<PAGE>
As filed with the Securities and Exchange Commission on March 20, 1996
Registration No. 333-
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
______________________
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
______________________
DIGI INTERNATIONAL INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 41-1532464
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11001 BREN ROAD EAST 55343
MINNETONKA, MINNESOTA (Zip Code)
(Address of principal executive offices)
DIGI INTERNATIONAL INC.
EMPLOYEE STOCK PURCHASE PLAN
(Full title of the plan)
Gerald A. Wall
Digi International Inc.
11001 Bren Road East
Minnetonka, Minnesota 55343
(Name and address of agent for service)
Telephone number, including area code, of agent for service: (612) 912-3029
______________________
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Proposed
Proposed maximum
Title of Amount maximum aggregate Amount of
securities to to be offering price offering registration
be registered registered per share (1) price (1) fee
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Stock, 500,000
$.01 par value shares $27.70 $13,850,000 $4,776
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
</TABLE>
(1) Estimated solely for the purpose of the registration fee pursuant to
Rule 457(h)(1) based on the average of the high and low sales prices per
share of the Registrant's Common Stock on March 13, 1996, as reported on
the Nasdaq National Market.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
DIGI INTERNATIONAL INC.
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE.
The following documents, previously filed (File No. 0-17972) with the
Securities and Exchange Commission (the "Commission") pursuant to the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), are, as of their
respective dates, incorporated in this Registration Statement by reference and
made a part hereof:
(1) The latest Annual Report on Form 10-K of Digi International Inc.
(the "Company") for the fiscal year ended September 30, 1995
filed pursuant to Section 13 of the Exchange Act.
(2) All other reports filed pursuant to Section 13(a) or 15(d) of the
Exchange Act since the end of the fiscal year covered by the
Annual Report referred to in (1) above.
(3) The description of the Company's Common Stock which is contained
in the Registration Statement on Form 8-A (File No. 0-17972), as
amended, filed under the Exchange Act and all amendments and
reports filed for the purpose of updating such description.
All reports and other documents subsequently filed by the Company
pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to
the date of this Registration Statement and prior to the filing of a
post-effective amendment which indicates that all of the shares of Common Stock
offered have been sold or which deregisters all shares of the Common Stock then
remaining unsold shall be deemed to be incorporated by reference in and a part
of this Registration Statement from the date of filing of such documents.
Any statement contained in a document incorporated, or deemed to be
incorporated, by reference herein shall be deemed to be modified or superseded
for purposes of this Registration Statement to the extent that a statement
contained herein or incorporated herein by reference or in any other
subsequently filed document that also is or is deemed to be incorporated by
reference herein modifies or supersedes such statement. Any statement so
modified or superseded shall not be deemed, except as so modified or superseded,
to constitute a part of this Registration Statement.
ITEM 4. DESCRIPTION OF SECURITIES.
Not Applicable.
ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL.
Not Applicable.
ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The Delaware General Corporation Law and Article V of the By-Laws of
the Company provide for broad indemnification of directors and officers of the
Company.
The Company also maintains a director and officer insurance policy
which insures the Company and its directors and officers against damages,
judgments, settlements and costs incurred by reason of certain acts of such
persons in their capacities as directors and officers.
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<PAGE>
ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED.
Not Applicable.
ITEM 8. EXHIBITS.
Exhibit Description
------- ------------
4.01 Restated Certificate of Incorporation of the Company.*
4.02 Amended and Restated By-Laws of the Company.**
4.03 Digi International Inc. Employee Stock Purchase Plan
5 Opinion of Faegre & Benson LLP as to the legality of the
shares being registered.
23.01 Consent of Faegre & Benson LLP is contained in its opinion
filed as Exhibit 5 to this Registration Statement.
23.02 Consent of Coopers & Lybrand L.L.P.
24 Power of Attorney (included in the Signature page to the
Registration Statement).
* Incorporated by reference to Exhibit 3(a) to the Company's Registration
Statement on Form S-1 (File No. 33-30725).
** Incorporated by reference to Exhibit 3(b) to the Company's Registration
Statement on Form S-1 (File No. 33-42384).
ITEM 9. UNDERTAKINGS.
A. The Company hereby undertakes:
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this Registration Statement:
(i) To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising
after the effective date of the Registration Statement (or the most
recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in the Registration Statement. Notwithstanding the foregoing, any
increase or decrease in the volume of securities offered (if the total
dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to
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<PAGE>
Rule 424(b) if, in the aggregate, the changes in volume and price
represent no more than a twenty percent change in the maximum
aggregate offering price set forth in the "Calculation of
Registration Fee" table in the effective Registration Statement; and
(iii) To include any material information with respect to the
plan of distribution not previously disclosed in the Registration
Statement or any material change to such information in the
Registration Statement;
provided, however, that paragraphs (A)(1)(i) and (A)(1)(ii) do not apply if the
Registration Statement is on Form S-3 or Form S-8, and the information required
to be included in a post-effective amendment by those paragraphs is contained in
periodic reports filed by the Company pursuant to Section 13 or Section 15(d) of
the Securities Exchange Act of 1934 that are incorporated by reference in the
Registration Statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
B. The Company hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the Company's annual
report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act
of 1934 (and, where applicable, each filing of an employee benefit plan's annual
report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that
is incorporated by reference in the Registration Statement shall be deemed to be
a new registration statement relating to the securities offered herein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
C. Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the Company pursuant to the foregoing provisions, or otherwise, the
Company has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Company of expenses
incurred or paid by a director, officer or controlling person of the Company in
the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Company will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended,
the Registrant has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of
Minnetonka, State of Minnesota, on March 19, 1996.
DIGI INTERNATIONAL INC.
By /s/ Ervin F. Kamm, Jr.
-------------------------------------
Ervin F. Kamm, Jr.
President and Chief Executive Officer
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and
appoints Ervin F. Kamm, Jr. and Gerald A. Wall, or either of them, such
person's true and lawful attorney-in-fact and agent with full power of
substitution and resubstitution for such person and in such persons' name,
place and stead, in any and all capacities, to sign the Registration Statement
on Form S-8 of Digi International Inc. and any or all amendments (including
post-effective amendments) to the Registration Statement, and to file the
same, with all exhibits hereto and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully to all intents and purposes as such person
might or could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents, or either of them, or their substitute or
substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities indicated on March 19, 1996.
Signature Title
- --------- -----
/s/ Ervin F. Kamm, Jr. President, Chief Executive Officer
- ---------------------------------- and Director
Ervin F. Kamm, Jr. (Principal Executive Officer)
/s/ Gerald A. Wall Vice President, Chief Financial
- ---------------------------------- Officer and Treasurer
Gerald A. Wall (Principal Financial and Accounting
Officer)
/s/ John P. Schinas Chairman of the Board and Director
- ----------------------------------
John P. Schinas
/s/ Willis K. Drake
- ---------------------------------- Director
Willis K. Drake
/s/ Richard E. Eichhorn
- ---------------------------------- Director
Richard E. Eichhorn
/s/ Mykola Moroz
- ---------------------------------- Director
Mykola Moroz
/s/ Richard E. Offerdahl
- ---------------------------------- Director
Richard E. Offerdahl
/s/ Jagdish N. Sheth
- ---------------------------------- Director
Jagdish N. Sheth
/s/ David Stanley
- ---------------------------------- Director
David Stanley
II-4
<PAGE>
INDEX TO EXHIBITS
Method
Exhibit Description of Filing
- ------- ----------- ---------
Incorporated
4.01 Restated Certificate of Incorporation of the Company.... by Reference
Incorporated
4.02 Amended and Restated By-Laws of the Company............. by Reference
Electronic
4.03 Digi International Inc. Employee Stock Purchase Plan.... Transmission
5 Opinion of Faegre & Benson LLP as to the legality Electronic
of the shares being registered.......................... Transmission
23.01 Consent of Faegre & Benson LLP is contained in its
opinion filed as Exhibit 5 to this Registration
Statement
Electronic
23.02 Consent of Coopers & Lybrand L.L.P..................... Transmission
24 Power of Attorney (included in the Signature page Electronic
to the Registration Statement).......................... Transmission
M1:0059194.01
II-5
<PAGE>
EXHIBIT 4.03
DIGI INTERNATIONAL INC. EMPLOYEE STOCK PURCHASE PLAN
1. PURPOSE AND SCOPE OF PLAN. The purpose of this Digi International
Inc. Employee Stock Purchase Plan (the "Plan") is to provide the employees of
Digi International Inc. (the "Company") with an opportunity to acquire a
proprietary interest in the Company through the purchase of its Common Stock
and, thus, to develop a stronger incentive to work for the continued success of
the Company. The Plan is intended to be an "employee stock purchase plan" within
the meaning of Section 423(b) of the Internal Revenue Code of 1986, as amended,
and shall be interpreted and administered in a manner consistent with such
intent.
2. DEFINITIONS.
2.1. The terms defined in this section are used (and capitalized) elsewhere
in this Plan:
(a) "AFFILIATE" means any corporation that is a "parent corporation" or
"subsidiary corporation" of the Company, as defined in Sections 424(e) and
424(f) of the Code or any successor provision, and whose participation in
the Plan has been approved by the Board of Directors.
(c) "BOARD OF DIRECTORS" means the Board of Directors of the Company.
(d) "CODE" means the Internal Revenue Code of 1986, as amended from time
to time.
(e) "COMMITTEE" means three or more Disinterested Persons designated by
the Board of Directors to administer the Plan under Section 13.
(f) "COMMON STOCK" means the common stock, par value $.01 per share (as
such par value may be adjusted from time to time), of the Company.
(g) "COMPANY" means Digi International Inc.
(h) "COMPENSATION" means the gross cash compensation (including wage,
salary, commission, bonus, and overtime earnings) paid by the Company or any
Affiliate to a Participant in accordance with the terms of employment.
(i) "DISINTERESTED PERSONS" means a member of the Board of Directors who
is considered a disinterested person within the meaning of Exchange Act Rule
16b-3 or any successor definition.
(j) "ELIGIBLE EMPLOYEE" means any employee of the Company or an
Affiliate who has been employed for at least 90 days and whose customary
employment is at least 20 hours per week; provided, however, that "Eligible
Employee" shall not include any person who would be deemed for purposes of
Section 423(b)(3) of the Code, to own stock possessing 5% or more of the
total combined voting power or value of all classes of stock of the Company.
(k) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended
from time to time.
(l) "FAIR MARKET VALUE" of a share of Common Stock as of any date means,
if the Company's Common Stock is listed on a national securities exchange or
traded in the national market system, the mean between the high and low sale
prices for such Common Stock on such exchange or market on said date, or, if
no sale has been made on such exchange or market on said date, on
A-1
<PAGE>
the last preceding day on which any sale shall have been made. If such
determination of Fair Market Value is not consistent with the then current
regulations of the Secretary of the Treasury applicable to plans intended to
qualify as an "employee stock purchase plan" within the meaning of Section
423(b) of the Code, however, Fair Market Value shall be determined in
accordance with such regulations. The determination of Fair Market Value
shall be subject to adjustment as provided in Section 14.
(m) "PARTICIPANT" means an Eligible Employee who has elected to
participate in the Plan in the manner set forth in Section 4.
(n) "PLAN" means this Digi International Inc. Employee Stock Purchase
Plan, as amended from time to time.
(o) "PURCHASE PERIOD" means each quarter of the Company's fiscal year.
The first Purchase Period will be the quarter that starts April 1, 1996 and
ends June 30, 1996.
(p) "RECORDKEEPING ACCOUNT" means the account maintained in the books
and records of the Company recording the amount withheld from each
Participant through payroll deductions made under the Plan.
3. SCOPE OF THE PLAN. Shares of Common Stock may be sold by the Company
to Eligible Employees commencing April 1, 1996, as hereinafter provided, but not
more than 500,000 shares of Common Stock (subject to adjustment as provided in
Section 14) shall be sold to Eligible Employees pursuant to this Plan. All sales
of Common Stock pursuant to this Plan shall be subject to the same terms,
conditions, rights and privileges. The shares of Common Stock delivered by the
Company pursuant to this Plan may be acquired shares having the status of any
combination of authorized but unissued shares, newly issued shares, or treasury
shares.
4. ELIGIBILITY AND PARTICIPATION. To be eligible to participate in the
Plan for a given Purchase Period, an employee must be an Eligible Employee on
the first day of such Purchase Period. An Eligible Employee may elect to
participate in the Plan by filing an enrollment form with the Company before the
first day of such Purchase Period that authorizes regular payroll deductions
from Compensation beginning with the first payday in such Purchase Period and
continuing until the Eligible Employee withdraws from the Plan, modifies his or
her authorization, or ceases to be an Eligible Employee, as hereinafter
provided.
5. AMOUNT OF COMMON STOCK EACH ELIGIBLE EMPLOYEE MAY PURCHASE.
5.1. Subject to the provisions of the Plan, each Eligible Employee shall
be offered the right to purchase on the last day of the Purchase Period the
number of shares of Common Stock (including fractional shares) that can be
purchased at the price specified in Section 5.2 with the entire credit balance
in the Participant's Recordkeeping Account; provided, however, that the Fair
Market Value (determined on the first day of any Purchase Period) of shares of
Common Stock that may be purchased by a Participant during such Purchase Period
shall not exceed the excess, if any, of (i) $25,000 over (ii) the Fair Market
Value (determined on the first day of the relevant Purchase Period) of shares of
Common Stock previously acquired by the Participant in any prior Purchase Period
during such calendar year. Notwithstanding the foregoing, no Eligible Employee
shall be granted an option to acquire shares of Common Stock under this Plan
which permits the Eligible Employee's rights to purchase shares of Common Stock
under this Plan and all employee stock purchase plans of the Company and the
Affiliates to accrue at a rate which exceeds $25,000 of Fair
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<PAGE>
Market Value (determined at the time such option is granted) for each calendar
year in which such option is outstanding at any time. If the purchases by all
Participants would otherwise cause the aggregate number of shares of Common
Stock to be sold under the Plan to exceed the number specified in Section 3,
however, each Participant shall be allocated at a ratable portion of the maximum
number of shares of Common Stock which may be sold.
5.2. The purchase price of each share of Common Stock sold pursuant to
this Plan will be the lesser of (a) or (b) below:
(a) 85% of the Fair Market Value of such share on the first day of the
Purchase Period.
(b) 85% of the Fair Market Value of such share on the last day of the
Purchase Period.
6. METHOD OF PARTICIPATION.
6.1. The Company shall give notice to each Eligible Employee of the
opportunity to purchase shares of Common Stock pursuant to this Plan and the
terms and conditions for such offering. Such notice is subject to revision by
the Company at any time prior to the date of purchase of such shares. The
Company contemplates that for tax purposes the first day of a Purchase Period
will be the date of the offering of such shares.
6.2. Each Eligible Employee who desires to participate in the Plan for
a Purchase Period shall signify his or her election to do so by signing an
election form developed by the Committee. An Eligible Employee may elect to have
any whole percent of Compensation withheld, but not exceeding ten percent (10%)
per pay period. An election to participate in the Plan and to authorize payroll
deductions as described herein must be made before the first day of the Purchase
Period to which it relates and shall remain in effect unless and until such
Participant withdraws from this Plan, modifies his or her authorization, or
terminates his or her employment with the Company, as hereinafter provided.
6.3. Any Eligible Employee who does not make a timely election as provided
in Section 6.2, shall be deemed to have elected not to participate in the
Plan. Such election shall be irrevocable for such Purchase Period.
7. RECORDKEEPING ACCOUNT.
7.1. The Company shall maintain a Recordkeeping Account for each
Participant. Payroll deductions pursuant to Section 6 will be credited to such
Recordkeeping Accounts on each payday.
7.2. No interest will be credited to a Participant's Recordkeeping
Account.
7.3. The Recordkeeping Account is established solely for accounting
purposes, and all amounts credited to the Recordkeeping Account will remain part
of the general assets of the Company.
7.4. A Participant may not make any separate cash payment into the
Recordkeeping Account.
8. RIGHT TO ADJUST PARTICIPATION OR TO WITHDRAW.
8.1. A Participant may, at any time during a Purchase Period, direct the
Company to make no further deductions from his or her Compensation or to adjust
the amount of such deductions. Upon either of such actions, future payroll
deductions with respect to such Participant shall cease or be adjusted in
accordance with the Participant's direction.
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<PAGE>
8.2. Any Participant who stops payroll deductions may not thereafter resume
payroll deductions during such Purchase Period.
8.3. At any time before the end of a Purchase Period, any Participant may
also withdraw from the Plan. In such event, all future payroll deductions
shall cease and the entire credit balance in the Participant's Recordkeeping
Account will be paid to the Participant, without interest, in cash within 15
days. A Participant who withdraws from the Plan will not be eligible to reenter
the Plan until the next succeeding Purchase Period.
8.4. Notification of a Participant's election to adjust or terminate
deductions, or to withdraw from the Plan, shall be made by the filing of an
appropriate notice to such effect with the Company.
9. TERMINATION OF EMPLOYMENT. If the employment of a Participant is
terminated for any reason, including death, disability, or retirement, the
entire balance in the Participant's Recordkeeping Account will be applied to the
purchase of shares as provided in Section 10.1 as of the last day of the
Purchase Period in which the Participant's employment terminated; except that if
such Participant so requests prior to the last day of such Purchase Period, the
Company shall refund in cash within 15 days all amounts credited to his or her
Recordkeeping Account.
10. PURCHASE OF SHARES.
10.1. As of the last day of the Purchase Period, the entire credit balance
in each Participant's Recordkeeping Account will be used to purchase shares
(including fractional shares) of Common Stock (subject to the limitations of
Section 5) unless the Participant has filed an appropriate form with the Company
in advance of that date (which either elects to purchase a specified number of
shares which is less than the number described above or elects to receive the
entire credit balance in cash). Any amount in a Participant's Recordkeeping
Account that is not used to purchase shares pursuant to this Section 10.1 will
be refunded to the Participant.
10.2. Shares of Common Stock acquired by each Participant shall be held in
a general account maintained for the benefit of all Participants.
10.3. Certificates for the number of whole shares of Common Stock,
determined as aforesaid, purchased by each Participant shall be issued and
delivered to him or her only upon request of the Participant or his or her
representative directed to the Company. No Certificates for fractional shares
will be issued. Instead, Participants will receive a cash distribution
representing any fractional shares.
10.4. Dividends with respect to a Participant's shares held in the general
account will, at the election of the Participant, either be paid to the
Participant in cash or reinvested in additional shares of Common Stock. If a
Participant fails to make such an election, all dividends with respect to the
Participant's shares held in the general account will automatically be
reinvested to purchase additional shares of Common Stock.
10.5. Each Participant will be entitled to vote all shares held for the
benefit of such Participant in the general account.
11. RIGHTS AS A STOCKHOLDER. A Participant shall not be entitled to any
of the rights or privileges of a stockholder of the Company with respect to such
shares, including the right to receive any dividends which may be declared by
the Company, until (i) he or she actually has paid the purchase price for such
shares and (ii) either the shares have been credited to his or her account or
certificates have been issued to him or her, both as provided in Section 10.
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<PAGE>
12. RIGHTS NOT TRANSFERABLE. A Participant's rights under this Plan are
exercisable only by the Participant during his or her lifetime, and may not be
sold, pledged, assigned or transferred in any manner other than by will or the
laws of descent and distribution. Any attempt to sell, pledge, assign or
transfer the same shall be null and void and without effect. The amounts
credited to a Recordkeeping Account may not be assigned, transferred, pledged or
hypothecated in any way, and any attempted assignment, transfer, pledge,
hypothecation or other disposition of such amounts will be null and void and
without effect.
13. ADMINISTRATION OF THE PLAN. This Plan shall be administered by the
Committee, which is authorized to make such uniform rules as may be necessary to
carry out its provisions. The Committee shall determine any questions arising in
the administration, interpretation and application of this Plan, and all such
determinations shall be conclusive and binding on all parties.
14. ADJUSTMENT UPON CHANGES IN CAPITALIZATION. In the event of any
change in the Common Stock of the Company by reason of stock dividends,
split-ups, corporate separations, recapitalizations, mergers, consolidations,
combinations, exchanges of shares and the like, the aggregate number and class
of shares available under this Plan and the number, class and purchase price of
shares available but not yet purchased under this Plan, shall be adjusted
appropriately by the Committee.
15. REGISTRATION OF CERTIFICATES. Stock certificates will be registered
in the name of the Participant, or jointly in the name of the Participant and
another person, as the Participant may direct on an appropriate form.
16. AMENDMENT OF PLAN. The Board of Directors may at any time amend this
Plan in any respect which shall not adversely affect the rights of Participants
pursuant to shares previously acquired under the Plan, except that, without
stockholder approval on the same basis as required by Section 19.1, no amendment
shall be made (i) to increase the number of shares to be reserved under this
Plan, (ii) to decrease the minimum purchase price, (iii) to withdraw the
administration of this Plan from the Committee, or (iv) to change the definition
of employees eligible to participate in the Plan.
17. EFFECTIVE DATE OF PLAN. This Plan shall consist of an offering
commencing April 1, 1996, and ending June 30, 1996, and continuing on a
quarterly basis thereafter. All rights of Participants in any offering hereunder
shall terminate at the earlier of (i) the day that Participants become entitled
to purchase a number of shares of Common Stock equal to or greater than the
number of shares remaining available for purchase or (ii) at any time, at the
discretion of the Board of Directors, after 30 days' notice has been given to
all Participants. Upon termination of this Plan, shares of Common Stock shall be
issued to Participants in accordance with Section 10, and cash, if any,
remaining in the Participant's Recordkeeping Accounts shall be refunded to them,
as if the Plan were terminated at the end of a Purchase Period.
18. GOVERNMENTAL REGULATIONS AND LISTING. All rights granted or to be
granted to Eligible Employees under this Plan are expressly subject to all
applicable laws and regulations and to the approval of all governmental
authorities required in connection with the authorization, issuance, sale or
transfer of the shares of Common Stock reserved for this Plan, including,
without limitation, there being a current registration statement of the Company
under the Securities Act of 1933, as amended, covering the shares of Common
Stock purchasable on the last day of the Purchase Period applicable to such
shares, and if such a registration statement shall not then be effective, the
term of such Purchase Period shall be extended until the first business day
after the effective date of such a registration
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<PAGE>
statement, or post-effective amendment thereto. If applicable, all such rights
hereunder are also similarly subject to effectiveness of an appropriate listing
application to a national securities exchange or a national market system,
covering the shares of Common Stock under the Plan upon official notice of
issuance.
19. MISCELLANEOUS
19.1. This Plan shall be submitted for approval by the stockholders of the
Company prior to June 30, 1996. If not so approved prior to such date, this
Plan shall terminate on June 30, 1996.
19.2. This Plan shall not be deemed to constitute a contract of employment
between the Company and any Participant, nor shall it interfere with the right
of the Company to terminate any Participant and treat him or her without regard
to the effect which such treatment might have upon him or her under this Plan.
19.3. Wherever appropriate as used herein, the masculine gender may be read
as the feminine gender, the feminine gender may be read as the masculine
gender, the singular may be read as the plural and the plural may be read as the
singular.
19.4. The Plan, and all agreements hereunder, shall be construed in
accordance with and governed by the laws of the State of Minnesota.
19.5. Delivery of shares of Common Stock or of cash pursuant to this Plan
shall be subject to any required withholding taxes. A person entitled to
receive shares of Common Stock may, as a condition precedent to receiving such
shares, be required to pay the Company a cash amount equal to the amount of any
required withholdings.
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<PAGE>
EXHIBIT 5
March 20, 1996
Board of Directors
Digi International Inc.
11001 Bren Road East
Minnetonka, Minnesota 55343
In connection with the proposed registration under the Securities
Act of 1933, as amended, of shares of Common Stock of Digi International Inc.,
a Delaware corporation (the "Company"), offered and to be offered pursuant to
the Digi International Inc. Employee Stock Purchase Plan (the "Plan"), we have
examined the Company's Restated Certificate of Incorporation, its Amended and
Restated By-Laws, and such other documents, including the Registration
Statement on Form S-8, dated the date hereof, to be filed with the Securities
and Exchange Commission relating to such shares (the "Registration
Statement"), and have reviewed such matters of law as we have deemed necessary
for this opinion. Accordingly, based upon the foregoing, we are of the opinion
that:
1. The Company is duly and validly organized and existing and in
good standing under the laws of the State of Delaware.
2. The Company has duly authorized the issuance of the shares of
Common Stock which may be issued pursuant to the Plan.
3. The shares which may be issued pursuant to the Plan will be, upon
issuance, validly issued and outstanding and fully paid and nonassessable.
4. All necessary corporate action has been taken by the Company to
adopt the Plan, and the Plan is a validly existing plan of the Company.
We consent to the filing of this opinion as an exhibit to the
Registration Statement.
Very truly yours,
/s/ Faegre & Benson LLP
FAEGRE & BENSON LLP
M1:0059194.01
<PAGE>
EXHIBIT 23.02
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration statement of
Digi International Inc. on Form S-8 of our reports dated November 15, 1995,
on our audits of the consolidated financial statements and financial
statement schedule of Digi International Inc. as of September 30, 1995 and
1994, and for the years ended September 30, 1995, 1994 and 1993, which
reports are included in or incorporated by reference in the Annual Report on
Form 10-K.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
Minneapolis, Minnesota
March 20, 1996
