Document:

EX-10.1

 

Exhibit 10.1

FIRST AMENDMENT TO CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO CREDIT AGREEMENT dated as of August 31, 2006 (this
“Amendment”) by and among THE BISYS GROUP, INC., a Delaware corporation (the
“Borrower”), the several banks and other financial institutions from time to time party
hereto (the “Lenders”), and SUNTRUST BANK, in its capacity as Administrative Agent for the
Lenders (the “Administrative Agent”).

     WHEREAS, the Borrower, the Lenders party thereto and the Administrative Agent are parties to
that certain Credit Agreement dated as of January 3, 2006 (the “Credit Agreement”);

     WHEREAS, the Borrower, the Lenders party hereto and the Administrative Agent desire to amend
the Credit Agreement in certain respects on the terms and conditions contained herein;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows:

     Section 1. Amendments to Credit Agreement.

     (a) The Credit Agreement is hereby amended by deleting the definition of “Applicable Margin”
appearing in Section 1.1 thereof in its entirety and substituting in lieu thereof the following:

     “Applicable Margin” means: (i) with respect to ABR Revolving Borrowings and ABR Term
Loan Borrowings, 0%, and (ii) with respect to Eurodollar Revolving Borrowings, Eurodollar Term
Loan Borrowings, and fees payable under Section 3.3(b), 0.75%.

     (b) The Credit Agreement is hereby amended by deleting the definition of “Maturity Date”
appearing in Section 1.1 thereof in its entirety and substituting in lieu thereof the following:

     “Maturity Date” means June 30, 2007.

     (c) The Credit Agreement is hereby amended by deleting the reference to “.25%” appearing in
the first sentence of Section 3.3(a) thereof and replacing such reference with the following:
“.15%”.

     (d) The Credit Agreement is hereby amended by deleting the definition of “Revolving
Commitment” appearing in Section 1.1 thereof in its entirety and substituting in lieu thereof the
following:

     “Revolving Commitment” means, with respect to each Lender having a Revolving
Commitment, the commitment of such Lender to make Revolving Loans and to acquire participations in
Letters of Credit in an aggregate outstanding amount not exceeding the amount
of such Lender’s Revolving Commitment as set forth on the signature page hereof, or in the

 

 

Assignment and Acceptance pursuant to which such Lender shall have assumed its Revolving
Commitment, as applicable, as such Revolving Commitment may be adjusted from time to time pursuant
to the penultimate sentence hereof, pursuant to Section 2.7 or pursuant to assignments by or to
such Lender pursuant to Section 10.4. The initial aggregate amount of the Revolving Commitments on
the Agreement Date is $100,000,000. Notwithstanding the foregoing, the aggregate amount of the
Revolving Commitments shall automatically reduce to $75,000,000 on January 2, 2007, and shall
further automatically reduce to $50,000,000 on March 31, 2007. Each reduction in the aggregate
amount of the Revolving Commitments shall result in a pro rata reduction in the Revolving
Commitment of each Lender then having a Revolving Commitment.

     Section 2. Delivery of FY 2006 Form 10-K. Notwithstanding anything in Section
6.1(a) of the Credit Agreement to the contrary, the Borrower shall have until November 15, 2006 to
deliver the information required to be delivered under Section 6.1(a) of the Credit Agreement with
respect to its fiscal year ending June 30, 2006. For avoidance of doubt, the Borrower’s failure to
deliver such information on or before November 15, 2006 shall constitute an Event of Default for
all purposes under the Credit Agreement and the other Loan Documents.

     Section 3. Effectiveness of Amendment. The effectiveness of this Amendment is
subject to the truth and accuracy of the representations set forth in Section 4 below and receipt
by the Administrative Agent of each of the following, each of which shall be in form and substance
satisfactory to the Administrative Agent:

     (a) Counterparts of this Amendment duly executed by the Borrower, each Subsidiary Guarantor,
the Administrative Agent and the Required Lenders;

     (b) Such other documents, agreements, instruments, certificates or other confirmations as the
Administrative Agent may reasonably request.

     Section 4. Representations of Borrower. The Borrower represents and warrants to the
Administrative Agent and the Lenders that:

     (a) Corporate Power and Authority. The Borrower has the corporate power and authority
to execute, deliver and perform the terms and provisions of this Amendment, and has taken all
necessary corporate action to authorize the execution, delivery and performance by them of this
Amendment. The Borrower has duly executed and delivered this Amendment, and this Amendment
constitutes its legal, valid and binding obligation enforceable in accordance with its terms,
except to the extent that the enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights
and by equitable principles (regardless of whether enforcement is sought in equity or at law).

     (b) No Violation. Neither the execution, delivery or performance by the Borrower of
this Amendment and the Credit Agreement, as amended hereby, nor compliance by it with the terms and
provisions hereof and thereof, (i) will contravene any provision of any law, statute,
rule or regulation or any order, writ, injunction or decree of any court or Governmental
Authority, (ii) will conflict with or result in any breach of any of the terms, covenants,
conditions

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or provisions of, or constitute a default under, or result in the creation or imposition
of (or the obligation to create or impose) any Lien upon any of the property or assets of the
Borrower pursuant to the terms of any material indenture, mortgage, deed of trust, credit agreement
or loan agreement, or any other material agreement, contract or instrument, to which the Borrower
is a party or by which it or any of its property or assets is bound or to which it may be subject
or (iii) will violate any provision of the certificate or articles of incorporation or by-laws (or
equivalent organizational documents) of the Borrower.

     (c) Governmental Approvals. No order, consent, approval, license, authorization or
validation of, or filing, recording or registration with (except for those that have otherwise been
obtained or made on or prior to the date of the effectiveness of this Amendment and which remain in
full force and effect on such date) or exemption by, any Governmental Authority, is required to
authorize, or is required in connection with, (i) the execution, delivery and performance of this
Amendment by the Borrower or (ii) the legality, validity, binding effect or enforceability of this
Amendment, and the Credit Agreement, as amended hereby, against the Borrower.

     (d) No Default. No Default or Event of Default now exists or will exist immediately
after giving effect to this Amendment.

     (e) Reaffirmation of Representations. The Borrower hereby repeats and reaffirms all
representations and warranties made by it to the Administrative Agent and the Lenders in the Credit
Agreement and the other Loan Documents to which it is a party on and as of the date hereof (and
after giving effect to this Amendment) with the same force and effect as if such representations
and warranties were set forth in this Amendment in full (except to the extent of changes resulting
from transactions contemplated or permitted by the Credit Agreement and the other Loan Documents
and changes occurring in the ordinary course of business that singly or in the aggregate are not
materially adverse, and to the extent that such representations and warranties relate expressly to
an earlier date).

     Section 5. Amendment as a Loan Document. Each reference in the Credit Agreement or
in any of the other Loan Documents to “Loan Documents” shall be deemed to include a reference to
this Amendment, and this Amendment shall be a Loan Document for all purposes under the Loan
Documents.

     Section 6. References to the Credit Agreement. Each reference to the Credit
Agreement in any of the Loan Documents (including the Credit Agreement) shall be deemed to be a
reference to the Credit Agreement, as amended by this Amendment.

     Section 7. Benefits. This Amendment shall be binding upon and shall inure to the
benefit of the parties hereto and their respective permitted successors and assigns.

     Section 8. Expenses. The Borrower agrees to reimburse the Lenders and the
Administrative Agent on demand for all reasonable costs and expenses (including, without
limitation, attorneys’ fees) incurred by such parties in negotiating, documenting and

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consummating this Amendment, the other documents referred to herein, and the transactions contemplated hereby
and thereby.

     Section 9. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK.

     Section 10. Effect/No Novation. Except as expressly herein amended, the terms and
conditions of the Credit Agreement and the other Loan Documents shall remain in full force and
effect. Neither this Amendment nor any of the transactions contemplated hereby shall be deemed to
be a novation of any of the Obligations.

     Section 11. Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be deemed to be an original and shall be binding upon all
parties, their successors and assigns.

     Section 12. Definitions. All capitalized terms not otherwise defined herein are used
herein with the respective definitions given them in the Credit Agreement.

[Signatures on Following Pages]

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     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Credit
Agreement to be executed as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

THE BISYS GROUP, INC.

 	 
	 	By:  	/s/ Steven J. Kyono
 	 
	 	 	Name:  	Steven J. Kyono 	 
	 	 	Title:  	Executive Vice President/General Counsel 	 
	 

[Signatures Continued on Following Page]

 

 

[Signature Page to First Amendment to Credit Agreement

dated as of August 31, 2006 with THE BISYS GROUP, INC.]

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT AND LENDERS: 

SUNTRUST BANK, Individually and as 
  Administrative Agent

 	 
	 	By:  	/s/
Timothy O’Leary
 	 
	 	 	Name:  	Timothy M. O’Leary 	 
	 	 	Title:  	Director 	 
	 

[Signatures Continued on Following Page]

 

 

[Signature Page to First Amendment to Credit Agreement

dated as of August 31, 2006 with THE BISYS GROUP, INC.]

The following hereby execute this First Amendment to Credit Agreement to indicate their
consent thereto and agreement therewith and to acknowledge that the making of this First Amendment
to Credit Agreement shall not terminate, limit or otherwise adversely affect any of their
respective obligations to the Administrative Agent, the Issuing Bank and the Lenders under the Loan
Documents. Further, the following hereby reaffirm their respective continuing obligations as a
guarantor of the Guaranteed Obligations (as defined in the Guarantee Agreement) under the Guarantee
Agreement and their respective obligations under each of the other Loan Documents to which they are
a party.

	 	 	 	 	 
	 	ASCENSUS INSURANCE SERVICES, INC.

BISYS COMMERCIAL INSURANCE SERVICES, INC.

BISYS FINANCING COMPANY

BISYS FUND SERVICES OHIO, INC.

BISYS INSURANCE SERVICE HOLDING CORP.

BISYS INSURANCE SERVICES, INC.

BISYS MANAGEMENT COMPANY

BISYS PRIVATE EQUITY SERVICES, INC.

BISYS RETIREMENT SERVICES, INC.

 	 
	 	By:  	/s/ Steven J. Kyono
 	 
	 	 	Name:  	Steven J. Kyono 	 
	 	 	Title:  	Executive Vice President 	 
	 

[Signatures End]<PAGE>
                                                                     EXHIBIT 4.1

                    SECOND RESTATED ARTICLES OF INCORPORATION

                                       OF

                            RADIX MICROSYSTEMS, INC.

      The following Second Restated Articles of Incorporation of Radix
MicroSystems, Inc., an Oregon corporation, adopted on June 16, 1989, supersede
and take the place of the heretofore existing Restated Articles of Incorporation
and all Amendments thereto.

                                    ARTICLE I

                                Corporation Name

      The name of the corporation is Radix MicroSystems, Inc.

                                   ARTICLE II

                                    Duration

      The period of its duration is perpetual.

                                   ARTICLE III

                                    Purposes

      The purposes of the corporation are to engage in any and all lawful
activities for which corporations may be organized under the Oregon Business
Corporation Act.

                                   ARTICLE IV

                                  Capital Stock

      (A) The aggregate number of shares which the corporation shall have the
authority to issue shall consist of 15,000,000 shares of common stock, without
par value (the "Common Stock"), and 10,000,000 shares of preferred stock, par
value $.01 per share (the "Preferred Stock").

      (B) Holders of Common Stock shall be entitled to one vote per share on any
matter submitted to the shareholders and shall be entitled to notice of any
shareholders' meeting in accordance with the bylaws of the corporation, and
shall be entitled to vote upon such matters and in such manner as may be
provided by law. On dissolution, liquidation or winding up of the corporation,
after any preferential amount with respect to the Preferred Stock has been paid
or set aside, the remaining assets and funds of the corporation available for
distribution to its shareholders shall be distributed among the holders of
Preferred Stock and Common Stock in the same proportion as the number of shares
of outstanding Common Stock and Common Stock issuable upon the conversion of
outstanding Preferred Stock then held by each of them bears to the total number
of shares of outstanding Common Stock and Common Stock issuable upon the
conversion of outstanding Preferred Stock. Subject to the rights of holders of
Preferred Stock set forth in Section 4.1 below, and the rights of holders of any
series of Preferred Stock hereafter designated by the Board of Directors of the
corporation pursuant to the authority granted to it under this Article IV, the
holders of the then outstanding Common Stock shall be entitled to receive
dividends when, as and if declared by the Board of Directors out of any funds
legally available therefor; provided, however, that no dividend shall be
declared or paid on the Common Stock if, after the payment

<PAGE>

      (C) of such dividend, the net assets of the corporation would be less than
the amount to which all of the holders of Preferred Stock would be entitled to
receive pursuant to Section 4.2(a) in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the corporation.

      (D) The Board of Directors is authorized, subject to limitations
prescribed by law and the provisions of this Article IV, to provide for the
issuance of the shares of Preferred Stock in series, to establish from time to
time the number of shares to be included in each such series, and to fix the
designations, relative rights, preferences, and limitations of the shares of
each such series.

            The authority of the Board of Directors with respect to each series
shall include determination of the following:

            (1) The number of shares constituting that series and the
distinctive designation of that series;

            (2) Whether that series shall have full voting rights, special,
conditional or limited voting rights, or no voting rights, except to the extent
otherwise provided by the Oregon Business Corporation Act;

            (3) Whether that series shall be convertible and, if so, the terms
and conditions of such conversion, including provision for adjustment of the
conversion rate in such events as the Board of Directors determines;

            (4) Whether or not the shares of that series shall be redeemable
and, if so, the terms and conditions of such redemption, including the date or
dates upon after which they shall be redeemable and the amount per share payable
in case of redemption, which amount may vary under different conditions and at
different redemption dates;

            (5) The dividend rate, if any, on the shares of that series, the
manner of calculating such dividends, and the preferences of such dividends;

            (6) The rights of the shares of that series in the event of
voluntary or involuntary liquidation, dissolution, or winding up of the
corporation and the relative rights of priority of that series, as opposed to
the Common Stock and any other series of the Preferred Stock, on the
distribution of assets on dissolution; and

            (7) Any other relative rights, preferences, and limitations of that
series that are permitted by law to vary.

      (E) There shall initially be two series of Preferred Stock, with the
respective designations, number of shares and issue prices (the "Issue Price")
as follows:

<TABLE>
<CAPTION>
Designation                         No. of Shares       Issue Price
------------------------------    -----------------    -------------
<S>                               <C>                  <C>
 Series A Preferred Stock               355,556            $4.22
  ("Series A Stock")

 Series B Preferred Stock             1,820,988            $2.70
  ("Series B Stock")
</TABLE>

            The rights, preferences, restrictions and other matters relating to
the Preferred Stock are as follows:

      4.1 Dividends. The holders of the then outstanding Preferred Stock shall
be entitled to receive, when, as and if declared by the Board of Directors, out
of any assets of the corporation legally available therefor, such dividends as
may be declared from time to time by the Board of Directors in respect of such
shares. The corporation

<PAGE>

shall not at any time declare or pay any dividend on shares of Common Stock
unless dividends shall simultaneously be declared and paid on each outstanding
share of Preferred Stock in an amount equal to the dividend per share then being
declared or paid on the Common Stock multiplied by the number of shares of
Common Stock into which such share of Preferred Stock is then convertible.

      4.2 Liquidation Preference.

            (a) In the event of any liquidation, dissolution or winding up of
the corporation, either voluntary or involuntary, the holders of each share of
Preferred Stock shall be entitled to be paid out of the assets and funds of the
corporation available for distribution to its shareholders, before any payment
or declaration and setting apart for payment of any amount shall be made in
respect of the Common Stock, an amount equal to the applicable Issue Price for
each series of Preferred Stock plus any and all declared but unpaid dividends.
If upon the occurrence of such event the assets and funds thus distributed among
the holders of the Preferred Stock shall be insufficient to permit the payment
to such holders of the full aforesaid preferential amount, then the entire
assets and funds of the corporation legally available for distribution to its
shareholders shall be distributed ratably among the holders of the Preferred
Stock, according to their respective preferences that would have been payable in
respect of the shares held by then upon such distribution if all preferences
payable on or with respect to such shares were paid in full.

            (b) After the payment or distribution described in Section 4.2(a)
above has been made, the remaining assets and funds of the corporation available
for distribution to its shareholders shall be distributed among the holders of
the Preferred Stock and Common stock in the same proportion as the number of
shares of outstanding Common Stock and Common Stock issuable upon the conversion
of the outstanding Preferred Stock then held by each of them bears to the total
number of shares of outstanding Common Stock and Common Stock issuable upon
conversion of outstanding Preferred Stock.

            (c) A consolidation or merger of the corporation with or into any
other corporation or corporations, conveyance or disposition of all or
substantially all of the assets of the corporation or the effectuation or a
sale, by the corporation of a transaction or series of related transactions in
which more than 50 percent of the voting power of the corporation is disposed
of, shall not be deemed to be a liquidation, dissolution or winding up within
the meaning of this Section 4.2, but shall instead be treated pursuant to
Section 4.4 hereof.

      4.3 Conversion.

            The holders of the Preferred Stock shall have the following
conversion rights (the "Conversion Rights"):

            (a) Right to Convert.

                  (i) Subject to subsection (c) below, each share of Preferred
Stock shall be convertible, at the option of the holder thereof, at any time
after the date of issuance of such share, at the office of the corporation or
any transfer agent for the Preferred Stock, into such number of fully paid and
nonassessable shares of Common Stock as is determined by dividing the applicable
Issue Price for such share, by the applicable Conversion Price at the time in
effect for such share. The initial Conversion Price per share for each series of
Preferred Stock (the "Conversion Price") shall be as follows; provided, however,
that the applicable Conversion Prices shall be subject to adjustment as set
forth in subsection (c) below:

<TABLE>
<CAPTION>
                                       Initial
         Series                   Conversion Price
------------------------------    -----------------
<S>                               <C>
Series A Stock                          $.422
Series B Stock                          $2.70
</TABLE>

<PAGE>

                  (ii) Upon conversion of the Preferred Stock, the Common Stock
so issued shall be duly and validly issued, fully paid and nonassessable shares
of the corporation.

                  (iii) Each share of Preferred Stock shall automatically be
converted into that number or shares of Common Stock determined by the
applicable Conversion Price at the time in effect for such share immediately
upon the consummation of the corporation's sale of its Common Stock in a bona
fide, firm commitment underwritten public offering pursuant to an effective
registration statement under the Securities Act of 1933, as amended, which
results in net cash proceeds (after underwriters' commissions and offering
expenses) to the corporation of $10,000,000 or more, and the public offering
price of which was not less than $5.40 per share (adjusted to reflect subsequent
stock dividends, stock splits, consolidations or recapitalizations).

                  (iv) Upon the occurrence of the event specified in paragraph
(iii) of this subsection (a), the outstanding shares of the Preferred Stock to
be converted shall be converted automatically without any further action by the
holders of such shares and whether or not the certificates representing such
shares are surrendered to the corporation or its transfer agent, provided,
however, that the corporation shall not be obligated to issue certificates
evidencing the shares of Common Stock issuable upon such conversion unless
certificates evidencing such shares of the Preferred Stock being converted are
either delivered to the corporation or any transfer agent, as hereinafter
provided, or the holder notifies the corporation or any transfer agent, as
hereinafter provided, that such certificates have been lost, stolen or destroyed
and executes an agreement satisfactory to the corporation to indemnify the
corporation from any loss incurred by it in connection therewith. Upon the
automatic conversion of the Preferred Stock, the holders of such Preferred Stock
shall surrender the certificates representing such shares at the office of the
corporation or of any transfer agent for the Common Stock. Thereupon, there
shall be issued and delivered to such holder, promptly at such office and in his
name as shown on such surrendered certificate or certificates, a certificate or
certificates for the number of shares of Common Stock into which the shares of
the Preferred Stock surrendered were convertible on the date on which such
automatic conversion occurred.

            (b) Mechanics of Conversion. Before any holder of Preferred Stock
shall be entitled to convert the same into shares of Common Stock, such holder
shall surrender the certificate or certificates therefor, duly endorsed, at the
office of the corporation or of any transfer agent for the Preferred Stock, and
shall give written notice by mail, postage prepaid, to the corporation at its
principal corporate office of the election to convert the same and shall state
therein the name or names in which the certificate or certificates for shares of
Common Stock are to be issued. The corporation shall, as soon as practicable
thereafter, issue and deliver at such office to such holder of Preferred Stock,
or to the nominee or nominees of such holder, a certificate or certificates for
the number of shares of Common Stock to which such holder shall be entitled as
aforesaid. Such conversion shall be deemed to have been made immediately prior
to the close of business on the date of such surrender of the shares of
Preferred Stock to be converted, and the person or persons entitled to receive
the shares of Common Stock issuable upon such conversion shall be treated for
all purposes as the record holder or holders of such shares of Common Stock as
of such date. If the conversion is in connection with an underwritten offer of
securities registered pursuant to the Securities Act of 1933, as amended, the
conversion may, at the option of any holder tendering Preferred Stock for
conversion, be conditioned upon the closing with the underwriter of the sale of
securities pursuant to such offering, in which event the person(s) entitled to
receive the Common Stock issuable upon such conversion of the Preferred Stock
shall not be deemed to have converted such Preferred Stock until immediately
prior to the closing of such sale of securities.

            (c) Conversion Price Adjustments of the Preferred Stock. The
Conversion Prices of the series of Preferred Stock shall be subject to
adjustment from time to time as follows:

                  (i) (A) If the corporation shall issue any Additional Stock
(as defined below) without consideration or for a consideration per share less
than the Conversion Price in effect for any series of Preferred Stock
immediately prior to the issuance of such Additional Stock, such Conversion
Price in effect immediately prior to each such issuance shall forthwith (except
as otherwise provided in this clause (i)) be adjusted in accordance with the
formula:

                                C' = (C x N) + A
                                     -----------
                                        O

<PAGE>

where

            C' =  the adjusted applicable Conversion Price.

            C  =  the current applicable Conversion Price.

            N  =  (i) the number of shares of Common Stock outstanding on the
                  determination date (defined below) plus (ii) the number of
                  shares of Common Stock issuable on exercise, conversion, or
                  exchange of securities outstanding and exercisable for,
                  convertible into, or exchangeable for shares of Common Stock
                  on the determination date.

            A  =  the aggregate consideration received from issuance of the
                  Additional Stock.

            O  =  N plus the number of shares of Additional Stock.

            The "determination date" is the date when the Company fixes the
offering price of the Additional Stock.

                  (B) No adjustment of the Conversion Price for any series of
Preferred Stock shall be made in an amount less than one cent per share,
provided that any adjustments which are not required to be made by reason of
this sentence shall be carried forward and either shall be taken into account in
any subsequent adjustment made prior to three years from the date of the event
giving rise to the adjustment being carried forward, or shall be made at the end
of three years from the date of the event giving rise to the adjustment being
carried forward. Except to the limited extent provided for in subsection (E)(3)
and (E)(4), no adjustment of any Conversion Price pursuant to this subsection
4.3(c)(i) shall have the effect of increasing such Conversion Price above the
applicable Conversion Price in effect immediately prior to such adjustment.

                  (C) In the case of the issuance of Common Stock for cash, the
consideration shall be deemed to be the amount of cash paid therefor after
deducting any reasonable discounts, commissions or other expenses allowed, paid
or incurred by the corporation for any underwriting or otherwise in connection
with the issuance and sale thereof.

                  (D) In the case of the issuance of the, Common Stock for a
consideration in whole or in part other than cash, the consideration other than
cash shall be deemed to be the fair value thereof as determined by the Board of
Directors irrespective of any accounting treatment.

                  (E) In the case of the issuance of options to purchase or
rights to subscribe for Common Stock, securities by their terms convertible into
or exchangeable for Common Stock or options to purchase or rights to subscribe
for such convertible or exchangeable securities (which are not excluded from the
definition of Additional Stock), the following provisions shall apply:

                        (1) The aggregate maximum number of shares of Common
Stock deliverable upon exercise of such options to purchase or rights to
subscribe for Common Stock shall be deemed to have been issued at the time such
options or rights were issued and for a consideration equal to the consideration
(determined in the manner provided in subsections 4.3(c)(i)(C) and (c)(i)(D)),
if any, received by the corporation upon the issuance of such options or rights
plus the minimum purchase price provided in such options or rights for the
Common Stock covered thereby;

                        (2) The aggregate maximum number of shares of Common
Stock deliverable upon conversion of or in exchange for any such convertible or
exchangeable securities or upon the exercise of options to purchase or rights to
subscribe for such convertible or exchangeable securities and subsequent
conversion or exchange thereof shall be deemed to have been issued at the time
such securities were issued or such options or rights were issued and for a
consideration equal to the consideration, if any, received by the corporation
for any such securities and related options or rights (excluding any cash
received on account of accrued interest or

<PAGE>

accrued dividends), plus the additional consideration, if any, to be received by
the corporation upon the conversion or exchange of such securities or the
exercise of any related options or rights (the consideration in each case to be
determined in the manner provided in subsections 4.3(c)(i)(C) and (c)(i)(D));

                        (3) In the event of any change in the number of shares
of Common Stock deliverable upon exercise of such options or rights or upon
conversion of or in exchange for such convertible or exchangeable securities,
including, but not limited to, a change resulting from the antidilution
provisions thereof, the Conversion Prices in effect at the time for each series
of Preferred Stock shall forthwith be readjusted to such Conversion Prices as
would have obtained had the adjustment which was made upon the issuance of such
options, rights or securities not converted prior to such change or the options
or rights related to such securities not converted prior to such change been
made upon the basis of such change, but no further adjustment shall be made for
the actual issuance of Common Stock upon the exercise of any such options or
rights or the conversion or exchange of such securities;

                        (4) Upon the expiration of any such options or rights,
the termination of any such rights to convert or exchange or the expiration of
any options or rights related to such convertible or exchangeable securities,
the conversion Prices for each series of Preferred Stock shall forthwith be
readjusted to such conversion Prices as would have obtained had the adjustment
which was made upon the issuance of such options, rights or securities or
options or rights related to such securities been made upon the basis of the
issuance of only the number of shares of Common Stock actually issued upon the
exercise of such options or rights, upon the conversion or exchange of such
securities or upon the exercise of the options or rights related to such
securities.

                  (ii) "Additional Stock" shall mean, as to any series of
Preferred Stock, any shares of Common Stock issued (or deemed to have been
issued pursuant to subsection 4.3(c)(i)(E)) by the corporation after the
earliest date on which shares of the applicable series of Preferred Stock are
issued pursuant to any purchase agreements for such series (the "Purchase
Date"), other than

                        (A) Common Stock issued pursuant to a transaction
described in subsection 4.3(c)(iii) hereof;

                        (B) Up to 804,810 shares of Common Stock (appropriately
adjusted for any stock dividend, stock split, consolidation or recapitalization)
issuable or issued after the Purchase Date for the Series B Stock to persons who
are or become employees, consultants, directors or officers of the corporation,
and any shares of Common Stock that are outstanding on the Purchase Date for the
Series B Stock and thereafter repurchased by the corporation and issued to
persons who are or become employees, consultants, directors or officers of the
corporation;

                        (C) Common Stock issued or issuable upon conversion of
any Preferred Stock;

                        (D) Up to 333,333 shares of Common Stock (appropriately
adjusted for any stock split, stock dividend, consolidation or recapitalization)
issued or issuable upon the conversion of the convertible note issued by the
corporation in connection with that certain Convertible Subordinated Loan
Agreement between the Oregon Resource and Technology Development Corporation
("ORTDC") and the corporation; or

                        (E) Up to 92,593 shares of Series B Stock issued or
issuable upon exercise of the warrant granted to ORTDC on the Purchase Date for
the Series B Stock.

                  (iii) In the event the corporation should at any time or from
time to time after the applicable Purchase Date for any series of Preferred
Stock fix a record date for the effectuation of a split or subdivision of the
outstanding shares of Common Stock or the determination of holders of Common
Stock entitled to receive a dividend or other distribution payable in additional
shares of Common Stock or other securities or rights convertible into, or
entitling the holder thereof to receive directly or indirectly, additional
shares of Common Stock (hereinafter referred to as "Common Stock Equivalents")
without payment of any consideration by such holder for the additional shares of

<PAGE>

Common Stock or the Common Stock Equivalents (including the additional shares of
Common Stock issuable upon conversion or exercise thereof), then, as of such
record date (or the date of such dividend, distribution, split or subdivision if
no record date is fixed), the applicable Conversion Price of each series of
Preferred Stock shall be appropriately decreased so that the number of shares of
Common Stock issuable on conversion of each share of such series shall be
increased in proportion to such increase of outstanding shares determined in
accordance with subsection 4.3 (c) (i) (E).

                        (iv) If the number of shares of Common Stock outstanding
at any time after the applicable Purchase Date is decreased by a combination of
the outstanding shares of Common Stock, then, following the record date of such
combination, the applicable Conversion Price of each series of Preferred Stock
shall be appropriately increased so that the number of shares of Common Stock
issuable on conversion of each share of such series shall be decreased in
proportion to such decrease in outstanding shares.

                  (d) Other Distributions. In the event the corporation shall
declare a distribution payable in securities of other persons, evidences of
indebtedness issued by this corporation or other persons, assets (excluding cash
dividends) or options or rights not referred to in subsection 4.3(c)(iii), then,
in each such case for the purpose of this subsection 4.3(d), the holders of the
Preferred Stock shall be entitled to a proportionate share of any such
distribution as though they were the holders of the number of shares of Common
Stock of the corporation into which their shares of Preferred Stock are
convertible as of the record date fixed for the determination of the holders of
Common Stock of the corporation entitled to receive such distribution.

                  (e) Recapitalizations. If at any time or from time to time
there shall be a recapitalization of the Common Stock (other than a subdivision,
combination or merger or sale of assets transaction provided for elsewhere in
this Section 4.3 or Section 4.4), provision shall be made so that the holders of
the Preferred Stock shall thereafter be entitled to receive upon conversion of
the Preferred Stock the number of shares of stock or other securities or
property of this corporation, or otherwise, to which a holder of Common Stock
deliverable upon conversion would have been entitled on such recapitalization.
In any such case, appropriate adjustment shall be made in the application of the
provisions of this Section 4.3 with respect to the rights of the holders of the
Preferred Stock after the recapitalization to the end that the provisions of
this Section 4.3 (including adjustment of the applicable Conversion Price then
in effect and the number of shares purchasable upon conversion of the Preferred
Stock) shall be applicable after that event as nearly equivalent as may be
practicable.

                  (f) No Impairment. The corporation will not, by amendment of
its Second Restated Articles of Incorporation or through any reorganization,
recapitalization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed
hereunder by the corporation, but will at all times in good faith assist in the
carrying out of all the provisions of this Section 4.3 and in the taking of all
such action as may be necessary or appropriate in order to protect the
Conversion Rights of the holders of the Preferred Stock against impairment.

                  (g) No Fractional Shares and Accountants' Certificate as to
Adjustments.

                        (i) No fractional shares shall be issued upon conversion
of the Preferred Stock, and the number of shares of Common Stock to be issued
shall be rounded to the nearest whole share. Whether or not fractional shares
are issuable upon such conversion shall be determined on the basis of the total
number of shares of such series the holder is at the time converting into Common
Stock and the number of shares of Common Stock issuable upon such aggregate
conversion.

                        (ii) Upon the occurrence of each adjustment or
readjustment of the applicable Conversion Price of any series of Preferred Stock
pursuant to this Section 4.3, the corporation, at its expense, shall promptly
compute such adjustment or readjustment in accordance with the terms hereof and
prepare and furnish to each holder of such series of Preferred Stock, by
first-class mail, postage prepaid, a certificate setting forth such adjustment
or readjustment and showing in detail the facts upon which such adjustment or
readjustment is based, including a statement setting forth (A) the consideration
received or to be received by the corporation for any Additional Stock, (B) the
Conversion Price then in effect for such series, and (C) the number of shares of
Common Stock and the amount, if any, of other property which at the time would
be received upon the conversion of a share of such series of Preferred Stock.

<PAGE>

                  (h) Notices of Record Date. In the event of any taking by this
corporation of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any
dividend (other than a cash dividend) or other distribution, any right to
subscribe for, purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other right, the corporation
shall mail to each holder of Preferred Stock, at least 20 days prior to the date
specified therein, a notice specifying the date on which any such record is to
be taken for the purpose of such dividend, distribution or right, and the amount
and character of such dividend, distribution or right.

                  (i) Reservation of Stock Issuable upon Conversion. The
corporation shall at all times reserve and keep available out of its authorized
but unissued shares of Common Stock solely for the purpose of effecting the
conversion of the shares of the Preferred Stock such number of its shares of
Common Stock as shall from time to time be sufficient to effect the conversion
of all outstanding shares of the Preferred Stock; and if at any time the number
of authorized but unissued shares of Common Stock shall not be sufficient to
effect the conversion of all then outstanding shares of the Preferred Stock, in
addition to such other remedies as shall be available to the holder of such
Preferred Stock, the corporation will take such corporate action as may, in the
opinion of its counsel, be necessary to increase its authorized but unissued
shares of Common Stock to such number of shares as shall be sufficient for such
purposes.

                  (j) Notices. Any notice required by the provisions of this
Section 4.3 to be given to the holders of shares of Preferred Stock shall be
deemed given when personally delivered to such holder or five business days
after the same has been deposited in the United States mail, certified or
registered mail, return receipt requested, postage prepaid, and addressed to
each holder of record at his address appearing on the books of the corporation.

                  (k) Taxes. The corporation will pay all taxes and other
governmental charges that maybe imposed in respect of the issue or delivery of
shares of Common Stock upon conversion of shares of Preferred Stock.

            4.4 Merger, Consolidation.

                  (a) In the event of any consolidation or merger of the
corporation with or into any other corporation or other entity or person, or a
sale, conveyance or disposition of all or substantially all of the assets of the
corporation, or any other corporate reorganization in which the corporation
shall not be the continuing or surviving entity of such consolidation, merger or
reorganization or any transaction or series of related transactions by the
corporation in which in excess of 50 percent of the corporation's voting power
is transferred, then holders of the Preferred Stock shall first receive for each
share of such stock, in cash or securities received from the acquiring
corporation or a combination thereof, at the closing of any such transaction, an
amount equal to the applicable Issue Price for such share plus any dividends
declared and unpaid as of the date of closing of such transaction. In the event
the full amount of such payment is not paid to the holders of the Preferred
Stock upon or immediately prior to such transaction in accordance herewith, then
the entire amount payable in respect of the proposed transaction shall be
distributed ratably among the holders of the Preferred Stock, according to their
respective payment that would have been payable in respect of the shares held by
them upon such transaction if all payments payable on or with respect to such
shares were paid in full in accordance with the preceding sentence.

                  (b) After the distribution required by subsection (a) above
has been paid, any remaining consideration to be paid in such transaction shall
be distributed to the holders of Preferred Stock and Common Stock in the same
proportion as the number of shares of Common Stock and Common Stock issuable
upon the conversion of Preferred Stock then held by each of them bears to the
total number of shares of Common Stock and Common Stock issuable upon conversion
of Preferred Stock.

                  (c) Any securities to be delivered to the holders of the
Preferred Stock pursuant to subsection 4.4(a) above shall be valued as follows:

                        (i) Securities not subject to investment letter or other
similar restrictions on free marketability:

<PAGE>

                              (A) If traded on a securities exchange, the value
shall be deemed to be the average of the closing prices of the securities on
such exchange over the 30-day period ending three days prior to the closing;

                              (B) If actively traded over-the-counter, the value
shall be deemed to be the average of the closing bid prices over the 30-day
period ending three days prior to the closing; and

                              (C) If there is no active public market, the value
shall be the fair market value thereof, as mutually determined by the
corporation and the holders of a majority of the then outstanding shares of
Preferred Stock (based on the number of shares of Common Stock into which the
Preferred Stock is convertible).

                        (ii) The method of valuation of securities subject to
investment letter or other restrictions on free marketability shall be to make
an appropriate discount from the market value determined as above in (i)(A), (B)
or (C) to reflect the approximate fair market value thereof, as mutually
determined by the corporation and the holders of a majority of the number of
shares of Common Stock into which the then outstanding shares of Preferred Stock
are convertible).

                  (d) In the event the requirements of this Section 4.4 are not
complied with, the corporation shall forthwith either:

                        (i) Cause such closing to be postponed until such time
as the requirements of this Section 4.4 have been complied with; or

                        (ii) Cancel such transaction, in which event the rights,
preferences and privileges of the holders of the Preferred Stock shall revert to
and be the same as such rights, preferences and privileges existing immediately
prior to the date of the first notice referred to in subsection 4.4(e) hereof.

                  (e) The corporation shall give each holder of record of
Preferred Stock written notice of such impending transaction not later than 20
days prior to the shareholders' meeting called to approve such transaction, or
20 days prior to the closing of such transaction, whichever is earlier, and
shall also notify such holders in writing of the final approval of such
transaction. The first of such notices shall describe the material terms and
conditions of this Section 4.4, and the corporation shall thereafter give such
holders prompt notice of any material changes. The transaction shall in no event
take place sooner than 20 days after the corporation has given the first notice
provided for herein or sooner than 10 days after the corporation has given
notice of any material changes provided for herein; provided, however, that such
periods may shortened upon the written consent of the holders of a majority of
the number of shares of Common Stock into which the then outstanding shares of
Preferred Stock are convertible.

                  (f) The provisions of this Section 4.4 are in addition to the
protective provisions of Section 4.6 hereof.

            4.5 Voting Rights.

                  Except as required by law, the holder of each share of
Preferred Stock shall have the right to one vote for each share of Common Stock
into which such share of Preferred Stock could then be converted, pursuant to
Section 4.3 hereof, and with respect to such vote, such holder shall have full
voting rights and powers equal to the voting rights and powers of the holders of
Common Stock, and shall be entitled, notwithstanding any provision hereof, to
notice of any shareholders' meeting in accordance with the bylaws of the
corporation, and shall be entitled to vote, together with holders of Common
Stock, with respect to any question upon which holders of Common Stock have the
right to vote.

            4.6 Protective Provisions.

                  So long as any shares of Series A or Series B Stock are
outstanding, the corporation shall not, without first obtaining the approval (by
vote or written consent, as provided by law) of the holders of at least a

<PAGE>

majority of the number of shares then outstanding of the Series A Stock and the
holders of at least a majority of the number of shares then outstanding of the
Series B Stock:

                  (a) Issue, or obligate itself to issue, any equity security
(including any security convertible into or exercisable for any equity
security), with powers, designations, preferences or relative, participating,
optional or other special rights prior to or on a parity with the Preferred
Stock;

                  (b) Sell, convey or otherwise dispose of or encumber all or
substantially all of its property or business, merge into or consolidate with
any other corporation or entity, effect any transaction or series of related
transactions in which more than 50 percent of the voting power of the
corporation is disposed, liquidate, dissolve or wind up its affair, or enter
into or engage in any plan of exchange;

                  (c) Purchase, redeem or otherwise acquire any equity security
of the corporation, other than the repurchase of shares of Common Stock from
employees or consultants of the corporation pursuant to the Stock Repurchase
Agreement, the Buy-Out Agreement of the Shareholders of Radix MicroSystems,
Inc., as amended, the Employee Restricted Stock Purchase Agreements or any
successor agreements entered into by the corporation and certain of its
employees and consultants; or

                  (d) Permit any Subsidiary of the corporation to issue or sell,
or obligate itself to issue or sell, except to the corporation or any wholly
owned Subsidiary, any equity security of such Subsidiary ("Subsidiary" shall
mean any corporation at least 50 percent of whose outstanding voting stock shall
at the time be owned directly indirectly by this corporation or by one or more
Subsidiaries).

            4.7 No Reissuance of Preferred Stock.

                  In the event any shares of Preferred Stock shall be purchased
or converted, such shares shall be cancelled, retired and eliminated from the
shares which the corporation is authorized to issue.

                                    ARTICLE V

                              Repurchase of Shares

                  In determining whether the corporation has sufficient assets
to repurchase shares of the Common Stock from its employees or consultants to
the extent permitted by Article IV, such determination shall be made and any
distribution to such shareholders may be made irrespective of any amount that
would be needed if the corporation were to be dissolved to satisfy any
preferential rights of the holders of Preferred Stock provided for in Article
IV(D), Section 4.2 hereof.

                                   ARTICLE VI

                            Preemptive Rights Denied

                  The corporation elects to waive preemptive rights.

                                   ARTICLE VII

                                 Indemnification

                  The corporation shall indemnify to the fullest extent
permitted by law any person who is made, or threatened to be made, a party to an
action, suit or proceeding, whether civil, criminal, administrative,
investigative or otherwise (including an action, suit or proceeding by or in the
right of the corporation) by reason of the fact that the person is or was a
director of the corporation, or a fiduciary within the meaning of the Employee
Retirement Income Security Act of 1974 with respect to any employee benefit
plans of the corporation, or serves or served at the request of the corporation
as a director, or as a fiduciary of an employee benefit plan, of another
corporation, partnership, joint venture, trust or other enterprise. The
corporation shall pay for or reimburse the reasonable

<PAGE>

expenses incurred by any such person in any such proceeding to the fullest
extent not prohibited by law. This Article shall not be deemed exclusive of any
other provisions for indemnification of directors, officers and fiduciaries that
may be included in any statute, bylaw, agreement, resolution of shareholders or
directors or otherwise, both as to action in the official capacity of the person
indemnified and as to action in another capacity while holding office.

                                  ARTICLE VIII

                             Limitation of Liability

                  No director of the corporation shall be personally liable to
the corporation or its stockholders for monetary damages for conduct as a
director; provided that this Article VIII shall not eliminate the liability of a
director for any act or omission for which such elimination of liability is not
permitted under the Oregon Business Corporation Act. No amendment to the Oregon
Business Corporation Act that further limits the acts or omissions for which
elimination of liability is permitted shall affect the liability of a director
for any act or omission which occurs prior to the effective date of such
amendment.

                                               RADIX MICROSYSTEMS, INC.

Dated: June 23, 1989                           By  /s/ Glenford J. Myers
                                                   -----------------------------
                                                   Glenford J. Myers
                                                   President

<PAGE>

                              ARTICLES OF AMENDMENT
                  TO SECOND RESTATED ARTICLES OF INCORPORATION
                                       OF
                            RADIX MICROSYSTEMS, INC.

            1. The name of the corporation is Radix MicroSystems, Inc.

            2. Article I of the Second Restated Articles of Incorporation is
amended to read in its entirety as follows:

                                   "ARTICLE I

                                CORPORATION NAME

               The name of the corporation is RadiSys Corporation."

            3. The Amendment was adopted on November 17, 1989.

            4. Shareholder action was required to adopt the amendment. The
shareholder vote was as follows:

<TABLE>
<CAPTION>
Class or Series   Number of Shares     Number of Votes      Number of Votes     Number of Votes
  of Shares         Outstanding      Entitled to be Cast        Cast For         Cast Against
---------------   ----------------   -------------------   ------------------   ---------------
<S>               <C>                <C>                   <C>                  <C>
Common                4,202,008           4,202,008             4,202,008            -0-

Preferred             2,083,951           2,083,951             2,083,951            -0-
</TABLE>

                                         RADIX MICROSYSTEMS, INC.

                                         By:  /s/ Glenford J. Myers
                                              ----------------------------------
                                              Glenford J. Myers
                                              President

<PAGE>

                              ARTICLES OF AMENDMENT
                  TO SECOND RESTATED ARTICLES OF INCORPORATION
                                       OF
                               RADISYS CORPORATION

            1. The name of the corporation is RadiSys Corporation (the
"Company").

            2. The text of the amendments creating a new series of shares of
Preferred Stock is as follows:

               (a) Article IV, Section (D) of the Second Restated Articles is
amended and restated to read as follows:

            "(D) There shall be three series of Preferred Stock, with the
respective designations, number of shares and issue prices (the "Issue Price")
as follows:

<TABLE>
<CAPTION>
Designation                    No. of Shares    Issues Price
-----------                    -------------    ------------
<S>                            <C>              <C>
Series A Preferred Stock           355,556      $       4.22
("Series A Stock")

Series B Preferred Stock         1,820,988      $       2.70
("Series B Stock")

Series C Preferred Stock         2,159,504      $      1.389
("Series C Stock")
</TABLE>

               The rights, preferences, restrictions and other matters
relating to the Preferred Stock are as follows:"

               (b) The last sentence of Article IV, Section 4.3(a)(i) of the
Second Restated Articles is amended and restated to read as follows:

               "The Conversion Price per share for each series of Preferred
Stock (the "Conversion Price") shall be as follows; provided, however, that the
applicable Conversion Prices shall be subject to adjustment as set forth in
subsection (c) below:

<TABLE>
<CAPTION>
      Series            Conversion Price
--------------------    ----------------
<S>                     <C>
Series A Stock          $           .422
Series B Stock          $           2.70
Series C Stock          $          1.389
</TABLE>

               (c) Article IV, section 4.3(c)(ii)(B) of the Second Restated
Articles is amended and restated to read as follows:

               "(B) Up to 5,000,000 shares of Common Stock (inclusive of all
shares of Common Stock issued or deemed to be issued on or before the Purchase
Date for the Series B Stock, and appropriately adjusted for any stock dividend,
stock split, consolidation or recapitalization) issuable or issued to persons
who are or become employees, consultants, directors or officers of the
corporation, and any of such shares of Common Stock that are thereafter
repurchased by the corporation and issued or deemed to be issued to persons who
are or become employees, consultants, directors or officers of the corporation;"

<PAGE>

               (d) The first paragraph of. Article IV, Section 4.6 of the
Second Restated Articles is amended and restated to read as follows:

               "So long as any shares of Series A, Series B or Series C Stock
are outstanding, the corporation shall not, without first obtaining the approval
of the holders of at least a majority of the number of shares then outstanding
of the Series A Stock, the holders of at least a majority of the number of
shares then outstanding of the Series B Stock and the holders of at least a
majority of the number of shares then outstanding of the Series C Stock, which
consent may be evidenced by vote if a shareholder meeting is called or by
written consent of the majority of each series without a shareholder meeting:"

            3. The amendment was adopted on January 10, 1991.

            4. The designation, number of outstanding shares and number of votes
entitled to vote on this matter, and the number of votes cast for and against
the amendment were as follows:

<TABLE>
<CAPTION>
                                 Oustanding     Number      Votes       Votes
          Designation              Shares      of Votes    Cast For   Cast Against
------------------------------   ----------   ---------   ---------   ------------
<S>                              <C>          <C>         <C>         <C>
Common Stock                      4,210,417   4,210,417   4,186,250        0

Series A Preferred Stock            355,560   3,555,560   3,555,560        0

Series B Preferred Stock          1,728,395   1,728,395   1,728,395        0
</TABLE>

                                          RADISYS CORPORATION

                                          By:  /s/ Glenford J. Myers
                                               ---------------------------------
                                               Glenford J. Myers
                                               President

             Person to contact about this filing: Annette M. Mulee
                                                 at (503) 294-9666

<PAGE>

                              ARTICLES OF AMENDMENT
                  TO SECOND RESTATED ARTICLES OF INCORPORATION
                                       OF
                               RADISYS CORPORATION

       1. The name of the corporation is RadiSys Corporation (the "Company").

       2. The text of the amendment is as follows:

          a. Article IV(D), Section 4.3(c)(ii)(B) of the Second Restated
Articles of Incorporation of the Company is amended and restated to read in its
entirety as follows:

               "(B) Up to 5,200,000 shares of Common Stock (inclusive of all
          shares of Common Stock issued or deemed to be issued on or before
          April 22, 1994, and appropriately adjusted for any stock dividend,
          stock split, consolidation or recapitalization) issuable or issued to
          persons who are or become employees, consultants, directors or
          officers of the corporation, and any of such shares of Common Stock
          that are thereafter repurchased by the corporation and issued or
          deemed to be issued to persons who are or become employees,
          consultants, directors or officers of the corporation;"

      3.  The amendment was adopted on June 2,1994.

      4.  The designation, number of outstanding shares and number of votes
entitled to vote on this matter, and the number of votes cast for and against
the amendment were as follows:

<TABLE>
<CAPTION>
                      Outstanding      Number         Votes          Votes
    Designation         Shares        of Votes       Cast For     Cast Against
------------------    -----------    -----------    ----------    ------------
<S>                   <C>            <C>            <C>           <C>
      Common           4,740,821       4,740,821     3,858,637         0

Series A Preferred       355,560       3,555,560     3,555,560         0

Series B Preferred     1,728,395       1,728,395     1,728,395         0

Series C Preferred     2,159,504       2,159,504     2,159,504         0
</TABLE>

                                             RADISYS CORPORATION

                                             By:  /s/ Glenford J. Myers
                                                  ------------------------------
                                                  Glenford J. Myers
                                                  President

      5.  The person to contact about this filing is Annette M. Mulee at (503)
294-9666.

<PAGE>

                              ARTICLES OF AMENDMENT
                  TO SECOND RESTATED ARTICLES OF INCORPORATION
                                       OF
                               RADISYS CORPORATION

         1. The name of the corporation is RadiSys Corporation (the "Company").

         2. The text of the amendment is as follows:

            Article IV(A), of the Second Restated Articles of Incorporation of
the Company is amended and restated to read in its entirety as follows:

            A. The aggregate number of shares which the Corporation shall have
            authority to issue shall consist of 15,000,000 shares of common
            stock, without par value ("Common Stock"), and 10,000,000 shares of
            preferred stock, par value $.01 per share ("Preferred Stock").

                  When this amendment becomes effective, each of the shares of
            Common Stock issued and outstanding immediately prior to the time
            this amendment becomes effective shall be reclassified and changed
            into and constitute 1/3.3 of one share of fully paid Common Stock of
            the Corporation without further action of any kind. No fractional
            shares shall be issued on reclassification of the Common Stock and
            the number of shares of Common Stock for which the Common Stock is
            reclassified shall be rounded up to the nearest whole number.

         3. The amendment was adopted on August 22, 1995 and shall be effective
as of that date.

         4. Shareholder action was required to adopt the amendment. The
shareholder vote was as follows:

<TABLE>
<CAPTION>
                      Outstanding      Number         Votes         Votes
    Designation          Shares       of Votes       Cast For     Cast Against
------------------    -----------    -----------    ----------    ------------
<S>                   <C>            <C>            <C>           <C>
      Common           4,962,849      4,203,202     4,203,202          -0-

Series A Preferred       355,556        355,556       355,556          -0-

Series B Preferred     1,728,395      1,728,395     1,728,395          -0-

Series C Preferred     2,159,504      2,159,504     2,159,504          -0-
</TABLE>

                                               RADISYS CORPORATION

                                               By:  /s/ Glenford J. Myers
                                                    ----------------------------
                                                    Glenford J. Myers
                                                    President

         5.The person to contact about this filing is John Watkins at (503)
646-1800.

<PAGE>

                              ARTICLES OF AMENDMENT
                  TO SECOND RESTATED ARTICLES OF INCORPORATION
                                       OF
                               RADISYS CORPORATION

        1. The name of the corporation is RadiSys Corporation (the
"Corporation").

        2. Article IV(A), of the Second Restated Articles of Incorporation of
the Corporation is amended and restated to read in its entirety as follows:

          The aggregate number of shares which the Corporation shall have
          authority to issue shall consist of 50,000,000 shares of common stock,
          without par value ("Common Stock"), and 10,000,000 shares of preferred
          stock, par value $.01 per share ("Preferred Stock").

       3. The amendment was adopted by the shareholders of the Corporation on
May 20, 1997.

       4. Shareholder action was required to adopt the amendment. The
shareholder vote was as follows:

<TABLE>
<CAPTION>
               Outstanding      Number       Votes          Votes
Designation       Shares       of Votes     Cast For     Cast Against
-----------    -----------    ---------    ---------    ------------
<S>            <C>            <C>          <C>          <C>
  Common        7,560,377     7,560,377    4,624,324      1,240,980
</TABLE>

       5. The person to contact about this filing is Peter Bragdon, at (503)
294-9517.

Dated: June 23, 1997.

                                           RADISYS CORPORATION

                                           By:  /s/ Annette M. Mulee
                                                --------------------------------
                                                Annette M. Mulee
                                                Secretary

<PAGE>

                              ARTICLES OF AMENDMENT
                  TO SECOND RESTATED ARTICLES OF INCORPORATION
                                       OF
                               RADISYS CORPORATION

        1. The name of the corporation is RadiSys Corporation (the
"Corporation").

        2. Article IV(A) of the Second Restated Articles of Incorporation of
the Corporation is amended and restated to read in its entirety as follows:

          The aggregate number of shares which the corporation shall have
          authority to issue shall consist of 100,000,000 shares of. common
          stock, without par value ("Common Stock"), and 10,000,000 shares of
          preferred stock, par value $.01 per share ("Preferred Stock").

       3. The amendment was adopted by the shareholders of the Corporation on
May 16, 2000.

       4. Shareholder action was required to adopt the amendment. The
shareholder vote was as follows:

<TABLE>
<CAPTION>
               Outstanding      Number        Votes          Votes
Designation       Shares       of Votes     Cast For     Cast Against
-----------    -----------    ----------   ----------   -------------
<S>            <C>            <C>          <C>          <C>
  Common        16,853,421    16,853,421   13,452,482     1,100,138
</TABLE>

       5. The person to contact about this filing is Mary P. Pounds at (503)
294-9832.

Dated: May 17, 2000.

                                          RADISYS CORPORATION

                                          By:   /s/ Stephen F. Loughlin
                                                --------------------------------
                                                Stephen F. Loughlin
                                                Vice President of Finance and
                                                Administration and
                                                Chief Financial Officer

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