COMMUNICATIONS SYSTEMS, INC.
1990 EMPLOYEE STOCK PURCHASE PLAN
1. Establishment of Plan. Communications Systems, Inc. (hereinafter referred to as the “Company”) proposes to
grant to certain employees of the Company the opportunity to purchase common stock of the Company. Such common stock
shall be purchased pursuant to the plan herein set forth which shall be known as the “COMMUNICATIONS SYSTEMS, INC.
1990 EMPLOYEE STOCK PURCHASE PLAN” (hereinafter referred to as the “Plan”). The Company intends that the Plan shall
qualify as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1954, as amended, and shall
be construed in a manner consistent with the requirements of said Section 423 and the regulations thereunder.
2. Purpose. The Plan is intended to encourage stock ownership by all employees of the Company, and as an
incentive to them to remain in employment, improve operations, increase profits, and contribute more significantly to the
3. Administration. The Plan shall be administered by a stock purchase committee (hereinafter referred to as the
“Committee”) consisting of not less than three directors or employees of the Company, as designated by the Board of Directors
of the Company (hereinafter referred to as the “Board of Directors”). The Board of Directors shall fill all vacancies in the
Committee and may remove any member of the Committee at any time, with or without cause. The Committee shall select its own
chairman and hold its meetings at such times and places as it may determine. All determinations of the Committee shall be made
by a majority of its members. Any decision which is made in writing and signed by a majority of the members of the Committee
shall be effective as fully as though made by a majority vote at a meeting duly called and held. The determinations of the
Committee shall be made in accordance with its judgment as to the best interests of the C