and its Affiliates) shall not
exceed $100,000 (or such other limit as may be required by the Code) if this
limitation is necessary to qualify the Option as an Incentive Stock Option and to
the extent an Option or Options granted to a Participant exceed this limit the
Option or Options shall be treated as a Non-Statutory Stock Option;

     (iii) an Incentive Stock Option shall not be exercisable more than 10 years
after the date of grant (or such other limit as may be required by the Code) if this
limitation is necessary to qualify the Option as an Incentive Stock Option;

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     (iv) the Agreement covering an Incentive Stock Option shall contain such other
terms and provisions that the Committee determines necessary to qualify this Option
as an Incentive Stock Option; and

     (v) notwithstanding any other provision of the Plan to the contrary, no
Participant may receive an Incentive Stock Option under the Plan if, at the time the
Award is granted, the Participant owns (after application of the rules contained in
Code Section 424(d), or its successor provision), Shares possessing more than 10% of
the total combined voting power of all classes of stock of the Company or its
Subsidiaries, unless (i) the exercise price for that Incentive Stock Option is at
least 110% of the Fair Market Value of the Shares subject to that Incentive Stock
Option on the date of grant and (ii) that Option is not exercisable after the date
five years from the date that Incentive Stock Option is granted.

     10. Stock Appreciation Rights. An Award of a Stock Appreciation Right shall entitle
the Participant (or a Successor or Transferee), subject to terms and conditions determined by the
Committee, to receive upon exercise of the Stock Appreciation Right all or a portion of the excess
of (i) the Fair Market Value of a specified number of Shares as of the date of exercise of the
Stock Appreciation Right over (ii) a specified price that shall not be less than 100% of the Fair
Market Value of such Shares as of the date of grant of the Stock Appreciation Right. A Stock
Appreciation Right may be granted in connection with part or all of, in addition to, or completely
independent of an Option or any other Award under the Plan. If issued in connection with a
previously or contemporaneously granted Option, the Committee may impose a condition that exercise
of a Stock Appreciation Right cancels a pro rata portion of the Option with which it is connected
and vice versa. Each Stock Appreciation Right may be exercisable in whole or in part on the terms
provided in the Agreement. No Stock Appreciation Right shall be exercisable at any time after the
expiration of its Term. When a Stock Appreciation Right is no longer exercisable, it shall be
deemed to have lapsed or terminated. Upon exercise of a Stock Appreciation Right, payment to the
Participant or a Successor or Transferee shall be made at such time or times as shall be provided
in the Agreement in the form of cash, Shares or a combination of cash and Shares as determined by
the Committee. The Agreement may provide for a limitation upon the amount or percentage of the
total appreciation on which payment (whether in cash and/or Shares) may be made in the event of the
exercise of a Stock Appreciation Right.

     11. Performance Units.

     11.1 Initial Award.

     (a) An Award of Performance Units under the Plan shall entitle the Participant
or a Successor or Transferee to future payments of cash, Shares or a combination of
cash and Shares, as determined by the Committee, based upon the achievement of
pre-established performance targets. These performance targets may, but need not,
include, without limitation, targets relating to one or more of the Company’s or a
group’s, unit’s, Affiliate’s or an individual’s performance. The Agreement may
establish that a portion of a Participant’s Award will be paid for performance that
exceeds the minimum target but falls below the maximum
target applicable to the Award. The Agreement shall also provide for the
timing of the payment.

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     (b) Following the conclusion or acceleration of each Performance Cycle, the
Committee shall determine the extent to which (i) performance targets have been
attained, (ii) any other terms and conditions with respect to an Award relating to
the Performance Cycle have been satisfied and (iii) payment is due with respect to
an Award of Performance Units.

     11.2 Acceleration and Adjustment. The Agreement may permit an acceleration of
the Performance Cycle and an adjustment of performance targets and payments with respect to
some or all of the Performance Units awarded to a Participant, upon the occurrence of
certain events, which may, but need not include, without limitation, a Fundamental Change, a
recapitalization, a change in the accounting practices of the Company, a change in the
Participant’s title or employment responsibilities, the Participant’s death or retirement
or, with respect to payments in Shares with respect to Performance Units, a
reclassification, stock dividend, stock split or stock combination as provided in Plan
Section 16. The Agreement also may provide for a limitation on the value of an Award of
Performance Units that a Participant may receive.

     12. Effective Date and Duration of the Plan.

     12.1 Effective Date. The Plan shall become effective as of November 6, 2000,
provided that the Plan is approved by the requisite vote of stockholders at the January 2001
Annual Meeting of Stockholders or any adjournment thereof.

     12.2 Duration of the Plan. The Plan shall remain in effect until all Stock
subject to it shall be distributed, all Awards have expired or lapsed, the Plan is
terminated pursuant to Plan Section 15, or November 27, 2016 (the “Termination Date”);
provided, however, that Awards made before the Termination Date may be exercised, vested or
otherwise effectuated beyond the Termination Date unless limited in the Agreement or
otherwise. No Award of an Incentive Stock Option shall be made more than 10 years after the
Effective Date (or such other limit as may be required by the Code) if this limitation is
necessary to qualify the Option as an Incentive Stock Option. The date and time of approval
by the Committee of the granting of an Award shall be considered the date and time at which
the Award is made or granted.

     13. Plan Does Not Affect Employment Status.

     (a) Status as an eligible Employee shall not be construed as a commitment that
any Award will be made under the Plan to that eligible Employee or to eligible
Employees generally.

     (b) Nothing in the Plan or in any Agreement or related documents shall confer
upon any Employee or Participant any right to continue in the employment of the
Company or any Affiliate or constitute any contract of employment or affect any
right that the Company or any Affiliate may have to
change such person’s compensation, other benefits, job responsibilities, or
title, or to terminate the employment of such person with or without cause.

13

 

     14. Tax Withholding. The Company shall have the right to withhold from any cash
payment under the Plan to a Participant or other person (including a Successor or a Transferee) an
amount sufficient to cover any required withholding taxes. The Company shall have the right to
require a Participant or other person receiving Shares under the Plan to pay the Company a cash
amount sufficient to cover any required withholding taxes before actual receipt of those Shares.
In lieu of all or any part of a cash payment from a person receiving Shares under the Plan, the
Committee may permit the individual to cover all or any part of the required withholdings through a
reduction of the number of Shares delivered or delivery or tender return to the Company of Shares
held by the Participant or other person, in each case valued in the same manner as used in
computing the withholding taxes under the applicable laws.

     15. Amendment, Modification and Termination of the Plan.

     (a) The Board may at any time and from time to time terminate, suspend or modify the
Plan. Except as limited in (b) below, the Committee may at any time alter or amend any or
all Agreements under the Plan to the extent permitted by law.

     (b) No termination, suspension, or modification of the Plan will materially and
adversely affect any right acquired by any Participant or Successor or Transferee under an
Award granted before the date of termination, suspension, or modification, unless otherwise
agreed to by the Participant in the Agreement or otherwise, or required as a matter of law;
but it will be conclusively presumed that any adjustment for changes in capitalization
provided for in Plan Sections 11.2 or 16 does not adversely affect these rights.

     16. Adjustment for Changes in Capitalization. In the event of any equity
restructuring (within the meaning of Financial Accounting Standards No. 123 (revised 2004)) that
causes the per Share value of Shares to change, such as a stock dividend, stock split, spin off,
rights offering, or recapitalization through a large, nonrecurring cash dividend, the Committee
shall cause there to be made an equitable adjustment to (i) the number and kind of Shares that may
be issued under the Plan, (ii) the limitations on the number of Shares that may be issued to an
individual Participant as an Option or a Stock Appreciation Right in any calendar year or that may
be issued in the form of Restricted Stock or Shares without restrictions and (iii) the number and
kind of Shares or, subject to Plan Section 11.2, Performance Units, subject to and the exercise
price (if applicable) of any then outstanding Awards of Options, Stock Appreciation Rights,
Restricted Stock, Performance Units or any other Awards related to shares of Stock (to the extent
such other Awards would not otherwise automatically adjust in the equity restructuring); provided,
in each case, that with respect to Incentive Stock Options, no such adjustment shall be authorized
to the extent that such adjustment would cause such options to violate Section 422(b) of the Code
or any successor provision; provided further, with respect to all Awards, no such adjustment shall
be authorized to the extent that such adjustment would cause the Awards to be subject to adverse
tax consequences under Section 409A of the Code. In the event of any other change in corporate
capitalization, such as a merger, consolidation, any reorganization (whether or not such

14

 

reorganization comes within the definition of such term in Section 368 of the Code),
including a Fundamental Change (subject to Plan Section 17), or any partial or complete
liquidation of the Company, such equitable adjustments described in the foregoing sentence may be
made as determined to be appropriate and equitable by the Committee to prevent dilution or
enlargement of rights. In either case, any such adjustment shall be conclusive and binding for
all purposes of the Plan. Unless otherwise determined by the Committee, the number of Shares
subject to an Award shall always be a whole number. In no event shall an outstanding Option or
Stock Appreciation Right be amended for the sole purpose of reducing the exercise price or grant
price thereof.

     17. Fundamental Change. In the event of a proposed Fundamental Change, the Committee
may, but shall not be obligated to:

     (a) if the Fundamental Change is a merger or consolidation or statutory share exchange,
make appropriate provision for the protection of the outstanding Options and Stock
Appreciation Rights by the substitution of options, stock appreciation rights and
appropriate voting common stock of the corporation surviving any merger or consolidation or,
if appropriate, the parent corporation of the Company or such surviving corporation; or

     (b) at least ten days before the occurrence of the Fundamental Change, declare, and
provide written notice to each holder of an Option or Stock Appreciation Right of the
declaration, that each outstanding Option and Stock Appreciation Right, whether or not then
exercisable, shall be canceled at the time of, or immediately before the occurrence of the
Fundamental Change in exchange for payment to each holder of an Option or Stock Appreciation
Right, within ten days after the Fundamental Change, of cash equal to (i) for each Share
covered by the canceled Option, the amount, if any, by which the Fair Market Value (as
defined in this Section) per Share exceeds the exercise price per Share covered by such
Option or (ii) for each Stock Appreciation Right, the price determined pursuant to Section
10, except that Fair Market Value of the Shares as of the date of exercise of the Stock
Appreciation Right, as used in clause (i) of Plan Section 10, shall be deemed to mean Fair
Market Value for each Share with respect to which the Stock Appreciation Right is calculated
determined in the manner hereinafter referred to in this Section. At the time of the
declaration provided for in the immediately preceding sentence, each Stock Appreciation
Right and each Option shall immediately become exercisable in full and each person holding
an Option or a Stock Appreciation Right shall have the right, during the period preceding
the time of cancellation of the Option or Stock Appreciation Right, to exercise the Option
as to all or any part of the Shares covered thereby or the Stock Appreciation Right in whole
or in part, as the case may be. In the event of a declaration pursuant to Plan Section
17(b), each outstanding Option and Stock Appreciation Right granted pursuant to the Plan
that shall not have been exercised before the Fundamental Change shall be canceled at the
time of, or immediately before, the Fundamental Change, as provided in the declaration.
Notwithstanding the foregoing, no person holding an Option or a Stock Appreciation Right
shall be entitled to the payment provided for in this Section 17(b) if such Option or Stock
Appreciation Right shall have terminated, expired or been cancelled. For purposes of this
Section only, “Fair Market Value” per Share means the cash plus the fair market
value, as determined in good faith by the Committee, of the non-cash consideration to
be received per Share by the stockholders of the Company upon the occurrence of the
Fundamental Change.

15

 

     18. Prohibition on Repricing. Without the approval of the Company’s stockholders, the
Committee will not reprice, adjust or amend the exercise price of any Option or the grant price of
any Stock Appreciation Right previously awarded, whether through amendment, cancellation and
replacement grant or any other means, except pursuant to Section 16 of the Plan in connection with
an equity restructuring, or pursuant to Section 17 of the Plan in connection with a Fundamental
Change, in order to prevent dilution or enlargement of the benefits, or potential benefits intended
to be provided under the Plan.

     19. Forfeitures. An Agreement may provide that if a Participant has received or been
entitled to payment of cash, delivery of Shares, or a combination thereof pursuant to an Award
within six months before the Participant’s termination of employment with the Company and its
Affiliates, the Committee, in its sole discretion, may require the Participant to return or forfeit
the cash and/or Shares received with respect to the Award (or its economic value as of (i) the date
of the exercise of Options or Stock Appreciation Rights, (ii) the date of, and immediately
following, the lapse of restrictions on Restricted Stock or the receipt of Shares without
restrictions, or (iii) the date on which the right of the Participant to payment with respect to
Performance Units vests, as the case may be) in the event of certain occurrences specified in the
Agreement. The Committee’s right to require forfeiture must be exercised within 90 days after
discovery of such an occurrence but in no event later than 15 months after the Participant’s
termination of employment with the Company and its Affiliates. The occurrences may, but need not,
include competition with the Company or any Affiliate, unauthorized disclosure of material
proprietary information of the Company or any Affiliate, a violation of applicable business ethics
policies of the Company or Affiliate or any other occurrence specified in the Agreement within the
period or periods of time specified in the Agreement.

     20. Corporate Mergers, Acquisitions, Etc. The Committee may also grant Options, Stock
Appreciation Rights, Restricted Stock or other Awards under the Plan in substitution for, or in
connection with the assumption of, existing options, stock appreciation rights, restricted stock or
other award granted, awarded or issued by another corporation and assumed or otherwise agreed to be
provided for by the Company pursuant to or by reason of a transaction involving a corporate merger,
consolidation, acquisition of property or stock, separation, reorganization or liquidation to which
the Company or a Subsidiary is a party. The terms and conditions of the substitute Awards may vary
from the terms and conditions set forth in the Plan to the extent as the Board at the time of the
grant may deem appropriate to conform, in whole or in part, to the provisions of the awards in
substitution for which they are granted.

     21. Unfunded Plan. The Plan shall be unfunded and the Company shall not be required
to segregate any assets that may at any time be represented by Awards under the Plan. Neither the
Company, its Affiliates, the Committee, nor the Board of Directors shall be deemed to be a trustee
of any amounts to be paid under the Plan nor shall anything contained in the Plan or any action
taken pursuant to its provisions create or be construed to create a fiduciary relationship between
the Company and/or its Affiliates, and a Participant or Successor or
Transferee. To the extent any person acquires a right to receive an Award under the Plan,
this right shall be no greater than the right of an unsecured general creditor of the Company.

16

 

     22. Limits of Liability.

     (a) Any liability of the Company to any Participant with respect to an Award shall be
based solely upon contractual obligations created by the Plan and the Award Agreement.

     (b) Except as may be required by law, neither the Company nor any member of the Board
of Directors or of the Committee, nor any other person participating in any determination of
any question under the Plan, or in the interpretation, administration or application of the
Plan, shall have any liability to any party for any action taken, or not taken, in good
faith under the Plan.

     23. Compliance with Applicable Legal Requirements. No certificate for Shares
distributable pursuant to the Plan shall be issued and delivered unless the issuance of the
certificate complies with all applicable legal requirements including, without limitation,
compliance with the provisions of applicable state securities laws, the Securities Act of 1933, as
amended and in effect from time to time or any successor statute, the Exchange Act and the
requirements of the exchanges on which the Company’s Shares may, at the time, be listed.

     24. Deferrals and Settlements. The Committee may require or permit Participants to
elect to defer the issuance of Shares or the settlement of Awards in cash under such rules and
procedures as it may establish under the Plan. It may also provide that deferred settlements
include the payment or crediting of interest on the deferral amounts.

     25. Other Benefit and Compensation Programs. Payments and other benefits received by
a Participant under an Award made pursuant to the Plan shall not be deemed a part of a
Participant’s regular, recurring compensation for purposes of the termination, indemnity or
severance pay laws of any country and shall not be included in, nor have any effect on, the
determination of benefits under any other employee benefit plan, contract or similar arrangement
provided by the Company or an Affiliate unless expressly so provided by such other plan, contract
or arrangement, or unless the Committee expressly determines that an Award or portion of an Award
should be included to accurately reflect competitive compensation practices or to recognize that an
Award has been made in lieu of a portion of competitive cash compensation.

     26. Beneficiary Upon Participant’s Death. To the extent that the transfer of a
Participant’s Award at his or her death is permitted under an Agreement, a Participant’s Award
shall be transferable at death to the estate or to the person who acquires the right to succeed to
the Award by bequest or inheritance.

     27. Requirements of Law.

     (a) To the extent that federal laws do not otherwise control, the Plan and all
determinations made and actions taken pursuant to the Plan shall be governed by the laws of
the State of Minnesota without regard to its conflicts-of-law principles and shall be
construed accordingly.

17

 

     (b) If any provision of the Plan shall be held illegal or invalid for any reason, the
illegality or invalidity shall not effect the remaining parts of the Plan, and the Plan
shall be construed and enforced as if the illegal or invalid provision had not been
included.

18exv10wxby

 

Exhibit 10(b)

DIGI INTERNATIONAL INC.

EMPLOYEE STOCK PURCHASE PLAN

AS AMENDED AND RESTATED AS OF NOVEMBER 27, 2006

1. PURPOSE AND SCOPE OF PLAN. The purpose of this Digi International Inc. Employee Stock Purchase
Plan (the “Plan”) is to provide the employees of Digi International Inc. (the “Company”) with an
opportunity to acquire a proprietary interest in the Company through the purchase of its Common
Stock and, thus, to develop a stronger incentive to work for the continued success of the Company.
The Plan is intended to be an “employee stock purchase plan” within the meaning of Section 423(b)
of the Internal Revenue Code of 1986, as amended, and shall be interpreted and administered in a
manner consistent with such intent.

2. DEFINITIONS.

     2.1. The terms defined in this section are used (and capitalized) elsewhere in this Plan:

     (a) “Affiliate” means any corporation that is a “parent corporation” or “subsidiary
corporation” of the Company, as defined in Sections 424(e) and 424(f) of the Code or any
successor provision, and whose participation in the Plan has been approved by the Board of
Directors.

     (b) “Board of Directors” means the Board of Directors of the Company.

     (c) “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     (d) “Committee” means three or more Disinterested Persons designated by the Board of
Directors to administer the Plan under Section 13.

     (e) “Common Stock” means the common stock, par value $.01 per share (as such par value
may be adjusted from time to time), of the Company.

     (f) “Company” means Digi International Inc.

     (g) “Compensation” means the gross cash compensation (including wage, salary,
commission, bonus, and overtime earnings) paid by the Company or any Affiliate to a
Participant in accordance with the terms of employment.

     (h) “Disinterested Persons” means a member of the Board of Directors who is considered
a disinterested person within the meaning of Exchange Act Rule 16b-3 or any successor
definition.

1

 

     (i) “Eligible Employee” means any employee of the Company or an Affiliate who has been
employed for at least 90 days and whose customary employment is at least 20 hours per week;
provided, however, that “Eligible Employee” shall not include any person who would be deemed
for purposes of Section 423(b)(3) of the Code, to own stock possessing 5% or more of the
total combined voting power or value of all classes of stock of the Company.

     (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time.

     (k) “Fair Market Value” of a share of Common Stock as of any date means, if the
Company’s Common Stock is listed on a national securities exchange or traded in the national
market system, the mean between the high and low sale prices for such Common Stock on such
exchange or market on said date, or, if no sale has been made on such exchange or market on
said date, on the last preceding day on which any sale shall have been made. If such
determination of Fair Market Value is not consistent with the then current regulations of
the Secretary of the Treasury applicable to plans intended to qualify as an “employee stock
purchase plan” within the meaning of Section 423(b) of the Code, however, Fair Market Value
shall be determined in accordance with such regulations. The determination of Fair Market
Value shall be subject to adjustment as provided in Section 14.

     (l) “Participant” means an Eligible Employee who has elected to participate in the Plan
in the manner set forth in Section 4.

     (m) “Plan” means this Digi International Inc. Employee Stock Purchase Plan, as amended
from time to time.

     (n) “Purchase Period” means each quarter of the Company’s fiscal year. The first
Purchase Period will be the quarter that starts April 1, 1996 and ends June 30, 1996.

     (o) “Recordkeeping Account” means the account maintained in the books and records of
the Company recording the amount withheld from each Participant through payroll deductions
made under the Plan.

     (p) “Share” means a share of Common Stock.

3. SCOPE OF THE PLAN. Shares of Common Stock may be sold by the Company to Eligible Employees
commencing April 1, 1996, as hereinafter provided, but not more than 1,750,000 shares of Common
Stock (subject to adjustment as provided in Section 14) shall be sold to Eligible Employees
pursuant to this Plan. All sales of Common Stock pursuant to this Plan shall be subject to the same
terms, conditions, rights and privileges. The shares of Common Stock delivered by the Company
pursuant to this Plan may be acquired shares having the status of any combination of authorized but
unissued shares, newly issued shares, or treasury shares.

2

 

4. ELIGIBILITY AND PARTICIPATION. To be eligible to participate in the Plan for a given Purchase
Period, an employee must be an Eligible Employee on the first day of such Purchase Period. An
Eligible Employee may elect to participate in the Plan by filing an enrollment form with the
Company before the first day of such Purchase Period that authorizes regular payroll deductions
from Compensation beginning with the first payday in such Purchase Period and continuing until the
Eligible Employee withdraws from the Plan, modifies his or her authorization, or ceases to be an
Eligible Employee, as hereinafter provided.

5. AMOUNT OF COMMON STOCK EACH ELIGIBLE EMPLOYEE MAY PURCHASE.

     5.1. Subject to the provisions of the Plan, each Eligible Employee shall be offered the right
to purchase on the last day of the Purchase Period the number of shares of Common Stock (including
fractional shares) that can be purchased at the price specified in Section 5.2 with the entire
credit balance in the Participant’s Recordkeeping Account; provided, however, that the Fair Market
Value (determined on the first day of any Purchase Period) of shares of Common Stock that may be
purchased by a Participant during such Purchase Period shall not exceed the excess, if any, of (i)
$25,000 over (ii) the Fair Market Value (determined on the first day of the relevant Purchase
Period) of shares of Common Stock previously acquired by the Participant in any prior Purchase
Period during such calendar year. Notwithstanding the foregoing, no Eligible Employee shall be
granted an option to acquire shares of Common Stock under this Plan which permits the Eligible
Employee’s rights to purchase shares of Common Stock under this Plan and all employee stock
purchase plans of the Company and the Affiliates to accrue at a rate which exceeds $25,000 of Fair
Market Value (determined at the time such option is granted) for each calendar year in which such
option is outstanding at any time. If the purchases by all Participants would otherwise cause the
aggregate number of shares of Common Stock to be sold under the Plan to exceed the number specified
in Section 3, however, each Participant shall be allocated at a ratable portion of the maximum
number of shares of Common Stock which may be sold.

     5.2. The purchase price of each share of Common Stock sold pursuant to this Plan will be the
lesser of (a) or (b) below: (a) 85% of the Fair Market Value of such share on the first day of the
Purchase Period. (b) 85% of the Fair Market Value of such share on the last day of the Purchase
Period.

6. METHOD OF PARTICIPATION.

     6.1. The Company shall give notice to each Eligible Employee of the opportunity to purchase
shares of Common Stock pursuant to this Plan and the terms and conditions for such offering. Such
notice is subject to revision by the Company at any time prior to the date of purchase of such
shares. The Company contemplates that for tax purposes the first day of a Purchase Period will be
the date of the offering of such shares.

     6.2. Each Eligible Employee who desires to participate in the Plan for a Purchase Period shall
signify his or her election to do so by signing an election form developed by the Committee. An
Eligible Employee may elect to have any whole percent of Compensation withheld, but not exceeding
ten percent (10%) per pay period. An election to participate in the Plan and to authorize payroll
deductions as described herein must be made before the first day of the Purchase Period to which it relates and shall remain in effect unless and until such
Participant withdraws from this Plan, modifies his or her authorization, or terminates his or her
employment with the Company, as hereinafter provided.

3

 

     6.3. Any Eligible Employee who does not make a timely election as provided in Section 6.2,
shall be deemed to have elected not to participate in the Plan. Such election shall be irrevocable
for such Purchase Period.

7. RECORDKEEPING ACCOUNT.

     7.1. The Company shall maintain a Recordkeeping Account for each Participant. Payroll
deductions pursuant to Section 6 will be credited to such Recordkeeping Accounts on each payday.

     7.2. No interest will be credited to a Participant’s Recordkeeping Account.

     7.3. The Recordkeeping Account is established solely for accounting purposes, and all amounts
credited to the Recordkeeping Account will remain part of the general assets of the Company.

     7.4. A Participant may not make any separate cash payment into the Recordkeeping Account.

8. RIGHT TO ADJUST PARTICIPATION OR TO WITHDRAW.

     8.1. A Participant may, at any time during a Purchase Period, direct the Company to make no
further deductions from his or her Compensation or to adjust the amount of such deductions. Upon
either of such actions, future payroll deductions with respect to such Participant shall cease or
be adjusted in accordance with the Participant’s direction.

     8.2. Any Participant who stops payroll deductions may not thereafter resume payroll deductions
during such Purchase Period.

     8.3. At any time before the end of a Purchase Period, any Participant may also withdraw from
the Plan. In such event, all future payroll deductions shall cease and the entire credit balance in
the Participant’s Recordkeeping Account will be paid to the Participant, without interest, in cash
within 15 days. A Participant who withdraws from the Plan will not be eligible to reenter the Plan
until the next succeeding Purchase Period.

     8.4. Notification of a Participant’s election to adjust or terminate deductions, or to
withdraw from the Plan, shall be made by the filing of an appropriate notice to such effect with
the Company.

9. TERMINATION OF EMPLOYMENT. If the employment of a Participant is terminated for any reason,
including death, disability, or retirement, the entire balance in the Participant’s Recordkeeping
Account will be applied to the purchase of shares as provided in Section 10.1 as of the last day of the Purchase Period in which the Participant’s employment terminated; except
that if such Participant so requests prior to the last day of such Purchase Period, the Company
shall refund in cash within 15 days all amounts credited to his or her Recordkeeping Account.

4

 

10. PURCHASE OF SHARES.

     10.1. As of the last day of the Purchase Period, the entire credit balance in each
Participant’s Recordkeeping Account will be used to purchase shares (including fractional shares)
of Common Stock (subject to the limitations of Section 5) unless the Participant has filed an
appropriate form with the Company in advance of that date (which either elects to purchase a
specified number of shares which is less than the number described above or elects to receive the
entire credit balance in cash). Any amount in a Participant’s Recordkeeping Account that is not
used to purchase shares pursuant to this Section 10.1 will be refunded to the Participant.

     10.2. Shares of Common Stock acquired by each Participant shall be held in a general account
maintained for the benefit of all Participants.

     10.3. Certificates for the number of whole shares of Common Stock, determined as aforesaid,
purchased by each Participant shall be issued and delivered to him or her only upon request of the
Participant or his or her representative directed to the Company. No Certificates for fractional
shares will be issued. Instead, Participants will receive a cash distribution representing any
fractional shares.

     10.4. Dividends with respect to a Participant’s shares held in the general account will, at
the election of the Participant, either be paid to the Participant in cash or reinvested in
additional shares of Common Stock. If a Participant fails to make such an election, all dividends
with respect to the Participant’s shares held in the general account will automatically be
reinvested to purchase additional shares of Common Stock.

     10.5. Each Participant will be entitled to vote all shares held for the benefit of such
Participant in the general account.

11. RIGHTS AS A STOCKHOLDER. A Participant shall not be entitled to any of the rights or privileges
of a stockholder of the Company with respect to such shares, including the right to receive any
dividends which may be declared by the Company, until (i) he or she actually has paid the purchase
price for such shares and (ii) either the shares have been credited to his or her account or
certificates have been issued to him or her, both as provided in Section 10.

12. RIGHTS NOT TRANSFERABLE. A Participant’s rights under this Plan are exercisable only by the
Participant during his or her lifetime, and may not be sold, pledged, assigned or transferred in
any manner other than by will or the laws of descent and distribution. Any attempt to sell, pledge,
assign or transfer the same shall be null and void and without effect. The amounts credited to a
Recordkeeping Account may not be assigned, transferred, pledged or hypothecated in any way, and any
attempted assignment, transfer, pledge, hypothecation or other disposition of such amounts will be
null and void and without effect.

5

 

13. ADMINISTRATION OF THE PLAN. This Plan shall be administered by the Committee, which is
authorized to make such uniform rules as may be necessary to carry out its provisions. The
Committee shall determine any questions arising in the administration, interpretation and
application of this Plan, and all such determinations shall be conclusive and binding on all
parties.

14. ADJUSTMENT FOR CHANGES IN CAPITALIZATION. In the event of any equity restructuring (within
the meaning of Financial Accounting Standards No. 123 (revised 2004)) that causes the per Share
value of Shares to change, such as a stock dividend, stock split, spin off, rights offering, or
recapitalization through a large, nonrecurring cash dividend, the Committee shall cause there to be
made an equitable adjustment to the number, class and purchase price of Shares that may be
purchased under the Plan. In the event of any other change in corporate capitalization, such as a
merger, consolidation, any reorganization (whether or not such reorganization comes within the
definition of such term in Section 368 of the Code), or any partial or complete liquidation of the
Company, such equitable adjustments described in the foregoing sentence may be made as determined
to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights. In
either case, any such adjustment shall be conclusive and binding for all purposes of the Plan.

15. REGISTRATION OF CERTIFICATES. Stock certificates will be registered in the name of the
Participant, or jointly in the name of the Participant and another person, as the Participant may
direct on an appropriate form.

16. AMENDMENT OF PLAN. The Board of Directors may at any time amend this Plan in any respect which
shall not adversely affect the rights of Participants pursuant to shares previously acquired under
the Plan, except that, without stockholder approval, no amendment shall be made (i) to increase the
number of shares to be reserved under this Plan, (ii) to decrease the minimum purchase price, (iii)
to withdraw the administration of this Plan from the Committee, or (iv) to change the definition of
employees eligible to participate in the Plan.

17. EFFECTIVE DATE OF PLAN. This Plan shall consist of an offering commencing April 1, 1996, and
ending June 30, 1996, and continuing on a quarterly basis thereafter. All rights of Participants in
any offering hereunder shall terminate at the earlier of (i) the day that Participants become
entitled to purchase a number of shares of Common Stock equal to or greater than the number of
shares remaining available for purchase or (ii) at any time, at the discretion of the Board of
Directors, after 30 days’ notice has been given to all Participants. Upon termination of this Plan,
shares of Common Stock shall be issued to Participants in accordance with Section 10, and cash, if
any, remaining in the Participant’s Recordkeeping Accounts shall be refunded to them, as if the
Plan were terminated at the end of a Purchase Period.

6

 

18. GOVERNMENTAL REGULATIONS AND LISTING. All rights granted or to be granted to Eligible Employees
under this Plan are expressly subject to all applicable laws and regulations and to the approval of
all governmental authorities required in connection with the authorization, issuance, sale or
transfer of the shares of Common Stock reserved for this Plan, including, without limitation, there
being a current registration statement of the Company under the Securities Act of 1933, as amended,
covering the shares of Common Stock purchasable on the last day of the Purchase Period applicable to such shares, and if such a registration statement
shall not then be effective, the term of such Purchase Period shall be extended until the first
business day after the effective date of such a registration statement, or post-effective amendment
thereto. If applicable, all such rights hereunder are also similarly subject to effectiveness of an
appropriate listing application to a national securities exchange or a national market system,
covering the shares of Common Stock under the Plan upon official notice of issuance.

19. MISCELLANEOUS.

     19.1. This Plan shall not be deemed to constitute a contract of employment between the Company
and any Participant, nor shall it interfere with the right of the Company to terminate any
Participant and treat him or her without regard to the effect which such treatment might have upon
him or her under this Plan.

     19.2. Wherever appropriate as used herein, the masculine gender may be read as the feminine
gender, the feminine gender may be read as the masculine gender, the singular may be read as the
plural and the plural may be read as the singular.

     19.3. The Plan, and all agreements hereunder, shall be construed in accordance with and
governed by the laws of the State of Minnesota.

     19.4. Delivery of shares of Common Stock or of cash pursuant to this Plan shall be subject to
any required withholding taxes. A person entitled to receive shares of Common Stock may, as a
condition precedent to receiving such shares, be required to pay the Company a cash amount equal to
the amount of any required withholdings.

7

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