<SEC-DOCUMENT>0000897101-12-001254.txt : 20120801
<SEC-HEADER>0000897101-12-001254.hdr.sgml : 20120801
<ACCEPTANCE-DATETIME>20120801115419
ACCESSION NUMBER:		0000897101-12-001254
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		6
FILED AS OF DATE:		20120801
DATE AS OF CHANGE:		20120801
EFFECTIVENESS DATE:		20120801

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INSIGNIA SYSTEMS INC/MN
		CENTRAL INDEX KEY:			0000875355
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-ADVERTISING [7310]
		IRS NUMBER:				411656308
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-8
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-182981
		FILM NUMBER:		12999096

	BUSINESS ADDRESS:	
		STREET 1:		8799 BROOKLYN BLVD.
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55445
		BUSINESS PHONE:		7633926200

	MAIL ADDRESS:	
		STREET 1:		8799 BROOKLYN BLVD.
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55445
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>insignia123129_s8.htm
<DESCRIPTION>FORM S-8
<TEXT>
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<P STYLE="font: 6pt Times New Roman,serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">As filed with the Securities and Exchange Commission
on August 1, 2012.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">Registration no. 333-_______________</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: bold 11pt Times New Roman,serif; margin: 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 16pt Times New Roman,serif; margin: 0; text-align: center"><B></B></P>

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<P STYLE="font: 16pt Times New Roman,serif; margin: 0; text-align: center"><B>FORM S-8</B></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center">REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</P>

<P STYLE="font: 10.5pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 16pt Times New Roman,serif; margin: 0; text-align: center"><B>INSIGNIA SYSTEMS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">(Exact name of registrant as specified in its charter)</P>

<P STYLE="font: 10.5pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 50%; font: bold 11pt Times New Roman,serif; text-align: center">Minnesota</TD>
    <TD NOWRAP STYLE="width: 50%; font: bold 11pt Times New Roman,serif; text-align: center"><B>41-1656308</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font: 12pt Times New Roman,serif; text-align: center"><FONT STYLE="font-size: 10pt">(State or other jurisdiction
    of incorporation or organization)</FONT></TD>
    <TD NOWRAP STYLE="font: 12pt Times New Roman,serif; text-align: center"><FONT STYLE="font-size: 10pt">(IRS Employer Identification
    No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10.5pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center"><B>8799 Brooklyn Blvd., Minneapolis, MN 55445</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 2in 0 139.5pt; text-align: center">(Address of principal executive offices)</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 12pt Times New Roman,serif; margin: 0; text-align: center">2003 Incentive Stock Option Plan<BR>
Employee Stock Purchase Plan</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">(Full title of the plan(s))</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center"><B>Scott F. Drill<BR>
Chairman and Chief Executive Officer<BR>
Insignia Systems, Inc.<BR>
8799 Brooklyn Blvd., Minneapolis, MN 55445</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">(Name and address of agent for service)</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center"><B>(763) 392-6200</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 45pt 0 40.5pt; text-align: center">(Telephone number, including area code,
of agent for service)</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 45pt 0 40.5pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 45pt 0 40.5pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.25in">Indicate by check mark whether the registrant is a
large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of
&ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2
of the Exchange Act. (Check one):</P>

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<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 25%; font: 10pt Times New Roman,serif; text-align: center">&nbsp;Large accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD NOWRAP STYLE="width: 25%; font: 10pt Times New Roman,serif; text-align: center">&nbsp;Accelerated filer <FONT STYLE="font-family: Wingdings">&thorn;</FONT></TD>
    <TD NOWRAP STYLE="width: 25%; font: 10pt Times New Roman,serif; text-align: center">&nbsp;&nbsp;&nbsp;Non-accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD NOWRAP STYLE="width: 25%; font: 10pt Times New Roman,serif; text-align: center">&nbsp;&nbsp;Smaller reporting company <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0 45pt 0 40.5pt; text-align: center">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman,serif; margin: 0 45pt 0 40.5pt; text-align: center">CALCULATION OF REGISTRATION FEE</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 45pt 0 40.5pt; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 20%; font: 6pt Times New Roman,serif; text-align: center; border-top: Black 2.25pt double">&nbsp;</TD>
    <TD STYLE="width: 20%; font: 6pt Times New Roman,serif; text-align: center; border-top: Black 2.25pt double">&nbsp;</TD>
    <TD STYLE="width: 20%; font: 6pt Times New Roman,serif; text-align: center; border-top: Black 2.25pt double">&nbsp;</TD>
    <TD STYLE="width: 20%; font: 6pt Times New Roman,serif; text-align: center; border-top: Black 2.25pt double">&nbsp;</TD>
    <TD STYLE="width: 20%; font: 6pt Times New Roman,serif; text-align: center; border-top: Black 2.25pt double">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 8pt Times New Roman,serif; text-align: center">TITLE OF SECURITIES<BR> TO BE REGISTERED</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 8pt Times New Roman,serif; text-align: center">AMOUNT TO BE<BR> REGISTERED (1)</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 8pt Times New Roman,serif; text-align: center">PROPOSED MAXIMUM<BR> OFFERING PRICE<BR> PER SHARE (2)</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 8pt Times New Roman,serif; text-align: center">PROPOSED MAXIMUM<BR>
    AGGREGATE OFFERING<BR> PRICE (2)</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 8pt Times New Roman,serif; text-align: center">AMOUNT OF<BR> REGISTRATION FEE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 6pt Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman,serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: center">Common Stock, par value<BR> $.01 per share</TD>
    <TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 10pt">700,000 shares</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 10pt">$1.70</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 10pt">$1,190,000</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 10pt">$136.37</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 2.25pt double; font: 6pt Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font: 6pt Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font: 6pt Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font: 6pt Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font: 6pt Times New Roman,serif; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 8pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Includes 500,000 shares of common stock to be registered under the
2003 Incentive Stock Option Plan, and 200,000 shares of common stock to be registered under the Employee Stock Purchase Plan.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 8pt">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(c) under the Securities Act of 1933, based on the average of the high and low price per share reported on
the Nasdaq Capital Market on July 30, 2012.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><B>PART I </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><B>INFORMATION REQUIRED IN </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><B>THE SECTION 10(a) PROSPECTUS </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify"><B>ITEM 1.&nbsp;&nbsp;PLAN INFORMATION </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">Not required to be filed in the Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify"><B>ITEM 2.&nbsp;&nbsp;REGISTRANT INFORMATION AND EMPLOYEE
PLAN ANNUAL INFORMATION </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">Not required to be filed in the Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">The documents containing the information specified
in Part I of Form S-8 have been or will be sent or given to participating employees as specified in Rule 428(b)(1) of the Securities
Act. Such documents are not being filed with the Commission either as part of this Registration Statement or as prospectuses or
prospectus supplements pursuant to Rule 424 of the Securities Act. These documents and the documents incorporated by reference
into this Registration Statement pursuant to Item 3 of Part II of this Registration Statement, taken together, constitute a prospectus
that meets the requirements of Section 10(a) of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman,serif; margin: 0; text-align: center">PART II</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><B>INFORMATION REQUIRED IN<BR>
THE REGISTRATION STATEMENT </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>ITEM 3.&nbsp;&nbsp;INCORPORATION OF DOCUMENTS BY REFERENCE </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">The following documents previously filed by the Registrant
with the Securities and Exchange Commission are incorporated by reference into this Registration Statement:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Current Report on Form 8-K, filed January 13, 2012;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 45pt; text-align: justify; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Current Report on Form 8-K, filed March 5, 2012;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(c)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Annual Report on Form 10-K for the year ended December 31, 2011,
filed March 7, 2012;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(d)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Current Report on Form 8-K, filed April 4, 2012;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(e)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Current Report on Form 8-K, filed May 1, 2012;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(f)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Current Report on Form 8-K, filed May 3, 2012;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(g)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Quarterly Report on Form 10-Q for the quarter ended March 31, 2012,
filed May 3, 2012;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(h)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Current Report on Form 8-K, filed May 25, 2012;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Current Report on Form 8-K, filed July 27, 2012;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(j)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Quarterly Report on Form 10-Q for the quarter ended June 30, 2012,
filed July 31, 2012;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">(k)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Description of Common Stock contained
in a registration statement filed under the Securities Exchange Act, including any amendment or report filed for the purpose of
updating such description.
</FONT></TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.25in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.25in; text-align: justify">All documents filed by the Registrant pursuant
to Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, subsequent to the date of this Registration Statement
and prior to the filing of a post-effective amendment which indicates that all securities registered pursuant to this Registration
Statement have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference
into this Registration Statement and to be part of it from the date of filing of such documents. Any statement contained in a document
incorporated or deemed to be incorporated by reference into this Registration Statement 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 documents which also is or is deemed to be incorporated by reference) modifies or supersedes
such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute
a part of this Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman,serif; margin: 0">ITEM 4.&nbsp;&nbsp;DESCRIPTION OF SECURITIES</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Not Applicable.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>ITEM 5.&nbsp;&nbsp;INTERESTS OF NAMED EXPERTS AND COUNSEL </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Not Applicable.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>ITEM 6.&nbsp;&nbsp;INDEMNIFICATION OF DIRECTORS AND OFFICERS </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0in">Section 302A.521 of Minnesota Statutes
requires the Registrant to indemnify a person made or threatened to be made a party to a proceeding by reason of the former or
present official capacity of the person with respect to the Registrant, against judgments, penalties, fines, including, without
limitation, excise taxes assessed against the person with respect to an employee benefit plan, settlements and reasonable expenses,
including attorneys&rsquo; fees and disbursements, incurred by the person in connection with the proceeding, if such person (1)
has not been indemnified by another organization or employee benefit plan for the same judgments, penalties, fines, including,
without limitation, excise taxes assessed against the person with respect to an employee benefit plan, settlements, and reasonable
expenses, including attorneys' fees and disbursements, incurred by the person in connection with the proceeding with respect to
the same acts or omissions; (2) acted in good faith; (3) received no improper personal benefit, and statutory procedure has been
followed in the case of any conflict of interest by a director; (4) in the case of a criminal proceeding, had no reasonable cause
to believe the conduct was unlawful; and (5) in the case of acts or omissions occurring in the person's performance in the official
capacity of director or, for a person not a director, in the official capacity of officer, committee member or employee, reasonably
believed that the conduct was in the best interests of the Registrant, or, in the case of performance by a director, officer or
employee of the Registrant as a director, officer, partner, trustee, employee or agent of another organization or employee benefit
plan, reasonably believed that the conduct was not opposed to the best interests of the Registrant. In addition, Section 302A.521,
subd. 3, requires payment by the Registrant, upon written request, of reasonable expenses in advance of final disposition in certain
instances. A decision as to required indemnification is made by a disinterested majority of the Board of Directors present at a
meeting at which a disinterested quorum is present, or by a designated committee of the Board, by special legal counsel, by the
shareholders or by a court. The Registrant's Bylaws provide for indemnification of officers, directors, employees, and agents to
the fullest extent provided by Section 302A.521. Insofar as indemnification for liabilities arising under the Securities Act of
1933, as amended may be permitted to directors, officers and controlling persons of the Registrant pursuant to the provisions referenced
in Item 6 of this Registration Statement or otherwise, the Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant 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 hereunder, the Registrant
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 Securities Act and will
be governed by the final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">The Registrant also maintains directors&rsquo; and
officers&rsquo; liability insurance.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify"><B>ITEM 7.&nbsp;&nbsp;EXEMPTION FROM REGISTRATION CLAIMED
</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Not Applicable.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>ITEM 8.&nbsp;&nbsp;EXHIBITS </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.1</TD><TD STYLE="text-align: justify">2003 Incentive Stock Option Plan, as amended (filed herewith)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.2</TD><TD STYLE="text-align: justify">Employee Stock Purchase Plan, as amended (filed herewith)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.1</TD><TD STYLE="text-align: justify">Opinion and Consent of Best &amp; Flanagan LLP (filed herewith)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">23.1</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Baker Tilly Virchow Krause, LLP, independent registered
public accounting firm (filed herewith)</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">23.2</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Grant Thornton LLP, independent registered public accounting
firm (filed herewith)</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">23.3</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Best &amp; Flanagan LLP (included in Exhibit 5.1)</FONT></TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">24.1</TD><TD STYLE="text-align: justify">Powers of Attorney (included on page II-7 of this Registration Statement)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>ITEM 9.&nbsp;&nbsp;UNDERTAKINGS </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">(a)&nbsp;&nbsp;The undersigned Registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 13.5pt">(1)&nbsp;&nbsp;To file, during any period in which
offers or sales are being made, a post-effective amendment to this Registration Statement:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 27pt">(i)&nbsp;&nbsp;To include any prospectus required by section 10(a)(3)
of the Securities Act of 1933;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: 13.5pt">(ii)&nbsp;&nbsp;To
reflect in the prospectus any facts or events arising after the effective date of this 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 this Registration Statement. Notwithstanding the foregoing, any increase or decrease in 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 Securities and Exchange Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the &quot;Calculation of Registration Fee&quot; table in the effective registration statement;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: 13.5pt">(iii)&nbsp;&nbsp;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.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">PROVIDED, HOWEVER, that paragraphs (a)(1)(i) and (a)(1)(ii)
do not apply if the registration statement is on Form S-3, Form S-8 or Form F-3, and the information required to be included in
a post-effective amendment by those paragraphs is contained in periodic reports filed by the Registrant pursuant to section 13
or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in this Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 13.5pt">(2)&nbsp;&nbsp;That, for the purpose
of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered in it, and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 13.5pt">(3)&nbsp;&nbsp;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.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 13.5pt">(4)&nbsp;&nbsp;That, for the purpose
of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the
securities:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">The undersigned registrant undertakes that in a primary
offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method
used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer to sell such securities
to such purchaser:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: 13.5pt">(i)&nbsp;&nbsp;Any
preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule
424 (&sect; 230.424 of this chapter);</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: 13.5pt">(ii)&nbsp;&nbsp;Any
free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to
by the undersigned registrant;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: 13.5pt">(iii)&nbsp;&nbsp;The
portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: 13.5pt">(iv)&nbsp;&nbsp; Any
other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">(b) The undersigned Registrant hereby undertakes that,
for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant'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 13(a) or Section 15(d) of the Securities Exchange Act of 1934), that is incorporated by
reference in this Registration Statement shall be deemed to be a new registration statement relating to the securities offered
in it, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">(c) Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as
expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person
of the Registrant 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 Registrant 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 Securities Act of 1933 and will be governed by the final adjudication of such
issue.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><B>SIGNATURES </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">Pursuant to the requirements of the Securities Act
of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on
Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized,
in Minneapolis, Minnesota, on August 1, 2012.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">INSIGNIA SYSTEMS, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 58%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 39%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid">/s/ Scott F. Drill</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Scott F. Drill, Chairman<BR> and Chief Executive Officer<BR> (principal executive officer)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid">/s/ John C. Gonsior</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>John C. Gonsior, Vice President of<BR> Finance and Chief Financial Officer<BR> (principal financial and accounting officer)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><B>SIGNATURES AND POWERS OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">Pursuant to the requirements of the Securities Act
of 1933, this registration statement has been signed on</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">August 1, 2012 by the following persons in the capacities indicated.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">Each person whose signature appears below also constitutes
and appoints Scott F. Drill his true and lawful attorney-in-fact and agent with full powers of substitution and resubstitution
for and in his or her name, place and stead, in any and all capacities, to sign any or all amendments (including post-effective
amendments) to this registration statement, and to file the same, with all exhibits thereto, and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority
to do and perform each and every act and thing requisite or necessary to be done in and about the premises, as fully to all intents
and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent
or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 25%; border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif">Signature</TD>
    <TD NOWRAP STYLE="width: 2%; font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 73%; border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif">Title</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif">/s/ Scott F. Drill</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Chairman, Chief Executive Officer, Secretary and Director (principal executive officer)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Scott F. Drill</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif">/s/ John C. Gonsior</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Vice President of Finance, Chief Financial Officer and Treasurer (principal financial and accounting officer)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">John C. Gonsior</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif">/s/ David L. Boehnen</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">David L. Boehnen</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif">/s/ Peter V. Derycz</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Peter V. Derycz</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif">/s/ Donald J. Kramer</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Donald J. Kramer</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif">/s/ Reid V. MacDonald</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Reid V. MacDonald</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif">/s/ Gordon F. Stofer</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">Gordon F. Stofer</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD NOWRAP STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">The above persons signing as directors are all of the directors of the Registrant.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman,serif; margin: 0; text-align: center">EXHIBIT INDEX</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.1</TD><TD STYLE="text-align: justify">2003 Incentive Stock Option Plan, as amended (filed herewith)</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.2</TD><TD STYLE="text-align: justify">Employee Stock Purchase Plan, as amended (filed herewith)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.1</TD><TD STYLE="text-align: justify">Opinion and Consent of Best &amp; Flanagan LLP (filed herewith)</TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">23.1</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Baker Tilly Virchow Krause, LLP, independent registered
public accounting firm (filed herewith)</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">23.2</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Grant Thornton LLP, independent registered public accounting
firm (filed herewith)</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>


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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">23.3</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Best &amp; Flanagan LLP (included in Exhibit 5.1)</FONT></TD></TR></TABLE>


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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">24.1</TD><TD STYLE="text-align: justify">Powers of Attorney (included on page II-5 of this Registration Statement)</TD></TR></TABLE>

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<P STYLE="font: 11pt New York,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt New York,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt New York,serif; margin: 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>2
<FILENAME>insignia123129_ex4-1.htm
<DESCRIPTION>2003 INCENTIVE STOCK OPTION PLAN
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: right"><B>EXHIBIT 4.1</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>INSIGNIA SYSTEMS, INC.</B></P>

<P STYLE="font: bold 12pt Times New Roman,serif; margin: 0; text-align: center">2003 INCENTIVE STOCK OPTION PLAN</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><I>(Adopted by Board of Directors February 24, 2003)</I></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><I>(Approved by Shareholders on May 20, 2003)</I></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><I>(Amended through February 21, 2012; Approved by Shareholders
on May 23, 2012)</I></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Purpose</U></B>.&nbsp;&nbsp;The
purpose of this Plan is to provide a means whereby Insignia Systems, Inc. (the &ldquo;Company&rdquo;), may be able, by granting
options to purchase stock in the Company, to attract, retain and motivate capable and loyal employees, directors, consultants and
advisors of the Company and its subsidiaries, for the benefit of the Company and its shareholders.&nbsp;&nbsp;Both incentive stock
options which qualify for favorable tax treatment under Section 422 of the Internal Revenue Code (the &ldquo;Code&rdquo;), and
nonqualified stock options which do not qualify for favorable tax treatment, may be granted under the Plan.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Reservation
of Shares</U></B>.&nbsp;&nbsp;A total of 3,675,000 shares of the authorized but unissued shares of Common Stock of the Company,
par value $.01 per share, is reserved for issue upon the exercise of options granted under the Plan.&nbsp;&nbsp;If any option expires
or terminates for any reason without having been exercised in full, the unpurchased shares covered thereby shall become available
for additional options which may be issued to persons eligible under the Plan so long as it remains in effect.&nbsp;&nbsp;Shares
reserved for issue as provided herein shall cease to be reserved upon termination of the Plan.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Administration</U></B>.&nbsp;&nbsp;The
Plan shall be administered by the Compensation Committee of the Board of Directors (the &ldquo;Committee&rdquo;).&nbsp;&nbsp;The
Committee shall be appointed by the Board of Directors and shall be comprised solely of two or more &ldquo;non-employee directors&rdquo;
within the meaning of SEC Rule 16b-3.&nbsp;&nbsp;Each member of the Committee shall also be an &ldquo;outside director&rdquo; within
the meaning of Code Section 162(m).&nbsp;&nbsp;The Committee shall have the full power to construe and interpret the Plan and to
establish and amend rules and regulations for its administration.&nbsp;&nbsp;The Committee shall determine which persons shall
be granted options hereunder, the number of shares for which each option shall be granted, the types of options to be granted,
and any limitations on the exercise of options in addition to those imposed by this Plan.&nbsp;&nbsp;The Committee may also waive
any restrictions on the exercise of outstanding options and approve amendments to outstanding options, provided there is no conflict
with the terms of the Plan.&nbsp;&nbsp;The Committee shall apply such criteria as it deems appropriate in determining the persons
to whom options are granted and the number of shares to be covered by each option.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Eligibility</U></B>.&nbsp;&nbsp;An
option may be granted to any employee, director, consultant or advisor of the Company or its subsidiaries, except that no consultant
or advisor shall be granted options in connection with the offer and sale of securities in a capital raising transaction on behalf
of the Company.&nbsp;&nbsp;The maximum number of shares for which any person may be granted options under the Plan in any year
is limited to 100,000 shares.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Option
Grants To Outside Directors</U></B>.&nbsp;&nbsp;Each outside director of the Company shall automatically be granted an option to
purchase 10,000 shares of Common Stock on the date first appointed or elected as a director.&nbsp;&nbsp;Each outside director shall
also automatically be granted an option to purchase 5,000 shares of Common Stock on (a) the date of each subsequent annual meeting
of the shareholders, provided the outside director is either reelected or continues to serve as an outside director, or (b) the
anniversary of the prior year&rsquo;s grant in any year in which there is no meeting of the shareholders.&nbsp;&nbsp;In no event
shall a director receive more than one grant in any fiscal year.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt/115% Times New Roman,serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">The period within which an option
granted to an outside director must be exercised shall be the earlier of (a) ten years from the date of grant, or (b) 90 days after
the director ceases to be a director for any reason.&nbsp;&nbsp;Options granted to outside directors shall be immediately exercisable
in full when granted.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Exercise
Price</U></B>.&nbsp;&nbsp;The per share exercise price for each option shall be determined by the Committee at the time of grant,
provided that the per share exercise price for any incentive stock option, and any option granted to an outside director, shall
be not less than the fair market value of the Common Stock on the date the option is granted.&nbsp;&nbsp;In making such determination,
the Committee shall rely on market quotations, if available, but if not available, upon independent appraisals of the stock or
such other information deemed appropriate by the Committee.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Changes
in Present Stock</U></B>.&nbsp;&nbsp;In the event of a recapitalization, merger, consolidation, reorganization, stock dividend,
stock split or other change in capitalization affecting the Company&rsquo;s present capital stock, appropriate adjustment may be
made by the Committee in the number and kind of shares and the option price of shares which are or may become subject to options
granted or to be granted hereunder.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Exercise
of Option</U></B>.&nbsp;&nbsp;Receipt by the Company of a written notice from an optionee, specifying the number of shares to be
purchased, and accompanied by payment of the purchase price for such shares, shall constitute exercise of the option as to such
shares.&nbsp;&nbsp;The date of receipt by the Company of such written notice shall be the date of exercise of the option.&nbsp;&nbsp;The
Company may accept payment from a broker and, upon receipt of written instructions from the optionee, deliver the purchased shares
to the broker.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Option
Agreement Provisions</U></B>.&nbsp;&nbsp;Each option granted under the Plan shall be evidenced by a Stock Option Agreement executed
by the Company and the optionee, and shall be subject to the following terms and conditions, and such other terms and conditions
as may be prescribed by the Committee:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify"><B><U>Payment</U></B>.&nbsp;&nbsp;The full purchase price of the shares acquired upon exercise
of an option shall be paid in cash, certified or cashier&rsquo;s check, or in the form of Common Stock of the Company with a market
value equal to the option exercise price and free and clear of all liens and encumbrances.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify">The Committee in its sole discretion may
also permit the &ldquo;cashless exercise&rdquo; of an option.&nbsp;&nbsp;In the event of a cashless exercise, the optionee shall
surrender the option to the Company, and the Company shall issue the optionee the number of shares determined as follows:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>


<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 70%; border-collapse: collapse; font-size: 10pt; margin-left: 30%">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 3%; font-family: Times New Roman,serif; text-align: justify">X =&nbsp;&nbsp;</TD>
    <TD STYLE="width: 97%; font-family: Times New Roman,serif; text-align: justify">Y (A-B) /A where:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif; text-align: justify">X =</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">the number of shares to be issued to the optionee.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify; text-indent: 0in; font-family: Times New Roman,serif">Y =</TD>
    <TD STYLE="text-align: justify; text-indent: 0in; font-family: Times New Roman,serif">the number of shares with respect to which the option is being exercised.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify; text-indent: 0in; font-family: Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in; font-family: Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify; text-indent: 0in; font-family: Times New Roman,serif">A =</TD>
    <TD STYLE="text-align: justify; text-indent: 0in; font-family: Times New Roman,serif">the closing sale price of the Common Stock on the date of exercise, or in the absence thereof, the fair market value on the date of exercise.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="font-family: Times New Roman,serif; text-align: justify">B =</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">the option exercise price.</TD></TR>
</TABLE>


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<P STYLE="font: 10pt/115% Times New Roman,serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify"><B><U>Exercise Period</U></B>.&nbsp;&nbsp;The period within which an option must be exercised shall
be fixed by the Committee, and shall not exceed ten years from the date of grant for an incentive stock option.&nbsp;&nbsp;The
Committee may provide that an option will vest and become exercisable upon the completion of specified periods of employment, or
the attainment of specified performance goals.&nbsp;&nbsp;To the extent exercisable, an option may be exercised in whole or in
part.&nbsp;&nbsp;Outstanding unvested options shall become immediately exercisable in full in the event the Company is acquired
by merger, purchase of all or substantially all of the Company&rsquo;s assets, or purchase of a majority of the outstanding stock
by a single party or a group acting in concert.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify"><B><U>Rights of Optionee Before Exercise</U></B>.&nbsp;&nbsp;The holder of an option shall not
have the rights of a shareholder with respect to the shares covered by his or her option until such shares have been issued to
him or her upon exercise of the option.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD STYLE="text-align: justify"><B><U>No Rights to Continued Employment</U></B>.&nbsp;&nbsp;Nothing in the Plan or in any Stock
Option Agreement entered into pursuant hereto shall be construed to confer upon any optionee any right to continue in the employ
of his or her employer or interfere in any way with the right of his or her employer to terminate his or her employment at any
time.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD STYLE="text-align: justify"><B><U>Death of Optionee</U></B>.&nbsp;&nbsp;Upon the death of an optionee, the option, or any portion
thereof, may be exercised to the extent the optionee was entitled to do so at the time of the optionee&rsquo;s death, by his or
her executor or administrator or other person entitled by law to the optionee&rsquo;s rights under the option, at any time within
one year subsequent to the date of death.&nbsp;&nbsp;The option shall automatically expire one year after the optionee&rsquo;s
death to the extent not exercised.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD STYLE="text-align: justify"><B><U>Disability of Optionee</U>.</B>&nbsp;&nbsp;If an optionee is an employee of the Company or
its subsidiaries, and if the optionee&rsquo;s employment is terminated due to his or her disability, the optionee may, within one
year of such termination, exercise any unexercised portion of the option to the extent he or she was entitled to do so at the time
of such termination.&nbsp;&nbsp;The option shall automatically expire one year after such termination to the extent not exercised.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(g)</TD><TD STYLE="text-align: justify"><B><U>Other Termination of Employment</U></B>.&nbsp;&nbsp;If an optionee is an employee of the
Company or its subsidiaries, and if the optionee&rsquo;s employment is terminated other than by death, disability, or conduct which
is contrary to the best interests of his or her employer, the optionee may, within 90 days of such termination, exercise any unexercised
portion of the option to the extent he or she was entitled to do so at the time of such termination.&nbsp;&nbsp;The option shall
automatically expire 90 days after such termination to the extent not exercised.&nbsp;&nbsp;If the optionee&rsquo;s employment
is terminated by his or her employer for conduct which is contrary to the best interests of his or her employer, or if the optionee
violates any written nondisclosure agreement with his or her employer, as determined in either case by the optionee&rsquo;s employer
in its sole discretion, the unexercised portion of the optionee&rsquo;s option shall automatically expire at that time.&nbsp;&nbsp;Inter-company
transfers and approved leaves of absence for up to 90 days shall not be considered termination of employment.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(h)</TD><TD STYLE="text-align: justify"><B><U>Non-transferability of Option</U></B>.&nbsp;&nbsp;No option shall be transferable by the
optionee other than by will or by the laws of descent and distribution, and each option shall be exercisable during the optionee&rsquo;s
lifetime only by the optionee.&nbsp;&nbsp;No option may be attached or subject to levy by an optionee&rsquo;s creditors.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify"><B><U>Date of Grant</U></B>.&nbsp;&nbsp;The date on which the Committee approves the granting of
an option shall be considered the date on which such option is granted.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Additional
Provisions for Incentive Stock Options</U></B>.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify"><B><U>Dollar Limit</U></B>.&nbsp;&nbsp;Each option granted to an employee shall constitute an incentive
stock option, provided that no more than $100,000 of such options (based upon the fair market value of the underlying shares as
of the date of grant) can first become exercisable for any employee in any calendar year.&nbsp;&nbsp;To the extent an option grant
exceeds the $100,000 limitation, it shall constitute a non-qualified stock option.&nbsp;&nbsp;Each Stock Option Agreement with
an employee shall specify the extent to which it is an incentive and/or non-qualified stock option.&nbsp;&nbsp;For purposes of
applying the $100,000 limitation, options granted under this Plan and all other incentive stock option plans of the Company and
any parent or subsidiary corporation shall be included.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -1.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify"><B><U>Ten Percent Shareholders</U></B>.&nbsp;&nbsp;No incentive stock option shall be granted to
any employee who at the time directly or indirectly owns more than 10 percent of the combined voting power of all classes of stock
of the Company or of a parent or subsidiary corporation, unless the exercise price is not less than 110 percent of the fair market
value of such stock on the date of grant, and unless the option is not exercisable more than five years after the date of grant.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Restrictions on Transfer</U></B>. During
any period in which the offering of the shares under the Plan is not registered under federal and state securities laws, an optionee
shall agree in his or her option agreement that he or she is acquiring shares under the Plan for investment purposes, and not for
resale, and that the shares cannot be resold or otherwise transferred except pursuant to registration or unless, in the opinion
of counsel for the Company, registration is not required.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">Any restrictions upon shares acquired
upon exercise of an option pursuant to the Plan and the Stock Option Agreement shall be binding upon the optionee, and his or her
heirs, executors, and administrators.&nbsp;&nbsp;Any stock certificate issued under the Plan which is subject to restrictions shall
be endorsed so as to refer to the restrictions on transfer imposed by the Plan, and by applicable securities laws.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Withholding of Taxes</U></B>.&nbsp;&nbsp;The
Company shall make such provisions and take such steps as it may deem necessary or appropriate for the withholding of any taxes
that the Company is required by any law or regulation to withhold in connection with any option including, but not limited to,
withholding a portion of the shares issuable on exercise of an option, or requiring the optionee to pay to the Company, in cash,
an amount sufficient to cover the Company&rsquo;s withholding obligations.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Duration of Plan</U></B>.&nbsp;&nbsp;The
Plan shall terminate ten years after the date of its adoption by the Board of Directors, unless sooner terminated by issuance of
all shares reserved for issuance hereunder, or by the Board of Directors pursuant to Section 13.&nbsp;&nbsp;No option shall be
granted under the Plan after such termination date.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Termination or Amendment
of the Plan</U></B>.&nbsp;&nbsp;The Board of Directors may at any time terminate the Plan, or make such modifications to the Plan
as it shall deem advisable.&nbsp;&nbsp;No termination or amendment of the Plan may, without the consent of the optionee to whom
any option shall previously have been granted, adversely affect the rights of such optionee under such option.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Shareholder Approval</U></B>.&nbsp;&nbsp;The
Board of Directors shall submit the Plan to the shareholders for their approval within 12 months of the date of its adoption by
the Board.&nbsp;&nbsp;Options granted prior to such approval are contingent on receipt of such approval, and shall automatically
lapse if such approval is not granted.&nbsp;&nbsp;The Board shall also submit any amendments to the shareholders for approval if
required by applicable law or regulation.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Interpretation</U>.</B>&nbsp;&nbsp;The
Plan shall be interpreted in accordance with Minnesota law.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>3
<FILENAME>insignia123129_ex4-2.htm
<DESCRIPTION>EMPLOYEE STOCK PURCHASE PLAN
<TEXT>
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<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: right"><B>EXHIBIT 4.2</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>INSIGNIA SYSTEMS, INC.</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>EMPLOYEE STOCK PURCHASE PLAN</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">(<I>Amended through February 21, 2012; Approved by Shareholders
on May 23, 2012</I>)</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Establishment
of Plan</U></B>.&nbsp;&nbsp;Insignia Systems, Inc. (hereinafter referred to as the &ldquo;Company&rdquo;) 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 &ldquo;INSIGNIA SYSTEMS, INC. EMPLOYEE STOCK PURCHASE PLAN&rdquo;
(hereinafter referred to as the &ldquo;Plan&rdquo;). The Company intends that the Plan shall qualify as an &ldquo;Employee Stock
Purchase Plan&rdquo; under Section 423 of the Internal Revenue Code of 1986, as amended, and shall be construed in a manner consistent
with the requirements of said Section 423 and the regulations thereunder.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Purpose</U></B>.
&nbsp;&nbsp;The Plan is intended to encourage stock ownership by employees of the Company, and as an incentive to them to remain
in employment, improve operations, increase profits, and contribute more significantly to the Company&rsquo;s success.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Administration</U></B>.
&nbsp;&nbsp;The Plan shall be administered by a stock purchase committee (hereinafter referred to as the &ldquo;Committee&rdquo;)
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 &ldquo;Board of Directors&rdquo;). 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 Company, its employees and it shareholders and in accordance with
the purposes of the Plan; provided, however, that the provisions of the Plan shall be construed in a manner consistent with the
requirements of Section 423 of the Internal Revenue Code, as amended. Such determinations shall be binding upon the Company and
the participants in the Plan unless otherwise determined by the Board of Directors. The Company shall pay all expenses of administering
the Plan. No member of the Board of Directors or the Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any option granted under it.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Duration
and Phases of the Plan</U></B>. &nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;The Plan will commence on January 1, 1993, and will continue until terminated
by the Board pursuant to Section 15, except that any phase commenced prior to such termination shall, if necessary, be allowed
to continue beyond such termination until completion.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan shall be carried out in one
or more phases, each phase being for a period of one year. Each phase shall commence immediately after the termination of the preceding
phase. The existence and date of commencement of a phase (the &ldquo;Commencement Date&rdquo;) shall be determined by the Committee,
provided that the commencement of the first phase shall be within twelve (12) months before or after the date of approval of the
Plan by the shareholders of the Company. In the event all of the stock reserved for grant of options hereunder is issued pursuant
to the terms hereof prior to the commencement of one or more phases scheduled by the Committee or the number of shares remaining
is so small, in the opinion of the Committee, as to render administration of any succeeding phase impracticable, such phase or
phases shall be canceled. Phases shall be numbered successively as Phase 1, Phase 2 and Phase 3.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors may elect to
accelerate the termination date of any phase effective on the date specified by the Board of Directors in the event of (i) any
consolidation or merger of the Company in which the Company is not the continuing or surviving corporation or pursuant to which
shares would be converted into cash, securities or other property, other than a merger of the Company in which shareholders immediately
prior to the merger have the same proportionate ownership of stock in the surviving corporation immediately after the merger; (ii)
any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all
of the assets of the Company, or (iii) any plan or liquidation or dissolution of the Company.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Eligibility</U></B>.
&nbsp;&nbsp;All Employees, as defined in Paragraph 19 hereof, who are employed by the Company at least one day prior to the Commencement
Date of a phase shall be eligible to participate in such phase.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Participation</U></B>.
&nbsp;&nbsp;Participation in the Plan is voluntary. An eligible Employee may elect to participate in any phase of the plan, and
thereby become a &ldquo;Participant&rdquo; in the Plan, by completing the Plan payroll deduction form provided by the Company and
delivering it to the Company or its designated representative prior to the Commencement Date of that phase. Payroll deductions
for a Participant shall commence on the first payday after the Commencement Date of the phase and shall terminate on the last payday
immediately prior to or coinciding with the termination date of that phase unless sooner terminated by the Participant as provided
in Paragraph 9 hereof.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Payroll
Deductions</U></B>. &nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;Upon enrollment, a Participant shall elect to make contributions to the Plan by payroll deductions
(in full dollar amounts and in amounts calculated to be as uniform as practicable throughout the period of the phase), in the aggregate
amount not in excess of 10% of such Participant&rsquo;s Base Pay for the term of the Phase, as determined according to Paragraph
19 hereof.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">The minimum authorized payroll deduction must
aggregate to not less than $10 per pay period.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that the Participant&rsquo;s
compensation for any pay period is terminated or reduced from the compensation rate for such a period as of the Commencement Date
of the phase for any reason so that the amount actually withheld on behalf of the Participant as of the termination date of the
phase is less than the amount anticipated to be withheld over the phase year as determined on the Commencement Date of the phase,
then the extent to which the Participant may exercise his option shall be based on the amount actually withheld on his behalf.
In the event of a change in the pay period of any Participant, such as from bi-weekly to monthly, an appropriate adjustment shall
be made to the deduction in each new pay period so as to ensure the deduction of the proper amount authorized by the Participant.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All payroll deductions made for Participants
shall be credited to their accounts under the Plan. A Participant may not make any separate cash payments into such account.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for his right to discontinue
participation in the Plan as provided in Paragraph 9, no Participant shall be entitled to increase or decrease the amount to be
deducted in a given phase after the Commencement Date.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Options</U></B>.</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD><U>Grant of Option</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>A Participant who is employed by the Company as of the Commencement Date of a phase shall be granted an option as of such date
to purchase a number of full shares of Company common stock to be determined by dividing the total amount to be credited to that
Participant&rsquo;s account under Paragraph 7 hereof by the option price set forth in Paragraph 8(a)(ii)(A) hereof, subject to
the limitations of Paragraph 10 hereof.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD>The option price for such shares of common stock shall be the lower of:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 2in"></TD><TD STYLE="width: 0.5in">A.</TD><TD>Eighty-five percent (85%) of the fair market value of such shares of common stock on the Commencement Date of the phase; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 2in"></TD><TD STYLE="width: 0.5in">B.</TD><TD>Eighty-five percent (85%) of the fair market value of such shares of common stock on the termination date of the phase.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD>The fair market value of shares of common stock of the Company shall be determined by the Committee for each valuation date
in a manner acceptable under Section 423 of the Internal Revenue Code of 1986.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD>Anything herein to the contrary notwithstanding, no Employee shall be granted an option hereunder:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 2in"></TD><TD STYLE="width: 0.5in">A.</TD><TD>Which exceeds a 10,000 share limit per Employee for each plan phase;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 2.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 2in"></TD><TD STYLE="width: 0.5in">B.</TD><TD>Which permits his rights to purchase stock under all employee stock purchase plans of the Company, its subsidiaries or its
parent, if any, to accrue at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) of the fair market value of such stock
(determined at the time such option is granted) for each calendar year in which such option is outstanding at any time;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 2.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 2in"></TD><TD STYLE="width: 0.5in">C.</TD><TD>If immediately after the grant such Employee would own and/or hold outstanding options to purchase stock possessing five percent
(5%) or more of the total combined voting power or value of all classes of stock of the Company, its parent, if any, or of any
subsidiary of the Company. For purposes of determining stock ownership under this Paragraph, the rules of Section 424(d) of the
Internal Revenue Code, as amended, shall apply; or</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 2in"></TD><TD STYLE="width: 0.5in">D.</TD><TD>Which can be exercised after the expiration of 27 months from the date the option is granted.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD><U>Exercise of Option</U>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>Unless a Participant gives written notice to the Company pursuant to Paragraph 8(b)(ii) or Paragraph 9 prior to the termination
date of a phase, his option for the purchase of shares will be exercised automatically for him as of such termination date for
the purchase of the number of full shares of Company common stock which the accumulated payroll deductions in his account at that
time will purchase at the applicable option price, subject to the limitations set forth in Paragraph 10 hereof.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 2in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 2in; text-indent: -0.5in"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD>A Participant may, by written notice to the Company at any time during the thirty (30) day period immediately preceding the
termination date of a phase, elect, effective as of the termination date of that phase, to exercise his option for a specified
number of full shares less than the maximum number which may be purchased under his option.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 2in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD>As promptly as practicable after the termination date of any phase, the Company will deliver to each Participant herein the
common stock purchased upon the exercise of his option, together with a cash payment equal to the balance, if any, of his account
which was not used for the purchase of common stock with interest accrued thereon.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Withdrawal
or Termination of Participation</U></B>. &nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;A Participant may, at any time prior to the termination date of a phase,
withdraw all payroll deductions then credited to his account by giving written notice to the Company. Promptly upon receipt of
such notice of withdrawal, all payroll deductions credited to the Participant&rsquo;s account will be paid to him with interest
accrued thereon and no further payroll deductions will be made during the phase. In such event, the option granted the Participant
under that phase of the Plan shall lapse immediately. Partial withdrawals of payroll deductions hereunder may not be made.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of the death of a Participant,
the person or persons specified in Paragraph 14 may give notice to the Company within sixty (60) days of the death of the Participant
electing to purchase the number of full shares which the accumulated payroll deductions in the account of such deceased Participant
will purchase at the option price specified in Paragraph 8(a)(ii) and have the balance in the account distributed in cash with
interest accrued thereon. If no such notice is received by the Company within said sixty (60) days, the accumulated payroll deductions
will be distributed in full in cash with interest accrued thereon.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of Participant&rsquo;s
employment for any reason other than death of the Participant, the payroll deductions credited to his account, plus interest, shall
be returned to him.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Stock
Reserved for Options</U></B>.&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;One Million Four Hundred Thousand (1,400,000) shares of the Company&rsquo;s common
stock are reserved for issuance upon the exercise of options to be granted under the Plan. Shares subject to the unexercised portion
of any lapsed or expired option may again be subject to option under the Plan.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the total number of shares of the
Company common stock for which options are to be granted for a given phase as specified in Paragraph 8 exceeds the number of shares
then remaining available under the Plan (after deduction of all shares for which options have been exercised or are then outstanding)
and if the Committee does not elect to cancel such phase pursuant to Paragraph 4, the Committee shall make a pro rata allocation
of the shares remaining available in as uniform and equitable a manner as it shall consider practicable. In such event, the options
to be granted and the payroll deductions to be made pursuant to the Plan which would otherwise be effected may, in the discretion
of the Committee, be reduced accordingly. The Committee shall give written notice of such reduction to each Participant affected.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Participant (or a joint tenant
named pursuant to Paragraph 10(d) hereof) shall have no rights as a shareholder with respect to any shares subject to the Participant&rsquo;s
option until the date of the issuance of a stock certificate evidencing such shares. No adjustment shall be made for dividends
(ordinary or extraordinary, whether in cash, securities or other property), distributions or other rights for which the record
date is prior to the date such stock certificate is actually issued, except as otherwise provided in Paragraph 12 hereof.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of the Company common stock
to be delivered to a Participant pursuant to the exercise of an option under the Plan will be registered in the name of the Participant
or, if the Participant so directs by written notice to the Committee prior to the termination date of that phase of the Plan, in
the names of the Participant and one other person the Participant may designate as his joint tenant with rights of survivorship,
to the extent permitted by law.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Accounting
and Use of Funds</U></B>. &nbsp;&nbsp;Payroll deductions for each Participant shall be credited to an account established for him
under the Plan. A Participant may not make any separate case payments into such account. Such account shall be solely for bookkeeping
purposes and no separate fund or trust shall be established hereunder and the Company shall not be obligated to segregate such
funds. All funds from payroll deductions received or held by the Company under the Plan may be used, without limitation, for any
corporate purpose by the Company.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Adjustment
Provision</U></B>. &nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;Subject to any required action by the shareholders of the Company, the number of shares covered
by each outstanding option, and the price per share thereof in each such option, shall be proportionately adjusted for any increase
or decrease in the number of issued shares of the Company common stock resulting from a subdivision or consolidation of shares
or the payment of a share dividend (but only on the shares) or any other increase or decrease in the number of such shares effected
without receipt of consideration by the Company.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of a change in the shares
of the Company as presently constituted, which is limited to a change of all its authorized shares with par value into the same
number of shares with a different part value or without par value, the shares resulting from any such change shall be deemed to
be the shares within the meaning of this Plan.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">13. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Non-Transferability
of Options</U></B>. &nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;Options granted under any phase of the Plan shall not be transferable except under the laws
of descent and distribution and shall be exercisable only by the Participant during his lifetime and after his death only by his
beneficiary of the representative of his estate as provided in Paragraph 9(b) hereof.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither payroll deductions credited
to a Participant&rsquo;s account, nor any rights with regard to the exercise of an option or to receive common stock under any
phase of the Plan may be assigned, transferred, pledged, or otherwise disposed of in any way by the Participant. Any such attempted
assignment, transfer, pledge or other disposition shall be null and void and without effect, except that the Company may, at its
option, treat such act as an election to withdraw funds in accordance with Paragraph 9.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">14. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Designation
of Beneficiary</U></B>. &nbsp;&nbsp;A Participant may file a written designation of a beneficiary who is to receive any cash to
the Participant&rsquo;s credit plus interest thereon under any phase of the Plan in the event of such Participant&rsquo;s death
prior to exercise of his option pursuant to Paragraph 9(b) hereof, or to exercise his option and become entitled to any stock and/or
cash upon such exercise in the event of the Participant&rsquo;s death prior to exercise of the option pursuant to Paragraph 9(b)
hereof. The beneficiary designation may be changed by the Participant at any time by written notice to the Company.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">Upon the death of a Participant and upon receipt by
the Company of proof deemed adequate by it of the identity and existence at the Participant&rsquo;s death of a beneficiary validly
designated under the Plan, the Company shall in the event of the Participant&rsquo;s death under the circumstances described in
Paragraph 9(b) hereof, allow such beneficiary to exercise the Participant&rsquo;s option pursuant to Paragraph 9(b) if such beneficiary
is living on the termination date of the phase and deliver to such beneficiary the appropriate stock and/or cash after exercise
of the option. In the event there is no validly designated beneficiary under the Plan who is living at the time of the Participant&rsquo;s
death under the circumstances described in Paragraph 9(b) or in the event the option lapses, the Company shall deliver the cash
credited to the account of the Participant with interest to the executor or administrator of the estate of the Participant, or
if no such executor or administrator has been appointed to the knowledge of the Company, it may, in its discretion, deliver such
cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is
known to the Company, then to such other person as the Company may designate. The Company will not be responsible for or be required
to give effect to the disposition of any cash or stock or the exercise of any option in accordance with any will or other testamentary
disposition made by such Participant or in accordance with the provision of any law concerning intestacy, or otherwise. No designated
beneficiary shall, prior to the death of a Participant by whom he has been designated, acquire any interest in any stock or in
any option or in the cash credited to the Participant under any phase of the Plan.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">15. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Amendment
and Termination</U></B>. &nbsp;&nbsp;The Plan may be terminated at any time by the Board of Directors provided that, except as
permitted in Paragraph 4(c) with respect to an acceleration of the termination date of any phase, no such termination will take
effect with respect to any options then outstanding. Also, the Board may, from time to time, amend the Plan as it may deem proper
and in the best interests of the Company or as may be necessary to comply with Section 423 of the Internal Revenue Code of 1986,
as amended, or other applicable laws or regulations; provided, however, that no such amendment shall, without prior approval of
the shareholders of the Company (1) increase the total number of shares for which options may be granted under the Plan (except
as provided in Paragraph 12 herein), (2) permit aggregate payroll deductions in excess of ten percent (10%) of a Participant&rsquo;s
compensation as of the Compensation Date of a phase, or (3) impair any outstanding option.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">16. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Interest</U></B>.
&nbsp;&nbsp;In any situation where the Plan provides for the payment of interest on a Participant&rsquo;s payroll deductions, such
interest shall be determined by averaging the month-end balances in the Participant&rsquo;s account for the period of his participation
and computing interest thereon at the initial rate of three percent (3%) per annum. This interest rate may be adjusted periodically
by the Committee as it deems appropriate.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">17. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Notices</U></B>.
&nbsp;&nbsp;All notices or other communications in connection with the Plan or any phase thereof shall be in the form specified
by the Committee and shall be deemed to have been duly given when received by the Participant or his designated personal representative
or beneficiary or by the Company or its designated representative, as the case may be.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">18. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Participation
of Subsidiaries</U></B>. &nbsp;&nbsp;The Employees of any Subsidiary of the Company shall be entitled to participate in the Plan
on the same basis as Employees of the Company, unless the Board of Directors determines otherwise. Effective as of the date of
coverage of any Subsidiary, any references herein to the &ldquo;Company&rdquo; shall be interpreted as referring to such Subsidiary
as well as to Insignia Systems, Inc.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">In the event that any Subsidiary which is covered under
the Plan ceases to be a Subsidiary of Insignia Systems, Inc. the employees of such Subsidiary shall be considered to have terminated
their employment for purposes of Paragraph 9 hereof as of the date such Subsidiary ceases to be such a Subsidiary.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">19. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Definitions</U></B>.
&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&ldquo;Subsidiary&rdquo; shall include any corporation defined as a subsidiary of the Company in Section 424(f)
of the Internal Revenue Code of 1986, as amended.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;Employee&rdquo; shall mean any
employee, including an officer, of the Company who as of the day immediately preceding the Commencement Date of a phase is customarily
employed by the Company for more than twenty (20) hours per week and more than five (5) months in a calendar year.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;Base Pay&rdquo; is the regular
pay for employment for each employee as annualized for a twelve (12) month period, exclusive of overtime, commissions, bonuses,
disability payments, shift differentials, incentives and other similar payments, determined as of the Commencement Date of each
phase.</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

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<TYPE>EX-5.1
<SEQUENCE>4
<FILENAME>insignia123129_ex5-1.htm
<DESCRIPTION>OPINION AND CONSENT OF BEST & FLANAGAN LLP
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<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: right"><B>EXHIBIT 5.1 </B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">August 1, 2012</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Board of Directors</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Insignia Systems, Inc.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">8799 Brooklyn Blvd.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Minneapolis, Minnesota 55445</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">RE:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; REGISTRATION
STATEMENT ON FORM S-8</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Ladies and Gentlemen:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">In connection with the Registration Statement on Form
S-8 filed by Insignia Systems, Inc. with the Securities and Exchange Commission, relating to the offering of an additional 500,000
shares of common stock, $.01 par value, under the 2003 Incentive Stock Option Plan, and an additional 200,000 shares of common
stock, $.01 par value, under the Employee Stock Purchase Plan (the &ldquo;Shares&rdquo;), please be advised that as counsel to
the Company, upon examination of such corporate documents and records as we have deemed necessary or advisable for the purposes
of this opinion, it is our opinion that:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is a validly existing corporation in good standing under the laws of the State of Minnesota.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
issuance by the Company of the Shares after the Company&rsquo;s receipt of the purchase price therefor, the Shares shall be duly
authorized, legally and validly issued, fully paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">We hereby consent to the filing of this opinion as
an exhibit to the Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Very truly yours,</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">/s/ Best &amp; Flanagan LLP</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Best &amp; Flanagan LLP</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>5
<FILENAME>insignia123129_ex23-1.htm
<DESCRIPTION>CONSENT OF BAKER TILLY VIRCHOW KRAUSE, LLP
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<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: right"><B>EXHIBIT 23.1</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">We have issued our reports, dated March 7, 2012, with respect to the financial
statements and internal control over financial reporting included in the Annual Report of Insignia Systems, Inc. on Form 10-K for
the year ended December 31, 2011, which are incorporated by reference in this Registration Statement on Form S-8. We consent to
the incorporation by reference in the Registration Statement of the aforementioned reports.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">/s/ Baker Tilly Virchow Krause, LLP</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Minneapolis, Minnesota</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">August 1, 2012</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>6
<FILENAME>insignia123129_ex23-2.htm
<DESCRIPTION>CONSENT OF GRANT THORNTON LLP
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<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: right"><B>EXHIBIT 23.2</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">We have issued our report dated March 31, 2010 with respect to the financial
statements included in the Annual Report of Insignia Systems, Inc. on Form 10-K for the year ended December 31, 2009 which is incorporated
by reference in this Registration Statement on Form S-8. We consent to the incorporation by reference in the Registration Statement
of the aforementioned report.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">/s/ Grant Thornton LLP</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">Minneapolis, Minnesota</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">August 1, 2012</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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