Document:

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                                                                 Exhibit 10.1
                                RADISYS CORPORATION

                             1995 STOCK INCENTIVE PLAN
                         (As Amended Through May 16, 2000)

       1.     PURPOSE.  The purpose of this Stock Incentive Plan (the "Plan")
is to enable RadiSys Corporation (the "Company") to attract and retain the
services of (1) selected employees, officers and directors of the Company or
of any subsidiary of the Company and (2) selected nonemployee agents,
consultants, advisors, persons involved in the sale or distribution of the
Company's products and independent contractors of the Company or any
subsidiary.

       2.     SHARES SUBJECT TO THE PLAN.  Subject to adjustment as provided
below and in paragraph 13, the shares to be offered under the Plan shall
consist of Common Stock of the Company, and the total number of shares of
Common Stock that may be issued under the Plan shall not exceed 5,425,000(*)
shares.  The shares issued under the Plan may be authorized and unissued
shares or reacquired shares.  If an option, stock appreciation right or
performance unit granted under the Plan expires, terminates or is canceled,
the unissued shares subject to such option, stock appreciation right or
performance unit shall again be available under the Plan.  If shares sold or
awarded as a bonus under the Plan are forfeited to the Company or repurchased
by the Company, the number of shares forfeited or repurchased shall again be
available under the Plan.

       3.     EFFECTIVE DATE AND DURATION OF PLAN.

             (a)    EFFECTIVE DATE.  The Plan shall become effective as of
August 7, 1995.  No option, stock appreciation right or performance unit
granted under the Plan to an officer who is subject to Section 16(b) of the
Securities Exchange Act of 1934, as amended (an "Officer") or a director, and
no incentive stock option, shall become exercisable, however, until the Plan
is approved by the affirmative vote of the holders of a majority of the
shares of Common Stock represented at a shareholders meeting at which a
quorum is present and any such awards under the Plan prior to such approval
shall be conditioned on and subject to such approval.  Subject to this
limitation, options, stock appreciation rights and performance units may be
granted and shares may be awarded as bonuses or sold under the Plan at any
time after the effective date and before termination of the Plan.

             (b)    DURATION.  The Plan shall continue in effect until all
shares available for issuance under the Plan have been issued and all
restrictions on such shares have lapsed.  The

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       (*)    Adjusted to reflect a 3-for-2 stock split of the shares of
              Common Stock, without par value, of the Company, effected in
              the form of a 50% share dividend in accordance with ORS 60.154,
              declared by the Board of Directors on October 19, 1999, and paid
              on November 29, 1999 to shareholders of record at the close of
              business on November 8, 1999.

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Board of Directors may suspend or terminate the Plan at any time except with
respect to options, performance units and shares subject to restrictions then
outstanding under the Plan.  Termination shall not affect any outstanding
options, any right of the Company to repurchase shares or the forfeitability
of shares issued under the Plan.

       4.     ADMINISTRATION.

             (a)    BOARD OF DIRECTORS.  The Plan shall be administered by
the Board of Directors of the Company, which shall determine and designate
from time to time the individuals to whom awards shall be made, the amount of
the awards and the other terms and conditions of the awards.  Subject to the
provisions of the Plan, the Board of Directors may from time to time adopt
and amend rules and regulations relating to administration of the Plan,
advance the lapse of any waiting period, accelerate any exercise date, waive
or modify any restriction applicable to shares (except those restrictions
imposed by law) and make all other determinations in the judgment of the
Board of Directors necessary or desirable for the administration of the Plan.
 The interpretation and construction of the provisions of the Plan and
related agreements by the Board of Directors shall be final and conclusive.
The Board of Directors may correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any related agreement in the
manner and to the extent it shall deem expedient to carry the Plan into
effect, and it shall be the sole and final judge of such expediency.

             (b)    COMMITTEE.  The Board of Directors may delegate to a
committee of the Board of Directors or specified officers of the Company, or
both (the "Committee") any or all authority for administration of the Plan.
If authority is delegated to a Committee, all references to the Board of
Directors in the Plan shall mean and relate to the Committee except (i) as
otherwise provided by the Board of Directors, (ii) that only the Board of
Directors may amend or terminate the Plan as provided in paragraphs 3 and 15
and (iii) that a Committee including officers of the Company shall not be
permitted to grant options to persons who are officers of the Company.  If
awards are to be made under the Plan to Officers or directors, authority for
selection of Officers and directors for participation and decisions
concerning the timing, pricing and amount of a grant or award, if not
determined under a formula meeting the requirements of Rule 16b-3 under the
Securities Exchange Act of 1934, as amended, shall be delegated to a
committee consisting of two or more disinterested directors.

       5.     TYPES OF AWARDS; ELIGIBILITY.  The Board of Directors may, from
time to time, take the following action, separately or in combination, under
the Plan:  (i) grant Incentive Stock Options, as defined in Section 422 of
the Internal Revenue Code of 1986, as amended (the "Code"), as provided in
paragraphs 6(a) and 6(b); (ii) grant options other than Incentive Stock
Options ("Non-Statutory Stock Options") as provided in paragraphs 6(a) and
6(c); (iii) award stock bonuses as provided in paragraph 7; (iv) sell shares
subject to restrictions as provided in paragraph 8; (v) grant stock
appreciation rights as provided in paragraph 9; (vi) grant cash bonus rights
as provided in paragraph 10; (vii) grant performance units as provided in
paragraph 11 and (viii) grant foreign qualified awards as provided in
paragraph 12.

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Any such awards may be made to employees, including employees who are
officers or directors, and to other individuals described in paragraph 1 who
the Board of Directors believes have made or will make an important
contribution to the Company or any subsidiary of the Company; provided,
however, that only employees of the Company or any subsidiary shall be
eligible to receive Incentive Stock Options under the Plan.  The Board of
Directors shall select the individuals to whom awards shall be made and shall
specify the action taken with respect to each individual to whom an award is
made.  At the discretion of the Board of Directors, an individual may be
given an election to surrender an award in exchange for the grant of a new
award; provided, however, that, notwithstanding anything to the contrary
contained herein, in no event shall any option or stock appreciation right
granted under the Plan be repriced, replaced or regranted through the
cancellation and reissuance thereof at a lower exercise price, or by lowering
the exercise price of a previously granted option or stock appreciation
right, without the prior approval of the shareholders of the Company.  No
employee may be granted options or stock appreciation rights under the Plan
for more than an aggregate of 450,000 shares of Common Stock in connection
with the hiring of the employee or 100,000 shares of Common Stock in any
calendar year otherwise.

       6.     OPTION GRANTS.

              (a)    GENERAL RULES RELATING TO OPTIONS.

                     (i)    TERMS OF GRANT.  The Board of Directors may grant
       options under the Plan.  With respect to each option grant, the Board of
       Directors shall determine the number of shares subject to the option, the
       option price, the period of the option, the time or times at which the
       option may be exercised and whether the option is an Incentive Stock
       Option or a Non-Statutory Stock Option.  At the time of the grant of an
       option or at any time thereafter, the Board of Directors may provide that
       an optionee who exercised an option with Common Stock of the Company
       shall automatically receive a new option to purchase additional shares
       equal to the number of shares surrendered and may specify the terms and
       conditions of such new options.

                     (ii)   EXERCISE OF OPTIONS.  Except as provided in
       paragraph 6(a)(iv) or as determined by the Board of Directors, no option
       granted under the Plan may be exercised unless at the time of such
       exercise the optionee is employed by or in the service of the Company or
       any subsidiary of the Company and shall have been so employed or provided
       such service continuously since the date such option was granted.
       Absence on leave or on account of illness or disability under rules
       established by the Board of Directors shall not, however, be deemed an
       interruption of employment or service for this purpose.  Unless otherwise
       determined by the Board of Directors, vesting of options shall not
       continue during an absence on leave (including an extended illness) or on
       account of disability.  Except as provided in paragraphs 6(a)(iv) and 13,
       options granted under the Plan may be exercised from time to time over
       the period stated in each option in such amounts and at such times as
       shall be prescribed by the

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       Board of Directors, provided that options shall not be exercised for
       fractional shares.  Unless otherwise determined by the Board of
       Directors, if the optionee does not exercise an option in any one year
       with respect to the full number of shares to which the optionee is
       entitled in that year, the optionee's rights shall be cumulative and the
       optionee may purchase those shares in any subsequent year during the term
       of the option.  Unless otherwise determined by the Board of Directors, if
       an Officer exercises an option within six months of the grant of the
       option, the shares acquired upon exercise of the option may not be sold
       until six months after the date of grant of the option.

                     (iii)  NONTRANSFERABILITY.  Each Incentive Stock Option
       and, unless otherwise determined by the Board of Directors with respect
       to an option granted to a person who is neither an Officer nor a director
       of the Company, each other option granted under the Plan by its terms
       shall be nonassignable and nontransferable by the optionee, either
       voluntarily or by operation of law, except by will or by the laws of
       descent and distribution of the state or country of the optionee's
       domicile at the time of death, and shall be exercisable during the
       optionee's lifetime only by the optionee.

                     (iv)   TERMINATION OF EMPLOYMENT OR SERVICE.

                            (A)    GENERAL RULE.  Unless otherwise determined by
              the Board of Directors, in the event the employment or service of
              the optionee with the Company or a subsidiary terminates for any
              reason other than because of physical disability or death as
              provided in subparagraphs 6(a)(iv)(B) and (C), the option may be
              exercised at any time prior to the expiration date of the option
              or the expiration of 30 days after the date of such termination,
              whichever is the shorter period, but only if and to the extent the
              optionee was entitled to exercise the option at the date of such
              termination.

                            (B)    TERMINATION BECAUSE OF TOTAL DISABILITY.
              Unless otherwise determined by the Board of Directors, in the
              event of the termination of employment or service because of total
              disability, the option may be exercised at any time prior to the
              expiration date of the option or the expiration of 12 months after
              the date of such termination, whichever is the shorter period, but
              only if and to the extent the optionee was entitled to exercise
              the option at the date of such termination.  The term "total
              disability" means a medically determinable mental or physical
              impairment which is expected to result in death or which has
              lasted or is expected to last for a continuous period of 12 months
              or more and which causes the optionee to be unable, in the opinion
              of the Company and two independent physicians, to perform his or
              her duties as an employee, director, officer or consultant of the
              Company and to be engaged in any substantial gainful activity.
              Total disability shall be deemed to have

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              occurred on the first day after the Company and the two
              independent physicians have furnished their opinion of total
              disability to the Company.

                            (C)    TERMINATION BECAUSE OF DEATH.  Unless
              otherwise determined by the Board of Directors, in the event of
              the death of an optionee while employed by or providing service to
              the Company or a subsidiary, the option may be exercised at any
              time prior to the expiration date of the option or the expiration
              of 12 months after the date of death, whichever is the shorter
              period, but only if and to the extent the optionee was entitled to
              exercise the option at the date of death and only by the person or
              persons to whom such optionee's rights under the option shall pass
              by the optionee's will or by the laws of descent and distribution
              of the state or country of domicile at the time of death.

                            (D)    AMENDMENT OF EXERCISE PERIOD APPLICABLE TO
              TERMINATION.  The Board of Directors, at the time of grant or,
              with respect to an option that is not an Incentive Stock Option,
              at any time thereafter, may extend the 30-day and 12-month
              exercise periods any length of time not longer than the original
              expiration date of the option, and may increase the portion of an
              option that is exercisable, subject to such terms and conditions
              as the Board of Directors may determine.

                            (E)    FAILURE TO EXERCISE OPTION.  To the extent
              that the option of any deceased optionee or of any optionee whose
              employment or service terminates is not exercised within the
              applicable period, all further rights to purchase shares pursuant
              to such option shall cease and terminate.

                     (v)    PURCHASE OF SHARES.  Unless the Board of Directors
       determines otherwise, shares may be acquired pursuant to an option
       granted under the Plan only upon receipt by the Company of notice in
       writing from the optionee of the optionee's intention to exercise,
       specifying the number of shares as to which the optionee desires to
       exercise the option and the date on which the optionee desires to
       complete the transaction, and if required in order to comply with the
       Securities Act of 1933, as amended, containing a representation that it
       is the optionee's present intention to acquire the shares for investment
       and not with a view to distribution.  Unless the Board of Directors
       determines otherwise, on or before the date specified for completion of
       the purchase of shares pursuant to an option, the optionee must have paid
       the Company the full purchase price of such shares in cash (including,
       with the consent of the Board of Directors, cash that may be the proceeds
       of a loan from the Company (provided that, with respect to an Incentive
       Stock Option, such loan is approved at the time of option grant)) or,
       with the consent of the Board of Directors (which, in the case of an
       Incentive Stock Option, shall be given only at the time of option grant),
       in whole or in

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       part, in Common Stock of the Company valued at fair market
       value(*), restricted stock, performance units or other contingent awards
       denominated in either stock or cash, promissory notes and other forms of
       consideration.  The fair market value of Common Stock provided in payment
       of the purchase price shall be determined by the Board of Directors.  If
       the Common Stock of the Company is not publicly traded on the date the
       option is exercised, the Board of Directors may consider any valuation
       methods it deems appropriate and may, but is not required to, obtain one
       or more independent appraisals of the Company.  If the Common Stock of
       the Company is publicly traded on the date the option is exercised, the
       fair market value of Common Stock provided in payment of the purchase
       price shall be the closing price of the Common Stock as reported in THE
       WALL STREET JOURNAL on the last trading day preceding the date the option
       is exercised, or such other reported value of the Common Stock as shall
       be specified by the Board of Directors.  No shares shall be issued until
       full payment for the shares has been made.  With the consent of the Board
       of Directors (which, in the case of an Incentive Stock Option, shall be
       given only at the time of option grant), an optionee may request the
       Company to apply automatically the shares to be received upon the
       exercise of a portion of a stock option (even though stock certificates
       have not yet been issued) to satisfy the purchase price for additional
       portions of the option.  Each optionee who has exercised an option shall
       immediately upon notification of the amount due, if any, pay to the
       Company in cash amounts necessary to satisfy any applicable federal,
       state and local tax withholding requirements.  If additional withholding
       is or becomes required beyond any amount deposited before delivery of the
       certificates, the optionee shall pay such amount to the Company on
       demand.  If the optionee fails to pay the amount demanded, the Company
       may withhold that amount from other amounts payable by the Company to the
       optionee, including salary, subject to applicable law.  With the consent
       of the Board of Directors (which in the case of an Incentive Stock
       Option, shall be given only at the time of option grant), an optionee may
       satisfy this obligation, in whole or in part, by having the Company
       withhold from the shares to be issued upon the exercise that number of
       shares that would satisfy the withholding amount due or by delivering to
       the Company Common Stock to satisfy the withholding amount.  Upon the
       exercise of an option, the number of shares reserved for issuance under
       the Plan shall be reduced by the number of shares issued upon exercise of
       the option.

              (b)    INCENTIVE STOCK OPTIONS.  Incentive Stock Options shall be
subject to the following additional terms and conditions:

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       (*)    The Board of Directors has consented to the use of Common Stock in
              payment of the purchase price, at a fair market value equal to the
              closing price of the Common Stock as reported in THE WALL STREET
              JOURNAL on the last trading day preceding the date the option is
              exercised.

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                     (i)    LIMITATION ON AMOUNT OF GRANTS.  No employee may be
       granted Incentive Stock Options under the Plan if the aggregate fair
       market value, on the date of grant, of the Common Stock with respect to
       which Incentive Stock Options are exercisable for the first time by that
       employee during any calendar year under the Plan and under all incentive
       stock option plans (within the meaning of Section 422 of the Code) of the
       Company or any parent or subsidiary of the Company exceeds $100,000.

                     (ii)   LIMITATIONS ON GRANTS TO 10 PERCENT SHAREHOLDERS.
       An Incentive Stock Option may be granted under the Plan to an employee
       possessing more than 10 percent of the total combined voting power of all
       classes of stock of the Company or of any parent or subsidiary of the
       Company only if the option price is at least 110 percent of the fair
       market value, as described in paragraph 6(b)(iv), of the Common Stock
       subject to the option on the date it is granted and the option by its
       terms is not exercisable after the expiration of five years from the date
       it is granted.

                     (iii)  DURATION OF OPTIONS.  Subject to paragraphs 6(a)(ii)
       and 6(b)(ii), Incentive Stock Options granted under the Plan shall
       continue in effect for the period fixed by the Board of Directors, except
       that no Incentive Stock Option shall be exercisable after the expiration
       of 10 years from the date it is granted.

                     (iv)   OPTION PRICE.  The option price per share shall be
       determined by the Board of Directors at the time of grant.  Except as
       provided in paragraph 6(b)(ii), the option price shall not be less than
       100 percent of the fair market value of the Common Stock covered by the
       Incentive Stock Option at the date the option is granted.  The fair
       market value shall be determined by the Board of Directors.  If the
       Common Stock of the Company is not publicly traded on the date the option
       is granted, the Board of Directors may consider any valuation methods it
       deems appropriate and may, but is not required to, obtain one or more
       independent appraisals of the Company.  If the Common Stock of the
       Company is publicly traded on the date the option is exercised, the fair
       market value shall be deemed to be the closing price of the Common Stock
       as reported in THE WALL STREET JOURNAL on the day preceding the date the
       option is granted, or, if there has been no sale on that date, on the
       last preceding date on which a sale occurred or such other value of the
       Common Stock as shall be specified by the Board of Directors.

                     (v)    LIMITATION ON TIME OF GRANT.  No Incentive Stock
       Option shall be granted on or after the tenth anniversary of the
       effective date of the Plan.

                     (vi)   CONVERSION OF INCENTIVE STOCK OPTIONS.  The Board of
       Directors may at any time without the consent of the optionee convert an
       Incentive Stock Option to a Non-Statutory Stock Option.

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              (c)    NON-STATUTORY STOCK OPTIONS.  Non-Statutory Stock Options
shall be subject to the following terms and conditions in addition to those set
forth in paragraph 6(a) above:

                     (i)    OPTION PRICE.  The option price for Non-Statutory
       Stock Options shall be determined by the Board of Directors at the time
       of grant and may be any amount determined by the Board of Directors.

                     (ii)   DURATION OF OPTIONS.  Non-Statutory Stock Options
       granted under the Plan shall continue in effect for the period fixed by
       the Board of Directors.

       7.     STOCK BONUSES.  The Board of Directors may award shares under
the Plan as stock bonuses.  Shares awarded as a bonus shall be subject to the
terms, conditions, and restrictions determined by the Board of Directors.
The restrictions may include restrictions concerning transferability and
forfeiture of the shares awarded, together with such other restrictions as
may be determined by the Board of Directors.  If shares are subject to
forfeiture, all dividends or other distributions paid by the Company with
respect to the shares shall be retained by the Company until the shares are
no longer subject to forfeiture, at which time all accumulated amounts shall
be paid to the recipient.  The Board of Directors may require the recipient
to sign an agreement as a condition of the award, but may not require the
recipient to pay any monetary consideration other than amounts necessary to
satisfy tax withholding requirements.  The agreement may contain any terms,
conditions, restrictions, representations and warranties required by the
Board of Directors. The certificates representing the shares awarded shall
bear any legends required by the Board of Directors.  Unless otherwise
determined by the Board of Directors, shares awarded as a stock bonus to an
Officer may not be sold until six months after the date of the award.  The
Company may require any recipient of a stock bonus to pay to the Company in
cash upon demand amounts necessary to satisfy any applicable federal, state
or local tax withholding requirements.  If the recipient fails to pay the
amount demanded, the Company may withhold that amount from other amounts
payable by the Company to the recipient, including salary or fees for
services, subject to applicable law.  With the consent of the Board of
Directors, a recipient may deliver Common Stock to the Company to satisfy
this withholding obligation.  Upon the issuance of a stock bonus, the number
of shares reserved for issuance under the Plan shall be reduced by the number
of shares issued.

       8.     RESTRICTED STOCK.  The Board of Directors may issue shares
under the Plan for such consideration (including promissory notes and
services) as determined by the Board of Directors.  Shares issued under the
Plan shall be subject to the terms, conditions and restrictions determined by
the Board of Directors.  The restrictions may include restrictions concerning
transferability, repurchase by the Company and forfeiture of the shares
issued, together with such other restrictions as may be determined by the
Board of Directors.  If shares are subject to forfeiture or repurchase by the
Company, all dividends or other distributions paid by the Company with
respect to the shares shall be retained by the Company until the

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shares are no longer subject to forfeiture or repurchase, at which time all
accumulated amounts shall be paid to the recipient.  All Common Stock issued
pursuant to this paragraph 8 shall be subject to a purchase agreement, which
shall be executed by the Company and the prospective recipient of the shares
prior to the delivery of certificates representing such shares to the
recipient.  The purchase agreement may contain any terms, conditions,
restrictions, representations and warranties required by the Board of
Directors.  The certificates representing the shares shall bear any legends
required by the Board of Directors.  Unless otherwise determined by the Board
of Directors, shares issued under this paragraph 8 to an Officer may not be
sold until six months after the shares are issued.  The Company may require
any purchaser of restricted stock to pay to the Company in cash upon demand
amounts necessary to satisfy any applicable federal, state or local tax
withholding requirements.  If the purchaser fails to pay the amount demanded,
the Company may withhold that amount from other amounts payable by the
Company to the purchaser, including salary, subject to applicable law.  With
the consent of the Board of Directors, a purchaser may deliver Common Stock
to the Company to satisfy this withholding obligation.  Upon the issuance of
restricted stock, the number of shares reserved for issuance under the Plan
shall be reduced by the number of shares issued.

       9.     STOCK APPRECIATION RIGHTS.

              (a)    GRANT.  Stock appreciation rights may be granted under the
Plan by the Board of Directors, subject to such rules, terms, and conditions as
the Board of Directors prescribes.

              (b)    EXERCISE.

                     (i)    Each stock appreciation right shall entitle the
       holder, upon exercise, to receive from the Company in exchange therefor
       an amount equal in value to the excess of the fair market value on the
       date of exercise of one share of Common Stock of the Company over its
       fair market value on the date of grant (or, in the case of a stock
       appreciation right granted in connection with an option, the excess of
       the fair market value of one share of Common Stock of the Company over
       the option price per share under the option to which the stock
       appreciation right relates), multiplied by the number of shares covered
       by the stock appreciation right or the option, or portion thereof, that
       is surrendered.  No stock appreciation right shall be exercisable at a
       time that the amount determined under this subparagraph is negative.
       Payment by the Company upon exercise of a stock appreciation right may be
       made in Common Stock valued at fair market value, in cash, or partly in
       Common Stock and partly in cash, all as determined by the Board of
       Directors.

                     (ii)   A stock appreciation right shall be exercisable only
       at the time or times established by the Board of Directors.  If a stock
       appreciation right is granted in connection with an option, the following
       rules shall apply:  (1) the stock appreciation

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       right shall be exercisable only to the extent and on the same
       conditions that the related option could be exercised; (2) the stock
       appreciation rights shall be exercisable only when the fair market
       value of the stock exceeds the option price of the related option;
       (3) the stock appreciation right shall be for no more than 100 percent
       of the excess of the fair market value of the stock at the time of
       exercise over the option price; (4) upon exercise of the stock
       appreciation right, the option or portion thereof to which the stock
       appreciation right relates terminates; and (5) upon exercise of the
       option, the related stock appreciation right or portion thereof
       terminates.  Unless otherwise determined by the Board of
       Directors, no stock appreciation right granted to an Officer or director
       may be exercised during the first six months following the date it is
       granted.

                     (iii)  The Board of Directors may withdraw any stock
       appreciation right granted under the Plan at any time and may impose any
       conditions upon the exercise of a stock appreciation right or adopt rules
       and regulations from time to time affecting the rights of holders of
       stock appreciation rights.  Such rules and regulations may govern the
       right to exercise stock appreciation rights granted prior to adoption or
       amendment of such rules and regulations as well as stock appreciation
       rights granted thereafter.

                     (iv)   For purposes of this paragraph 9, the fair market
       value of the Common Stock shall be determined as of the date the stock
       appreciation right is exercised, under the methods set forth in paragraph
       6(b)(iv).

                     (v)    No fractional shares shall be issued upon exercise
       of a stock appreciation right.  In lieu thereof, cash may be paid in an
       amount equal to the value of the fraction or, if the Board of Directors
       shall determine, the number of shares may be rounded downward to the next
       whole share.

                     (vi)   Each stock appreciation right granted in connection
       with an Incentive Stock Option, and unless otherwise determined by the
       Board of Directors with respect to a stock appreciation right granted to
       a person who is neither an Officer nor a director of the Company, each
       other stock appreciation right granted under the Plan by its terms shall
       be nonassignable and nontransferable by the holder, either voluntarily or
       by operation of law, except by will or by the laws of descent and
       distribution of the state or country of the holder's domicile at the time
       of death, and each stock appreciation right by its terms shall be
       exercisable during the holder's lifetime only by the holder.

                     (vii)  Each participant who has exercised a stock
       appreciation right shall, upon notification of the amount due, pay to the
       Company in cash amounts necessary to satisfy any applicable federal,
       state and local tax withholding requirements.  If the participant fails
       to pay the amount demanded, the Company may withhold that amount from
       other amounts payable by the Company to the participant

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       including salary, subject to applicable law.  With the consent of the
       Board of Directors a participant may satisfy this obligation, in whole
       or in part, by having the Company withhold from any shares to be issued
       upon the exercise that number of shares that would satisfy the
       withholding amount due or by delivering Common Stock to the Company to
       satisfy the withholding amount.

                     (viii) Upon the exercise of a stock appreciation right for
       shares, the number of shares reserved for issuance under the Plan shall
       be reduced by the number of shares issued.  Cash payments of stock
       appreciation rights shall not reduce the number of shares of Common Stock
       reserved for issuance under the Plan.

       10.    CASH BONUS RIGHTS.

              (a)    GRANT.  The Board of Directors may grant cash bonus rights
under the Plan in connection with (i) options granted or previously granted,
(ii) stock appreciation rights granted or previously granted, (iii) stock
bonuses awarded or previously awarded and (iv) shares sold or previously sold
under the Plan.  Cash bonus rights will be subject to rules, terms and
conditions as the Board of Directors may prescribe.  Unless otherwise determined
by the Board of Directors with respect to a cash bonus right granted to a person
who is neither an Officer nor a director of the Company, each cash bonus right
granted under the Plan by its terms shall be nonassignable and nontransferable
by the holder, either voluntarily or by operation of law, except by will or by
the laws of descent and distribution of the state or country of the holder's
domicile at the time of death.  The payment of a cash bonus shall not reduce the
number of shares of Common Stock reserved for issuance under the Plan.

              (b)    CASH BONUS RIGHTS IN CONNECTION WITH OPTIONS.  A cash
bonus right granted in connection with an option will entitle an optionee to
a cash bonus when the related option is exercised (or terminates in
connection with the exercise of a stock appreciation right related to the
option) in whole or in part if, in the sole discretion of the Board of
Directors, the bonus right will result in a tax deduction that the Company
has sufficient taxable income to use. If an optionee purchases shares upon
exercise of an option and does not exercise a related stock appreciation
right, the amount of the bonus, if any, shall be determined by multiplying
the excess of the total fair market value of the shares to be acquired upon
the exercise over the total option price for the shares by the applicable
bonus percentage.  If the optionee exercises a related stock appreciation
right in connection with the termination of an option, the amount of the
bonus, if any, shall be determined by multiplying the total fair market value
of the shares and cash received pursuant to the exercise of the stock
appreciation right by the applicable bonus percentage.  The bonus percentage
applicable to a bonus right, including a previously granted bonus right, may
be changed from time to time at the sole discretion of the Board of Directors
but shall in no event exceed 75 percent.

              (c)    CASH BONUS RIGHTS IN CONNECTION WITH STOCK BONUS.  A cash
bonus right granted in connection with a stock bonus will entitle the recipient
to a cash bonus payable

                                       11

<PAGE>

when the stock bonus is awarded or restrictions, if any, to which the stock
is subject lapse.  If bonus stock awarded is subject to restrictions and is
repurchased by the Company or forfeited by the holder, the cash bonus right
granted in connection with the stock bonus shall terminate and may not be
exercised.  The amount and timing of payment of a cash bonus shall be
determined by the Board of Directors.

              (d)    CASH BONUS RIGHTS IN CONNECTION WITH STOCK PURCHASES.  A
cash bonus right granted in connection with the purchase of stock pursuant to
paragraph 8 will entitle the recipient to a cash bonus when the shares are
purchased or restrictions, if any, to which the stock is subject lapse.  Any
cash bonus right granted in connection with shares purchased pursuant to
paragraph 8 shall terminate and may not be exercised in the event the shares are
repurchased by the Company or forfeited by the holder pursuant to applicable
restrictions.  The amount of any cash bonus to be awarded and timing of payment
of a cash bonus shall be determined by the Board of Directors.

              (e)    TAXES.  The Company shall withhold from any cash bonus paid
pursuant to paragraph 10 the amount necessary to satisfy any applicable federal,
state and local withholding requirements.

       11.    PERFORMANCE UNITS.  The Board of Directors may grant
performance units consisting of monetary units which may be earned in whole
or in part if the Company achieves certain goals established by the Board of
Directors over a designated period of time, but not in any event more than 10
years.  The goals established by the Board of Directors may include earnings
per share, return on shareholders' equity, return on invested capital, and
such other goals as may be established by the Board of Directors.  In the
event that the minimum performance goal established by the Board of Directors
is not achieved at the conclusion of a period, no payment shall be made to
the participants.  In the event the maximum corporate goal is achieved, 100
percent of the monetary value of the performance units shall be paid to or
vested in the participants. Partial achievement of the maximum goal may
result in a payment or vesting corresponding to the degree of achievement as
determined by the Board of Directors.  Payment of an award earned may be in
cash or in Common Stock or in a combination of both, and may be made when
earned, or vested and deferred, as the Board of Directors determines.
Deferred awards shall earn interest on the terms and at a rate determined by
the Board of Directors.  Unless otherwise determined by the Board of
Directors with respect to a performance unit granted to a person who is
neither an Officer nor a director of the Company, each performance unit
granted under the Plan by its terms shall be nonassignable and
nontransferable by the holder, either voluntarily or by operation of law,
except by will or by the laws of descent and distribution of the state or
country of the holder's domicile at the time of death.  Each participant who
has been awarded a performance unit shall, upon notification of the amount
due, pay to the Company in cash amounts necessary to satisfy any applicable
federal, state and local tax withholding requirements.  If the participant
fails to pay the amount demanded, the Company may withhold that amount from
other amounts payable by the Company to the participant, including salary or
fees for services, subject to

                                      12

<PAGE>

applicable law.  With the consent of the Board of Directors a participant may
satisfy this obligation, in whole or in part, by having the Company withhold
from any shares to be issued that number of shares that would satisfy the
withholding amount due or by delivering Common Stock to the Company to
satisfy the withholding amount. The payment of a performance unit in cash
shall not reduce the number of shares of Common Stock reserved for issuance
under the Plan.  The number of shares reserved for issuance under the Plan
shall be reduced by the number of shares issued upon payment of an award.

       12.    FOREIGN QUALIFIED GRANTS.  Awards under the Plan may be granted to
such officers and employees of the Company and its subsidiaries and such other
persons described in paragraph 1 residing in foreign jurisdictions as the Board
of Directors may determine from time to time.  The Board of Directors may adopt
such supplements to the Plan as may be necessary to comply with the applicable
laws of such foreign jurisdictions and to afford participants favorable
treatment under such laws; provided, however, that no award shall be granted
under any such supplement with terms which are more beneficial to the
participants than the terms permitted by the Plan.

       13.    CHANGES IN CAPITAL STRUCTURE.

              (a)    STOCK SPLITS; STOCK DIVIDENDS.  If the outstanding
Common Stock of the Company is hereafter increased or decreased or changed
into or exchanged for a different number or kind of shares or other
securities of the Company by reason of any stock split, combination of shares
or dividend payable in shares, recapitalization or reclassification
appropriate adjustment shall be made by the Board of Directors in the number
and kind of shares available for grants under the Plan.  In addition, the
Board of Directors shall make appropriate adjustment in the number and kind
of shares as to which outstanding options, or portions thereof then
unexercised, shall be exercisable, so that the optionee's proportionate
interest before and after the occurrence of the event is maintained.
Notwithstanding the foregoing, the Board of Directors shall have no
obligation to effect any adjustment that would or might result in the
issuance of fractional shares, and any fractional shares resulting from any
adjustment may be disregarded or provided for in any manner determined by the
Board of Directors.  Any such adjustments made by the Board of Directors
shall be conclusive.

              (b)    MERGERS, REORGANIZATIONS, ETC.  In the event of a
merger, consolidation, plan of exchange, acquisition of property or stock,
separation, reorganization or liquidation to which the Company or a
subsidiary is a party or a sale of all or substantially all of the Company's
assets (each, a "Transaction"), the Board of Directors shall, in its sole
discretion and to the extent possible under the structure of the Transaction,
select one of the following alternatives for treating outstanding options
under the Plan:

                     (i)    Outstanding options shall remain in effect in
       accordance with their terms.

                                      13

<PAGE>

                    (ii)   Outstanding options shall be converted into options
       to purchase stock in the corporation that is the surviving or acquiring
       corporation in the Transaction.  The amount, type of securities subject
       thereto and exercise price of the converted options shall be determined
       by the Board of Directors of the Company, taking into account the
       relative values of the companies involved in the Transaction and the
       exchange rate, if any, used in determining shares of the surviving
       corporation to be issued to holders of shares of the Company.  Unless
       otherwise determined by the Board of Directors, the converted options
       shall be vested only to the extent that the vesting requirements relating
       to options granted hereunder have been satisfied.

                     (iii)  The Board of Directors shall provide a 30-day period
       prior to the consummation of the Transaction during which outstanding
       options may be exercised to the extent then exercisable, and upon the
       expiration of such 30-day period, all unexercised options shall
       immediately terminate.  The Board of Directors may, in its sole
       discretion, accelerate the exercisability of options so that they are
       exercisable in full during such 30-day period.

              (c)    DISSOLUTION OF THE COMPANY.  In the event of the
dissolution of the Company, options shall be treated in accordance with
paragraph 13(b)(iii).

              (d)    RIGHTS ISSUED BY ANOTHER CORPORATION.  The Board of
Directors may also grant options, stock appreciation rights, performance units,
stock bonuses and cash bonuses and issue restricted stock under the Plan having
terms, conditions and provisions that vary from those specified in this Plan
provided that any such awards are granted in substitution for, or in connection
with the assumption of, existing options, stock appreciation rights, stock
bonuses, cash bonuses, restricted stock and performance units 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.

       14.    AMENDMENT OF PLAN.  The Board of Directors may at any time, and
from time to time, modify or amend the Plan in such respects as it shall deem
advisable because of changes in the law while the Plan is in effect or for any
other reason, except that without the approval of the shareholders of the
Company, the Board of Directors may not increase the number of shares authorized
to be issued under paragraph 2 of the Plan (except for adjustments permitted
under paragraph 13(a) of the Plan).  Except as provided in paragraphs 6(a)(iv),
9, 10 and 13, however, no change in an award already granted shall be made
without the written consent of the holder of such award.

       15.    APPROVALS.  The obligations of the Company under the Plan are
subject to the approval of state and federal authorities or agencies with
jurisdiction in the matter.  The Company will use its best efforts to take steps
required by state or federal law or applicable regulations, including rules and
regulations of the Securities and Exchange Commission and any stock exchange on
which the Company's shares may then be listed, in connection with the

                                      14

<PAGE>

grants under the Plan.  The foregoing notwithstanding, the Company shall not
be obligated to issue or deliver Common Stock under the Plan if such issuance
or delivery would violate applicable state or federal securities laws.

       16.    EMPLOYMENT AND SERVICE RIGHTS.  Nothing in the Plan or any award
pursuant to the Plan shall (i) confer upon any employee any right to be
continued in the employment of the Company or any subsidiary or interfere in any
way with the right of the Company or any subsidiary by whom such employee is
employed to terminate such employee's employment at any time, for any reason,
with or without cause, or to decrease such employee's compensation or benefits,
or (ii) confer upon any person engaged by the Company any right to be retained
or employed by the Company or to the continuation, extension, renewal, or
modification of any compensation, contract, or arrangement with or by the
Company.

       17.    RIGHTS AS A SHAREHOLDER.  The recipient of any award under the
Plan shall have no rights as a shareholder with respect to any Common Stock
until the date of issue to the recipient of a stock certificate for such
shares. Except as otherwise expressly provided in the Plan, no adjustment
shall be made for dividends or other rights for which the record date occurs
prior to the date such stock certificate is issued.

       18.    OPTION GRANTS TO NON-EMPLOYEE DIRECTORS.

              (a)    INITIAL BOARD GRANTS.  Each person who becomes a
Non-Employee Director after the Plan is adopted shall be automatically
granted an option to purchase 15,000 shares of Common Stock when he or she
becomes a Non-Employee Director, so long as such person has not previously
served as a director of the Company.  A "Non-Employee Director" is a director
who is not an employee of the Company or any of its subsidiaries, but does
not include such a director whose employer prohibits such director from
receiving any grant of an option to purchase shares of Common Stock of the
Company.

              (b)    ADDITIONAL GRANTS.  Each Non-Employee Director shall be
automatically granted an option to purchase additional shares of Common Stock in
each calendar year subsequent to the year in which such Non-Employee Director
was granted an option pursuant to paragraph 18(a), such option to be granted as
of the date of the Company's annual meeting of shareholders held in such
calendar year, provided that the Non-Employee Director continues to serve in
such capacity as of such date.  The number of shares subject to each additional
grant shall be 5,000 shares for each Non-Employee Director.

              (c)    EXERCISE PRICE.  The exercise price of all options granted
pursuant to this paragraph 18 shall be equal to 100 percent of the fair market
value of the Common Stock determined pursuant to paragraph 6(b)(iv).

              (d)    TERM OF OPTION.  The term of each option granted pursuant
to this paragraph 18 shall be 10 years from the date of grant.

                                      15

<PAGE>

              (e)    EXERCISABILITY.  Until an option expires or is terminated
and except as provided in paragraphs 18(g) and 13, an option granted under this
paragraph 18 shall be exercisable in full on the date one year following the
grant of the option.

              (f)    TERMINATION AS A DIRECTOR.  If an optionee ceases to be a
director of the Company for any reason, including death, the option may be
exercised at any time prior to the expiration date of the option or the
expiration of 30 days (or 12 months in the event of death) after the last day
the optionee served as a director, whichever is the shorter period, but only if
and to the extent the optionee was entitled to exercise the option as of the
last day the optionee served as a director.

              (g)    NONTRANSFERABILITY.  Each option by its terms shall be
nonassignable and nontransferable by the optionee, either voluntarily or by
operation of law, except by will or by the laws of descent and distribution of
the state or country of the optionee's domicile at the time of death, and each
option by its terms shall be exercisable during the optionee's lifetime only by
the optionee.

              (h)    EXERCISE OF OPTIONS.  Options may be exercised upon payment
of cash or shares of Common Stock of the Company in accordance with paragraph
6(a)(v).

Adopted:  August 7, 1995.
Amended: May 20, 1997 (to increase shares in paragraph 2 to 1,500,000).
Amended: May 18, 1999 (to increase shares in paragraph 2 to 2,250,000 and to
increase individual limits in paragraph 5 to 450,000 and 100,000 shares).
Amended: August 12, 1999 (to increase shares in paragraph 2 to 2,750,000).
Amended: February 25, 2000 (amendments to paragraphs 6(a)(iii), 6(a)(v) and 14).
Amended: May 16, 2000 (to increase shares in paragraph 2 to 5,425,000 and to
make certain other changes to paragraph 5).

                                      16<PAGE>

                                                                   EXHIBIT 10.2

                                 RADISYS CORPORATION
                          1996 EMPLOYEE STOCK PURCHASE PLAN
                         (As Amended through June 6, 2000)

I.     PURPOSE OF PLAN

       As a means by which Employees may share in the Company's growth and
       success, RadiSys Corporation (the "Company") believes that ownership of
       shares of its Common Stock by its Employees is desirable.  To this end,
       and as an incentive to better performance and improved profits, the
       Company has established the RadiSys Corporation 1996 Employee Stock
       Purchase Plan (the "Plan").

       The Company intends that the Plan will constitute an "employee stock
       purchase plan" within the meaning of Section 423 of the Code.

II.    DEFINITIONS

       Terms that are capitalized within this document shall have the meanings
       as set forth in Exhibit A, unless otherwise specified within the text.

III.   EMPLOYEE PARTICIPATION

       PARTICIPATION

       Subject to the provisions of this Section III, an Employee may elect to
       participate in the Plan effective as of any Enrollment Date by completing
       and filing a Payroll Deduction Authorization Form as provided in
       Section IV.  As of each Enrollment Date, the Company hereby grants a
       right to purchase Shares under the terms of the Plan to each eligible
       Employee who has elected to participate in the Offering commencing on
       that Enrollment Date.

       REQUIREMENTS FOR PARTICIPATION

       A person shall become eligible to participate in the Plan on the first
       Enrollment Date on which that person meets the following requirements:

        a)    The person is an Employee, and

        b)    The person's customary period of Employment is more than twenty
              (20) hours per week.

<PAGE>

       Any eligible Employee may enroll in the Plan as of the Enrollment Date of
       any Offering by filing timely written notice of such participation,
       subject to the following provisions:

       (i)    In order to enroll in the Plan initially, an eligible Employee
              must complete, sign and submit to the Company the following forms:

              (A)    PAYROLL DEDUCTION AUTHORIZATION FORM  Must be received by
                     the Company prior to 4:00 p.m., Pacific Time on the
                     Enrollment Date of an Offering to be effective for that
                     Offering.

              (B)    ESPP NEW ACCOUNT FORM  This form must accompany the Payroll
                     Deduction Authorization Form submitted for enrollment in
                     the Plan.  An ESPP New Account Form must be received by the
                     Company prior to 4:00 p.m., Pacific Time on the Enrollment
                     Date of an Offering to be effective for that Offering.

       (ii)   A Participant in an ongoing Offering may elect as of any
              Enrollment Date to enroll in the new Offering commencing on that
              Enrollment Date by filing a Payroll Deduction Authorization Form
              making such election prior to 4:00 p.m. Pacific Time on the
              Enrollment Date.  An election by a current Participant to enroll
              in a new Offering shall constitute a withdrawal, effective as of
              such Enrollment Date, from the ongoing Offering and simultaneous
              reenrollment in the new Offering.  A reenrollment shall not affect
              the purchase of Shares under the ongoing Offering occurring on the
              Purchase Date immediately preceding the Enrollment Date.  A
              Participant may make an ongoing election to reenroll on any
              Enrollment Date as of which the fair market value of the Shares
              for purposes of Section VI is less than it was as of the
              Enrollment Date for the Offering in which the Participant is
              currently participating.  Unless otherwise specified by the
              Participant, any such ongoing reenrollment election shall be
              subject to revocation; provided, however, that to be effective to
              prevent reenrollment on any Enrollment Date, such revocation must
              be received by the Company prior to 4:00 p.m. Pacific Time on the
              Enrollment Date.

       (iii)  Absent withdrawal from the Plan pursuant to Section VII, a
              Participant will automatically be re-enrolled in the Offering
              commencing on the Enrollment Date immediately following the
              expiration of the Offering of which that person is then a
              Participant.

       A Participant shall become ineligible to participate in the Plan and
       shall cease to be a Participant when the Participant ceases to meet the
       eligibility requirements as defined above.

                                       2

<PAGE>

       LIMITATIONS ON PARTICIPATION

       No Employee may obtain a right to purchase Shares under the Plan if,
       immediately after the right is granted, the Employee owns or is deemed to
       own Shares possessing five percent (5%) or more of the combined voting
       power or value of all classes of stock of the Company or any parent or
       subsidiary of the Company.  For purposes of determining share ownership,
       the rules of Section 424(d) of the Code shall apply and Shares that the
       Employee may purchase under any options or rights to purchase, whether or
       not Vested, shall be treated as Shares owned by the Employee.

       No Employee may obtain a right to purchase Shares under the Plan that
       permits the Employee's rights to purchase Shares under the Plan and any
       other employee stock purchase plan within the meaning of Section 423 of
       the Code of the Company or any parent or subsidiary of the Company to
       accrue at a rate which exceeds $25,000 in fair market value of Shares
       (determined as of the Enrollment Date) for each calendar year of the
       Offering.  This section shall be interpreted to permit an Employee to
       purchase the maximum number of Shares permitted under Section 423(b)(8)
       of the Code and regulations and interpretations adopted thereunder.

       The maximum number of Shares that an Employee may purchase in an Offering
       shall not exceed 10,000 shares, no more than one-third of which may be
       purchased on any Purchase Date on or prior to August 15, 2000, and no
       more than one-sixth of which may be purchased on any Purchase Date after
       August 15, 2000.

       VOLUNTARY PARTICIPATION

       Participation in the Plan shall be strictly voluntary.

IV.    PAYROLL DEDUCTIONS

       PAYROLL DEDUCTION AUTHORIZATION

       An Employee may contribute to the Plan only by means of payroll
       deductions.  A Payroll Deduction Authorization Form must be filed with
       the Company's stock administrator prior to 4:00 p.m. Pacific Time on the
       Enrollment Date as of which the payroll deductions are to take effect.

       AMOUNT OF DEDUCTIONS

       A Participant may specify that the person desires to make contributions
       to the Plan at a rate not less than 1% and not more than 15% of the
       Compensation paid to the Participant during each pay period in the
       Offering, or other such minimum or

                                       3

<PAGE>

       maximum percentages as the Plan Administrator shall establish from time
       to time; provided, however, that a Participant in any Offering that
       commenced prior to August 15, 2000 may not specify during that Offering
       contributions to the Plan of more than 10% of Compensation.  Such
       specification shall apply during any period of continuous participation
       in the Plan, unless otherwise modified or terminated as provided in this
       Section IV or as otherwise provided in the Plan.  If a payroll deduction
       cannot be made in whole or in part because the Participant's pay for the
       period in question is insufficient to fund the deduction after having
       first withheld all other amounts deductible from that person's pay, the
       amount that was not withheld cannot be made up by the Participant nor
       will it be withheld from subsequent pay checks.

       COMMENCEMENT OF DEDUCTIONS

       Payroll deductions for a Participant shall commence on the Enrollment
       Date of the Offering for which that person's Payroll Deduction
       Authorization Form is effective and shall continue indefinitely, unless
       modified or terminated as provided in this Section IV or as otherwise
       provided in the Plan.

       ACCOUNTS

       All payroll deductions made for a Participant shall be credited to his or
       her Account under the Plan.  Following each Purchase Date, the Plan
       Administrator shall promptly deliver a report to each Participant setting
       forth the aggregate payroll deductions credited to such Participant's
       Account since the last Purchase Date and the number of Shares purchased
       and delivered to the Custodian for deposit into the Participant's
       Custodial Account.

       MODIFICATION OF AUTHORIZED DEDUCTIONS

       A Participant may at any time increase or decrease the amount of that
       person's payroll deduction effective for all applicable payroll periods,
       by completing an amended Payroll Deduction Authorization Form and filing
       it with the Company's stock administrator in accordance with this
       Section IV; provided, however, that a Participant in any Offering that
       commenced prior to August 15, 2000 may not change the amount of that
       person's payroll deduction more than three times during that Offering.

       A Participant may at any time discontinue the Participant's payroll
       deductions, without withdrawing from the Plan, by completing an amended
       Payroll Deduction Authorization Form and filing it with the Company's
       stock administrator.  Previous payroll deductions will then be retained
       in the Participant's Account for application to purchase Shares on the
       next Purchase Date, after which the Participant's participation in the
       Offering and in the Plan will terminate unless the participant has timely
       filed another Payroll Deduction Authorization Form to resume payroll
       deductions.

                                       4

<PAGE>

       For purposes of the above, an amended Payroll Deduction Authorization
       form shall be effective for a specific pay period when filed 7 days prior
       to the last day of such payroll period; provided, however, that for a
       Participant in any Offering that commenced prior to August 15, 2000 an
       amended Payroll Deduction Authorization form shall be effective for a
       specific pay period during that Offering when filed 15 days prior to the
       last day of such payroll period.

V.     CUSTODY OF SHARES

       DELIVERY AND CUSTODY OF SHARES

       Shares purchased pursuant to the Plan shall be delivered to and held by
       the Custodian.

       CUSTODIAL ACCOUNT

       As soon as practicable after each Purchase Date, the Company shall
       deliver to the Custodian the full Shares purchased for each Participant's
       Account.  The Shares will be held in a Custodial Account specifically
       established for this purpose.  An Employee must open a Custodial Account
       with the Custodian in order to be eligible to purchase Shares under the
       Plan.  In order to open a Custodial Account, the Participant must
       complete an ESPP New Account Form and file it with the stock
       administrator prior to 4:00 p.m. Pacific Time on the Enrollment Date of
       the Offering as of which the enrollment is to take effect; provided,
       however, that an ESPP New Account Form that effects a change in the
       status of the Custodial Account may be filed at any time during
       participation in the Plan.

       TRANSFER OF SHARES

       Upon receipt of appropriate instructions from a Participant on forms
       provided for that purpose, the Custodian will transfer into the
       Participant's own name all or part of the Shares held in the
       Participant's Custodial Account and deliver such Shares to the
       Participant.

       STATEMENTS

       The Custodian will deliver to each Participant a semi-annual statement
       showing the activity of the Participant's Custodial Account and the
       balance as to both Shares and cash.  Participants will be furnished such
       other reports and statements, and at such intervals, as the Custodian and
       Plan Administrator shall determine from time to time.

                                       5

<PAGE>

VI.    PURCHASE OF SHARES

       PURCHASE OF SHARES

       Subject to the limitations of Section VII, on each Purchase Date in an
       Offering, the Company shall apply the amount credited to each
       Participant's Account to the purchase of as many full Shares that may be
       purchased with such amount at the price set forth in this Section VI, and
       shall promptly deliver such Shares to the Custodian for deposit into the
       Participant's Custodial Account.  Payment for Shares purchased under the
       Plan will be made only through payroll withholding deductions in
       accordance with Section IV.

       PRICE

       The price of Shares to be purchased on any Purchase Date shall be the
       lower of:

              (a)    Eighty-five percent (85%) of the fair market value of the
              Shares on the Enrollment Date of the Offering; or

              (b)    Eighty-five percent (85%) of the fair market value of the
              Shares on the Purchase Date.

       FAIR MARKET VALUE

       The fair market value of the Shares on any date shall be equal to the
       closing trade price of such shares on the Valuation Date, as reported on
       the NASDAQ National Market System or such other quotation system that
       supersedes it.

       UNUSED CONTRIBUTIONS

       Any amount credited to a Participant's Account and remaining therein
       immediately after a Purchase Date because it was less than the amount
       required to purchase a full Share shall be carried forward in such
       Participant's Account for application on the next succeeding Purchase
       Date.

VII.   TERMINATION AND WITHDRAWAL

       TERMINATION OF EMPLOYMENT

       Upon termination of a Participant's Employment for any reason other than
       death, the payroll deductions credited to such Participant's Account
       shall be returned to the Participant.  A Participant shall have no right
       to accrue Shares upon termination of the person's Employment.

                                       6

<PAGE>

       TERMINATION UPON DEATH

       Upon termination of the Participant's Employment because of that person's
       death, the payroll deductions credited to that person's Account shall be
       used to purchase Shares as provided in Section VI on the next Purchase
       Date.  Any Shares purchased and any remaining balance shall be
       transferred to the deceased Participant's Beneficiary, or if none, to
       that person's estate.

       DESIGNATION OF BENEFICIARY

       Each Participant may designate, revoke, and redesignate Beneficiaries.
       All changes to designation of Beneficiary shall be in writing and will be
       effective upon delivery to the Plan Administrator.

       WITHDRAWAL

       A Participant may withdraw the entire amount credited to that
       individual's Account under the Plan and thereby terminate participation
       in the current Offering at any time by giving written notice to the
       Company, but in no case may a Participant withdraw accounts within the
       15 days immediately preceding a Purchase Date for the Offering.  Any
       amount withdrawn shall be paid to the Participant promptly after receipt
       of proper notice of withdrawal and no further payroll deductions shall be
       made from the person's Compensation unless a Payroll Deduction
       Authorization Form directing further deductions is or has been submitted.

       STATUS OF CUSTODIAL ACCOUNT

       Upon termination of a Participant's Employment for any reason other than
       death, the Participant may,

              (a)    Elect to retain with the Custodian the Shares held in the
              Participant's Custodial Account.  The Participant will bear the
              cost of any annual fees resulting from maintaining such an
              account.

              (b)    Request issuance of the Shares held in the Participant's
              Custodial Account by submitting to the Custodian the appropriate
              forms provided for that purpose.

       Upon termination of a Participant's Employment as a result of death, any
       Shares held by the Custodian for the Participant's Account shall be
       transferred to the person(s) entitled thereto under the laws of the state
       of domicile of the Participant upon a proper showing of authority.

                                       7

<PAGE>

VIII.  SHARES PURCHASED UNDER THE PLAN

       SOURCE AND LIMITATION OF SHARES

       The Company has reserved for sale under the Plan 1,250,000(*) shares of
       common stock, subject to adjustment upon changes in capitalization of the
       Company as provided in Section X.  Shares sold under the Plan may be
       newly issued Shares or Shares reacquired in private transactions or open
       market purchases, but all Shares sold under the Plan regardless of source
       shall be counted against the 1,250,000* Share limitation.

       If there is an insufficient number of Shares to permit the full exercise
       of all existing rights to purchase Shares, or if the legal obligations of
       the Company prohibit the issuance of all Shares purchasable upon the full
       exercise of such rights, the Plan Administrator shall make a pro rata
       allocation of the Shares remaining available in as nearly a uniform and
       equitable manner as possible, based pro rata on the aggregate amounts
       then credited to each Participant's Account.  In such event, payroll
       deductions to be made shall be reduced accordingly and the Plan
       Administrator shall give written notice of such reduction to each
       Participant affected thereby.  Any amount remaining in a Participant's
       Account immediately after all available Shares have been purchased will
       be promptly remitted to such Participant.  Determination by the Plan
       Administrator in this regard shall be final, binding and conclusive on
       all persons.  No deductions shall be permitted under the Plan at any time
       when no Shares are available.

       DELIVERY OF SHARES

       As promptly as practicable after each Purchase Date, the Company shall
       deliver to the Custodian the full Shares purchased for each Participant's
       Account.

       INTEREST IN SHARES

       The rights to purchase Shares granted pursuant to this Plan will in all
       respects be subject to the terms and conditions of the Plan, as
       interpreted by the Plan Administrator from time to time.  The Participant
       shall have no interest in Shares purchasable under the Plan until payment
       for the Shares has been completed at the close of business on the
       relevant Purchase Date.  The Plan provides only an unfunded, unsecured
       promise by the Company to pay money or property in the future.  Except
       with respect to the Shares purchased on a Purchase Date, an Employee
       choosing to participate in the Plan shall

---------------------------
       (*) Adjusted to reflect a 3-for-2 stock split of the shares of Common
Stock, without par value, of the Company, effected in the form of a 50% share
dividend in accordance with ORS 60.154, declared by the Board of Directors on
October 19, 1999, and paid on November 29, 1999 to shareholders of record at the
close of business on November 8, 1999.

                                       8

<PAGE>

       have no greater rights than an unsecured creditor of the Company.  After
       the purchase of Shares, the Participant shall be entitled to all rights
       of a stockholder of the Company.

IX.    ADMINISTRATION

       PLAN ADMINISTRATOR

       At the discretion of the Board of Directors, the Plan shall be
       administered by the Board of Directors or by a Committee appointed by the
       Board of Directors.  Each member of the Committee shall be either a
       director, an officer or an Employee of the Company.  Each member shall
       serve for a term commencing on a date specified by the Board of Directors
       and continuing until that person dies, resigns or is removed by the Board
       of Directors.

       POWERS

       The Plan Administrator shall be vested with full authority to make,
       administer and interpret the rules and regulations as it deems necessary
       to administer the Plan.  Any determination, decision or act of the Plan
       Administrator with respect to any action in connection with the
       construction, interpretation, administration or application of the Plan
       shall be final, binding and conclusive upon all Participants and any and
       all other persons claiming under or through any Participant.  The
       provisions of the Plan shall be construed in a manner consistent with the
       requirements of Section 423 of the Code.

X.     CHANGES IN CAPITALIZATION, MERGER, ETC.

       RIGHTS OF THE COMPANY

       The grant of a right to purchase Shares pursuant to this Plan shall not
       affect in any way the right or power of the Company to make adjustments,
       reclassifications, reorganizations or other changes in its capital or
       business structure or to merge, consolidate or dissolve, liquidate or
       transfer all or any part of its divisions, subsidiaries, business or
       assets.

       RECAPITALIZATION

       Subject to any required action by stockholders, the number of Shares
       covered by the Plan as provided in Section VIII and the price per Share
       shall be proportionately adjusted for any increase or decrease in the
       number of issued Shares of the Company resulting from a subdivision or
       consolidation of Shares or the payment of a stock

                                       9

<PAGE>

       dividend or any other increase or decrease in the number of such Shares
       effected without receipt or payment of consideration by the Company.

       CONSOLIDATION OR MERGER

       In the event of the consolidation or merger of the Company with or into
       any other business entity, or sale by the Company of substantially all of
       its assets, the successor may at its discretion continue the Plan by
       adopting the same by resolution of its Board of Directors or agreement of
       its partners or proprietors.  If, within 90 days after the effective date
       of a consolidation, merger, or sale of assets, the successor corporation,
       partnership or proprietorship does not adopt the Plan, the Plan shall be
       terminated in accordance with Section XIII.

XI.    TERMINATION OF EMPLOYMENT

       LEAVE

       A person's Employment shall not terminate on account of an authorized
       leave of absence or sick leave, or on account of a military leave
       described in this Section XI, or a direct transfer between Employers,
       provided such leave does not exceed 90 days or, if longer, so long as the
       person's right to reemployment is guaranteed by statute or by contract.
       Failure to return to work upon expiration of any leave of absence or sick
       leave shall be considered a resignation effective as of the expiration of
       such leave of absence or sick leave.

       MILITARY LEAVE

       Any Employee who leaves the Employer directly to perform services in the
       Armed Forces of the United States or in the United States Public Health
       Service under conditions entitling the Employee to reemployment rights
       provided by the laws of the United States, shall be on military leave.
       An Employee's military leave shall expire if the Employee voluntarily
       resigns from the Employer during the leave or if that person fails to
       make an application for reemployment within a period specified by such
       law for preservation of employment rights.  In such event, the
       individual's Employment shall terminate by resignation on the day the
       military leave expires.

XII.   STOCKHOLDER APPROVAL AND RULINGS

       The Plan is expressly made subject to (a) the approval of the Plan within
       twelve (12) months after the Plan is adopted by the stockholders of the
       Company and (b) at the Company's election, to the receipt by the Company
       from the Internal Revenue Service

                                       10
<PAGE>

       of a ruling in scope and content satisfactory to counsel to the Company,
       affirming qualification of the Plan within the meaning of Section 423 of
       the Code.  If the Plan is not so approved by the stockholders within 12
       months after the date the Plan is adopted and if, at the election of the
       Company a ruling from the Internal Revenue Service is sought but not
       received on or before one year after this Plan's adoption by the Board
       of Directors, this Plan shall not come into effect.  In that case, the
       Account of each Participant shall forthwith be paid to the Participant.

XIII.  MISCELLANEOUS PROVISIONS

       AMENDMENT AND TERMINATION OF THE PLAN

       The Board of Directors of the Company may at any time amend the Plan.
       Except as otherwise provided herein, no amendment may adversely affect or
       change any right to purchase Shares without prior approval of the
       stockholders of the Company if the amendment would:

       (i)    Permit the sale of more Shares than are authorized under
              Section VIII;

       (ii)   Permit the sale of Shares to employees of entities which are not
              Employers;

       (iii)  Materially increase the benefits accruing to Participants under
              the Plan; or

       (iv)   Materially modify the requirements as to eligibility for
              participation in the Plan.

       The Plan is intended to be a permanent program, but the Company reserves
       the right to declare the Plan terminated at any time.  Upon such
       termination, amounts credited to the Accounts of the Participants with
       respect to whom the Plan has been terminated shall be returned to such
       Participants.

       NON-TRANSFERABILITY

       Neither payroll deductions credited to a Participant's Account nor any
       rights with regard to the purchase of Shares under the Plan may be
       assigned, transferred, pledged or otherwise disposed of in any way by the
       Participant except as provided in Section VII, and any attempted
       assignment, transfer, pledge, or other disposition shall be null and
       void.  The Company may treat any such act as an election to withdraw
       funds in accordance with Section VII.  A Participant's rights to purchase
       Shares under the Plan are exercisable during the Participant's lifetime
       only by the Participant.

                                       11

<PAGE>

       USE OF FUNDS

       All payroll deductions received or held by the Company under the Plan may
       be used by the Company for any corporate purposes and the Company shall
       not be obligated to segregate the payroll deductions.

       EXPENSES

       All expenses of administering the Plan shall be borne by the Company.
       The Company will not pay expenses, commissions or taxes incurred in
       connection with sales of Shares by the Custodian at the request of a
       Participant.  Expenses to be paid by a Participant will be deducted from
       the proceeds of sale prior to remittance.

       TAX WITHHOLDING

       Each Participant who has purchased Shares under the Plan shall
       immediately upon notification of the amount due, if any, pay to the
       Employer in cash amounts necessary to satisfy any applicable federal,
       state and local tax withholding determined by the Employer to be
       required.  If the Employer determines that additional withholding is
       required beyond any amounts deposited at the time of purchase, the
       Participant shall pay such amount to the Employer on demand.  If the
       Participant fails to pay the amount demanded, the Employer may withhold
       that amount from other amounts payable by the Employer to the
       Participant, including salary, subject to applicable law.

       NO INTEREST

       No Participant shall be entitled, at any time, to any payment or credit
       for interest with respect to or on the payroll deductions contemplated
       herein, or on any other assets held hereunder for the Participant's
       Account.

       REGISTRATION AND QUALIFICATION OF SHARES

       The offering of Shares hereunder shall be subject to the effecting by the
       Company of any registration or qualification of the Shares under any
       federal or state law or the obtaining of the consent or approval of any
       governmental regulatory body which the Company shall determine, in its
       sole discretion, is necessary or desirable as a condition to, or in
       connection with, the offering or the issue or purchase of the Shares
       covered thereby.  The Company shall make every reasonable effort to
       effect such registration or qualification or to obtain such consent or
       approval.

                                       12

<PAGE>

       RESPONSIBILITY AND INDEMNITY

       Neither the Company, its Board of Directors, the Custodian, nor any
       member, officer, agent or employee of any of them, shall be liable to any
       Participant under the Plan for any mistake of judgment or for any
       omission or wrongful act unless resulting from gross negligence, willful
       misconduct or intentional misfeasance.  The Company will indemnify and
       save harmless its Board of Directors, the Custodian and any such member,
       officer, agent or employee against any claim, loss, liability or expense
       arising out of the Plan, except such as may result from the gross
       negligence, willful misconduct or intentional misfeasance of such entity
       or person.

       PLAN NOT A CONTRACT OF EMPLOYMENT

       The Plan is strictly a voluntary undertaking on the part of the Employer
       and shall not constitute a contract between the Employer and any
       Employee, or consideration for or an inducement or a condition of
       employment of an Employee.  Except as otherwise required by law, or any
       applicable collective bargaining agreement, nothing contained in the Plan
       shall give any Employee the right to be retained in the service of the
       Employer or to interfere with or restrict the right of the Employer,
       which is hereby expressly reserved, to discharge or retire any Employee
       at any time, with or without cause and with or without notice.  Except as
       otherwise required by law, inclusion under the Plan will not give any
       Employee any right or claim to any benefit hereunder except to the extent
       such right has specifically become fixed under the terms of the Plan.
       The doctrine of substantial performance shall have no application to any
       Employee, Participant, or Beneficiary.  Each condition and provision,
       including numerical items, has been carefully considered and constitutes
       the minimum limit on performance which will give rise to the applicable
       right.

       SERVICE OF PROCESS

       The Secretary of the Company is hereby designated agent for service
       or legal process on the Plan.

       NOTICE

       All notices or other communications by a Participant to the Company under
       or in connection with the Plan shall be deemed to have been duly given
       when received by the Plan Administrator.  Any notice required by the Plan
       to be received by the Company prior to an Enrollment Date, payroll period
       or other specified date, and received by the Plan Administrator
       subsequent to such date shall be effective on the next occurring
       Enrollment Date, payroll period or other specified date to which such
       notice applies.

                                       13

<PAGE>

       GOVERNING LAW

       The Plan shall be interpreted, administered and enforced in accordance
       with the Code, and the rights of Participants, former Participants,
       Beneficiaries and all other persons shall be determined in accordance
       with it.  To the extent state law is applicable, the laws of the State of
       Oregon shall apply.

       REFERENCES

       Unless the context clearly indicates to the contrary, reference to a Plan
       provision, statute, regulation or document shall be construed as
       referring to any subsequently enacted, adopted or executed counterpart.

                                       14

<PAGE>

                                      EXHIBIT A
                                     DEFINITIONS

ACCOUNT             shall mean each separate account maintained for a
                    Participant under the Plan collectively or singly as the
                    context requires.  Each Account shall be credited with a
                    Participant's contributions, and shall be charged for the
                    purchase of Shares.  A Participant shall be fully vested in
                    the cash contributions to that person's Account at all
                    times.  The Plan Administrator may create special types of
                    Accounts for administrative reasons, even though the
                    Accounts are not expressly authorized by the Plan.

BENEFICIARY         shall mean a person or entity entitled under Section VII of
                    the Plan to receive Shares purchased by, and any remaining
                    balance in, a Participant's Account on the Participant's
                    death.

BOARD OF            shall mean the Board of Directors of the Company.
DIRECTORS

CODE                shall mean the Internal Revenue Code of 1986, as amended, or
                    the corresponding provisions of any future tax code.

COMMITTEE           shall mean the Committee appointed by the Board of Directors
                    in accordance with Section IX of the Plan.

COMPENSATION        shall mean the total cash compensation (except as otherwise
                    set forth below), before tax withholding, paid to an
                    Employee in the period in question for services rendered to
                    the Employer by the Employee.  Compensation shall include
                    the earnings waived by an Employee pursuant to a salary
                    reduction arrangement under any cash or deferred or
                    cafeteria plan that is maintained by the Employer and that
                    is intended to be qualified under Section 401(k) or 125 of
                    the Code.  An Employee's Compensation shall not include
                    severance pay, hiring or relocation bonuses, or pay in lieu
                    of vacations or sick leave.

COMMON STOCK        shall mean the common stock of the Company.

COMPANY             shall mean RadiSys Corporation, an Oregon Corporation.

CUSTODIAN           shall mean the investment or financial firm appointed by the
                    Plan Administrator to hold all Shares pursuant to the Plan.

                                       15

<PAGE>

CUSTODIAL           shall mean the account maintained by the Custodian for a
ACCOUNT             Participant under the Plan.

DISABILITY          shall refer to a mental or physical impairment which is
                    expected to result in death or which has lasted or is
                    expected to last for a continuous period of twelve (12)
                    months or more and which causes the Employee to be unable,
                    in the opinion of the Company and two independent
                    physicians, to perform his or her duties as an Employee of
                    the Company.  Disability shall be deemed to have occurred on
                    the first day after the Company and two independent
                    physicians have furnished their opinion of Disability to the
                    Plan Administrator.

EMPLOYEE            shall mean an individual who renders services to the
                    Employer pursuant to an employment relationship with such
                    Employer.  A person rendering services to an Employer
                    purportedly as an independent consultant or contractor shall
                    not be an Employee for purposes of the Plan.

EMPLOYER            shall mean, collectively, the Company and its Subsidiaries
                    or any successor entity that continues the Plan.  All
                    Employees of entities which constitute the Employer shall be
                    treated as employed by a single company for all purposes of
                    the Plan.

EMPLOYMENT          shall mean the period during which an individual is an
                    Employee.  Employment shall commence on the day the
                    individual first performs services for the Employer as an
                    Employee and shall terminate on the day such services cease,
                    except as determined under Section XI.

ENROLLMENT          shall mean the first day of each Offering.
DATE

ESPP NEW            shall mean the form provided by the Company on which a
ACCOUNT FORM        Participant shall elect to open an Account with the
                    Custodian and authorize delivery to the Custodian of
                    all Shares issued for the Participant's Account.

OFFERING            until August 15, 2000 shall mean any one of the separate
                    overlapping eighteen (18) month periods commencing on
                    February 15 and August 15 of each calendar year under the
                    Plan other than calendar year 1999; in calendar year 1999,
                    the first Offering shall be a period commencing on June 12,
                    1999 and ending on August 15, 2000, and the second Offering
                    shall be the eighteen (18) month period commencing on August
                    15, 1999.  Beginning with the Offering that commences on
                    August 15, 2000, Offering shall mean any one of the separate
                    overlapping eighteen (18)

                                       16

<PAGE>

                    month periods commencing on February 15, May 15, August 15
                    and November 15 of each calendar year under the Plan.

PARTICIPANT         shall mean any Employee who is participating in any Offering
                    under the Plan pursuant to Section III.

PAYROLL             shall mean the form provided by the  Company on which a
DEDUCTION           Participant shall elect to participate in the Plan and the
AUTHORIZATION       Offering under the Plan and designate the percentage of
FORM                that individual's Compensation to be contributed to that
                    individual's Account through payroll deductions.

PLAN                shall mean this document.

PLAN                shall mean the Board of Directors or the Committee,
ADMINISTRATOR       whichever shall be administering the Plan from time to time
                    in the discretion of the Board of Directors, as described in
                    Section IX.

PURCHASE DATE       until August 15, 2000 shall mean the last day of the sixth,
                    twelfth and eighteenth one-month periods of the Offering,
                    except for the Offering beginning on June 12, 1999, in which
                    Offering the Purchase Dates shall be August 14, 1999,
                    February 14, 2000 and August 14, 2000.  Beginning on
                    August 15, 2000, for all then pending Offerings and any
                    Offerings commenced on or after that date, Purchase Date
                    shall mean the last day of the third, sixth, ninth, twelfth,
                    fifteenth and eighteenth one-month periods of each Offering.
                    Accordingly, since after August 15, 2000 the Enrollment
                    Dates occur on February 15, May 15, August 15 and
                    November 15 of each year, Purchase Dates shall occur on
                    February 14, May 14, August 14 and November 14 of each year
                    beginning with November 14, 2000.

RETIREMENT          shall mean a Participant's termination of Employment on or
                    after attaining the age of 65 or after the Plan
                    Administrator has determined that the individual has
                    suffered a Disability.

SHARE               shall mean one share of Common Stock.

SUBSIDIARIES        shall mean any corporation in which at least eighty percent
                    (80%) or more of the total combined voting power of all
                    classes of stock are owned directly or indirectly by RadiSys
                    Corporation.

VALUATION           shall mean the date upon which the fair market value of
DATE                Shares is to be determined for purposes of setting the
                    price of Shares under Section VI (that is, the Enrollment
                    Date or the applicable Purchase Date).  If the

                                       17

<PAGE>

                    Enrollment Date or the Purchase Date is not a date on which
                    the fair market value may be determined in accordance with
                    Section VI, the Valuation Date shall be the first day prior
                    to the Enrollment Date or the Purchase Date, as applicable,
                    for which such fair market value may be determined.

VESTED              shall mean non-forfeitable.

-------------------------------------------
Initial Adoption:   December 5, 1995
Last amended:       May 16, 2000 (shareholders approved increase in shares in
                    Article VIII to 1,250,000)
                    June 6, 2000 (board approved revisions to Articles III, IV,
                    and V and to the definitions of Employee, Offering and
                    Purchase Date in Exhibit A)

                                      18

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